Feasibility Study
Feasibility Study
INTRODUCTION
The chapter present the background of the study, objectives of the study,
scope and limitations of the study, definition of terms, and the methodology which
include the research design, locale of the study, the respondent, sample and
sampling procedure, data preparation and processing and data analysis.
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manufacturing of building materials is an established industry in many countries
and the use of these materials is typically segmented into specific specialty trades,
such as carpentry, insulation, plumbing, and roofing work they provide the make-
up of habitats and structures.
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d) Financial and
e) Socio-economic
2. Determine the most preferred and saleable construction supply materials and
3. Determine the feasibility of establishing the hardware and construction supply
materials merchandise in the following aspect.
a) Marketing
b) Organizational
c) Operational / techniques
d) Financial; and
e) Socio-economic
Customers. The output of this study is beneficial to the costumers and the possible
competitors in business,
Constructional supply owners. This research gives the idea from the online
seller through the strategy, handling of the business online
Future Researcher. The study will become one of the references of others
researcher who has similar topic.
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Unemployed. After the conducting of this study and see the prospect of property
in this type of industry, implementing and establishment of the proposal will take
place. By that, the aquaculture well absorbed unemployment of the place, thereby
lessoning unemployment of the municipality.
Government. This will also be another source of revenue for the municipal
government due to the taxes from the establishment.
Definition of Terms
Building. Referring to make a structure is use for putting together several parts or
materials to form something.
Commodity. A good of services that has full or substantial fungibility that is the
market treats instances of the good as equivalent or nearly so with no regards to
who procedure them.
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Entrepreneurs. Refers to a person who undertakes the risk of starting a new
business of hardware supply for constructional supply.
Frequency. The rate at which data given will be identified in a period of time
through a given sample.
Financial. A field that concerned with the allocate investment of assets and
liability over space and time, often under conditions of risk or uncertainly.
Mark up. The ratio between the cost of a good or services and its selling price.
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Percentage. Use describes the basic feature of data of the study and provide a
simple summary about the sample and measure of the industry.
METHODOLOGY
This part of the study is including the research design, locale of the study,
respondent, the study sample and sampling procedure, data gathering procedure
data analysis.
Research Design
Generally, there are three levels to define construction within the literature
(Dang & Low, 2015). At one extreme, construction is referred to as an economic
activity that involves the entire construction process from producing raw and
manufactured building materials and components, and providing professional
services such as design and project management, to executing the physical work
on site. In this view, construction is an economic activity that crosses over all three
economic sectors: primary sector that involves the extraction of natural resources;
secondary sector that involves the manufacture of building materials and
components, and the transformation of these materials into finished buildings; and
tertiary sector that involves the provision of consultancy services such as project
management, design and structural engineering (Gruneberg, 1997).
The descripted survey research design is use because the study has to describe
quantitatively the services provide by the industry to the customers, the most
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preferred hardware constructional supply materials by the respondent, and the
factors effecting the preference of customers-respondent for the industry.
The research study is conducting at the whole area of Poblacion, Datu Paglas
Maguindanao Del Sur.
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Respondent
The propose study has two sets of respondents for the study, the first were
the constructional suppliers or the customers were answer queries with regard to
the supply and demand that exist in the municipality and the customers-owners of
hardware supply store who were purchasing their necessity for making building,
house and etc.
The researcher took permission from the college dean for the conduct of
the survey and referral is also sought from the research coordination for purpose of
introducing the researcher to the Barangay Chairman of Poblacion, Datu Paglas
Del Sur.
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3. The research sought the permission and assistance of the barangay captain of
the barangay Poblacion to conducting the study
4. The researchers conduct the survey interview through give questionnaire also
follow the own question of researcher.
Data Analysis
When the questionnaire is retrieved from the respondent, it was tallied and
tabulated, the following is to determine and interpret the data gathered
Frequency Count. Is the rate at which data given will be identified in a period of
the through a given sample, and
Percentage Distribution. Is use to describe the basic feature of the data of the
study and provide a simple summary about the sample and measure of the study.
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CHAPTER II
THE INDUSTRY
The chapter present include the goods and services being offered, the
market, major players, key success factor and the government policies.
