Project Proposal Title: Establishment of a Payment Center

I. Project
Establishment of a Water and Electric (Utility) Payment Center

II. Description
The establishment of the payment center for BATELEC II and Metro Lipa Water District bills
aims to address the needs of employees, members, and even non-employees within the premises
of the City Hall Building by accepting bills for convenience.

III. Expected Income

The Cooperative will earn from every transaction made, as much as P5.00 to P10.00 for every
transaction can be earned.

With the assumption that there are at least 1,000 households within the vicinity and each
household have at least two bills, we can project that the Cooperative will earn around
P10,000.00 every month.

Only electric and water bills at least three days before their due date will be accepted by the
cooperative. Transactions for the payment center are only until 3:00 P.M. daily, to give the
Cooperative time to sort out the transactions and remit them. Payments will be remitted
everyday.

Expenses will only be for transportation allowance which is P100 per day. For 22 working days
every month, transportation allowance will be P2,200.00

The financial projection for the Cooperative payment center is highlighted in the table below.

Measure
Income Projections (per month) P10,000.00
Expenses P2,200.00
Net Income P7,800.00

Target daily transactions in order to achieve income are presented in the table below.

Target Daily Monthly

Daily Income Income
Transactions (transaction x fee) (for 22 working days)

20 100 2,200
30 150 3,300
40 200 4,400
IV. Marketing Strategy
As a marketing strategy, flyers will be given to members to announce the establishment of the
payment center. Flyers will contain the general rules/ guidelines in payment, such as the fee for
every transaction and what bills will only be accepted (how many days before due date).

In addition, a poster/ tarpaulin will be posted outside the Cooperative Office announcing the
establishment of the payment center. Announcements will also be made in Facebook and other
social media sites to encourage members to patronize the Cooperative’s new service.

V. Recommendations
Based on the aforementioned information, the Cooperative payment center needs at least 30
transactions each day, just to cover the monthly expenses. This can be difficult given that there
are other accredited payment centers near the City Hall building, such as SM City Lipa and 7-11.
After analysis, it is my recommendation not to pursue the said payment center, as this is not
feasible.