Business Model For Cremation (Revised 2018) for Pangasinan

#ChapelMemorialService; #memorialexperts, #HolyGardens, #crematorium,


A.  Objectives:

1.To sell 300 cremation services (30) a month

2. To serve memorials  services of San Carlos City in view of stoppage of sales of memorial plots

3. To serve long term needs of memorialization of people of San Carlos elsewhere in view of low production of memorial park plots because of stringent requirements of govt for memorial park plots

4.  To alleviate shortage of burial grounds of the city for D and E constituents who can hardly afford a decent burial service

        ie to provide affordable memorialization services

Background:

       1.  Remaining inventory of only 2,000 plots at Pangasinan.  Expansion

            difficult

       2.  Crowded public cemetery

       3.  Service area of say 1 M:   Dagupan, Urbiztondo, Malasiqui, Batista,  Santa Barbara

       4. Death rate of 0.05% per year of 5,000 per year.  Class D and E would be about 3,500.

       5.  How much is spent for a typical funeral service:

           Casket  + Service      P30,000

          Tumba (5 year lease)    10,000

          Masonry                      10,000

               Total                    50,000   hardly affordable

  C.   What can be the solution:?

       Introductory special offer

      1.     P20,000 Direct cremation (without casket rental)   +  Free   Urn

      2.     P30,000 cremation +   3 nights home viewing, casket rental

      3.     P50,000 cremation  +  nights chapel viewing + casket rental

      3.     Bone cremation for those who are 5 years in municipal and

              Catholic cemetery   and those who want to recycle their plots

              Only 10,000   (no com)

     4.  Package for the indigent: P15,000 direct cremation, with  urn, (P17,000 if with]  urn) +  P1,200 rental for an urn (the top or bottom ash crypts

D.  Business Model

     1. Main Value Proposition:

        1.  Mura ataffordable na memorialization

        2. Uso na - widely accepted;

        3.  The only available affordable memorial service because of lack of

             supply of public, Catholic body crypts, and memorial parks

       4. Less gory:   no need for embalming for direct cremation, 

       5. Does not pollute aquifer and soil with formalin which is carcinogenic

         Pricing:   (Introductory offer)

          Direct Cremation     P20,000.00 (no pick up, customer brings body to

                                       Crematorium + free marble urn

          Infant                     P10,000K

         Senior citizen and PWD  16,000 only

          Direct cremation   under DSWD or Municipal assistance program -  P15K

                                      without urn, P17K with urn

                                     Ash crypt rental only P1,200/year;   discounted at

                                    P5,500 if paid in advance for 5 years

        Bone cremation      P8,000 only

         Packages:   combo:

               1.  Cremation after viewing, with casket rental 3 nights and 4 days

                    home viewing   P30,000 (with embalming)

               2.  Cremation after viewing with chapel use 3 nights and 4 days

                    embalming with casket rental   P50,000  and use of karuwahe

               3.  Cremation after viewing with chapel use, 3 nights and 4 days, with

                    embalming, use of karuwahe and one ash crypt A or F leve

                    P80,000

      2.  Primary target market:

          The economy thrifty minded C D and E market (lalo na ang 5 years

           1.    expired term sa tumba   (municipal and catholic cemetery)  

                  at i common burial ang buto

           2.   nag recycle and reuse of memorial park plots

           3.   families of OFW who want to save on going home on all saints

                day to honor their dead (mahal din yon between 50 to 100K)

     3. Customer link

         1. social media fb, sms

         2. through agents and contact persons:  funeraria, hospitals barangays

            10% com, paid upon full payment;  not applicable to senior citizen or

             indigent or bone cremation

         3. admin of municipal and catholic cemetery

             Referral fee P500.00 

         4.  Our CSS 1 and CMO

         5.  Tarps

         6.   Brochures and leaflets

              Brochure:

              Cover:

                      Holy Gardens Pangasinan Cremtorium

                     Picture of crematorium machine or building

                     Affordable, now trending in memorialization,

                     readily available, answers shortage for burial grounds

                     Address, Tel No, FB account email

        Page 2:

