Business opportunity learned from meeting Mr. Dong Laquian of Sto Tomas Pampanga

I met Mr. Dong today, 1 day earlier than scheduled.  I met him about 3 weeks ago while biking down from Antipolo to Morong at Teresa, where I saw the karuwahe, a great contraption for interment that HGMP has for its customers.   Padlan in San Carlos City has one.  When I saw him, Holy Name rented two karuwahes from him

In our meeting, I gathered that:

1. Funeral memorial service is a great money making opportunity.  You canty sell chapel service without funeral memorial service.  The selling price for funeral service is 1000% of cost

2.  The FS and combo removes a lot of redundancy like flowers, tarps, balloons  resulting in considerable savings

3. Having memorial service and memorial plan is a great defining moment because the chapel and memorial service need not compete at the ambulance or morgue.  We can gather the cash ahead of others too.

4.  His price are reasonable and very competitive

A.  For the funeral service equipment:

1.  Vehicles

     Hearse

     He withdraw his offer for 2nd hand MB hearse, at P120t for two He said we we should get modern equipment:

     F150   - flower car                   P200t

     Expedition                                  280t

     Suburban                                   350t

     Karuwahe  with 3 options to tow:

     Horse, vehicle, people SS          180t

     He suggests to order first the  F150  and Expedition for start up, and 20 caskets for initial stocking

     Later on we should order a Hi Ace commuter van for family car.

     He suggests the same type of vehicle for all prices to impress everyone

     The MB at Holy Angels shall be refurbished and installed a new diesel engine to be a flower car

B.  Caskets

Price range from P2,400.00 stucco (the  lowest and P16,000 metal bubble stucco

York Bates (imported) price is at P40,000.00

Solid SS casket is priced at P75,000.00.

Dong suggests that we stock up with these high priced casket.

The selling price of service based on this prices is 10x cost.

Thus we see great opportunity for:

Chapel to make 500% mark up

Memorial plan to make similar margins.

Other costs are:

Labor:   Inday(on call) supervisor, one driver two service staff, to be paid allowance plus commission.

            Say     Supervisor  -    P7,000.00   +  1.5% of  50,000 sales max

                       Driver    -             4,000.00    + 0.75% of 50,000

                       Service crew       3,000.00     +0.50  of P50,000.

If below 50t, the commission is based on actual, if above 50t, 

                       Embalmer  P500.00

                       Signature of embalmer  -P1,000.00

Cost of cosmetics

Cost of embalming fluid

Escort, barangay fees.

WTDN:

1. Order 3 karuwahes for Morong, Pangasinan and Calamba

2.  By 2015, first quarter start funeral service in Pangasinan, Calamba and Morong.

3. Order the preparation of business plan for Chapel Memorial Services

Strategic issues:

1.  Will the JV partner share in the income of Chapel Memorial Service, or be entitled only for chapel use revenue?

2 Shall we invite them for a JV on Chapel Memorial Service? This should be made clear to them.

Jorge  S

The Holy Gardens Group - "THE MEMORIAL EXPERTS"

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