March 11, 2016

Pricing and operations of Body Crypts (Apartments)

Proposed draft for Operations of Body Crypts at Greenhills and elsewhere in the country.

Objectives:

1. To get ROI on what was spent for the BC in Calamba;  to have those in La Union and Pangasinan built soon. (Submit PDCA)

2.   To capture the DE and market (70% of the total market)  (those who have less in life

3.  To capture funding from SSS (death benefit which has been increased from 20t to 40t per member

4.  To sell more plots to those who bought the BC;  because they did so because of lack of funds (after having been rendered financial ruin by hospital bills

5.  To provide more jobs and employment to sellers and unemployed

Reality:

1.   We are selling to a very narrow market (only 7% of the total market)

2.  We have not captured the DE and market (they usually go to the municipal or Catholic cemeteries

3.  We are very distant from the DE market

4.  Our assets, the BC are idled by lack of proper guidelines

WTDN:

1.  Pricing:

    Lease 5 years only, renewable:

    A   (topmost)    P9,000

    B  (eye level)    14,500

    C (waist level)   12,500

    D (ground level)  9,500

The price was designed to be competitive

A and D can be offered through the Barangay or office of DSWD to be favoring the finance challenged individual

Sharing -  50% -50% of the GP after deducting cost of the BC and ME, after renewal it shall be 50% of the revenue less ME.  The cost of land shall not be deductible since this is a lease.

The price excludes the price of marble cover which shall not exceed, and installation (labor cost)___________

2.  Placement:

     Channels:

    1.  Municipal health officer

    2. Morgues

    3.  SSS death benefits employees

   4.  Funeral homes

   5.  Barangay officials

       We can offer, depending on who demands benefits, a maximum of 10%

Hence we require lesser cost for the BC construction


Effectivity:

The pricing shall take effect after the JV partners have been informed, after posting this memo for 30 days which shall not be later than April 1, 2016
        




Jorge  U. Saguinsin
Senior Managing Director

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