Table I
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Plywood 9. Ordinary Plywood ½
Plywood 10. Ordinary Plywood ¾
Plyboard 11. Plyboard
Plywood 12. Marine Plywood ¼
Plywood 13. Marine Plywood ½
Plywood 14. Marine Plywood ¾
Steel 15. GI Pipe 1 ¼
Steel 16. Deformed Bar 8mm
Steel 17. Deformed Bar 9mm
Steel 18. Deformed Bar 10mm
Steel 19. Deformed Bar 12mm
Steel 20. Deformed Bar 16mm
Steel 21. Flat Bar 20mmx3mm thick
Steel 22. Flat Bar 25mmx3mm thick
Steel 23. Flat Bar 32mmx3mm thick
Steel 24. Flat Bar 40mmx3mm thick
Steel 25. Flat Bar 50mmx3mm thick
Steel 26. Flat Bar 15mmx5mm thick
Steel 27. Flat Bar 20mmx5mm thick
Steel 28. Flat Bar 25mmx6mm thick
Steel 29. Flat Bar 32mmx6mm thick
Steel 30. Flat Bar 40mmx6mm thick
Steel 31. Square Bar 8mm
Steel 32. Square Bar 9mm
Steel 33. Square Bar 10mm
Steel 34. Square Bar 12mm
Steel 35. Square Bar 16mm
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Steel 36. Square Bar 20mm
Steel 37. Round Bar 8mm
Steel 38. Round Bar 10mm
Steel 39. Round Bar 12mm
Steel 40. Round Bar 16mm
Steel 41. Angle Bar 40x40x3mm
Steel 42. Angle Bar 50x50x3mm
Steel 43. Angle Bar 25x25x4mm
Steel 44. Angle Bar 32x32x4mm
Steel 45. Angle Bar 40x40x4mm
Steel 46. Angle Bar 50x50x4mm
Steel 47. Angle Bar 25x25x5mm
PVC 48. PVC Pipes (12.7 mm D)
PVC 49. PVC Pipes (19.0mm D)
PVC 50. PVC Pipes (25.4mm D)
PVC 51. PVC Pipes (38.0mm D)
PVC 52. PVC Pipes (50.0mm D)
PVC 53. PVC Pipes (63.0mm D)
PVC 54. PVC Pipes (76.0mm D)
PVC 55. PVC Pipes (89.0mm D)
PVC 56. PVC Pipes (101.0mm D)
Steel 57. G.I Corrugated Ordinary 26x8 Feet
Steel 58. G.I Corrugated Ordinary 26x12 Feet
Steel 59. Galvanized Iron (GI Sheet) 26x8
Steel 60. Galvanized Iron (GI Sheet) 26x 10
Steel 61. Galvanized Iron (GI Sheet) 26x12
Steel 62. GI Plain Sheet 26
12
Steel 63. GI Plain Sheet 24x8
Steel 64. GI Plain Sheet 24x10
Steel 65. GI Plain Sheet 24x12
Steel 66. GI Plain Sheet 24
Steel 67. Common Nail (Assorted)
Steel 68. Umbrella Nail
Steel 69. Concrete Nail
Steel 70. GI Wire # 16 (1kg.)
Table 2.1 shows the essential constructional supply materials that the
propose business has to be offered.
Market
The market is divided into two consumers that is actual consumers where is
50% and 50% is the potential consumers who needed constructional supply
materials. The proposal business research study target is 75% of the customers are
satisfied to the good and services of hardware and construction supply materials
where is purchasing the product.
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There are 5 existing hardware and construction supply materials stores in
Poblacion, Datu Paglas Maguindanao Del Sur, some of the stores at Datu Paglas is
not totally capable of offering all products and services. But several essential
products and services needed for constructing commercial and residential
properties are available in the stores.
2. HYAH HARDWARE
3. ZT HARDWARE
5. EHAIYA.
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highway going to Columbio. They sell in cash with serving at discounted rates
which may be relatively higher the propose hardware and construction supply
materials merchandise.
The major players of this study maintaining the quality of the products and
services being offered to the customers. Customers also will be given a piece of
guidance and advice when purchasing products. The items should be sold with
reasonable price for the costumer’s satisfaction and convenience.
The owner of the five major hardware and constructional supply materials
stores also maintaining the accuracy of products being sold to customers for
customers’ assurance. Pieces of advice on precautionary measures and maintaining
system should be provide to the customers to avoid unnecessary hardware and
constructional supply materials.
Quality Management.
The business propose aims to ensuring the deliverable and meet the
standard and guidelines set by the customers, that include completing the service
for the buyers’ within the scope of work and avoiding dispute throughout the life
of business cycle, the selling materials constructional supplies to avoid defect
product materials of hardware, lead to the need for replacement, faults, accident or
any kinds of anomalies that will end up has negative impact to the consumers and
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their experience to the materials their purchasing in hardware supplies and
materials.
Integrity
Affordability
Government Polices
The propose business must secure the following legal requirement to put up
a better environment on the business, fire clearance, Certificate of occupancy, and
environment clearance, mayors’ business permit from the offices of the mayor of
Poblacion Datu Paglas, Maguindanao Del Sur.
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CHAPTER III
THE MARKETING
Product Description
Table II
Essential Hardware and Construction Supply Materials
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Indicators Description
1. Sand Mixture of small grains of rocks and granular
material used for concrete building
2. Gravel/Stone Aggregate of more or less rounded rocks
fragment coarser than sand used for concrete
building.
