Price, Historical Trends

There are not much available data about the historical price of recyclable materials, especially in
the Philippines. One of the reasons for this is because the prices for recyclable materials are quite uneasy
with the fluctuating rates, which happen very often (Japan International Cooperation Agency, 2008).
These rates can vary over time due to several factors such as market demand, changes in recycling
policies, fluctuations in the prices of raw materials, and global economic conditions. A study of Lisa
Antonio in 2010, as cited by Kojima (2010), describe that due to the decline of demand from
manufacturers caused by the economic downturn in 2008-2009, the recyclable materials also went down
that resulted in depressed buying prices of the said product. On the other hand, the Environmental
Management Bureau Region 8 posted the prices of recyclable materials in 2016 only, which imply that
the recycling industry does not impose a stable pricing method.

Other than that, one notable trends for the price of recyclable materials lie within its destination
after generating wastes. In one of the interviews done by the proponents, it was found out that the price of
coca-cola bottles decreased. The owner of Sampol junk shop disclosed that after each households start
donating the coca-cola bottles to schools in order to make recyclable chairs, as encouraged by the
municipal officials, the price went from P6.00 to P4.00. This means that the supply for coca-cola bottles
bought by junk shops decreased. They do not already have the motivation to buy the said material since
coca-cola bottles are already brought to schools for free, which is already outside the market. Even other
junk shops which the proponents interviewed do not buy coca-cola bottles anymore.

Hence, trends mentioned above affect much to the projected price of the recyclable materials,
especially that the responsiveness of buyers to the price of change is elastic.

Proposed Selling Price

The proposed selling prices for each recyclable material will be primarily based on the buying
price of the nearest junk shop. This is to minimize the cost of transporting the materials towards the buyer
while maximizing the profit. The table below presents the junk shops and their corresponding price for
each material that the proponents preferred to sell:

Andy Junk Shop (Brgy. Utap, Zone 4, Tacloban City)

Category Buying Price (Peso per kilogram)
Hard Plastics P7.00
Metals P14.00
Bottles P4.00

FD Junk Shop (Lopez Jaena Extension, Tacloban, City)

Category Buying Price (Peso per kilogram)
Paper Products P1.00
Market Segment and Operating Costs

This section shows a comparison between the market segments and their buying prices for each
recyclable material. The three market segments refer to the derived demand of the commodities. The
purpose of these price studies is to justify the proposed selling price stated above. From the observation of
each price, the secondary market and manufacturers increase their price by P2.00 – P3.00. This means
that if the proponents will directly sell the products to them, the higher profit will be received. However,
the transportation cost would also increase disproportionately. This would, in effect, likely to generate
loss. Given the fact that there are few to none establishments for secondary markets and manufacturers
and industrial users near the area, the proponents decided to sell directly to junk shops who buys the
products and are within the nearest vicinity. Thus, the preferred buyers for this project are Andy’s
Junk Shop (metals, hard plastics, and bottles) and FD Junk Shop (for paper products).

PAPER PRODUCTS

Market Segment
Manufacturers and Industrial
Junk Shop Secondary Market Users
FD Junk Shop San Jose Bodega Manila Paper Processing
Price (Peso) ₱1.00 ₱3.00 ₱6.00
Quantity (kg) 1227.3 1227.3 1227.3
Revenue (per week) ₱1,227.30 ₱3,681.90 ₱7,363.80

METALS

Market Segment
Manufacturers and Industrial
Junk Shop Secondary Market Users
Andy's Junk Shop Kissing Sun Manila Steel Processing
Price (Peso) ₱14.00 ₱16.00 ₱18.00
Quantity (kg) 490.92 490.92 490.92
Revenue (per week) ₱6,872.88 ₱7,854.72 ₱8,836.56

HARD PLASTICS

Market Segment

Manufacturers and Industrial

Junk Shop Secondary Market Users
Andy's Junk Shop MLC (Jillian) Manila Paper Processing
Price (Peso) ₱7.00 ₱10.00 ₱13.00
Quantity (kg) 709.1 709.1 709.1
 Revenue (per week) ₱4,963.70 ₱7,091.00 ₱9,218.30

BOTTLES

Market Segment

Manufacturers and Industrial

Junk Shop Secondary Market Users
Andy's Junk Shop MLC (Jillian) Cebu Bottle Processing
Price (Peso) ₱4.00 ₱6.00 ₱8.00
Quantity (kg) 300.008 300.008 300.008
Revenue (per week) ₱1,200.03 ₱1,800.05 ₱2,400.06

A calculation of the estimated revenue and operating costs are also presented. The project is
expected to generate revenue of ₱14,263.91 every week; ₱57,055.64 every month, and; ₱684,667.68
every year. On the other hand, the operating costs involve equipment, maintenance, labor, transportation,
etc. The estimated cost for each category depends on the time they are purchased.

REVENUE (Estimation)
Product Estimated Revenue
Plastic Products ₱1,227.30
Hard Plastics ₱4,963.70
Metals 6,872.88
Bottles ₱1,200.03
₱14,263.91 (week)
TOTAL REVENUE ₱57,055.64 (month)
₱684,667.68 (year)

OPERATING COSTS (Estimation)

Timeline Category Estimated Cost
Weekly Labor ₱3,900.00
Transportation ₱800.00
Monthly Utility ₱150.00
Quarterly Stationary ₱150.00
Sanitary ₱1,410.00
Annually Cleaning Materials ₱385.00
Every 10 years Equipment ₱630.00
Furniture ₱1,510.00
References

Japan International Cooperation Agency (2008). The Study on Recycling Industry Development in the
Republic of the Philippines Final Report (Summary). JICA, retrieved from
https://openjicareport.jica.go.jp/pdf/11882396.pdf

Kojima, M. (March 2010). 3 R Policies for Southeast and East Asia. ERIA, retrieved from
https://www.eria.org/RPR-2009-10.pdf