PAGSASANAY SA TAGUMPAY
Rizal Philippines
July 17, 2017
Despite the passing of 15 days the sales performance of PIS and PMS has been lethargic if not anemic. Only 7 out of 350 targeted for the month. A lot can be deduced why such happens. May be lack of understanding, lack of love, lack of heroism and ingenuity
But let us have more guidance and more explanation
1. Definition of terms
1. Pre paid - like the load, this is not postpaid. The customer pay for the service advance;
Prepaid products are Prepaid Interment Service ( PIS) and PMS (Prepaid Memorial Service) This is not premenstrual syndrome as dysmenorrhea during monthlies
It is generally, statistically to be used at some future date, say 3 or more years down the time line.
2. At need - services that are paid when needed. Generally is 20% higher. This is done to encourage people to buy before they need the service. We cant survive on at need sales. We sell pre paid so that it is cheaper (and generally with traditional products, we cant ask for more payment. Asking more for traditional products is the wrong way to go.)
At need service vs PMS is Chapel memorial service. If you memorize the price list, you can deduce if the payment made is prepaid or at need. Generally they are higher
2. Primary Target Market - existing memorial park plots owners
We sell to our existing customers. We contact them as we send them CO (docs) as they pay, through text or email blasts, Tenting, or saturation will not work.
Now that the customer has a plot, what else does he/she need to make his ownership of the plot complete. Generally, the service price increases. We started pricing IS at P5,000. It is now at 23t. We are increasing this to P25 t.
Casket price is inching their way up to because of increase in price of wood and metal
There may be over 10,000 customers we have or more. If we fix our inventory, there seems to be huge decline in our inventory, thus we we have may be an estimate of 30,000 customers from 5 memorial parks, However, we do not have a complete customer list. There is a breakdown in our records/data base
3. Interest rate on the balance
There is none for annual and miniscule for semi annual, quarterly and monthly. The interest is to cover the collection
4. Fund management
Commission - 10% ; ic prescribes payment in two years; we pay in 10 months; we propose to pay this in twelve months in 2018 to ease our cash flow. There are only two tiers of com, vs plots; 7 (35% of amort) and 10%
Marketing expense - 4% payable in two years
TFC - 50% payable in 5 years
VAT 8% payable in 5 years
GAI 12% payable in 5 years
Insurance 4 % payable in 5 years
The balance becomes our liquidity and investment fund which we will use for: buy and sell of memorial park plots especially those offered in promos (special plots for sale under promo) where gains can be as much as 50 to 100%. This is part of TFC. Thus TFC totals 64% (which is near our budget for mortuary agreement)
Of the GAI, 5% shall be set aside compulsory, as RGP of the PIS PMS
The funds, after being collected shall be set aside and deposited at MLII within 7 working days. MLII, the AP and ICR shall be efficient in this respect.
5.
Administration
RA and MLII shall have comprehensive records and data base of those who bought for speedy confirmation of the SBU;
MLII shall compute for 4% interest on the TFC beginning the 6th year. Either we pay this to the customer or we retain the excess as profit of the MLII
The funds shall be paid not more than 14 working days by MLII to the SBU
The CMS shall have their own staff: TS, CSS for CMS, and licensed embalmer for their complete staff
The pre need part is a business to be co managed by MLII and RA
The at need is by the SBU
The at need operations have been proposed to be incentivized: at 5% of GP (only for at need; those servicing the pre paid is excluded)
