Draft of Letter to Dominican Sisters, Owner of Property besides Holy Gardens Oton

Go over this for comments/revision/editing

What:   Sending of Letter of Intent to owners of adjoining property of Holy Gardens Oton

Objectives:   

    1.  To increase inventories at HGOMP which is now at 2,000 only more or less

    2. To generate more sales:  say P1 B;

    3.  To provide more jobs and employment

    4.  To offer low cost plots to our customers

THESE ARE ALL IN OUR MISSION STATEMENTS AND PRINCIPLES

Background:

    We all say that businesses must prepare for the future since it is the future that becomes the present.  Present becomes the past.  Focus on the has been means that it is too late if we completely liquidate the business

1.  As early as 3 months ago, our JV partner and us are talking about our current inventories which should last us for the next 5 years without a campaign, and two years max with a campaign

2.  The former mayor, our JV partner mentioned the following alternatives:

    a.   to the left of the MP, 10,008. Used to be P500.00 before but sold to somebody in USA and now want wants P1,000 per sm.  Not profitable for us anymore.\

   b.  Property of Gina Cuenca - 1.225 hectare but not adjacent ot us.  There is another property pa.

   c. Property of the Dominican sisters with total area of nearly 9 hectares. But the good fmr mayor thinks they are not selling

   I happened to discuss mention this to Ms. Sonia Madrigal who is from Iloilo and she said she knows the Dominican sister.  She said she will see the sisters on September 7, 2017.  She arrived last week and mentioned the name of the Sister General:

  Sister Nemia Dumac

  Mother General

  Dominican Sister of Holy Rosary

  Holy Rosary Convent

  Avancena St, Molo

  Iloilo City

 to whom we shall send a written offer.   The good mayor wanted to buy but Ms. Sonia said why not a JV so that they can sustain their advocacies.  Mayor Totec that they had a big property in Botong on JV and became Immaculate Concepcion subdivision

Their 8.7833 hectare property is planted to rice and the current net earnings per every harvest is (only once a year is P20,000/hectare of P180,000 only)   Thus an offer which will give the sister sustained income for the  next 10 to 20 years would be most welcome

    3.  We tried surveying other towns:

         Miaggao  -  the first to be shown by Mr. Crisologo and Peds 17 years ago.  50 km away, with existing Memorial Park but seems to be languishing

       Guimba -  the hometown of Congressman Richard and Jeanette Garin. They have a memorial park.  We used to have an offer from Mr. Orendain, a relative of Engr. Madrigal.   Potential not OK.  Low population.  About 30 km from Iloilo

      Tigbauan -  many of buyers are from Tigbauan.  but our prospective site there are not available for sale or near subdivsions

     Janiuay. -  there is a memorial park for sale with 3,000 inventories.  Asking price is P200 million.  Way above the clouds;   we would rather buy the memorial park in Silang Cavite or our own La Union with 5,000 plots only for P72 m

4.  Computations

Fwd: Recognition of Income and Expenses for Sales Of Holy Gardens Plots

Computing for our current CGS:

Our current CGS for Holy Gardens Group is P3,500 per sm

             Thus for  Lawn x 3.5   =   8,750

                           SSN x 10 sm =  35,000

                           GE   x 30 sm  =  105,000

 Thus for 36,000 installment  x 50%

                   Amount subject for JV sharing   =   18,000

                           x   say   50%                         9,000

                                 less CGS                         8,750

                                 RGP                                   250

             % of RGP for every MA (P600)     250/36,000   = 0.0694%

                                                                                 = 250/60   =   P4.16   per MA

          Unbelievable

        What are the opportunities?

        1.  The collection fee of 5%  if we have rewards system and points of 1%   =   5%  - 1.5%  =    3.5%

        2.  Insurance.   If we spend 2.3% of 4.00 then we make a margin of 1.7%

        3.  Marketing   -   if we spend 17% on marketing, then we can make a margin of 3% (however this is not happening because of the prizes we are making.

