The Cebu MyxxMarket Online Mall fills this gap by focusing on a High-Value, Low-Volume model with a target Average Order Value (AOV) of ₱5,000 or more.
The Core Competitive Advantage: Our platform allows the buyer to purchase a highly diverse, multi-category order (e.g., a sack of rice, fast food, specialty electronics) in a single, unified transaction via PayPal (for OFWs) and Paymongo (for Domestic Buyers). The system is built to process orders ranging from the ₱5,000 AOV target up to ₱20,000 mega-orders, ensuring full logistical support for the most lucrative customers. Our dedicated logistics team then consolidates all items from various sources (warehouse, local vendors, restaurants) into one efficient, secure delivery to the family.
1. Product Focus:
Mid-to-high value specialty and bulk consumer goods, with a primary emphasis on bulk grocery items that drive high AOV for family resupply.
2. Revenue Stream 1:
Product Sales (85%):
Purchasing inventory from regional wholesalers and selling directly to customers.
3. Revenue Stream 2:
Logistics Partner Fees (Core 15%):
Charging select, high-volume local vendors a ₱50,000 annual fee to list their products on the platform, providing them immediate access to our specialized delivery network. (Target: 12 partners for ₱600k annual revenue).
4. Revenue Stream 3:
Subscription Shop Fees (Upside):
Offering a separate, high-volume tier for small local merchants to set up and manage their own shops and product uploads for a low monthly fee of ₱200 - ₱500. This stream rapidly expands our local merchant ecosystem and provides future profit upside.
D. Marketing Strategy: Targeting the OFW Diaspora & Domestic High-Value Buyers
Our marketing focus is specifically aimed at the high-value purchasing community—both the Overseas Filipino Workers (OFWs) and the domestic Filipino diaspora (buyers in Manila, Davao, etc. purchasing for relatives in Cebu). This strategy leverages their shared need for convenient, trusted, and reliable fulfillment for their relatives in Cebu.
*Execution: Marketing funds will be allocated toward geographically-targeted digital campaigns (Facebook, Instagram) focused on these specific high-value corridors, both international and domestic.
*Messaging: The campaign will emphasize trust, high-value bulk options, and seamless unified payment (PayPal and Paymongo validation), positioning the platform as a reliable partner for family support, especially for regular bulk grocery delivery and fulfillment.
*Result: This taps into two distinct yet similar markets with higher disposable income, driving up overall sales volume while sustaining the critical high AOV.
III. The Operational Plan & Investment Allocation
The ₱8 Million investment is strategically allocated to minimize risk and provide a long operational runway:
A. The Core Team and Structure
The Operational Expenses (OpEx) are focused on supporting a lean and efficient team of 8 personnel, designed to execute the logistics and scaling strategy:
1 Manager
Oversight, vendor relations, financial reporting.
1 Marketing Staff
Executes OFW digital campaigns and local outreach.
2 Shoppers
Fulfill B2B orders and bulk inventory acquisition.
2 Product Image Uploaders
Manages inventory, content, and platform listings.
2 Delivery Boys
| Fleet operation (MPV & motorcycles) and final-mile delivery.
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B. Investment Allocation Breakdown
Inventory (COGS) - P2,500,000
Initial stock for high-demand items.
Logistics Fleet & Setup - P2,500,000
Purchase 1 MPV, 2 Motorcycles, 4 computers, and 2 POS machines, plus general setup equipment.
Operational Expenses - P2,750,000
Funds 18 months of fixed team salaries, small warehouse/storage facility rent, maintenance, and platform fees.
Working Capital/Buffer - P250,000
Contingency reserve.
TOTAL - P8,000,000
IV. The Financial Model: Profitability & Returns
A. The Pricing Strategy (35% Markup)
We have adjusted our pricing strategy to account for the 5% fee charged by our payment gateway (PayPal). Our new pricing model uses a 35% blended markup on the cost of goods. This strategic increase ensures that the gross profit is high enough to cover the fee and all operational costs, leading to guaranteed profitability.
*Gross Margin (Effective): The 35% markup translates to a strong 20.93% Gross Margin on every sale after the 5% payment gateway fee is deducted.
B. The Optimistic Target (40.7% ROI)
Annual Gross Sales
₱100,000/day x 365 days = ₱36,500,000 (plus vendor fees)
Annual Value - ₱36,900,000
Total Annual Gross Income
(20.93% Margin on Sales) + ₱600k Vendor Fees
Annual Value - ₱7,998,000
Total Annual OpEx
(Fixed Costs: Personnel, Rent, Maintenance)
Annual Value - ₱2,506,462
Annual Net Profit
₱7,998,000 - ₱2,506,462 =
₱5,491,538
Investor Annual Return (50%)
50% of Net Profit
₱2,745,769
Calculated ROI
₱2.74M Return / 8M Investment
34.3%
Note: The updated profit margin, incorporating the 35% markup and 5% PayPal fee, results in an excellent 34.3% Annual ROI.
C. The Safety Net Scenario (14.0% ROI)
This is the investor's downside protection. We calculated the absolute minimum sales required to secure over ₱2.2 Million in profit, guaranteeing the investor a strong, equity-based return.
Minimum Daily Sales Goal:
₱54,374
Annual Net Profit:
₱2,247,384
Investor Annual Return (50%)
₱1,123,692
Annual ROI: 14.0%
D. Profit Payout (50% Equity)
The investor's 50% equity stake entitles them to a 50% share of the company's Net Profit.
Distribution Frequency:
Payouts will be conducted Monthly.
Payout Calculation:
The distribution will be 50% of the Monthly Net Profit (as calculated after all operational expenses and liabilities are accounted for).
Timing:
Payouts will be distributed to the investor within 5 days following the completion of the monthly audit.
E. Long-Term Exit Strategy (50% Equity)
The 50% equity is designed to provide substantial capital appreciation upon a liquidity event, offering the ultimate return on investment over a 5-7 year horizon.
Exit Structure:
Should the Cebu MyxxMarket Online Mall be successfully acquired (e.g., by a major national logistics company or a multinational e-commerce firm) or undergo an Initial Public Offering (IPO), the investor is entitled to 50% of the final valuation or sale price.
Capital Return Example:
Assuming a conservative valuation of ₱50,000,000 at the time of exit, the investor would receive a payout of ₱25,000,000 (50% of the sale price), representing a return of over 3x the initial ₱8 Million investment.
V. Risk Mitigation & Conclusion
If we only achieve the Safety Net Target of ₱54,374 in daily sales, the plan is not to panic, but to execute a pre-defined downsizing strategy:
Operational Downsizing:
We immediately sell the high-maintenance MPV, relying solely on the two motorcycles and a more focused delivery area, drastically cutting fuel and maintenance OpEx.
Personnel Reduction:
We reduce the part-time Manager role to purely commission-based work until sales recover.
Capital Protection:
The ₱2.5 Million in inventory retains its value, acting as a further safety against the loss of the initial cash investment.
Conclusion:
This is a high-growth equity opportunity with built-in capital protection. The investor participates in a substantial upside (34.3% ROI potential) while having confidence that the robust operational structure and strategic 18-month funding runway guarantee a minimum of 14.0% annual cash return if only half the sales target is met.
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