New opportunities in other areas - Prepaid Cremation Services

Rizal Philippines
December 11, 2016

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. I could help improve his business as a:  consultant, as JV partner, or as a co owner of cremation service company which we could put up

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 suppose these are some of their projects:

At OLX Baguio Benguet  P20t at Pyramid

La Loma Cremation  only for P12,000

More on La Loma cremation

RNC cremation in Cavite for P15,000 (with funeral service P50t)

FAQ on Cremation from Paz

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)

  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.

I noted that his pricing are quite low and with max of P10,000 only

Priorities will be Binan, Calamba, La Lomoa, Navotas, Malabon, Caloocan

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

and pollution control by DENR

Prepaid Cremation services:

These are really in demand now.   The high cost of traditional funeral services have driven many bereaved families to seek lower cost but equally elegant services

Product

A.  Regular (Economic)

  Name                  TCP          Annual            SA           Qtrly         Monthly

   Direct Crem         28,000      5,600         2,940         1,610        560

   Crem + WR          58,000    11,600         6,090       3,045        1,160

   Crem +  WR         88,000     17,600       9,240       5,060          1,760

    ash crypt

    Explanation:

    1.  Direct cremation -   the body is delivered or picked up from house or hospital, dressed up and allowed to use a casket.  The casket is for rent and good up to max of 3 hours only.  It is an imported senior type metal casket

   2. Cremation plus funeral service  -  the price is for a viewing after cremation for which home or chapel use may be used. (max of 3 nights for chapel use and 7 night for home viewing)  The service is white rose package.

  3.  Cremation plus funeral service plus ash crypt. The ash crypt is for generic upper 2 tiers and lower tiers only The middle tiers are premium and are not available as prepaid

B.  Social packages   (Affordable)  * In tie up with municipalities and LGU

   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

These packages shall be offered for and with:

Holy Gardens Angono, Antipolo, Taytay, Polomolok and San Pascual

with Techwin crematorium

      

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%  for every year com, 5% of total

The future of the death industry is in cremation;    

SPLP chapel and funeral services, and other funeral services may be flourishing now but not say 5 years from now.  The trend now is in cremation

1.  At least in Loyola Memorial Park, 6 out of 10 buyers of ash crypts prefer cremation.   The reason is cost.  The high cost of dying:    P80,000 for memorial park plots, P25,000 for interment service and say P50,000 for casket funeral service for say P155,000.   Urn with ash crypts and cremation should set back the wealthy by only P95,000.  The ash vault can accommodate 4 urns.

Fabros of MMP noted the increase in their cremation business which is up by 60%.  It started when the Roman Catholic Church through Canon Code recognized cremation as another method of burial.


WHAT ARE THE VIEWS OF THE CATHOLIC CHURCH IN THE PHILIPPINES WITH REGARDS TO CREMATION?
Catholic Bishop's Conference of the Philippines
Episcopal Commission on Liturgy
Ministry for Liturgical Affairs 
Liturgical Guidelines on Cremation

In an instruction dated May 8, 1963, the Holy office permitted cremation as a legitimate mode of disposing the dead body of the faithful, provided the reason for choosing cremation does not stem from "a denial of Christian dogmas, the animosity of a secret society, or hatred of the Catholic religion and the Church." The instruction recommends, however, that the practice of reverently burying the faithful departed should e preserved. The 1963 Code of Canon Law (can. 1176 #3) makes the same provision.

Although inhumation is still largely practiced in the Philippines, cremation has been constantly gaining acceptance, especially in urban areas where there are crematoriums. Reasons vary from practicality, hygiene, economic conditions of the family, or personal choice of the departed. In recent years certain practices surrounding cremation have arisen that are not in accord with the mind of the Church. For this reason, the Episcopal Commission on Liturgy, with the approval of the Catholic Bishops' conference of the Philippines, lays down the following guidelines:

1.	Cremation may take place after or before the funeral Mass.
2.	When cremation is held after funeral Mass, the rite of final commendation and committal concludes the Mass. While cremation is taking place the family and friends of the deceased are encouraged to gather in prayer. A liturgy of the Word may be celebrated or devotional prayers like the Holy Rosary may be said. After cremation the ashes are placed in a worthy urn and carried reverently to the place of burial. When cremation precedes the funeral Mass, the rite of final commendation and committal may be performed in the crematorium chapel before cremation. After cremation the funeral mass may be celebrated in the presence of the cremated remains. If funeral Mass is not celebrated, the funeral liturgy is held in the presence of the remains. The rite of final commendation and committal concludes the Mass or the funeral liturgy, if the rite has not taken place before cremation. Adaptations such as “remains” in place of “body” are made in the liturgical formularies.
3.	The cremated remains should be buried in grave, mausoleum, or columbarium. The practice of scattering the ashes in the sea or from the air is not in keeping with the Church’s norm regarding the proper disposal of the remains of the dead. Likewise, the urn should not be kept permanently at home or family altar. If there is to be a delay in the proper disposal of the ashes, these may be kept temporarily in an appropriate place.
4.	For the sake of reverence for the remains of the dead, it is recommended that in churches or chapels a worthy container be provided in which the urn is placed during the liturgical celebration.
5.	Columbaria should not be constructed in the main body of the church but in a separate chapel adjacent to the church or in a crypt.

From ABS CBN business - cremation flourishing

More Pinoys want cremation from Philstar

In Quezon City, Mandaluyong, the city govt bought crematorium and built ash crypt facilities to help the poor because this is the cheapest alternative to the traditional body crypts and funeral services.  IN Mandaluyong, cremation is P8,000 + P6,000 ash crypt rental for 5 years.  Very affordable and can be assisted by the LGU funeral assistance program (under the IRA)

Thats observed in Sanctuarium.  It was observed that many Filipinos prefer to honor their dead where climate is controlled ( A/c) and the remains of the dead is secured.   A single ash vault can accommodate 4 cremains

2.  In the US, cremation was at 4% of total population in l965, now it is up to 40% (4 out of 10)  The main reason is cost.  Funeral services matched the increase in price of medical services (50%) only exceeded by increase in price of education (90% - this explains the closure and bankruptcy of pre need company that specializes in education -   CAP, Pacific, etc.)

Thus for the concerned crematorium owner, it is a matter of sound management and aggressive marketing

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