Fillable Printable Business Proposal of Putting-up
Fillable Printable Business Proposal of Putting-up
Business Proposal of Putting-up
Business Proposal of Putting-up
Three Vending Machines inside the Campus
(University of the Philippines in the Visayas- Iloilo City)
Prepared by:
Ramil C. Estores
Honey Faith Roa
Evelyn Santoyo
Prepared for:
Prof. Celia Parcon
Project Duration: March 25-June 1, 2006
Project Cost: P409, 887
I . INTRODUCTION
Background
Thefeasibilitystudyofputting-upvendingmachinesinsidetheUniversityofthe
PhilippinesintheVisayas-IloiloCityCampuswasconductedlastFebruary28,2006.
Thestudyfocusedonthestudent'spreferencesintermsoftypeofgoods,spending
capacityallocatedforpurchasingtheproducts,andthedesiredlocationofthevending
machines. And, it was found out that the study is feasible and profitable.
Thisproposalencouragesto put-upthreevendingmachinesinsidethecampusto
meettheconsumers'needs.Thesignificanceofthisinitialplanwouldbehelpfultothe
knowledge ofthe investor on installingvending machines.It would also bebetter forthe
investor to consider the specific needs of the target market.
Purpose
The purpose of this proposal is to push through the initial plan of putting up three
vendingmachinesinsidetheUniversityofthePhilippinesintheVisayas-IloiloCity
campus. The proposalis rootedfromthe feasibility studyof putting-upvendingmachine
conductedlastFebruary28,2006.Thefeasibilitystudyfocusedonthestudents’
preferencesintermsoftypeofgoodsanddesiredlocation. Accomplishingthispurpose
means that the investorshould properly address the consumers’needs on that areato win
the competition.
Benefits
The profitabilityrateof 58%computedfrom thefeasibilitystudy wouldbe sufficient for
the investortopurchase andinstallvending machines.Itis ultimatelyableto competein
theuniversity’scafeteria.Itprovidessmallbusinesswiththeadvancedtechnical
assistanceandtraining.Thiswillbeaccomplishedthroughacooperativepartnershipof
the investor and the school.
II. DESCRIPTION OF THE PROJECTS
Proposed Project
CriteriaSMI-9155 Vending Machine
1. cost of machineP61,629.00
2. size of machine53”x30.5”x22.5
3. number of products111 snacks and 155 drinks
4. weight of machine235 lbs.
5. selection of products9 snacks and 5 drinks
Continuityofserviceisessentialforsuccessandforthistobeachieved,regular
feedbackisrequiredonthestatusofamachine,andthemachineneedstobesecure
against vandalism.
Marketing
TheUniversityofthePhilippinesshouldundertaketoraiseawarenessofthe
projectanditsrationalethroughawidevarietyofmeans.Mostusedoneormoreofthe
following approaches:
1.Announcementsinyearassemblies,usuallywithinthecontextofabroader
food and nutrition message.
2.Raisingawarenesswithstudentsthroughdiscussionabouttheprojectandits
rationale with their advisers and or professors.
3.The creation of poster displays about the project with essential benefits.
4.Student council activities with a focus on sampling opinions, promotions open
forumwithsampleproductavailableforcommentandattitudesfromthe
population.
5.Inclusion of the project description posted on bulletin boards.
These were all effective in raising awareness of new service prior to
commencement, particularly thosestudents who did not usually go toschool cafeteria on
a regular basis. Though there were good intentions on these campaigns during the project
the reality was that the busy life of the school dictated against this happening.
Machine Security
Insomelocations,wherevendingmachinesmaybeatriskofvandalismand/or
other damage, it may be advantageous to protect said machines with enclosures and other
security features, such as security system and protective hoods.
InsituationwheretheUniversityofthePhilippinesintheVisayasrequiresthe
installationofsuchequipment,suchequipmentshallbeinstalledattheuniversity’s
expenseandshallbecomethepropertyofthesaidschool.Inallotherinstances,the
installation shall be the investor’s decision and at the investor’s expense.
Brand Names
Theinvestorshallindicatethebrandnamesforeachofthetypesofbeverage
and/orsnackofferedintheproposal.Shouldbrandsquotedhereinbecomeunavailable
duringthecontractperiod,substitutionofequalorbetterquality,withoutanychangein
price,maybepermittedasdeterminedbytheuniversity.Theinvestorshallprovide
healthybeverageandsnackproductoptionsforthevendingmachinesatyouthcenters.
All products must have university approval prior to stocking machines.
Equipment
Thesuccessfulinvestorshallprovideallrequiredvendingequipment,vending
enclosures, dispensing equipment, currency and coin changers. The investor shall furnish
all tools,equipment, apparatus,facilities,transportation, laborand materialsnecessary to
furnishsupplies,equipment,andmaintenanceservicesatsuchtimesandplacesas
directedby,andwiththeapprovalof,theUniversity.Theinvestorshallprovideinits
proposal the style and type of each variety of machine listed.
