Sustaining Profitability a Qualitative Inquiry into the Operational Practices and Challenges of Pasalubong Shop Operators and Personnel in Sorsogon City

Micro, Small, and Medium Enterprises (MSMEs) specializing in local tourism products, specifically pasalubong shops, serve as critical economic drivers in regional centers like Sorsogon City, Philippines. This qualitative inquiry explores the operational practices and challenges faced by pasalubong shop operators and personnel in Sorsogon City, with a focus on strategies for sustaining profitability. Utilizing a phenomenological approach, the study gathered insights through semi- structured interviews with 10 operators and key personnel in various pasalubong establishments. Transcript review is completed to strengthen credibility and trustworthiness. Thematic analysis revealed key operational practices encompassing strategic sourcing of local products, innovative product development and packaging, targeted marketing, and personalized customer service. Major challenges identified include intense competition, seasonality of tourism, supply chain inconsistencies, fluctuating capital, and difficulties in labor retention. To sustain profitability, operators employ strategies such as product diversification, strategic pricing, digital marketing, establishing local partnerships, and continuous innovation. The findings underscore the resilience and adaptability of local entrepreneurs in Sorsogon City and provide valuable insights for policymakers, tourism stakeholders, and aspiring business owners. Recommendations include enhancing government support for local product development, facilitating market linkages, and providing capacity-building programs.