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FS CHAPTERS 5 6 One Stop Quick Fix Shop Alegado 2020
FS CHAPTERS 5 6 One Stop Quick Fix Shop Alegado 2020
FS CHAPTERS 5 6 One Stop Quick Fix Shop Alegado 2020
CHAPTER V
MARKET FEASIBILITY
A. INDUSTRY DESCRIPTION AND COMPETITIVENESS
The researcher decides to study this kind of business in Atimonan, Quezon because
he wants to help the people in the Atimonan, Quezon and its environment to offer this kind
of services that will help them to value their accessories. For having this kind of business
the customers not having to “drive all over the town to attain the related services at
different shop because the business model offering customers of having multiple needs met
in one location or “One Stop”. He also noticed that most of the respondents are concerned
with the value of their accessories. This study considered the size and scope of the market,
wherein the researcher used 100 respondents from the total number of population in
Barangay Angeles, Caridad Ibaba, Tagbakin, Zone I, Zone II, Zone III, and Zone IV
using the stratified random sampling design to gather data within a reasonable amount of
time.
The proposed One Stop Quick Fix Shop business is in the Maturity stage. During
this stage, sales growth has started to slow down, and the services have already reached
widespread acceptance in the market, in relative terms. Some people do not go to the
shop to fix their repair items instead they will buy a new product. The researcher wants to
prolong this phase so as to avoid the eventual decline. This desire leads to new innovation
and features in order to continue to compete with the competition which, by now, has
become very established, advanced and fierce.
The nature of industry of One Stop Quick Fix Shop Services business in the town
is stable because there are Shoe Repair Shops existing in town and there are also few
competitors like the shoe cobblers on the street who offer the same kind of services but
the one key advantage of the business is the “One Stop” concept will have business name
that the market could easily find other existing services here in Atimonan, Quezon that
offer the same services has no business name. The proposed business will offer different
services that depend on the market wants and preferences.
Based on the survey, the places where the respondents go when they want to
render the services is first in the street or near public markets where the shoe cobblers
offer the similar services with 65% of the total respondents. Next is the repair shop of Mr.
Felecito Veracruz in Zone II Poblacion, Atimonan, Quezon with 24% of the respondents,
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For the market attitude of the respondents toward going to the One Stop Quick
Fix Shop, the respondents strongly agree that they go to the One Stop Quick Fix Shop
because they saved serious cash and their repair items has a sentimental value, and this
can help our environment and support small businesses. They also agree that the cobbler
will help their shoes last a lifetime and make it brand new again. The characteristics of
the services of a proposed One Stop Quick Shop services that the respondents most
preferred has a quick services, affordable price and offer discounts to the customers. The
repair items used has a good quality of repair tools and machines and has a best cleaning
method to make it last for a long period of time. The services also duplicating keys with
different colors and design. Lastly, the characteristics of the place of a proposed One Stop
Quick Shop services that the respondents most preferred have business name/logo,
contact number, arrangement of offer services and reserved chairs for the customers. The
shop also has color and design, well lighted and personnel have their own uniforms.
The proposed business will be using social networking sites, flyers, tarpaulins in
promoting the business. The researcher wants to satisfy the demands and needs of the
market according to the services they want to render.
C. ACCESS TO SUPPLY
The proposed One Stop Quick Fix Shop business will source its supply from these local
suppliers:
The proposed business will offer different service such as Shoe Repairing, Bag
Repairing, Sandals Repairing, Shoe Patching, Bag Patching and Key Duplication. These
proposed services are in affordable price.
This service offers reliability, convenience and ease in the repair of shoes and other
accessories. The offer services guarantee that the shoes and other repair items will
returned in an almost a brand new condition and will have absolutely no signs of any kind
of damage. In order to provide convenience to the customers, the repair items return to
them along with a shoe polish so that they can keep their repair items looking new for a
long period of time. In offering key duplication the services offer to the customers in
duplicating their keys not just once or twice but numerously with colors and design. The
shop will also have a Television and reserved chairs to the customers who are willing to
wait their repair items in the shop. The place will also have a business name/logo, contact
number and other detailed information, the display products and other offer services
arranged properly, and the shop is spacious and has a color and design. It is also well
lighted and the personnel have their own uniforms.