3. Cement A binder, a substance used for construction,
that sets, hardens and adheres to other
materials to bind them together.
4. Hollow blocks A type of block use to build walls, pavements
and other elements in masonry construction.
5. Plywood Ordinary plywood is made of thin layers of
wood, pressed together with glue. It used for a
wide range of structural, interior and exterior
application
6. G.I Pipe Manufactured using mild steel strips of low
carbon steel coils. It is use for wide variety of
construction applications, like fencing,
residential water supply, railing drainages,
bollards, and even scaffolding.
7. Square Bar Square bar has a unique metallurgical bond as
well as inherent toughness. It used for many
industries for general assembly of
manufacturing.
8. Round Bar It is a long, cylindrical metal bar. It is use for
construction of power poles, bridges, and hall
roofs in large industrial facilities.
9. Angle Bar Angle bar is a finished metal part in a right-
angle shape, with perpendicular legs that may
be equal or equal or unequal in length. It is
often installed within or along the edges of
beams and other platforms that may not have
enough capacity to carry the expected load.
10. PVC pipes PVC Pipe is made from a plastic and vinyl
combination material. It is used in water
system, underground
18 wiring, and sewer lines.
11. G.I Corrugated It is a corrugated steel sheet or metal. It is
commonly used for roofing commercial or
Table 3.1 shows the target market hardware and constructional supply
materials for the propose business which are consists mostly of essential materials
needed for constructing commercial and residential properties.
Target Market
The target market of the proposal research study is the customers who
usually purchasing needed materials for their work and find necessary things to do
their works or projects. The first target of this business proposal who are very
sensitive in terms of selecting supply materials, especially the customers demand
to the service of the hardware construction supply materials merchandise.
The demand of the propose business research study shows a great prospect
in providing the hardware and construction supply materials. It shows that 96 out
of 120 respondents of the study including owners of hardware and construction
supply materials stores and the regular customers are willing to avail wholesale
constructional supplies materials to surely sustain the safety of the customers and
to secure the long services owner and the customers. Therefore, liability in
establishing wholesale hardware and construction supply materials stores.
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Table III
Demand for Business Services
Table 3.2 shows that the percentage of response of the respondents in terms
of willingness to avail to the products and services that the propose business has to
offer. 96, which represents 80%, out of 120 respondents are willing to avail
wholesale and 24, which represents 20%, are incapable of purchasing bulkily.
Therefore, the ration is one 3:1. Meaning, out of 4 respondents, there are 3
who are willing to avail and there are 1 who are incapable of purchasing products
and services being offered.
Supply
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five-hardware constructional supplies constructional supplier where the sources of
purchasing materials of customers.
Table IV
Price and Pricing Strategy for Essential Hardware and Constructional
Supply Materials
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Plywood ½ (1 pc)
10. Ordinary 880.00 910.00 1,055.00
Plywood ¾ (1 pc)
11. Plyboard (1 pc) 920.00 1,000.00 1,018.00
12. Marine Plywood 405.00 425.00 465.00
¼ (1 pc)
13. Marine 790.00 815.00 825.00
Plywood ½ (1 pc)
14. Marine Plywood 1,205 1,225.00 1,245.00
¾ (1 pc)
15. GI Pipe 1 ¼ (1 885.00 915.00 975.00
length)
16. Deformed Bar .00 100.00 110.00
8mm (6mtrs.)
17. Deformed Bar 70.00 87.00 109.00
9mm (6mtrs.)
18. Deformed Bar 105.00 155.00 175.00
10mm (6mtrs.)
19. Deformed Bar 218.00 225.00 235.00
12mm (6mtrs.)
20. Deformed Bar 335 370.00 385..00
16mm (6mtrs.)
