To : The Board of Directors
Recommendation for changes in our sales structure to adopted from a leading memorial park grou
This office strongly recommends the following to boost our sales and strengthen our financial position:
1. They sell on the basis of :
1. Picture and rendering
2. Trust and confidence by customers and agents that they will finish the project
2. Massive sales force; 300 to 500 is the magic number
1. Continuous recruitment and training
2. Outright commission
3. Sales gimmicks and tarps
4. The big launch (minsan bawi ang investment on day 1 of launch) they can achieve
P100,000,000 sales in one one month (number of contracts, not cash flow, as they did
in La Union)
P100,000,000 sales in one one month (number of contracts, not cash flow, as they did
in La Union)
3. Sales and price promotion (get their fingers inside the door)
1 No interest (zero interest always
2. The magic number is 30,000 MA of P500.00 6 months to pay
3. Anything above 500.00 it becomes 66 months to pay
4. 2% for agents for spot cash
5. P300.00 for the agent for full dp/
6. Match the dp discount on the dp:
10% discount on the dp for 10% dp
20% discount on the dp for 20% dp
4. Collection fee of 5% for collectors who are bonded and not salaried and motorized. (after the outright commission period for agents usually 8 to 9 months)
Their top expense thus on jv is 20% on ME and 5% on collection
Their arrearages is is at 5% only (agents do not usually collect) bank to bank and credit collection sets you back by up to 7% but only 50% effectiveness
5. PC increased from 12 to 20%. The AAI (actuarial) Mabini Juan said that the viable PC is 25% for it to be viable for 50 years. We have to adop this becasue we will be one maintaining the memorial park when everything is sold out
6. When say 5 to 10% of plots remain, the PC purchase the rest of the plots to buy out the JV partner, the plot prices are increased by 50% to 100% to meet the 25% PC requirement. Then the only plots to be sold are those of the PC Fund.
7. Ours: the CAPF rate shall be incresed from 3% to 5% to have the following additional benefits for the customers in addition ot amortization deemed paid upon death of the plot buyer provided:
1. it is beyond contestable period;
2. no pre existing condition;
3. buyer is not engaged in risky job or hobbies
4. age 18 to 65 at time of death
ADDITIONAL BENEFITS
1. Return of amount paid (principal only) to the beneficiary; (additional cash benefits)
2. ADD
1. double benefits for accidental death
2. amortization deemed paid for permanent disability like lost of eyesight, paralysis, comatose, loss of use of both limbs and or arms; one half for one eye, one hand, and one limb only
For your notation and approval