The prices will vary depending on what kind of repair the customers need. The
proposed services provide the greatest quality and value to the customers in the most
reasonable amount of money and aspire to become a name associated with reliability
convenience and quality.
Its location is secured and accessible so that the customers will easily find the place
because it has a business name/logo, contact number and detailed information, display
products arrangement, colors and design, well lighted place, and the personnel has a
uniform so that the customers will recognize them easily. The proposed business will also
have a complete material, passed required standard, entire necessary permit to operate,
safety materials use, and give discounts to the customers.
The proposed business will be using flyers, tarpaulins, radio advertisement and the
social networking sites to attract the market. The establishment will be tactically situated
in Barangay Zone II Poblacion, Atimonan Quezon.
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The target markets of the proposed business are the people in selected Barangays
from the town of Atimonan and the nearby Barangays namely Barangay Angeles,
Caridad Ibaba and Tagbakin. The target market’s total population is 29,291. The target
market is comprised of 29% who are of ages from 21-25, while 17% ranges from 26-30
years. As per monthly income, 23% of the respondents earn Php 8, 000-Php 9, 999 per
month while 22% of them earn Php 6, 000- Php 7, 999 per month.
The researcher considers those customers who go to Mr. Veracruz Shoe Repair
Shop to repair their accessories as his primary target market of the 949 market based..
However the researcher considers that not all of them will immediately patronize the
proposed business. Thus, the researcher assumes that he will be able to tap around 15%
of the market segment.
90% of the respondents are willing to go to the proposed business based on the
result of the survey. The researcher makes an assumption that 10% of the 90%
respondent will patronize the proposed One Stop Quick Fix Shop business. The
researcher assumed that 15% is a reasonable estimate for it is the lower percentage share
than Mr. Veracruz Shoe Repair, which is the major competitor of the proposed business.
TABLE F.1 TARGET MARKET BASE
Based on the survey, 90% of the respondents are willing to go to the proposed
One Stop Quick fix Shop to repair their accessories. Followed by 6% which having
second thoughts and going to shop and 4% of them are not interested.
TARGET MARKET:
The market potential of the proposed One Stop Quick Fix Shop business is
estimated and calculated as follows:
Total Population of the Residents: 29,291
Respondents Willingness: 90%
Competitor: (Mr. Veracruz Shoe Repair Shop): 24%
Assumption: 15%
29,291 x 90% x 24% x 15%
= 29,291*.90*.24*.15
= 949 (MARKET BASE)
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The Percentage of Market Base is 60% for peak season and 30% for lean season.