21. Flat Bar 107.00 120.00 135.00
20mmx3mm thick
(1 length)
22. Flat Bar 146.00 160.00 180.00
25mmx3mm thick
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(1 length)
23. Flat Bar 236.00 246.00 254.00
32mmx3mm thick
(1 length)
24. Flat Bar 280.00 294.00 315.00
40mmx3mm thick
(1 length)
25. Flat Bar 359.00 364.00 373.00
50mmx3mm thick
(1 length)
26. Flat Bar 224.00 243.00 254.00
15mmx5mm thick
(1 length)
27. Flat Bar 146 160.00 167.00
20mmx5mm thick
(1 length)
28. Flat Bar 404 412.00 419.00
25mmx6mm thick
(1 length)
29. Flat Bar 527.00 532.00 543.00
32mmx6mm thick
(1 length)
30. Flat Bar 717.00 723.00 741.00
40mmx6mm thick
(1 length)
31. Square Bar 8mm 200.00 215.00 222.00
(1 length)
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32. Square Bar 9mm 207 215.00 220.00
(1 length)
33. Square Bar 220.00 227.00 232.00
10mm (1 length)
34. Square Bar 269 272.00 280.00
12mm (1 length)
35. Square Bar 560 564.00 571.00
16mm (1 length)
36. Square Bar 713.00 720.00 724.00
20mm (1 length)
37. Round Bar 8mm 140.00 148.00 152.00
(1 length)
38. Round Bar 191.00 202.00 219.00
10mm (1 length)
39. Round Bar 303.00 312.00 320.00
12mm (1 length)
40. Round Bar 544.00 552.00 560.00
16mm (1 length)
41. Angle Bar 896 906.00 920.00
40x40x3mm (1
length)
42. Angle Bar 678.00 680.00 700.00
50x50x3mm (1
length)
43. Angle Bar 460.00 465.00 468.00
25x25x4mm (1
length)
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44. Angle Bar 616 621.00 624.00
32x32x4mm (1
length)
45. Angle Bar 661.00 668.00 700.00
40x40x4mm (1
length)
46. Angle Bar 885.00 890.00 900.00
50x50x4mm (1
length)
47. Angle Bar 560.00 567.00 575.00
25x25x5mm (1
length)
48. PVC Pipes (12.7 68.53 72.00 78.00
mm D)
49. PVC Pipes 92.26 95.00 100.00
(19.0mm D)
50. PVC Pipes 114.99 120.00 135.00
(25.4mm D)
51. PVC Pipes 205.11 210.00 220.00
(38.0mm D)
52. PVC Pipes 299.37 310.00 320.00
(50.0mm D)
53. PVC Pipes 343.40 355.00 365.00
(63.0mm D)
54. PVC Pipes 463.71 470.00 480.00
(76.0mm D)
55. PVC Pipes 569.04 575.00 580.00
25
(89.0mm D)
56. PVC Pipes 631.67 650.00 680.00
(101.0mm D)
57. G.I Corrugated 176.00 186.00 190.00
Ordinary 26x8 Feet
58. G.I Corrugated 264.00 274.00 280.00
Ordinary 26x12 Feet
59. Galvanized Iron 189.00 190.00 200.00
(GI Sheet) 26x8
60. Galvanized Iron 245.00 254.00 260.00
(GI Sheet) 26x 10
61. Galvanized Iron 290.00 310.00 315.00
(GI Sheet) 26x12
62. GI Plain Sheet 194.00 200.00 210.00
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63. GI Plain Sheet 269.00 279.00 285.00
24x8
64. GI Plain Sheet 345.00 355.00 360.00
24x10
65. GI Plain Sheet 415.00 425.00 430.00
24x12
66. GI Plain Sheet 274.00 284.00 290.00
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67. Common Nail 65.22 70.00 76.00
(Assorted)
68. Umbrella Nail 71.00 78.00 89.00
69. Concrete Nail 86.67 89.00 90
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70. GI Wire # 16 52.00 60.00 65.00
(1kg.)
Table 3.3 show the price and pricing strategy. The business will be using
economy pricing strategy because the business tends to apply wholesale price and
low-cost approach to the market, and to set the business at minimum level and
keep prices low to attract customers who are very price sensitive. The price is base
on the normal wholesale in the market place.
Promotional Strategy
CHAPTER IV
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This chapter includes the type of organizational structure, compensation
and benefits of propose business’ employees.
Type of Organization
Organizational Structure
General Manager/Owner
Accountant/Assistant
Sales Persons
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COMPENSATION AND BENEFITS
Table V
Employee Compensation
The table 4.1 shows the compensation of each employee based on its
position.
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Assistant. The person who job is to help the work of manage, assist the costumer
for what they need and at least he/she knows about the business and must be
highly responsible his/her job.
Labors. The person must be strong and can be depend on to discharge his/her
duties and responsibilities.
Table VI
Mandatory Benefits
Table 4.2 shows the corresponding semi-annual and mandatory benefits for
each employee. The Semi-annual bonuses includes midyear bonus which is
equivalent to 1-month salary of employee and Ramadan bonus which is P5,000.00
per employee regardless of position. The annual mandatory bonus includes year-
end bonus.
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CHAPTER V
OPERATIONS REQUIREMENTS
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The chapter 5 includes the technical services description, operation,
processing method, operation schedule, propose business’ location sketch,
business layout, pre-operating cost and operating costs, production cost,
advertising and marketing costs, and waste disposal.
The propose business has two (2) types of products and service to be
offered, the constructional materials/raw materials and the masonry products.
OPERATION PROCESS
INQUIRY
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MODE OF PAYMENTS
TERMS OF PAYMENTS
Processing Method
3. Mode of payment. Refers to the way by which costumers pay the orders, such
as cash and credit.
