Business Plan for Malasiqui Memorial Park

Executive Summary

This is a plan to buy, build and sell memorial park in Malasiqui Pangasinan, the 3rd most populous city in Pangasinan.  This will also take care of declining business in San Carlos City which has now limited inventory.

The proposed site is at km 190, 4 km from the city proper, and 14 km from San Carlos City along Malasiqui Villasis road.   The owner wants P500/sm for 48,100 sm or 22,050,000, 50% down payment, 1 year to pay quarterly

Objectives:

     1. To acquire  the property

     2. To develop property in 2 years time

     3.  To generate sales of P400,000,000 in 10 years

     4.  To sell 200,000,000 in 5 years

     5. To have only P500/sm as development cost

1.  Projected Sales:

            48,100 sm x 70%    = 33,670/2.5   =   13,648  

                                                               x   30,000

                                                                   409,400,000

                                                               x    50%

                                              NLP               204,000,000

                        Less cost of land                    22,050,000

                        Dev Cost                                30,000,000

                        GP                                       151,950,000

  2.  Sales and Marketing

      1.  Customers   -   the PTM are the residents of Malasiqui who number 130,000 more or less.    They are now progressively more affluent due to the TIPLEX and growing economy at  Region 1.  130,000/4  = 40,000 households

     Class A B and C    30% of 40,000   = 12,000 which nearly matches the inventory

     2.  Competition

          Garden of Shiloh which is located near the public market, the Catholic church and at the back of  municipal cemetery (which is full)   The news has it that Garden of Shilloh is fully sold

         Price List:

        1.   Lawn

        Lawn     -  single lot   includes PC   -    P39,000

        Lawn        2 lots                                   72,000

        Lawn        4 lots                                 151,000

       2.  Memorial court   6 lots                    261,000

       3.  Family Estate  16 lots                     611,000

       Their term is 30% dp, with balance payable in 1 to 5 years

       MA for their lowest priced plot is 506.00

       They had a promo this July which is less 15% on lot price

  3. Company

      Our plan/strategy is to sell 0% interest, 0 downpayment, 60 months to pay

      1.  Product plans:

                                                                      Ave price     % of total

          lawn    double interment   single plot        30,000         70%

          SSN                              4 plots              150,000       15

          GE                               12 plots             500,000        15

     2.  Pricing plans

         Lawn    

       1.  Pre selling

       1,000 plots

       Cash only

          100 x 20,000       2,000,000

          100 x 22,000       2,200,000

          100 x 25,000       2,500,000

          100  x 27,000      2,700,000

          100, x  28,500     2,850,000

          ST pre selling    12,250,000

     50% dp, balance in  6 months

        100 x 22,000         2,200,000

         100 x 24,000        2,400,000

         100  x 26,000       2,600,000

          100 x  28,000      2,800,000  

          100 x 29,500       2,950,000

                                   12,950,000                        25,200,000

 2..   Pre development price

      1,000 @500/month  x 30,000    30,000,000

      1,000 @550/month   x 33,000    33,000,000

      2,000 @600/month   x 36,000    72,000,000    132,000,000

  3.  Developed price

     2,000 @650/month   x 39,000     78,000,000

     2,000 @ 700/month  x 42,000     84,000,000    162,000,000

     Total   10,000 plots                                         319,200,000

     SSN      510  lots

     Pre dev       

     120,000 (/60)  @2,000 month   x  50  - 6,000,000

     150,000/60    @2,500  month   x 50  -   7,500,000

                                                              13,500,000

     Dev price

     180,000         @3,000 month   x  100  - 18,000,000

     210,000         @ 3,500 month  x  200  - 42,000,000

     225,000         @ 3,750, month  x 110   - 24,750,000

                                                               86, 750,000

   

                                                                           405,950,000

 Garden Estate   68 units

    Pre development

    8 x   400,000   cash only                       3,200,000

   20 x  (8,000 monthly) 480,0000               9,600,000

   20  x (9,500 monthly  570,000                10,400,000

   20  x (10,000 monthly  60,000,000          12,000,000

                                                               23,212,000

                                                                         429,162,000

Com:

    SE   -    7%

    SM      10%

    SD      14%   based on NLP  payable in  12 months

   Incentives:

     +   1% incentives to sellers if sales reaches 20 or more /quarter

     +   1.5%  to SD if target  is reached

          2.0 % to SD if  performance is over 120%

   ORC to CMO if target is reached

        1.5% if 100% 

        2.% if 120

    ME:

    up to SD     -   14%

    SE                   1%

    SD                   2%

    ORC   CMO      2%

       Total            19%           

   

  

--

Jorge U. Saguinsin
To "be the best, do your best, expect the best" always

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