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MARKET
SERVICES that
No. of Equivalent UNIT
RANK the MARKET TOTAL PRICE
Responses per PRICE
LOOK for
Category
MAY, JUNE, SEPTEMBER, OCTOBER (PEAK)
Effective Market Base (569)
1 Shoe Repairing 89 23% 131 80.45 Php. 10,538.95
2 Bag Repairing 72 19% 108 70.00 Php. 7,560.00
3 Key Duplication 69 18% 102 80.22 Php. 8,182.44
4 Sandals Repairing 52 14% 80 71.63 Php. 5,730.40
5.5 Shoe Patching 50 13% 74 52.50 Php. 3,885.00
5.5 Bag Patching 50 13% 74 52.80 Php. 3,907.20
TOTAL MONTHLY SALES DURING PEAK MONTH Php. 39,803.99
TOTAL SALES PER 4 PEAK MONTHS Php. 159,215.96
% MARKET
SERVICES that
No. of Equivalent UNIT
RANK the MARKET TOTAL PRICE
Responses per PRICE
LOOK for
Category
JANUARY, FEBRUARY, MARCH, APRIL , JULY, AUGUST, NOVEMBER,
DECEMBER (LEAN)
Effective Market Base (285)
1 Shoe Repairing 89 23% 66 80.45 Php. 5,309.70
2 Bag Repairing 72 19% 54 70.00 Php. 3,780.00
3 Key Duplication 69 18% 51 80.22 Php. 4,091.22
4 Sandals Repairing 52 14% 40 71.63 Php. 2,865.20
5 Shoe Patching 50 13% 37 52.50 Php. 1,942.50
5.5 Bag Patching 50 13% 37 52.80 Php. 1,953.60
TOTAL MONTHLY SALES DURING PEAK MONTH Php. 19,942.22
TOTAL SALES PER 8 LEAN MONTHS Php. 159,537.76
ASSUMPTION:
The business sales for year 2 will increase by 10 % from the sales in Year 1 due to the
awareness of the presence of the proposed business, for that reason, more customers will
patronize the business.
In Year 3, the researcher assumes that the sales will further increase by 15% due to the
loyal customers that the entrepreneur will develop.
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CHAPTER VI
The proposed One Stop Quick Fix shop services offer reliability, convenience
and ease in the repair of shoes and other accessories. The offer services
guarantee that the shoes and other repair items will returned in an almost a
brand new condition and will have absolutely no signs of any kind of damage.
In offering key duplication the services offer to the customers in duplicating
their keys not just once or twice but numerously with colors and design.
The following attributes will be observed in a One Stop Quick Fix Shop
services:
Business name/logo.
Displayed contact number and other detailed information of the business.
Spacious.
Arrangement of the display products and other offer services.
Reserved chairs for the customer.
Color and design of the shop.
Well Lighted.
Uniforms of the personnel.
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The proposed One Stop Quick Fix Shop business will be located at Purok
Kapitbahay Barangay Zone II Poblacion, Atimonan, Quezon.
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Figure B.2 The location map of the proposed One Stop Quick Fix Shop services
business.
C. SERVICES PROCESS
The services process of the proposed One Stop Quick Fix Shop business.
SOURCING PROCESS
ADVERTISING PREPARING
CLEANING REPAIRING
The next step is to prepare the tools and equipment used in repairing shoes and
other accessories and the machine used in duplication of keys. After that, the
cobbler will ready to repair the customers repair products and duplicating keys
then the cobbler clean the repair products with the best cleaning method to keep it
looking in its perfect condition.
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REPAIRING CYCLE
ENTERTAINED BY
CUSTOMERS THE
OWNER/MANAGER
THE CUSTOMER
PAYMENT
LEAVE THE SHOP
The customer gives their repair items and explains to the owner/cobblers how
they want their repair items to be done. Then the customer waits for their repair
items until it’s done.
After repairing, the cobbler shows to the customer their repair items to check if
there are parts of the repair items to fix.
If the customer was satisfied on the repair services, he/she will ask the the total
bill of the services and will pay the total amount of the repair services.
Lastly, the owner, cobbler and the customer bid a nice goodbye.
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ENTERTAINED BY
CUSTOMERS THE
OWNER/MANAGER
THE CUSTOMER
PAYMENT
LEAVE THE SHOP
The customers enter the proposed One Stop Quick Fix Shop. The staff of the shop
will assist and entertain the customers to know how many keys they want to
duplicate.
The customer gives their keys and explains to the owner/cobblers how they want
their key items to be done. Then the customer waits for their keys until it’s done.
After duplicating the keys, the cobbler/key machine operator shows to the
customer their key items to check if there are parts that need to fix.
If the customer was satisfied on the services, he/she will ask the the total bill of
the services and will pay the total amount of the repair services.
Lastly, the owner, cobbler and the customer bid a nice goodbye.