                 Write on cremation process, tradition

                1.  Cremation history and the Roman Catholic Church that welcomed

                     cremation as an alternative death practice since 1963

                2.  Detailing use:

                    1.  After lapse of 5 years at body crypts  at Catholic and Mun.

                        cemetery, you can have permanent residence for your loved ones

                        ash crypts in HGMP columbarium (can accommodate up to 4) t

                        thus you can free body crypts for use of others who are in

                        need

                    2.  Recycling memorial park plots. The memorial park plots you 

                         bought can be more than P40k.  With bone cremation of only 

                         P8k, you can reuse  the upper tier of memorial park for new

                         fresh body

                   3.  As an answer to declining production of memorial park plots due

                       to stringent environmental requirements, limits on conversion, sc

                        urns) 

                  4.  Social amelioration  because it is the cheapest way to die

                 5.  In direct cremation, there is no embalming. Thus there is no chlo

                     roform that will poison the earth. The embalming fluid is

                     carcinogenic when it mixes with ground water.

        Page 3

                 Pictures of  services combo:

                 Prices 

                 Picture  of Urn, and pendants

       Page 4

               Picture of crematorium

    4    Customer bond:

            1.   SMS

            2. 9 days and 40 days medal

            3.  Estate planning

            4.  Free use of karuwahe and NV350 for service to the  customers

            5.  Hotel standards CR

            6.  Cool high capacity aircon  in customer/waiting area

            7. Great lighting and interior design in customer area

            8.  Big screen tv

           9.  Waiting area, kitchen facilities for serving food.  (kitchen utensils)

                water dispenser)

         

5.  Key Resources:

        1.  Crematorium  machine

        2. Karuwahe and NV350

        3.  Chapel  (linisin alisin kalat, paganahin aircon, alisin tambak)

        4.  CSS for cremation 

        5.  Technician for crematorium

        6,  Diesel fuel

        7.  Aircon for crematorium for customer area

        8.  Dapat may at least 30 kva na Genset diesel  (standby for brown out)

        9.  Hotel standards CR

       10.  Painting and furniture to wow the customers (great interior design)

       11.  Great lighting 

       12.  42 inches to play religious song, or show tribute

       13.  Plant box and landscaping to soothe  the eyes  of customer

6.  Key activities:

       1.  Marketing:

           Promotion:

           1. Posting on social media

           2.  Printing and distribution of brochures

           3.  Pagpunta sa barangay, hospital (as immediate remedy for 

                infectious diseases) and other funeral homes, if the customer

                asks for cremation

          4. Having signage SS for crematoriujm

        Placement:

         1.  Recruitment of agents

         2.  Frequent sales meeting

         3.  Rewarding agents

             1.  Sales target award

             2.  Prompt payment of commission

        4.  Coordinating with City hall

            1.  For social amelioration

            2.  For the city cemetery project

       Price:   All ready mentioned at MVP;  discounts  PWD and SC

                   Prepaid  cremation service and packages

     Product:    Basic cremation (direct)

                     Cremation with casket rental

                     Cremation with casket rental, home viewing

                     Cremation with casket rental + chapel viewing

                     Cremation with casket rental + chapel viewing + ash crypt

      2.  Cremation:

           1.  The cremation process:

                 Use of carton

                 Removal of jewelry

                Starting the cremation

                Viewing

                End of burn

                Gathering the cremains

                Grinding

                Cooling

                Placing the cremains in the urn

               Delivery to the family

       2.   Maintenance:

            1.  Check up

            2.  Fuel delivery

            3.  Emergency repair

            4.  Back up

7.  Key Partners

     1. Munisipyo

     2.  Barangay

     3.  Techwin (the Crematorium supplier

     4.  The Gasoline diesel supplier

 8.  Financials

      Sales:                                    100%        20,000

          Less com                            10%          2,000

          Vat                                      12%         2,400

     Net sales                                                15,600

     Fuel costs

         60 liters  x  42,000               12.6%         2,520

      Urn                                       12,6             2,500

                                                                   10,580

     Labor:

        Technician   1%                                        200

        CSS            1.5%                                     300

                                                                  10,080

     Less Depreciation

     7,500,000/20 years/300 units/year          1,250

     Does not include electricity and CS cost

EBITDA                                                     9,550

                                %                                 47.75

say snacks worth  P300.00 (water biscuit       300.00

                                                                9,250

      GP computation for bone cremation

        TSP                                                   10,000

        less VAT                                             1,200

                                                                 8,800

        less fuel cost:

        30 liters x 42                                      1,260

                                                                 7,540

       Less:  direct labor   2.5%                        250

        Less depreciation                               1,250

        GP                                                    6,040

       Less snacks                                         300

                                                               57,040

       Urn is not free