By E. R.
Teves
3rd Quarter 2018
TSG
LONG-TERM CONCERNS
Long-Term Concern:
TSG All Memorial Lots Sold,
Cash Flow Down
What Are the Effects
When All Lots Have Been Sold?
ON OPERATIONS:
• Sudden drop of incoming cash-flow,
because no more LOT SALES.
• Lesser money to pay for continuing
operations for park up-keep:
- Salaries, Maintenance, Repairs
• Lesser incentive to maintain quality of
park surroundings.
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What Are the Effects
When All Lots Have Been Sold?
ON SHAREHOLDERS:
• Dwindling yearly dividends.
• Lesser incentive to do improvements.
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Dwindling cash flow and income
will surely come in time…
…unless we consider new opportunities
to earn at substantial levels.
…and such earnings are only possible
by engaging in new business
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FR
Proposal # 1:
CONTINUUM
Low-Cost Interments paired
with Chart Title
Columbarium Vaults (all pure
lease)
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Proposal # 1: CONTINUUM FR
SITUATION:
• Many have inquired about getting a lot at
Serenity, most probably due to the better
physical conditions.
• But they back out due to “high” cost of lots.
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Proposal # 1: CONTINUUM FR
INITIAL
STAGE: SECOND STAGE:
• Full-body interment in • Exhumation from vault
above-ground niche
vault.
• Transfer bone remains to
columbarium vault.
► Vault “cost”:
► Payment for exhumation.
2/3 of regular price ►Annual vault lease will
• Interment : 10 years or start by end of 1st year of
so occupancy.
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Proposal # 1: CONTINUUM FR
PREPARATIONS
REQUIRED:
► Construction of Mini-Columbarium
at bone vault mini-garden (Block 1)
» for prospects’ preview of Columbarium
► Backfilling of Block 3, Phase 2
► Compacting & Levelling
» Pison rental or buy own Walk-behind
Roller
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Proposal # 1: CONTINUUM
PREPARATORY BUDGETS FR
REQUIRED:
ITEM DETAILS COST
Mini-Columbarium
Construction
Backfilling of Block 3, ₱ 7,0000/truckload ₱ 420,000
Phase 2 (@ 350/cubic mtr). to 490,000
X est. 60 – 70
truckloads
Compacting & Rental ₱ 1,000/hr Rental ₱ 144,000
Levelling x 6 days/wk x 3 + 18,000
weeks 162,000
+ transport to & Purchase ₱ 190,000
from. + roro
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FR
Walk-Behind Double-Drum Roller
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Long-Term Solution:
TSG Memorial Services
To complement
Memorial Lots
Proposal # 2: LEGACY FR
Memorial
Services
Mortuary Sale of
Services Caskets
Body Transport & Urns
Wake Services
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Proposal # 2 LEGACY
Memorial Services
•SITUATIO
N:
• We handle approx. 120 interments a
year.
• Approx. 80% (96 ave.) are serviced by
St. Peter for memorial services.
• The rest (24 ave.) are service by local
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Proposal # 2 LEGACY
Memorial Services
•SITUATION (continued):
• There are approx. 280 other interments
per year; these go to Catholic cemetery.
• Probable servicing ratio:
- St. Peter ► 80% (224 interments)
- Divine Word, Tabunda ► 20% (56
interments)
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Proposal # 2 LEGACY
LOCAL COMPETITION: Memorial Services
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Proposal # 2 LEGACY
Memorial Services
MARKETING TARGET:
• Primary: The approx. 24 interments
per annum at Serenity
• Secondary: The approx. 50+ interments per
annum
at Catholic cemetery
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Proposal # 2 LEGACY
Memorial Services
MARKETING STRATEGY:
• UN-BUNDLING: Separate memorial fees and
cost of casket
• ONE-STOP SHOP CONCEPT (for TSG
Customers):
Emphasize convenience and quality.
• TIE-UP w/ MCIA GROUP (fledgling similar to St.
Peter)
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Proposal # 2 LEGACY
Memorial Services
FACILITIES:
• Small reception office, morgue, product display
& small memorial chapel (light construction)
• Cost of structures (est.): ₱
1,875,000
• Cost of equipment & vehicle (est): ₱ 1,000,000
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Proposal # 2 LEGACY
ORGANIZATION: Memorial Services
1. Business / Admin. Manager
2. Sales / Operations Coordinator
3. Embalmer (licensed)
4. Driver
5. Assistant (office/field)
ANNUAL PAYROLL (#2-5): ₱ 575,000 (+
SSS/P’health/PagIbig)
•AddBusiness/Admin.
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Mgr ► Management Fee: 30% of Net Income 20
st
Proposal # 2 LEGACY
Memorial Services
FINANCIAL
PROJECTIONS:
Year 1 Year 2 Year 3 Year 4 Year 5
2019 2020 2021 2022 2023
-359,700 -241,872 34,643 559,975 720,457
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Proposal # 2 LEGACY
Memorial Services
Current Status (end-Oct.
2018):
• Feasibility study essentially complete
on most aspects.
• Market information for further gathering this Nov. 1 & 2
via personal surveys at memorial park,
for possible adjustment of financial projections.
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Thank You.
TSG