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COBBLER
AREA
ENTRANCE/EXIT
KEY SEWING
DUPLICATING
MACHINE
MACHINE
TABLE
TABLE
CHAIR
TELEVISION
CHAIR
CHAIR
CASHIER/WOODEN CHAIR
MANAGERS
TABLE TABLE
Figure D.1 Floor Plan of the One Stop Quick Fix Shop Business
The figure shows the floor plan of the proposed One Stop Quick Fix Shop
business in Zone II Poblacion Atimonan Quezon. It illustrates how the shop is properly
arranged and how the shop is going to operate. The color of the shop is green and white.
“White” represents the cleanliness of the shop. “Green” represents the environment. The
operations of the business will make sure that it contributes to saving the earth by
repairing shoes. The logo of the proposed business will be running man carrying a shoes
to signify that the proposed business will repair shoes in quick and accessible way. The
business name will be “IAN’S QUICK FIXERS”. The size of the shop has an area of 15
square meters.
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For materials needed for construction, the cost to be incurred is Php 68, 467.00.
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The proponent would hire one (1) Foreman and two (1) Carpenters to build the
proposed One Stop Quick Fix Shop business within 30 days.. The cost to be incurred by
the proposed One Stop Quick Fix Shop business for labor is Php 33,000.00.
D.3.3 Cost of Construction
Table 3.3. Total Cost of Construction
Amount (in
Cost of Rebuilding Reference
Php.)
Cost of Materials 68, 467.00 Chapter VI, Page 96, Table 3.1
Cost of Labor 33,000.00 Chapter VI, Page 96, Table 3.1
Total Cost of Construction 101, 467.00
For three (3) years, the yearly depreciation expense for total cost is Php. 33,822.33.00.
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Monoblock Chairs
Shoe Rack
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Light Bulb
Wall Clock
Stand Fan
Television
Key duplicating
Machine
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Uncut Keys
Leather Groover
Hammer
Rugby
The proposed One Stop Quick Fix Shop business would need Php. 27, 953.53.53
the total cost of Machines, Equipments and Fixtures.
Table E.1.2 Grand Total Cost of Machines, Equipments and Fixtures.
For three (3) years, the yearly depreciation expenses for Machines, Equipments
and Fixtures is Php. 9, 317.84 . The depreciation schedule also within three (3) years to
make it consistent with the financial projection.
G. COST OF SERVICES
The researcher computed the unit cost of services as follows:
Table G.1. Shows the cost of services of a One Stop Quick Fix Shop Services.
Shoe Repairing
Bag Repairing
Key Duplication
Cost per Needed Cost per
Key Unit of Unit of Proportion Unit of
ASSUMPTION
Duplication Measure Measure per Measure
(in Php) duplication (in Php)
Sandals Repairing
Cost per Needed Cost per
REPAIR AND
Unit of Unit of Proportion Unit of
CLEANING ASSUMPTION
Measure Measure per Measure
TOOLS
(in Php) repairing (in Php)
300 ml of Bostik Rugby
Rugby 300 ml 55.00 0.020 1.1 can repair 30 sandals
(per 0.20 ml)
100ml of Leather Cream
Leather Cream Conditioner can shine
100ml 80.00 0.02 1.6
Conditioner and clean 100 ssandals
(per 0.02 ml)
200 ml of Odor Buster
can elimates and
Odor Buster 200ml 199.00 0.02 3.98
disinfects bacteria of
100 shoes per (0.02 ml
200 ml of Power
Power Cleaner 200ml 199.00 0.02 3.98 Cleaner can clean 100
shoes per (0.02 ml)
70 meters of leather
Leather Thread 70 meters 70.00 0.040 2.8 thread can repair 70
sandals (per 0.040 inch)
Packaging
1 piece of paper bag can
Paper Bag 100 pcs 70.00 0.01 0.70
pack 1 pair of sandals
Total Unit Cost of 1 Pair of Sandals 14.16
Shoe Patching
Bag Patching
Table G.2. Shows the cost of services of One Stop Quick Fix Shop services for
One Year.