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5. Quality control. Refers to the process through which a business seeks to ensure
that products and services are maintained and quality improved.
Operational Schedule
Table VII
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General 1 SA, SU, M, T, W &TH 7:00am to
Manager 5:00pm
Table 5.1 shows the number of business employees and their schedules that
support the working hours of propose business.
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RoundBall
Datu Paglas
Commercial
Building
Figure 4 show the propose business location sketch which shall be located
along national high Poblacion Datu Paglas, Maguindanao Del Sur.
Pre-Operating Costs
37
new business. It makes the business qualify to operate. Propose business has two
types of pre-operational cost, the regulatory cost and the administrative cost.
Table VIII
Regulatory Cost/Expenses
Particular Cost
1. Barangay Clearance Php 800.00
2. Community Tax Certificate Php 500.00
3. Mayor’s Permit Fee Php 1,500.00
4. Garbage Charges Php 720.00
5. Sanitary Inspection Fee Php 240.00
6. Fire Fee Php 176.00
7. Business Plate Fee Php 220.00
8. Business Sticker Fee Php 50.00
9. BIR Registration Fee Php 300.00
10. Documentary Stamp Php 25.00
11. DTI Permit Php 530.00
Total Php 5,061.00
Table 5.2 shows the business pre-operating cost for Local Government
Units (LGUs) regulatory expenses.
Operating Cost
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Operating costs are expenses incurred by business that it uses to conduct
the business operation. Typically, it is a cost for business daily basis operation.
The propose business includes the salary and benefits of employees cost,
production cost, advertising and marketing cost, utility cost, and transportation
cost.
Table IX
Rentals
Particular Cost
Building Rent Php 36,000.00
Minor Repair on Building Php 15,000.00
Total Php 51,000.00
Table 5.3 shows the business rentals and minor repair costs.
Table X
Furniture and Office Supplies
Particular Cost
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Table (2 pcs) Php 5,000.00
Chair (6 pcs) Php 2,400.00
Stationery Php 1,500.00
Total Php 8,900.00
Table 5.4 shows the business furniture and office supplies costs.
Table XI
Machineries and Equipment
Particular Cost
Desktop (2 pcs) Php 60,000.00
Smart/LED TV (1 pc) Php 18,000.00
Android Phone Php 11,600.00
Ceiling Fan (3 pcs) Php 5,400.00
Calculator (2 pcs) Php 1,900.00
Fire Extinguiser Php 1,500.00
Total Php 98,400.00
Table XII
Salaries, Wages and Mandatory Benefits
Particular Cost
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1. Salary and Wages
Manager Php 144,000.00
Accountant/Cashier Php 120,000.00
Sales Person Php 192,000.00
Labor Php 216,000.00
Total P672,000.00
2. Mandatory Benefits
Manager Php 29,000.00
Accountant Php 25,000.00
Sales Persons Php 42,000.00
Labor Php 51,000.00
Total Php 147,000.00
Grand Total Php 819,000.00
Table 5.6 shows the business employees’ salaries, wages and mandatory
benefits. It simply the business’ annual expenses for employee’s compensation and
benefits.
Production Cost
Table XIII
Production Cost
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Products and Target Cost per Cost
Services Quantity Unit
1. Sand (1 m^3) 100 m^3 Php 700.00 Php 70,000.00
2. Gravel (1 m^3) 100 m^3 Php 800.00 Php 80,000.00
3. Port Land Cement 500 bags Php 220.00 Php 110,000.00
(1bag)
4. Holcim Cement 500 bags Php 220.00 Php 110,000.00
(1bag)
5. Hollow Blocks (1 5,000 pcs. Php 7.00 Php 35,000.00
pc)
6. Ordinary Plywood 100 pcs. Php 270.00 Php 27,000.00
1/8 (1 pc)
7. Ordinary Plywood 100 pcs. Php 355.00 Php 35,500.00
3/16 (1 pc)
8. Ordinary Plywood 100 pcs. Php 385.00 Php 38,500.00
¼ (1 pc)
9. Ordinary Plywood 100 pcs. Php 675.00 Php 67,500.00
½ (1 pc)
10. Ordinary 100 pcs. Php 880.00 Php 88,000.00
Plywood ¾ (1 pc)
11. Plyboard 100 pcs. Php 920.00 Php 92,000.00
12. Marine Plywood 100 pcs. Php 405.00 Php 120,500.00
¼ (1 pc)
13. Marine Plywood 100 pcs. Php 790.00 Php 79,000.00
½ (1 pc)
14. Marine Plywood 100 pcs. Php 1,205 Php 120,500.00
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¾ (1 pc)
15. GI Pipe 1 ¼ (1 100 pcs. Php 885.00 Php 88,500.00
length)
16. Deformed Bar 500 pcs. Php 70.00 Php 35,000.00
8mm (6mtrs.)