        Comparative analysis:

        Say  4,000 plots sold    x 36,000                         =    144,000,000

         Margin on plots          4,000 x 250                      =        1,000,000

         Margin in insurance     144 m x 1.7%                  =         2,448,000

         Margin on CF              144 m x 3.5%                  =         5,040,000

         What to do next?

         Reality:

         1.  We cant process our documents efficiently  (use  the portal, hire a better staff, train well,)

         2. Di masimulan ang insurance   (hire an insurance assistant, rewards assistant na train well)

         Do it now.   Be responsible   People.  3ffb

    

        However, we are not paying much attention to this.  Especially to the insurance.   Nothing is moving

       WE NEEDED TO SELL  THE SPECIAL THE PLOTS AT LOSS OR BREAK EVEN TO:

        1.  Generate more jobs and employment for sellers

        2.  To make the customers happy and to get their foot in;  when their feet are in, we can offer products/services where we can make higher gp.

                   cms -   chapel memorial service  -    as much as 30%

                   is  -   interment service   20 to 30%

                   regular plots   -  as much as 40%

      We cant sell the special plots again, because we are losing money on them

       We are running out of inventories

  

       

                           

---------- Forwarded message ----------
From: Jorge Saguinsin <jorge.saguinsin@gmail.com>
Date: Tue, Jun 27, 2017 at 12:30 PM
Subject: Recognition of Income and Expenses for Sales Of Holy Gardens Plots
To: Bpi Records <bpi.records3ffb@gmail.com>, holygardens.group.memorial@blogger.com, Mad Elie <madz2424@gmail.com>, "Bereavement PROVIDERS INC." <bpi.apacctng@gmail.com>

This office discussed with the Accounting Staff (AP, AR, Treasury and Majorem Acctg.Loans the Chart of  Accounts and Significant accounting policies and Chart of Accounts. They are not aware of this

They are walking in the dark.They need light

Objectives:

1. To determine the eligibility of SBU to be granted additional benefits like the health card.;they must be profitable for the last 6 months to qualify;

2.  To make the accounting staff  be expert on the system and structure of accounting at Holy Gardens before attempting changes.;

3.  To move the accounting staff to be more efficient:   stricter on the expenses, and stingy on the discount,  ME, and collection fee

4.  To be aware of other opportunities for earning like service

Reality:

1.  We do not know the latest financial  statements from the chief accountant

2.  We received  the Jan Feb P N L which showed the SBUs making large sums of money and thus must be verified

Explanations

Some important concepts to be understood

1.  Sale -

    Cost

    GP

     Businesses must increase sales always:   Sales can be increased by:

            1.   Increasing the channels

            2.   Price increase

            3.   Increase awareness

            4.  Increase the number of uses (or frequency, as with Starbucks, to 

                 increase number of occasions to drink coffee)

            5.  Increase the value of the product

     Decrease the cost:

           1.  Improve quality

           2.  Remove waste (MUDA)

           3.  Reduce labor cost

           4.   Reduce COGS

           5.   Outsource

   Increasing the GP is incresing value added,   increases value creation

2.   Setting up a real estate company:

      1  Cash/Cash in bank                xxxx

                Stockholders equity              xxxx

      2.   Purchase of land               xxxx

                Cash/Loans                         xxxx

      3.   Set up inventory

               Development cost          xxx

                    Unexpended development cost       xxxxx

              Thus let us say we buy land at  P350.00/ sm   x   50,000 =

                    P16,500,000

              Computing for development cost let us say P1,000/sm =  P50,000,000

              Total inventory / salable area =     CGS

              Saleable area =    50,000 x 65% =   32,500

             Total inventory   =   P50,000,000  +  16,500,000 =  66,500,000/32,500

             CGS =  P2,078/sm   

                        Lawn   x 2.5    =       P5,195

                        SSN   x  10.00 sm = 20,078

                        GE     x  30 =           62,340

    4.  Determine the GP  rate  vs SP

             Thus:

