More prepaid memorial services - Prepaid Cremation Services

I just discussed with the supplier of crematorium that he owns  4 cremation machines and in partnership with several others for a total of 14.

He owns 4 in major centers of population such as Binan, Calamba, Navotas, Caloocan and La Loma.  He has in Baguio, Ilocos, Bataan, and Subic.

He is bothered by the fact that his partner have other enterprises and he needs to take over the operations and marketing to make him get his ROI.

I offered to:

1.  Fix his marketing pricing promotions and placement to up the sales

2.  Tie up with him for prepaid cremation services in those 14 location.

Advantages :  cheaper,  beats high cost of land, land dev and stricter environmental

and pollution control by DENR

Prepaid Cremation services:

Product

Regular (Economic)

  Name                  TCP          Annual      SA           Qtrly         Monthly

   Direct Crem         16,000      3,200         1,680        920           320.

   Crem + WR          45,000     9,000          4,475      2,588          900

   Crem + Ash          46,000     9,200          4,830      2,645          920

Social packages   (Affordable)

   Bone Crem          10,000     2,000           1,050       575           200     

   Assisted Price      12,000    2,400           1,260       690           240

   AP  +  6,000          18,000    3,600           1,890    1,035          360.  

Only 25% com, 5%

(five year lease    

   Crypt      

     

Summary of Pay Out for Mortuary Agreements

BE a BIDDA: "BELIEVE, INSPIRE, DREAM, DO ACHIEVE"

Pay out by the mortuary schedule

Social  (Compassionate)

Zinnia    7,500      100%            Stucco

Daffodil  10, 000  100%           OMG half glass

Economic  (Wood)

WhiteR      14,345    95            OMG FG  

Gladioli     18,763    95            OMS FG   Patong

Cattleya    21,285   90             Jr Elgin    

Metal   (Socy)

Peace Lily   28,080   90    Sr Elgin   

                               or 

                     28,080           Jun Metal Full Cap

                                                           

Carn              40,225  90     Sr. Metal

Chrys             51,845   90    Semi Metal Plexi   

                                                         

LUX

Lotus              63,750    85    Sr. Metal      

                                           
Plexi

Zaffron           85,000   85       Semi Bronze
                                                   or

                                                Impt wood

 GoldenOrch  127,500     Metal Jango   (a la Bates Ville)

Bouquet   200          85     Solid SS
                                               or

                                          Solid Bronze

We can register with IC the 5 upper products:    Gladioli, Cattleya, Peace Lily 

and two social products in 2017    Zinnia and Daffodil  (same benefits)

Then three more products in 2nd half, 2017:    Carnation, Chrysanthemum, and Zaffron with Return of Premium

             Return of Premium is feasible because of:

            10% savings on TF;
            10% savings on the TF with Mortuary (about 5%)

             and 5% investment income net for the next 20 years
             = 80% net of WT   =   100 ROP plus 3% possibility of                    the principal not reaching age 55 (assuming he buys at 40 years old