17. Deformed Bar 500 pcs. Php 80.00 Php 40,000.00
9mm (6mtrs.)
18. Deformed Bar 500 pcs. Php 105.00 Php 52,000.00
10mm (6mtrs.)
19. Deformed Bar 500 pcs. Php 218.00 Php 109,000.00
12mm (6mtrs.)
20. Deformed Bar 500 pcs. Php 335 Php 167,000.00
16mm (6mtrs.)
21. Flat Bar 500 pcs. Php 107.00 Php 53,500.00
20mmx3mm thick (1
length)
22. Flat Bar 500 pcs. Php 146.00 Php 73,000.00
25mmx3mm thick (1
length)
23. Flat Bar 500 pcs. Php 236.00 Php 118,000.00
32mmx3mm thick (1
length)
24. Flat Bar 500 pcs. Php 280.00 Php 140,000.00
40mmx3mm thick (1
length)
25. Flat Bar 500 pcs. Php 359.00 Php 179,000.00
50mmx3mm thick (1
43
length)
26. Flat Bar 500 pcs. Php 224.00 Php 112,000.00
15mmx5mm thick (1
length)
27. Flat Bar 500 pcs. Php 146 Php 73,000.00
20mmx5mm thick (1
length)
28. Flat Bar 250 pcs. Php 404 Php 101,000.00
25mmx6mm thick (1
length)
29. Flat Bar 250 pcs. Php 527.00 Php 131,750.00
32mmx6mm thick (1
length)
30. Flat Bar 250 pcs. Php 717.00 Php 179,000.00
40mmx6mm thick (1
length)
31. Square Bar 8mm 500 pcs. Php 200.00 Php 100,000.00
(1 length)
32. Square Bar 9mm 500 pcs. Php 207 Php 103,500.00
(1 length)
33. Square Bar 500 pcs. Php 220.00 Php 110,000.00
10mm (1 length)
34. Square Bar 500 pcs. Php 269 Php 134,500.00
12mm (1 length)
35. Square Bar 250 pcs. Php 560 Php 140,000.00
16mm (1 length)
36. Square Bar 250 pcs. Php 713.00 Php 178,250.00
44
20mm (1 length)
37. Round Bar 8mm 500 pcs. Php 140.00 Php 70,000.00
(1 length)
38. Round Bar 500 pcs. Php 191.00 Php 95,500.00
10mm (1 length)
39. Round Bar 500 pcs. Php 303.00 Php 151,500.00
12mm (1 length)
40. Round Bar 250 pcs. Php 544.00 Php 136,000.00
16mm (1 length)
41. Angle Bar 250 pcs. Php 896 Php 224,000.00
40x40x3mm (1
length)
42. Angle Bar 250 pcs. Php 678.00 Php 169,500.00
50x50x3mm (1
length)
43. Angle Bar 250 pcs. Php 460.00 Php 115,000.00
25x25x4mm (1
length)
44. Angle Bar 250 pcs. Php 616 Php 154,000.00
32x32x4mm (1
length)
45. Angle Bar 250 pcs. Php 661.00 Php 165,250.00
40x40x4mm (1
length)
46. Angle Bar 250 pcs. Php 885.00 Php 221,250.00
50x50x4mm (1
length)
45
47. Angle Bar 250 pcs. Php 560.00 Php 140,000.00
25x25x5mm (1
length)
48. PVC Pipes (12.7 500 pcs. Php 68.53 Php 34,000.00
mm D)
49. PVC Pipes 500 pcs. Php 92.26 Php 46,130.00
(19.0mm D)
50. PVC Pipes 500 pcs. Php 114.99 Php 57,495.00
(25.4mm D)
51. PVC Pipes 500 pcs. Php 205.11 Php 102,555.00
(38.0mm D)
52. PVC Pipes 500 pcs. Php 299.37 Php 114,685.00
(50.0mm D)
53. PVC Pipes 500 pcs. Php 343.40 Php 171,700.00
(63.0mm D)
54. PVC Pipes 500 pcs. Php 463.71 Php 231,000.00
(76.0mm D)
55. PVC Pipes 500 pcs. Php 569.04 Php 284,520.00
(89.0mm D)
56. PVC Pipes 500 pcs. Php 631.67 Php 315,855.00
(101.0mm D)
57. G.I Corrugated 500 pcs. Php 176.00 Php 88,000.00
Ordinary 26x8 Feet
58. G.I Corrugated 500 pcs. Php 264.00 Php 132,000.00
Ordinary 26x12 Feet
59. Galvanized Iron 500 pcs. Php 189.00 Php 94,500.00
(GI Sheet) 26x8
46
60. Galvanized Iron 500 pcs. Php 245.00 Php 122,500.00
(GI Sheet) 26x 10
61. Galvanized Iron 500 pcs. Php 290.00 Php 145,000.00
(GI Sheet) 26x12
62. GI Plain Sheet 26 500 pcs. Php 194.00 Php 94,000.00
63. GI Plain Sheet 500 pcs. Php 269.00 Php 134,500.00
24x8
64. GI Plain Sheet 500 pcs. Php 345.00 Php 177,000.00
24x10
65. GI Plain Sheet 500 pcs. Php 415.00 Php 207,500.00
24x12
66. GI Plain Sheet 500 pcs. Php 274.00 Php 137,000.00
24
67. Common Nail 500 kl. Php 65.22 Php 32,610.00
(Assorted)
68. Umbrella Nail 500 kl. Php 71.00 Php 35,500.00
69. Concrete Nail 500 kl. Php 86.67 Php 43,000.00
70. GI Wire # 16 500 kl. Php 52.00 Php 26,000.00
(1kg.)
