Local Store Grows
Sr. Cupane and his wife built and own a small store in the Massaca main market where they employee one woman to manage the store from 8am-6pm. With funds from the loan, Armando went to the capital city of Maputo (30km away) to buy goods for his store in three phases. He bought sacks of rice, flour, sugar, crates of vegetable oil, milk, beer, sodas, juices as well as fresh produce like potatoes, onions and fresh chicken and fish. Because he was able to buy in bulk, he received a considerable discount which allows for greater profit margins. Since he’s also a salaried driver he’s fortunate to have a car in which to carry goods back to the store in lieu of having to take the bus.
Armando has two refrigerators in the store and is thereby well prepared for the upcoming summer months when there is a lot more business stopping in for cold refreshments. However, he reports that the greatest profits are in fact made from the consistent sale of rice, sugar, flour, oil, fish and chicken. With all profits, Armando pays for the household costs where his wife, two children and sister-in-law live. In addition, he pays for the costs of schooling his two children ages 16 and 4 years old.
The store is constructed of concrete and covered by aluminum roofing so they are not affected by rain, however the security of the store at night is questionable. In recent months, the neighboring stores were robbed so he is talking with other owners about sharing the cost of a guard at night.
Because he has a car and refrigerators, Armando’s business is well situated for growth. The greatest difficulty for the business today is the varying sales; one day he can sell upwards of 5,000 metecais (approximately US$193) while the next is only 1,500 metecais (approximately US$58). Winter is considerably slower than the hotter summer months, midweek slower than weekends, and early in the month much slower than end of month when people get paid and are in a position to buy from him.
When asked why people buy from him instead of the neighboring stores, Armando chuckles and explains it’s because he treats his customers well. What sets him apart is that he offers people credit to buy early in the month, and pay him back at the end of the month when they are paid, which has built-up tremendous loyalty.
In the future, Armando plans to expand the size of his store and utilize the extra space so he can buy in bulk and keep great quantities in the store room.
This loan was funded by the good people at Kiva.
