Why pursuing the company vision is the great and profitable way to go

What:  ABE on the importance of the company vision statement

Objectives:

1.  To have shared vision among the employees, staff and officers; and to increase the number of believers and BIDDA

2.  To ensure the future growth and profitability of the group

3.  To make sure that every body understands the priority, the right thing to do so that wrong moves are avoided.

Reality:

1.  Many projects:  crematorium are in limbo, recruitment at Chapel Memorial Services do not happen, the Interment Services are neglected, (the funds are not processed at once, and inefficiency on this portion of the business remain.  Repairs of the equipment for the memorial services are unattended to 

2. Not to be outdone in this pursuit are two leading memorial parks aggressively investing huge sums for memorial park jv and /or purchase;  on the other hand SPLP are making it great.

3.  The future of memorialization as foreseen by this post is in the services:   cremation, memorial services (funeral and interment) Thus these three components are in its vision for the next five years:   cremation, chapel services, and columbarium

     Why funeral services:   

     1.  The first step in the memorial process is the purchase of the service:  the casket.  The GP is highest at this portion of the memorial process:   the casket price which is constant is only between 5 to 10% of total funeral service.   Thus 70% of the entire budget of the 500,000 who die annually is in funeral service.  The deceased may be interred in a municipal cemetery for only P6,000  for five year, but will spend P100,000 for funeral service.

        Thus in 2014, the memorial park sold only P500,000,000 but the pre need memorial plans sold over P20 billion in plans. Much money is to be made in funeral service;   however competition is intense and the protagonists have to be fast and aggressive.  Most memorial plans however  account however for 70% of chapel services sold.  Thus a memorial chapel associated with a memorial plan lost a huge chunk of its business and is slowing down, when its Memorial Plan business was closed by the authorities

      There are 500,000 who die annually (0.5% of the entire Philippine population who spend an average of P50,000 per or about P25 billion annually  (this supports the huge  sales figure of life plan company. SSS also pays between P20,000 to P40,000 funeral services to its deceased members. (But none to memorial park since the  funeral service is a basic service.

       The margin of funeral service is between 30 to 50%

   Cremation services

   1  Looking for a suitable memorial park site is a tedious and laborious process.   Most land owners would want cash sale.  The govt regulators would take 3 to 5 years to approve a project.  The LGUs:  from barangay to the SB require SOP.   The conversion at DAR takes ages and with the leftist head, a moratorium for  two years was called.

  2. While many Catholics still prefer the traditional burial, it costs a lot of money that would set back the family by more than a P100,000

       Say plot    -                 P60,000

       Interment service           25,000

       Funeral service             50,000   (METAL CASKET)

                                         135,000

 3.Cremation :

     1.  Is up by 40% in MM

     2.  It is cheap:

         Cremation only                      P20,000

         Cremation with casket rental    P30,000

         Cremation with service before    70,000

         with ceremony 

        You can halve the cost with cremation

    3.  You contribute  to saving the earth;  the precious real estate does not go to memorial  park development:   still goes back to agri commercial or housing;  is non polluting 

    4.  It is cheapest memorial service

    Comparison of GP

                                                TSP          CGS/Costs       Margin

    1.  Memorial park plots          30,000                                        250.00

    2.  Interment service dlx         23,000          60%       40%    P13,800.00

        Basic                               12,000          70          30%        3,600.00   

    3.  Funeral service                 30,000         60          40%        12,000.00

    4.  Memorial Plan                  30,000                       12%         3,600.00  

While we push hard work diligently and efficiently on memorial plots, we see that the margins, especially when we have the promos, were miniscule if not loss.  We supported the mission of providing the jobs to our sellers,  and enriching our jv partner.   Our gp is very low because we shoulder the entire CGS

What to do next:

1.   Pay attention support and work hard to support our vision: SOLVE ASAP THE PROBLEMS RELATED THERETO

      1. Interment service  those in IF, AP, those monitoring  interment, those who monitor the blogs for griefshare, (the obits)   the tributes posting, the FOFF

2.   Support work hard on the PMS PIS campaign;  (especially the SAA

3.  Push for the start completion of the following:

    1. Mortuary agreement where there are no CMS

    2.  Push for construction of embalming room in Calamba, hire driver and embalmer  (in the meantime have a mortuary agreement with ACE)

   3. Construct the memorial assets:

          1.  Crematorium in Pangasinan and Calamba

          2.  Start the chapel memorial services in HAMP

          ASAP. They have been in limbo for the last 6 months, begging for attention and budget.

4.  Beautify and level up all the services 

     1.  Interment

     2.  Chapel memorial service

5.  Incentivize cms and is

6.  Promote and hire people for cms, memorial plan.      

7.  Create more awareness for 

     IS

     CMS

     Memorial Plan                                

                           

--

Lecturer Jorge Saguinsin

To be the best you can be always