                  TLP                                         100%

                Less PC               17%

\

                        Insurance       4%

                       Collection fee  5%

                       Total             26%

             Net sales                                      74%

                 Less VAT   12%  -  8.88%

                         ME    20%    14.8

                         Total              23.68              

                         Amount subject for JV       50.32

                        Say  TLP  =   36,000 x  50.32%

                                                             P18,000

                       Say   50% - 50% sharing     9,000

                                     Less CGS            5,195

                                     RGP/DGP            3,805

                        Thus our RGP per installment rate =  3,805/36,000 = 10.56%

     5.  Computing for RGP for installment  sales

          MA of P600.00 x 10.56      =    P63.36

        However, actually, our CGS is P3,500 /sm or P8,350

       or    DGP   of only   P9,000 - 8,350   =  P650 only !!!

             GP rate =    650,00 /36,000  = 1.8% only

       RGP for installment sales (60 months to pay  

             P600 x 1.8%   =    ONLY P10.80!!!!

       Thus:  (CONCLUSION)

      1.  The PNL so submitted could be over stated

      2.   We have to be more efficient

      3. The special plots sale is not sustainable, and does not make money

      4.  We make money on:

           1. Regular plots

           2.  20% dp, only 3 years to pay with interest

           3. Services like PIS and PMS where there is no huge CGS

        Please print and discuss with the Chief Accountant

        What is your take on this?                   

               

             

--

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

N.B.   The information contained herein are private and confidential in nature.  The sender does not assume any damage that may arise from improper use of the email contained. ;  especially if the information in this communication falls into the wrong hands causing damage and loss. to the company or any other parties.

--

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

N.B.   The information contained herein are private and confidential in nature.  The sender does not assume any damage that may arise from improper use of the email contained. ;  especially if the information in this communication falls into the wrong hands causing damage and loss. to the company or any other parties.

Minutes of the meeting with Messrs Jess Crisologo and Dr. James Joaquino

Minutes of the meeting by JUS and Messrs Jess Crisologo and James Crisologo at Burger King near Tiendesitas at 8:00 to 10:00 am on November 24, 2016

Members Present:   

Dr. James Joaquino

Mr. Jess Crisologo   both representing TACDI

Jorge Saguinsin representing San Fernando Lands

Business Matters taken up:

1.  Marketing

     TACDI was very disappointed with very low remittance of P70,000.   At the present rate of sales, it will take several lifetime to sell all inventory which stands between 4,000 to 5,000

    Some suggestions:

    1.  Hire new marketing officers, leaders  (this is a call to arms/action by current staff of HG La Union

    2. Increase  marketing expense from 13% to plus 4 or 5% and TACDI will approve this and see the increased sales results.

    3.  Toilets -  Mr. Jess Crisologo inquired about portalets that were hired for Nov. I.  Mr. Saguinsin said there was no need because there 4 toilets constructed at the back of the chapel to answer this need.  (Near Hotel Standards.

2.  New products and services

    The title for the ROW shall be forwarded by TACDI to San Fernando lands to give more confidence for San Fernando Lands to continue development.

    Some products:

    1.  Ash Crypts -   as we repair and develop the old chapel

    2.  Funeral Service

        We buy furniture for  the bereavement chapel and buy ffe for funeral service: about P200,000

        L -300,  Expedition, atrille, lights and chandeliers, embalming equipment and tools

       Total -  about P1,200,000

       TACDI proposed that we advance  the 50%  and deduct this from sharing.   (the ash crypt formula)

    3.  Crematorium

         The total cost is P7,000,000  and is to be constructed in 50 to 70 sm area located at eastern side of the chapel.  and we have to share this 50% - 50% It is suggested that we pursue this ASAP (it has been pending for the last 7 years) and its is truly right just that we:

          1. Submit the plans and have the barangay building official approve this.

           2. Arrange the financing source of funds.

(N.B) the title to JE 24 plots in Oton was given to Mr. JC as his commission for arranging the deal with Mayor Flores for Holy Gardens Oton.  The duplicates and receiving copy was not taken from the latter.

    4.  Pending sharing of interment fee since November 2011 as stipulated in JV

       For comments, revision, amendment

Jorge  U. Saguinsin

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