Profit from used-clothing and other pre-

loved items
By Carlo S. Lorenciana (The Freeman) | Updated May 5, 2014 - 12:00am

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CEBU, Philippines - Several Filipinos are practically thrifty when it comes to buying material things to satisfy
their 'wants', searching for the cheapest and most affordable but useable second-hand goods.

In fact, at times these items are far better than the brand-new ones sold in malls.

Entrepreneurs who particularly operate an ukay-ukay business know this and the idea has become a factor
why it is thought as the most lucrative enterprise to start and engage in these days.

Ukay-ukay is a store or stall in the Philippines that sells used clothes, shoes, bags and accessories which
usually come from other countries and are sold at a very cheap price, depending on the quality and kind of the
product.

Stalls are usually set up in open public markets and some established stores are seen in some commercial
sidewalks at the city's downtown area.

The truth is some enterprising families or society groups even attempt to collect their second-hand things and
sell their within their neighborhood to earn some money from the sideline business.

The inexpensive items sold in these shops continue to draw people's attention and create traffic especially in
public places. Amid the penetration of famous brands in the market, people has continued to patronize the
local clothing industry.

Affordable clothes

Shopping 'ukay' products is a practical and wise choice for people who are on a tight budget and are looking
for branded yet easy-on-the pocket wardrobe. These wares are relatively low-priced than those sold in
department stores and other surplus and retail stores.

Carbon Market's ukay-ukay street bazaar is one of the most visited shopping area among local residents,
employees and even students especially on weekends.

Despite the rising competition as more individuals join the industry, vendors said starting such enterprise can
surely still be profitable because of the consistent demand from people and the longevity of the products.

Unlike business of selling food, they added, ukay-ukay items are non-perishable which means these can be
sold anytime.

"Sukad pa sa akong pagkabata, mao nani negosyo nga gitudlo sa among mama," said 41-year-old Leah
Lucero on how she learned about the industry of selling used clothes.

Lucero, a resident of barangay Mambaling in Cebu City, was 12 then when she first joined her mother in
making money out of selling ukay-ukay.
At an early age, her mother molded her into a self-made entrepreneur, believing that this could teach her
daughter on the value of earning one's hard earned money out of hard work.

"Tungod kay nagusto-an pud nako ang pagpaninda og ukay-ukay mao na nga gibawsan mi og maayong
panginabuhi sa Ginoo," Lucero told The FREEMAN on how being passionate with what you are doing can
actually bring success. "After years, nisugod nako og akong kaugalingon nga negosyo so separate na mi sa
akong mama."

One thing she has realized in ukay-ukay trading is that it really takes time and a great amount of patience and
effort to make the business successful.

Starting

With P8,000 as startup capital, she first bought a 100-kilo bundle of skirts which amounted P7,000. Ukay-ukay
are sold in bales--which usually weigh 100 kilos--by wholesale traders.

She spent the remaining money for operating expenses such as racks, hangers, shelves and storage boxes
for clothes. Maintainance cost for electricity should also be considered.

A bundle, she said, may contain 150 to 1000 different pieces of clothing sorted into specific kinds such as
pants, underwear, kid's wear, jackets, women's blouses, shirts, formal attires and shoes.

The cost of a bundle depends on the number of clothes it contains and the quality and type of the products,
vendors said.

For instance, a 100-kilo bundle of 'maong' pants would cost more or less P12,500 and has more than 170
pieces but it varies on the size.

In Lucero's case, the price for her pants ranges from P100 to P500--the brand dictates the cost--and those
bargained pieces are sold cheaper.

Vendors claimed they get their supplies from Korean or Japanese businessmen who trade used clothes in
Cebu, adding that most of the warehouses of these articles are located in Mandaue City.

The competition among ukay-ukay traders in the area serves as one basis for them as to how they price their
goods but, for the most part, pricing commonly depends on the entrepreneur's decision.

"Sigurado-a lang gyud nga di maalkanse, iangay lang ang presyo sa uban," she advised. "Presyo nga di lang
kaayo dako ug kanang igo lang gyod nga di ka ma-deficit."

Haggling

In this enterprise, potential sellers must be open to negotiate with the different types of customers who mostly
haggle--a common practice in public markets.

Even if items are already reasonably priced, many still want to bargain their wanted product with the intention
to save and buy more.

"Normal ma na sa among negosyo gyod ug pahangyuon man pud namo especially kadtong mga suki namo,"
Lucero shared, adding that the practice of allowing customers to haggle considerably retains loyalty and trust.
Lucero, a mother of two, could earn big during weekends and pay day as most people troop to the market,
usually aiming for the new ukay-ukay arrivals.

She said she could earn as high as P13,000 a day especially on Sundays when shoppers are on day-off and
congest in the market.

Ukay-ukay owners also added the months of December and January are mostly the best-selling periods for
them because some gift-givers prefer to give the affordable presents during the holiday season, helping them
earn as much as P15,000 a day.

Fees

Ukay-ukay traders in Carbon Market are members of the Cebu City United Vendors Association and they are
asked to pay daily a P20 ticket fee to the city hall and P10 to the barangay hall for them to be permitted to
operate in the market.

Other traders also comply with the payments to the government. Vendors also said their business permits are
renewed every year so they can continue their selling.

They added their families are highly dependent on the steady income stream they get from ukay-ukay and are
hoping that the industry will remain to live--if only the government will not implement strict policies against
it. (FREEMAN)