How Much Could You Live On? One Month.

[chris49]

Our little bar / grocery store is packed every night and makes us at least 4000 pesos a day in profit.

Hard to believe, while others in the province can't make 400.

On what daily turnover?

 

Our margins run about 30% on groceries and ~200% on things like siomai, pizza etc. If they drink in house they also pay a premium for use of the videoke, tables and CR (140 pesos for an Emperador set with glasses and ice, same for ginebra.  A Bucket of beers is 200-250 depending on the beer). We are packed every night.

I will be in trouble with the Moderators again.

4000 is a lot in a small provincial town. But I won't dispute further. Such estabilshments up our way, will close Sunday/Monday nights and rely heavily on Friday/Saturday.

And on 4000 profit? With all that activity, don't you pay a staff, waitress, cashier bartender? What about the restocking, the groceries and all.

Our local guys aim for about minimum wage of 400 after they pay the overheads and most of that is family labor. In your case, someone has to make the siomai, cook the pizza and then, what about your electicity bill for the business side? Does that leave 4000/day? Nah, it can't believe that.

Edited August 7, 2015 by chris49

[chris49]

And as for your 30% mark up on groceries, come on. That's large volume so you must getting from a wholesaler and overselling, not underselling Pure Gold and all. In fact a lot of our vendors take the volume discount from Pure Gold on cartons, but the mark up is around 5% as I can see. 5-10%. Coke and or Pepsi, San Mig products from the distributor, there is no 30% mark up there. Unless in your Bar, but that would be San Mig products, however you would have to be turning over 30-40,000 pesos/day then minus the overheads. As we know here, provincial people don't have that kind of money.

Good if you like to explain it more.

[Jack Peterson]

however you would have to be turning over 30-40,000 pesos/day then minus the overheads.  

 

 

That sounds to me as a Taxable Business. Gross profit less OH ( wages etc etc) less Tax = net Profit 4.000 after tax? Licences, permits

 

JP :rolleyes:

[tothevictor]

 

however you would have to be turning over 30-40,000 pesos/day then minus the overheads.  

 

 

That sounds to me as a Taxable Business. Gross profit less OH ( wages etc etc) less Tax = net Profit 4.000 after tax? Licences, permits

 

JP :rolleyes:

 

 

Yep it is taxable and we meet our obligations. Next question? We have all our permits and yes, we have staff. What business doesn't?

And as for your 30% mark up on groceries, come on. That's large volume so you must getting from a wholesaler and overselling, not underselling Pure Gold and all. In fact a lot of our vendors take the volume discount from Pure Gold on cartons, but the mark up is around 5% as I can see. 5-10%. Coke and or Pepsi, San Mig products from the distributor, there is no 30% mark up there. Unless in your Bar, but that would be San Mig products, however you would have to be turning over 30-40,000 pesos/day then minus the overheads. As we know here, provincial people don't have that kind of money.

Good if you like to explain it more.

 

 

So how about you don't buy from Puregold? How about running a vehicle down to a wholesaler in Manila for stock? It's not really that complicated.

 

 

 

Our little bar / grocery store is packed every night and makes us at least 4000 pesos a day in profit.

Hard to believe, while others in the province can't make 400.

On what daily turnover?

 

Our margins run about 30% on groceries and ~200% on things like siomai, pizza etc. If they drink in house they also pay a premium for use of the videoke, tables and CR (140 pesos for an Emperador set with glasses and ice, same for ginebra.  A Bucket of beers is 200-250 depending on the beer). We are packed every night.

 

I will be in trouble with the Moderators again.

4000 is a lot in a small provincial town. But I won't dispute further. Such estabilshments up our way, will close Sunday/Monday nights and rely heavily on Friday/Saturday.

And on 4000 profit? With all that activity, don't you pay a staff, waitress, cashier bartender? What about the restocking, the groceries and all.

Our local guys aim for about minimum wage of 400 after they pay the overheads and most of that is family labor. In your case, someone has to make the siomai, cook the pizza and then, what about your electicity bill for the business side? Does that leave 4000/day? Nah, it can't believe that.

 

 

Yes we pay one waitress and a bartender and yes the profits I described are nett, not gross. If you're not doing it right then you're doing it wrong. 

[tothevictor]

I'd just like to say that you guys seem to be pretty screwed up on the concept of doing business. I go out, I network (we gave away a LOT of beer to various people when we started) and I do the same thing here as I would anywhere else. That's business. 

[tothevictor]

. As we know here, provincial people don't have that kind of money.

Good if you like to explain it more.

You are obviously either dealing with the wrong people in your province or you have no experience.

[Jack Peterson]

Next question?

My wife ( a CPA) who Follows these things has just said to me that it sounds as if it should be VAT registered on that sorter of turnover. That's the next Question. Are you? because this is  where so many small to middle size businesses get a whacking great bill from for retrospect Payments and to her it sounds that you may need to talk to your Accountant if not Registered.

Don't really to want to kick to much here but  people do get interested in things that spark some interest on Foreigners doing better than a local and is starting to sound like your are so maybe we can all be on a learning curve from you. :)

 

 

JP :tiphat:

[tothevictor]

 

Next question?

My wife ( a CPA) who Follows these things has just said to me that it sounds as if it should be VAT registered on that sorter of turnover. That's the next Question. Are you? because this is  where so many small to middle size businesses get a whacking great bill from for retrospect Payments and to her it sounds that you may need to talk to your Accountant if not Registered.

Don't really to want to kick to much here but  people do get interested in things that spark some interest on Foreigners doing better than a localwink.png and is starting to sound like your are so maybe we can all be on a learning curve from you. :)

 

 

JP :tiphat:

 

You don't need to get on a learning curve from me, just open the right kind of business. Great to hear that your wife is a CPA, I am also - registered in both Hong Kong and Singapore. The big mistake that locals make (and it is not their fault) is being under capitalized. That's about all I've got to say.

[tothevictor]

sh&t guys, this isn't difficult. Don't invest a dollar that you won't make two on. Why am I getting sh&t about this? 

[chris49]

"So how about you don't buy from Puregold? How about running a vehicle down to a wholesaler in Manila for stock? It's not really that complicated." "One waitress, one bartender"

I'm sure that is possible, how about the cost?

No one in the kitchen cooking those pizzas? No one washing dishes and glasses in this "packed out" bar?

Btw it's not me who is asking about tax and businesss permits, I have no idea why it would have any interest to anyone here.

Mate I am not a total novice. On a bar restaurant like yours, my mate was in there until 5-6 AM, only on the restocking while his wife did the book keeping, they came to hate it, as it ruled their lives.

Edited August 7, 2015 by chris49