Total 31,450 Php 26,497.97 ₱7,726,550.00
Table 5.7 shows the quantity, cost per unit, and the entire costs of business
production. The propose business first target quantity is 31,450. The cost per unit
varies from ₱52.00 to ₱920.00 with the total cost ₱7,726.550.00.
47
Table XIV
Advertising and Marketing Costs
Platform Cost
1. Facebook Page/Ad Php 1,000.00
2. Google Ad Php 1,000.00
3. Instagram Ad Php 500.00
4. Twitter Php 500.00
5. Radio Php 2,000.00
6. Flyers, Posters and Tarpaulins Php 5,000.00
Total Php 10,000.00
Table 5.8 shows the business annual online and offline advertising and
marketing expenses that supports the operation process of business.
Table XV
Utility Cost
48
3. Internet Connection Php 600.00 Php 7,200.00
4. Water and Sewage Php 520.00 Php 6,240.00
5. Office Supplies
Total Php 4,020.00 Php 48,240.00
Table 5.9 shows the monthly and annual utility expenses of business for its
operation.
The propose business will apply proper waste disposal. Proper waste
disposal includes the segregation of biodegradable, non-biodegradable, and
recyclable waste materials. Waste materials shall be place into proper waste
disposal where garbage truck assigned by the LGU could easily access and pickup
it.
The propose business remind its valued customers to always check their
cash invoice before proceed into production section.
CHAPTER VI
49
The financial aspects of propose business includes the projected cost,
source of financing, basic assumption, financial statement and analysis.
A. PROJECTED COST
Table XVI
List of Projected Cost
Particular Cost
1. Pre-Operating Cost
Regulatory Expenses Php 5,061.00
2. Operating Cost
Rentals and Minor Repair Php 51,000.00
Furniture and Office Supplies Php 8,900.00
Machineries and Equipment Php 98,400.00
Salaries, Wages and Mandatory Php 819,000.00
Benefits
Production Cost Php 7,726,550.00
Advertising and Marketing Expenses Php 10,000.00
Utility Expenses Php 48,240.00
Total Php 8,767,151.00
Table 6.1 show the projected cost of the propose business for its operation.
It includes the pre-operating and operating expenses of the business.
50
The form of propose business is a partnership. Partnership is form of
business organization of two or more persons that contributes money, property and
industry to a common fund to earn profit. The total contributed capital of the of the
propose business is eight million five hundred thousand eight hundred fifty-one
pesos (Php 8,761,651). It will be contributed by each partner.
Table XVII
Contributed Capital of each Partner
51
B. FINANCIAL ASSUMPTION
52
53
54
D. FINANCIAL ANALYSIS
Table XIX
ROI Five Year Projection
55
ANNUAL ROI ASSUMPTION
YEAR 1
ROI = for every ₱ 1.00 of investment there will be an increase return of .4846
centavos of return.
YEAR 2
ROI = for every ₱ 1.00 of investment there will be an increase return of .4876
centavos of return.
YEAR 3
ROI = for every ₱ 1.00 of investment there will be an increase return of .4902
centavos of return.
YEAR 4
ROI = for every ₱ 1.00 of investment there will be an increase return of .4923
centavos of return.
YEAR 5
56
ROI = for every ₱ 1.00 of investment there will be an increase return of .4941
centavos of return.
CHAPTER VII
57
The propose business will be a good for any construction either
commercial or residential properties. It also a good partner of constructors as the
prices are affordable.
This will also provide and contribute to the government through taxes that
will contribute to the local government, local employment, and favorable
partnership with stakeholders.
CHAPTER VIII
Findings
58
The propose business aimed to determine the viability of putting up
wholesale hardware and construction supply materials merchandise at Poblacion,
Datu Paglas, Maguindanao Del Sur. Base on the productive study of the
researcher, it is found out that 80% or 96 out of 120 of the respondents are in favor
for the establishing wholesale hardware and construction supply materials
merchandise while 20% or 24 out of 120 are not favor for it. The business proposal
has a total capital of Php 8,767,151.00.
