TO : All
--
Attention: Holy Gardens Greenhills
Holy Gardens Pangasinan
HAMP
Date: October 21, 2017
Subject: DEEPER UNDERSTANDING OF OUR BUSINESS MODEL (How do we we make money, earn from our business)
1. Our business model has changed from selling plots only to that of services
2. Our vision mentions to complete the following (affordable) memorialization business for the next five years:
chapel memorial services (funeraria)
crematorium (the wave of the future - very soon we would lose the ability and the resources to find land for memorial park plots. We have made investments/dp in crematorium: Calamba and Pangasinan, however, it is taking time to build the structure. WE SHOULD HASTEN THE PACE)
columbarium - it is the cheapest way to inter the dead in the future (for as long as there is diesel)
3. Higher value adding:
1. Memorial park plots which we are selling cheap, now gets the foot of the customer in the door. Our margins can be from negative to very low margins.
As of now, we fatten the agents with ME and collection fee, and the Memorial Care Fund
Sample computation of our gp:for 2.5 square meter lawn plot
36,000.00 48,000.00
Less PC, VAT ME
Collection fee 51.8 % 18,648.00 24,864.00
Net Lot Price 48.2 17,352,00 23,136.00
Our JV share say 50% 8,676.00 11,568.00
Less CGS 8,750.00 8,750.00
GP ( 74.00) 2,818.00
RGP (for each MA) ( 1.25) P46.69
Our sellers fare better
They get P1,753.20 2,316.00
WE HAVE EXPLAIN THIS VERY WELL TO OUR SELLERS. This does not include prizes: like the PATSIKOT
2. However, with the plots sold, we have 4 opportunities to make PHP, (bawe) for the services we are going to render. We just have to exploit this:
What are they?
2 (two) interment services
2 chapel memorial (funeral) services
Where GPs can be higher than the margins we make on the plots:
Interment service say: P23,000 x 2 x 30% = 13,800.00
Funeral service 30,000 x 2 x 40% = 24,000.00
Total 37,000.00
Having a share of wallet pa: Cremation and Ash crypts:
Cremation Margin
Say sales P12,000.00
Less com 1,200
Net sales 10,800.00
Less Fuel 2,000
Labor 1,000
Dep 1,000
Total OE 4,000
GP 6,800.00
Ash Crypts margin
Say sales 30,000.00
Less Com 10% 3,000.00
COGS 3,500.00
Total 6,500.00
GP 23,500
Summarize:
Amount %
GP on plots 2,818.00 5.8
GP on IS 13,800 30.00
on Funeral Service 24,000 40.00
Cremation 6,800 56.66
Ash Crypts 23,500 78.88
Total Earnings on loss plot 70,918
Nakita ba natin kung saang business tayo bumoto at magbuhos ng effort panahon at time
As Bill Gates observed, wealth is to be created in services (software) not in the hardware (as what IBM) and computer giants and even Apple think. even at only say $10.00 per copy then ($80.00 now)
SO DITO TAYO KIKITA SA SERVICES
3. To support this and in recognition of this better way to earn PHP for the company
1. We have incentivized interment service and funeral service
2. We are encouraging the building of cms, and pushing this hard.
HAMP SHOULD START ONE SOON. ONE YEAR NA NAGDADASAL ANG OPISINANG ITO. Sana narininig napapansin at kumikilos
4. What is the reality?
1. For IS, delays in the IF disbursement, lack of attention by TA and AP abound
2. No one is monitoring interments closely; the interment process has been corrupted
3. We are not pushing the development of CMS; the CMS people are not working hard enough as in Pangasinan
4. After 3 years, the CMS in Calamba has not begun despite purchase of many funeral equipment
5. We have invested 50% dp in crematorium and we have not begun
THIS OFFICE HAS THOUGHT OF PLANNED FOR THE FUTURE OF THE BUSINESS AND A NUMBER OF OBSTACLES/RESTRAINING FORCES stand in the way. Every one is enjoined to share the vision. TO LEARN AND BE ONE TO BUY IN THE CORRECT AND THE MORE PROFITABLE BUSINESS MODEL
It takes time to understand, absorb these ideas, and even more to support and works towards the achievement of the vision
PAGSASANAY SA TAGUMPAY (Training for Success)
SETTING THE STANDARDS IN INTERMENT SERVICE
Innovation creates more wealth and more customers
Jorge U. Saguinsin
Be a BIDDA now
RRURAC (Read, Reflect, Understand, Realize Act, Check)
Please visit the following sites:
Notice: This email address is a private property of Holy Gardens Group and its contents are private and confidential. Its contents and attachment may not be copied nor forwarded to parties other than the ones intended to, nor can the contents be used other than the original intent You are advised to delete the message you received if in case it may have been wrongly sent to your good office
With those business model, Holy Gardens Memorial Park can be a one stop shop memorial park. We will provide all their needs and help them to prepare for the future.
ReplyDeleteMarjorie B. Miranda