PAGSASANAY SA TAGUMPAY
The stand alone memorial park needing huge cap ex is no longer the applicable business model
The new applicable practical model is C3
1. What is C3: Crematorium, Chapel and Memorial Services and Crematorium. This is our vision statement
2. This is the model being used by Loyola and Sympathy. At this stage, Sympathy would win without trying over Janzen. Sympathy holds all the cards: embalming room, sale of columbarium, cremation, and chapel services (Janzen has only 2 chapels, what happens if there are simultaneous interments? It would just refer to Sympathy or rent chapels from Sympathy
3. High ROI. Up to 300% pa. Low cap ex required.
4. Low risk especially if you get the location that are strategic.
5. Low maintenance cost, less cap ex for maintenance. No grasses and landscaping to maintain. Low security risk and coverage.
6. Low op ex. Three businesses under one roof require less administrative and marketing expenses.
-x-x-x-x-x-x-x
included as a proponent investor.The stand alone memorial park needing huge cap ex is no longer the applicable business model
The new applicable practical model is C3
1. What is C3: Crematorium, Chapel and Memorial Services and Crematorium. This is our vision statement
2. This is the model being used by Loyola and Sympathy. At this stage, Sympathy would win without trying over Janzen. Sympathy holds all the cards: embalming room, sale of columbarium, cremation, and chapel services (Janzen has only 2 chapels, what happens if there are simultaneous interments? It would just refer to Sympathy or rent chapels from Sympathy
3. High ROI. Up to 300% pa. Low cap ex required.
4. Low risk especially if you get the location that are strategic.
5. Low maintenance cost, less cap ex for maintenance. No grasses and landscaping to maintain. Low security risk and coverage.
6. Low op ex. Three businesses under one roof require less administrative and marketing expenses.
-x-x-x-x-x-x-x
A memorial park is a no go because of proximity to residential units and being flood prone (katabi ng Taytay River) which being narrow due to land grabbing has been cause of frequent floods at the slightest rain.
A new concept/business model is being studied/to be proposed: memorial chapel with crematorium and columbarium
Opportunities +++ Threat ---
Inner town of Taytay - pop of 319,000 Loyola at Phase 1 hi way 2000
Cainta pop of 322,000 Narrow roads
SPLP and other pre need rent chapel may shortage No frontage along JP Rizal
Proximity of trusteeship plans Maingay pabrika
Destiny Memorial Plans tie up Katabi ng residential units
Location: Access to Highway 2000 II galing sa new munisiplyo labas sa P.O Ocampo to the
site nag end sa dulo.
After Taytay Drs. may Gen A Ricarte road palabas ng Valley Golf (may sementeryo
Cainta)
N.B. Cainta is the 2nd most populous municipality in the Philippines
Taytay is the 3rd most populous municipality in the Philippines
Meaning: PTM
Total population - 660,000 A 6,600
B 59,400
C 132,000
DE 462,000
In Cainta, the most populous barangay are:
San Andres (poblacion) 93,453 (malapit sa site)
San Juan 96,144 (malapit sa site)
San Isidro 66,341
In Taytay there are only barangays; the most populous are:
Dolores (Poblacion) 61, 115 (near the site)
Sta Ana 91,343
San Juan 103,343 (katabing Barangay ng San Isidro, boundary is
Gen Ricarte that stretches from Victoria Valley up to flood
way West Bank (access is via Hi way 2000 1 and 2)
San Isidro is sparsely populated only 36,780
The population is nearly equivalent to 6 big towns elsewhere in progressive areas of the Philippines. Cainta is as big as Calamba 454,586
Death Rate 3,310.