UNIT PROJECTED
EQUIVALENT POTENTIAL
SERVICES COST (in COST OF
PERCENTAGE MARKET
PHP.) SERVICES ( in
Php)
MAY, JUNE, SEPTEMBER, OCTOBER (PEAK)
Shoe Repairing 23% 131 14.16 1,854.96
Bag Repairing 19% 108 44.1 4,762.80
Key Duplication 18% 102 20.1 2,050.20
Sandals Repairing 14% 80 14.16 1,132.80
Shoe Patching 13% 74 7.1 525.40
Bag Patching 13% 74 12.8 947.20
TOTAL MONTHLY COST OF GOODS DURING PEAK MONTH Php 11,273.36
TOTAL COST OF GOODS PER 4 PEAK MONTHS Php. 45,093.44
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PROJECTED
UNIT
EQUIVALENT POTENTIAL COST OF
SERVICES COST (in
PERCENTAGE MARKET SERVICES ( in
PHP.)
Php)
JANUARY, FEBRUARY, MARCH, APRIL , JULY, AUGUST, NOVEMBER,
DECEMBER (LEAN)
Shoe Repairing 23% 66 14.16 934.56
Bag Repairing 19% 54 44.1 2,381.40
Key Duplication 18% 51 20.1 1,025.10
Sandals Repairing 14% 40 14.16 566.40
Shoe Patching 13% 37 7.1 262.70
Bag Patching 13% 37 12.8 473.60
TOTAL MONTHLY COST OF GOODS DURING LEAN MONTH Php. 5,643.76
TOTAL COST OF GOODS PER 9 LEAN MONTHS Php. 22, 575.04
TOTAL COST OF GOODS IN YEAR 1 Php. 67,688.48
TOTAL COST OF GOODS IN YEAR 2 Php. 74, 435.33
TOTAL COST OF GOODS IN YEAR 3 Php. 85, 600.63
Assumption:
The total cost of services in year 1 is Php. 67, 688.48, in year 2 is Php. 74, 435.33
and in year 3 the total cost of services is Php. 85, 600.63
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AMOUNT TOTAL
OPERATING
PER MONTH AMOUNT PER ASSUMPTION/REMARKS
EXPENSE
(in Php) YEAR (in Php)
Since the proposed business will be
Electricity 800.00 9,600.00 using electricity, the electric bill is
estimated as Php 800.00 per month.
The total estimated water
consumption based on the equipment
Water 150.00 1,500.00 usage and for cleaning the shop will
be Php 150.00 (per month) x 12 =
Php 1, 500.00
TV Cable The estimated TV cable expense per
350.00 4,200.00
Expense month is 350.00.
Communication The estimated cellphone expense per
200.00 2,400.00
Expense month is Php 20.00.
The estimated transportation expense
Transportation
200.00 2,400.00 per month is Php. 200.00 for getting
Expense
the supplies/ materials needed.
The proposed business will expense
for flyers, tarpaulins and radio
advertisement to promote the
business. It will cost an estimated
Advertisement Php 300.00 monthly. The proposed
500.00 6,000.00
and Promotions business also has a kiwi shoe cream
freebies to the customers who want
to repair their shoes. 1 sachet = 1
customer. It will cost an estimated
200.00 monthly.
The estimated monthly expense for
Office supplies 100.00 1,200.00
office supplies is Php 100.00.
For unexpected expenses, the
Miscellaneous
300.00 3,600.00 researcher budgeted an amount of
Expense
Php. 500.00.
TOTAL OPERATING EXPENSE 30, 900.00
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The manager and the cobbler will also wear a face mask to avoid the bad
smell of rugby and other things used in repairing that can affect the
health of the individual in the shop. The management will allow the
people who wait for their services to wear a face mask or cover their
nose using handkerchief for their safety.