The target market is the customers who usually purchasing needed materials
for their work and find necessary things to do their works or projects.
There are commonly used hardware and construction supply materials such as
sand, gravel, stones, wood, and many other naturally occurring in addition
to masonry products like cement, steel, hollow blocks, plywood, lumber,
wood paneling and other grinding mill works being offered by the propose
business.
The total projected sale for five (5) year is Php 23,244,324.93.
59
The recruitment of employees will be conducted by the partners in accordance
with the business requirements.
The projected statement of comprehensive income for five (5) years shows the
net income of the business.
For first year, the business will earn Php 3,787,246.00, for second year, the
business will earn Php 4,178,033.34, for the third year, the business will earn
Php 4,607,040.71, for fourth year, the business will earn Php 5,077,690.03,
and for the fifth year, it will earn Php 5,594,314.86.
The business will earn with the total projected sale for five (5) year of Php
23,244,324.93
Conclusion
60
Based on the data and information being gathered, it is therefore that the
establishment of wholesale hardware and construction supply materials
merchandise at Poblacion, Datu Paglas, Maguindanao Del Sur is really feasible.
Recommendation
BIBLIOGRAPHY
Datu Paglas, Maguindnao Profile 2020 PhilAtlas. Retrieved August 09, 2022
https://www.philatlas.com/mindnao/barrm/maguindnao/datu-paglas.html
Datu Paglas Competitive Index. Retrieve August 12, 2022.
https://cmci.dti.gov.ph/lgu-profile.php?lgu=Datu%20Paglas
61
Binding Your Business in the Construction Materials Industry. Retrieved August
19 2022.
https://www.eazystock.com/blog/building-business-construction-
materials/amp
A Review of Literature on Construction Supply. Retrieved September 28, 2022
https://www.irbnet.de/daten/iconda?CIB16515.pdf
https://www.moea.gov.bt/wp-content/uploads/2017/10/construction-Part-
1.pdf
Hardware & Construction Suppliers Price 2022 Philippines. Retrieved September
7, 2022.
https://www.topsmosthardware.ph/how-much-are-hardware-and-
construction-suppliers-in-the-philippines/
APENDICES
Survey Questionnaire
To the Respondents
62
The study, generally, shall be to determine the essential hardware and
construction supply materials which the customers want to avail/buy and which
price they preferred. The data to be gathered will help the administrator, thesis
coordinator, adviser, parents, hardware and construction supply materials owners
and costumers to identify the demand of hardware and construction supply
materials.
Disclaimer: Your response via this questionnaire will be uses strictly for academic
purpose only.
63
[ ] 24,000.00 – 30,000.00 [ ] 30,000.00 and above
[ ] Yes [ ] No
[ ] Yes [ ] No
[ ] Yes [ ] No
[ ] Yes [ ] No
[ ] Yes [ ] No
6. Did you purchase any essential hardware and construction supply materials once
in your life?
[ ] Yes [ ] No
7. Did you purchase any of the following essential hardware and construction
supply materials;
64
3. Hollow Blocks 6. Plywood
[ ] Yes [ ] No
8. Did you purchase it from local market of Poblacion Datu Paglas, Maguindanao
Del Sur?
[ ] Yes [ ] No
[ ] Yes [ ] No
10. Did you receive any discounts from hardware and construction supply
materials merchandise where you purchased?
[ ] Yes [ ] No
11. Are the hardware and construction supply materials merchandise offered
discount where you purchased constructional materials?
[ ] Yes [ ] No
12. Is there any hardware and construction supply materials merchandise in the
municipality of Datu Paglas, Maguindanao Del Sur offering wholesale price
[ ] Yes [ ] No
13. Did you purchased constructional materials in a wholesale price once in your
life?
[ ] Yes [ ] No
14. Do you think wholesale market system is being eliminated in local market of
Datu Paglas, Maguindnao Del Sur?
[ ] Yes [ ] No
65
15. Do you agree that wholesale price is better than retail price?
[ ] Yes [ ] No
16. Do you think offering wholesale price for hardware and construction supply
materials industry is favor for you as a costumer?
[ ] Yes [ ] No
17. Do you think offering wholesale price for hardware and construction supply
materials industry is favor also for you as an owner of hardware and construction
supply materials?
[ ] Yes [ ] No
18. Do you think establishing wholesale price for hardware and construction
supply materials industry in the municipality of Datu Paglas, Maguindanao Del
Sur can positively contribute to the economic dynamism of municipality?
[ ] Yes [ ] No
19. Are you willing to avail products and services offered by the new hardware
and construction supply materials merchandise offering wholesale price?
[ ] Yes [ ] No
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