The 10,000 units could be snapped up in 3 years; (so may shortage na Taytay at Cainta
Just get 10% of that you can have 300 funeral service in a year (25 a month)
1 2 storey building with high towers for prominence is being conceived. Large parking area
Footprint is for 1,000 sm only, 7,000 is for offsites: space for concessioners,
With space for embalming room, casket display, crematorium
500 sm for set back and small impounding pond to contain flooding
800 sm for ash vault /crematorium garden
500 sm for concessionaires
500 sm for parks fountains etc
5,600 for parking say net parking area = 4000 sm good for 400 cars
100 sm for crematorium (near the factory)
1st floor chapel 800 sm
2 big chapels 100 sm x 2 = 200
4 medium chapel 50 x 4 = 200
4 small chapel 40 x 4 = 160 800 sm
balconies 240 sm
2nd floor columbarium 800 sm
800 x 40% buildable = 320 sm/ 0.18 = 1,777 x 7 layers = 12, 439
More can be built at the rest of 9,000 sm property just for 1,000 sm
Total 1,600
1,600 x 20 32,000,000
Crematorium 5,000,000
Casket other equipment 1,000,000
Vehicles 2,000,000
Offsites 3,000,000
Ash vaults 10,000 x 3,500 35,000,000
Can be bought in batches of 1,000
Total project cost 78,000,000
Project financing:
Equity - P20,000,000
Others Loan 60,000,000
5% 6 years to pay P1,333,333
Projected Revenues
1. Columbarium sales
Average P50,000/vault x 10000 500,000,000
less com 15% 75,000,000
Cogs 35,000,000
Net Sales 390,000,000
Say depreciation 48,000,000
Net sales 342,000,000
Can we sell this much? Demand study:
1. The Taytay Cemetery of about 5 hectare is filled up, Holy Gardens is loaded
The existing memorial parks sells for P100k each, clearly not affordable
The Cainta public cemetery built during the time of Mon Ilagan is about to be
filled up in a year.
2. Death rate for 600,000 total population is 3,000 dead a year. If we sell affordable
ash crypts, the 10,000 will be gobbled up in a year. 20,000 will be a better number
increasing net revenues to P680m for an investment of only 1/10
2. Cremation
say 500 units per year x 20,000 10,000,000
less com 10% 2,000,000
Fuel 60 liters x 500 x 40 = 1,200,000
Labor 5% 500,000
Net 6,300,000
x 10 years 63,000,000
3. Chapel rental
10 units x 70% occupancy - 7 x 3,500 x 20 days
490,000 x 12 = 5,880,000
Less labor 5 x 12,000 x 13 780,000
SG 40,000 x 12 480,000
Electricity 20,000 x 12 240,000
Total 1,500,000 3,380,000
x 10 years 33,800,000
4. Funeral service
Say 15 units x 50,000 x 12 9,000,000
Less com 900,000
Casket 900,000
Labor 75,000
Gas 10,000
Amenities 15 x 3,000 45,000
Total 1,930,00 7,070,000
x 120 mos
848,400,000
Total revenues: Recap
Ash crypts - 342,000,000
Chapel rental 33,800,000
Funeral service 848,000,000
Total 1,223,800,000
less interest expense 24,000,000
Net revenues 1,199,000,000
ROI 1,199,000,000/30,000 = 39,996/10 396% x 55% = 217%
Land owner gets 1,199,000,000 x 40% = P 479,600 Wow vs zero now
For every P1,000, you get 2175 returns in 10 years
N.B.
1. It is better to have a two story building to save on elevator and other mechanicals. We have a large parking area.
2. Excluded are possible revenues from rental of concessionaires
3. Sa market feasibility - panalong2 more than half million population. Equivalent na Taytay o Cainta ay limang bayan sa Pangasinan Demand for burial spaces is 3,000 a year. Cainta and Taytay cant provide them
4. It gives opportunity for Destiny to launch business in Taytay, and Cainta. and even in Marikina
5. The site has multi pronged access to many areas:
1. JP Rizal going Angono side - Bayan, Barrio Dolores Muzon, Villa
2. JP Rizal going Cainta: Cainta, up to St Joseph and Vista Verde
3. JP Rizal going to Ricarte: Valley Golf and Ortigas Avenue residents, St Anthony
4. JP Rizal going to L. Wood - Tikling, and Manila East Road residents
5 P Ocampo going to Highway 2000 extension and Highway 2000. Cainta Greenland
and flood way residents,
Feasible na feasible from marketing standpoint and financial points of view
No comments:
Post a Comment
1. One of our beliefs is learning. It pays that you learn more to do more Just to survive you have to learn how forage in a forest or raise your food, catch prey
2. In order to discharge your job well, you have to learn your admin plan the process flow and standards.
3. To keep up with changes, you have to learn and read. There is no other way
4. signify that you have read by putting your name on this comment box. Every staff must: post the name on this comment box, or like, agree/will do. Your registering on this comment box is being graded under communication. Observe RRURAC: Read, Reflect, Understand, Realize (apply to reality) Apply, and Check (if it works)
You need to make __comments a month to qualify for promotion under our CCD
Read the posts on this site every AM talk. Many problems arise simply because people do not know what to do, because they did not read this site
We are making sure that you improve yourself, engage yourself in self improvement through this site...
Note: Only a member of this blog may post a comment.