More explanation on Value Packages (Holy Gardens Memorial Value Packages)

TO       :   Cynthia

                 Marketing Coordinator

Subject:   More Explanation on Value Packages

Background:

We recently read on some post that those buyers who initially went out to buy a cheap product eventually bought up more higher priced package/bundle which are cheaper after doing the math, if they bought the product separately.

Thus family size softdrinks are cheaper compared to solo, the breakfast combo are cheaper than those that are bought alone.  The cellphone company thus offers bundling even in the load:    30 minutes free call, 100 free text, and 1 hour internet, all for P30.00 vs. the P10.00 load.

Since we are not offering any discount promos for 2014, we shall push the bundling which we hope can deliver as much as 50% of the total additional sales.

Goals:   1. To achieve P20 million additional sales

               and P3 million additional cash flow

              2.  To gain bigger control of memorial service market

What:  

Please see corporate plan

1.  We will bundle only products that we have or that we have control of:

      Thus :

       1.  Products:

       Plots,

       Ash Crypts

       Body crypts

       Urns

      

       2.  Service

        Interment service  (Only Deluxe and Luxury are included)

        ETE (ash crypts+ CREM) and body crypt BTR)

        Funeral service

        (CAF is always bundled and integrated with sales)

2.  Thus bundling will apply only to new sales that are embedded, wrapped around the PPA and DOS.  The additional documents will be Addendum of TC .  No additional docs to be issued.

3.  Bundling, MVP involves two or more products bought together in cash or installment which involve:

     Product + Product

     Product + Service/S

4.  The lower price combo can be:

     1.  Included in sales achievement, cash flow achievement

     2.  Not commissionable,

     3.  Included in ORC
    4.  Basic IS is excluded from bundling, and thus from inclusion is sales achievement computation, and ORC computation

5.  An important value packaging is in purchase of combo for actual need:

"20% surcharge for actual need shall be waived;  thus

    Actual need:

    Lot 40,000 (pre need)                   P48,000.00 (actual need price)

    Interment service DLX                     20,000.00

    Chapel use w/o aircon @ P2,500      7,500,00

       
Total individual price                            75,500.00

Bundled price:  

  Plot                                                  P40,000.00

  IS                                                        17,000.00

   Chapel use                                          6,000.00

Total Value Package                             63,000.00

Savings for the MVP  combo                12,000.00

We can see that the sale from P48,000.00 jumped to P63,000 or an credible increase of P15,000.00/40,000 or 37.5%.  Thus if we add up other services like casket,  the percentage goes higher, and ROI gets bigger, because we have no investment in casket and other facilities.

N.B.

It is important thus to:

1.  Get to speed the suitabilty of chapel for viewing

2.  Having prepaid contracts with reliable funeral homes for partnership to join the fray in the total memorialization service/market

FAQ

1.Q   Is this available for installment sales   - A.   Yes.

2. Q.  Is the combo addition commissionable  -  A.  No.  Only the main product that is undiscounted.

3.  Q.  Is there a time limit for the MVP?    A.  We will hold for the entire 2014.

4.  Q.  Shall we offer this simultaneously?

     A. Only in SBU where available.  There will be implementation when these are available

5. Q.  Can existing buyers get a new product and qualify for MVP.

    A.  When he buys a combo value package (at least 2)

If he buys separately a service, it will fall under PMS (Prepaid Memorial Service)

6.  Q.  Is it available on line?   A.  Yes

7.  Q  Is an MVP transfereable?  A.  Yes    We expect churning and busines and churning for this.  The proper payment of transfer fees, ARU, (for immediate use) shall be implemented to speed up things.

8. Q.  Can an individual buy several MVP combo?  A.  Yes.

9. Q.  If a customer buys an MVP combo, and buys one new single product, will the new single product be treated as part of value package.  A.  Yes and no.  Yes, if he buys additional within a two week period, and the PPA DOS has not been accomplished, and the additional can be still inserted.  No if the documents have been done

10.  Q.  Will the combo package included in the sharing.  A.  No.

11.  Q.  Will the price hold true even if there are rapid price increases? A.  We will honor our commitment, as we have done in the past, even if the depository does no pay us.

N.B.    OSCA discount does not apply to Basic IS, and bundling, MVP, and other promo items.  It can only apply for individual product purchased separately, in which case, the bundling or combo is destroyed. (ie, the lower price does not apply)

Jorge US

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