Customer Service and Repair Service
Theremust betheavailabilityofa customerservicerepresentativewhoassists in
maintainingproperinventorylevels,andhandlesallquestionsregardingbilling,charge
terms, delivery and for placement of orders. The successful investor shall assign a route
technicianwhoisitsemployeetovisitthefacilityandparksites,inordertoevaluate
eachmachineanditemofequipment.Theroutetechnicianshallfillandservicethe
vendingmachinesonaregularbasis,andadjustrouteserviceasnecessaryduringpeak
business periods.
Theinvestorshallrepair,clean andmaintainthedispensingandvending
equipmentandthevendingmachineenclosures,andkeepallequipment,machinesand
enclosuresingoodworkingorderandconditionatalltimes.Thebiddershallbe
responsibleformaintainingthecleanlinessoftheareasaround,behind,ontopof,and
underthevendingmachinesthatareinstalled,andthebiddershallremoveallofthe
refusecreatedbyfillingandservicingthevendingmachines,andshallensurethatall
vending machine enclosures are locked and secured.
III. EVALUATION CRITERIA
Theproposalenumeratedthefollowingevaluationplanforthesuccessofthisbusiness
as follows:
An evaluation of the quality, maturity and financial stability of the firm.
Anevaluationofthefirm'sabilityandexperienceinprovidingtheserviceoffered,
including:
level of client satisfaction, cost/benefit relationship and relative success.
Anevaluationoftheexperienceandtrainingofthepersonnelthefirmwillbe
committing for assignments at the University.
Anevaluationoftheapproachandrelatedcosts.Whenandifallotherfactorsare
considered equal, cost will be the deciding criteria.
IV. TIME SCHEDULE
Proposed PlanMONTH1
st
Week2
nd
Week3
rd
Week4
th
Week
ConstructionMarch
InstallationApril
Management trainingMay
Equipment set upJune
Start of Business
V. COST BUDGET
Sales Projection Per Week
ItemsUnits
Produced
Cost of GoodsSelling PriceSales
Snacks111(111X5)
P555
6P666
Drinks155(155X13)
P2, 015
14P2,170
Total266P2, 57020P2,836
Variable Cost:
Electricity expenseP400
Product refillP200
Misc. expenseP500
Cost of GoodsP2, 570
Total:P3, 670
Fixed Cost:
Wages expenseP2, 500
Total:P2, 500
Total Cost per MonthP6, 170
Capital Investment and Cost
Vending MachinesCost of 3 machines
SMI-9155 Vending Machine(P61, 629.00 X 3) P 184, 887
Other cost incurred:
Installation P150, 000 (P50, 000X3)
Construction of the locationP30, 000 (P10, 000X3)
Equipments P35, 000
Other costsP10, 000
Total cost incurred and cost of machineP409, 887
Capital Investment Analysis
The machine is expectedto have a usefullife of 8 years. The study has selected a
rateof12%forthepurposeofthisanalysis.BydeductingtheamountinvestedofP61,
629fromthetotalpresentvalueofnetcashflowofP205,593,theresultwasthe
expected income of P143, 964 for over 8 years.
Total expected Net Income for Three Vending Machines for over 8 years:
P143, 964 X 3 = P431, 892
YearPresent Value of P1 at
12%
Estimated Net
Cash Flow
Total Present
Value per Year
1.893P41,392P36,963
2.797P41,392P32,989
3.712P41,392P29,471
4.635P41,392P26,284
5.567P41,392P23,469
6.507P41,392P20,986
7.452P41,392P18,709
8.404P41,392P16,722
EXECUTIVE SUMMARY
Thisproposalencouragesto put-upthreevendingmachinesinsidethecampusto
meettheconsumers'needs.Thesignificanceofthisinitialplanwouldbehelpfultothe
knowledge ofthe investor on installingvending machines.It would also bebetter forthe
investorto considerthespecificneedsofthe target market. Thepurposeofthisproposal
istopushthroughtheinitialplanofputtingupthreevendingmachinesinsidethe
UniversityofthePhilippinesintheVisayas-IloiloCitycampus.Itprovidessmall
businesswiththeadvancedtechnicalassistanceandtraining.Thiswillbeaccomplished
throughacooperativepartnershipoftheinvestorandtheschool.Itrequiresthe
installationofsuchequipment,suchequipmentshallbeinstalledattheuniversity’s
expenseandshallbecomethepropertyofthesaidschool.Theinvestorshallprovide
healthybeverageandsnackproductoptionsforthevendingmachinesatyouthcenters.
Allproductsmusthaveuniversityapprovalpriortostockingmachines.Thissmall
businessrequiredatotalprojectcostofP409,887andcomputedtargetssalesperweek
worthofP2,836.Theexpectednetincomeforthreevendingmachinesforover8years
was totaled to P431, 892.
VI. LOCATION
The Proposed Location of ThreeVending Machines
Legend: Vending Machines
University of the Philippines in the Visayas
CM Rooms
College
Of
Management
D
O
R
M
I
T
O
R
y
y
Library
G
C
E
B
High School Building
HB RoomsAudi.
Cafeteria
