Plenty of challenges in a memorial park project

#memorialexperts

We met with the JV partners of a memorial park project who was being helped jack up its sales.  However, the objective of raising sales to 30 a month would not materialize because of certain difficulties and we had to meet to thresh things out.

The challenges were a plenty

As of now, we discovered:

1.  Difficulty with the staff;  the most recent difficulty had to do with interment and at need price. The staff unilaterally gave discount, waived the at need premium (20%), accepted late payment for interment which could have resulted in unfulfilled interment on a scheduled date that would have resulted in an expensive lawsuit and compensation.  

2.  Difficulty with procedures:  sales policies, commission, no documentation.  We found out that they deduct expenses such as commission from the collection.   Hence, the remitted collections

3.  Incomplete development permit, absence of certificate of registration and license to sell;  The dev permit was only for 1/2 of the project

4.   There was no proof that there was a closure with the former JV partner - notice of service for the termination of agreement, nor a court order.

5.  Documentation of purchase of 1/2 of the property   The CTS was with the former JV partner and the terms and conditions such as manner of payment was not fulfilled.  The JV agreement though represented that the property was hers (which is not)

The owner, the principal who is a widow and 70 ish reacted negatively as this was discussed and had the impression that she was being ganged upon or pilloried.

We really had to have the meeting.  Now that the challenges are revealed, solutions are forthcoming. And so with the progress

What are we planning to do with our vision of memorialization?

#memorialexperts

We have several plans:

Santuario San Antonio for benchmarking



1.  To build memorial crypts in a religious shrine overlooking Laguna Lake.  The PTM will be religious devotees who flock to the shrine.   On Good Friday, at least 200,000 visit the site.  The site is a home to 3 images:   St Michael the Archangel, Jesus Christ Redeemer, Our Lady of Good Voyage, Way of the Cross (15 stages)    4 shrines,  3 o clock habit with plenty of gardens, lush vegetations, pathwalks and gardens.

2.  To offer memorial services in our chapels

Some ideas on modern chapel design

#memorialexperts

These are some pictures on how to have great designs for chapel:



As we did this research, I found out that the memorial park where I work for has the bulk of the pictures.


Casket display room (half casket)


Loyola Casket display



Elegant chairs and couch for guests.


Elegant entertainment areas



We can have karuwahe for only P180t each; horse drawn, man drawn or by 4x4







 Crematorium Plan




Old crematorium building desing

Urns

Two great opportunities: ash crypts in a religious shrine and vacant land in front of an existing cemetery

#memorialexperts

Two great opportunities are being studied by this office:  one is the insertion of an ash crypt project in a religious shrine nestled atop a mountain side over looking the lake, and the other one also overlooking the same lake in front of an existing cemetery and memorial park.

Would you invest in such a project?  The planners whom we invited to study the project said they would.  Please comment...

The asking price is rather steep but willing to go into a joint venture.  If we plan a memorial park, the project revenue would all go to them.  But we can plan something else and would be a great project beneficial to everyone?

The land is about 300 meters away from about to be opened SM Center.

Memorial Plans have bigger margins and are more likely to succeed and fulfill commitments

#memorialexperts

We are into talks with the buying and selling of a financial plan company.  The owner is a little bit weary because of age and the financial plans company went south when the educ plan soured out; with trust funds deficient by as much as 50%.

Health plans are by no means exempt because with claims up to 80% of the funds, margins could be as little as 2 to 3% Thus 80 claims plus 15% commission,  you have no more margins for overhead.

But memorial plans are not so, especially funeral service.  A CGS of a casket can be sold 10x its cost.   Thus, the memorial plan company, and the casket/chapel services company both have healthy margins and can survive.

The memorial plan company is much welcome because it can sell in advance the all ready profitable products.  The selling war at need is thus eliminated.

Our clients and companies are in the right direction

Modern columbarium design by Javier Designs Studio

#memorialexperts

I was told they have great columbarium designs atNuestra Virgen  De La Strada in Katipunan.  Great gardens, open design.  So I tried to research this...

Gardens, nature and columbarium intertwined/blended.  We can see a lot of garden, shade and open space

From Javier designs studio


















At Monasterio Basilica Tarlac

Are pre need plan companies predestined to fail due to wrong computation?

Rizal  Philippines   |  October 28, 2014



From Manila Times - pre need companies diasappearing?

We are currently studying the addition of memorial plans to our memorialization business.  We noted though, while enshrined in the law, the reason why pre need plans company fail.  Chapter 3 of the said pre need code, prescribes 5% contribution to the trust fund on the first year, 15% on the second year, and 70% thereafter.  While they look big on the 3rd to fifth year, the total trust fund contribution is only 46% of the total obligation.  Considering that yields on debt instruments range only from 0.5% to max of 3%, completing the 54% deficiency would be a tall order

Buying a memorial plan company to expand reach and capacity

A memorial plan company is being sold to this quarters because the owner is old and simply wants to have nothing to do with business anymore

We are blessed that this is offered to us to buy;  It could be game changing move and bring us up to the next level.

Some pros why we should be doing this:

1. The price is a low 7 numbers.  A new memorial plan company would require 9 numbers as paid up capital

2. This would be a vehicle to sell our packages.

3. We could piggyback on our existing memorial park, and use our existing sales force to sell the plans

Difficulties are not with the external, nor with the business but with the stuff between the ears.

Helping other memorial parks help themselves

In my analysis of business that it is about to go under, my analysis shows that the problem is not with the external, or with the business model.  But with the attitude of the owner on the business, life and herself.

The market area is very progressive. The town is a gateway for major cities in the north. there are two branches of a major supermarket chain because of huge sales probably.

We tried to infuse money, they were not able to sell substantially (most of sales were x deals), they had huge financial deficits.  We tried to bring in a marketing group but the achievement of the marketing group( who is great for the heir past projects) has been miniscule and they told me:

These are the complaints of marketing group:

Negotiation vs a foreclosure proceeding

Memorialization continues;  death and taxes are sure things thing life.

One of the memorial parks brought to us for rescue has huge debt to a cooperative bank.  In the last 7 years, the original principal of 7 numbers has ballooned to 8 numbers.  We went to the lender 3 years ago requesting for some relief. However, the owner for one reason or another did not follow up nor did any action to avert the foreclosure.

So we tried to look for remedies:

1. To help reduce the amount from 8 numbers fo only 7 numbers.  However the new officer, wanting to look good to the boss, can only reduce the penalties by P2 million.  This was generous, however, considering the lackluster performance of the park, the huge amount looks formidable still.

2.  To let the foreclosure continue but challenge the bank's lack of authority over the franchise, or that the bank will have to put a memorial park company to manage the park.  Or use the legalese that the rights of memorial park owners is superior to the foreclosure.

Welcome to Memorial Management and Marketing site

Rizal, PHilippines   May 16, 2014

We have been approached several times by memorial park owners who want us to:  buy, manage, or market their existing inventories.  We find out that:

1.  They have lost their passion to sell,

2.  They do not know what to do?

3.    And they can sell.

And thus many memorial park in limbo.  Fortunately for us we are this business for the last 31 years. We can advise solutions.

One of the memorial park owners from the North met with us and she was inspired very motivated that is why she went home at once to try our advice.  

Right now, we have at least 5 memorial parks on the pipeline waiting for our business plans.

Contact us for advice