Importing Excavators via Alibaba comparison with local purchase

.  Computation

     Unit                        Kubota                                        Sany                                       Komatsu

     $                             5,000                                         3,500                                       $8,000

    Php                    300,000                                     210,000                                     480,000

+     Shipping

 Low                        150,000                                      150,000                                       150,000

Cost                         450,000                                       360,000                                       630,000

High  shipping       200,000                                         200,000                                       200,000

                               500,000                                         410,000                                       680,000

Price at Lubao        700,000                                        xxxxxxx                                       800,000 with breaker

Their margin       200,000                                       xxxxxx                                           120,000

Is it worth the risk to get the dealers margin?

On Wed, Dec 31, 2025 at 5:22 PM Jorge Saguinsin <jorge@holygardens.ph> wrote:

It could be that we can save more.  The latest Kubota, that are compatible with our needs and we know Kubota to be reliable could only cost  say $5,000 x 60 =   P300,000

1   Excavator cost at Alibaba

       KubotA U 40 $5000

      Sany 3.5 tons $3,500

 

      Komatsu PC 30 - $8,000

 

2.  Shipping cost

For a 3.5-ton excavator shipping from 

China

 to the 

Philippines

 in 2025, the total shipping fee typically ranges from ₱80,000 to ₱230,000 ($1,400 to $4,000 USD), depending on the service level and whether customs duties are included. 

Estimated Shipping Costs (Sea Freight)

Costs vary significantly based on whether you choose a door-to-door (DDP) service or standard freight:

• All-In / DDP (Recommended for individuals): Many forwarders offer "All-In" rates that include customs duties, taxes, and documentation.
  • By Weight: For overweight cargo exceeding 400-410 kg/CBM, rates are roughly ₱22.50 to ₱25.00 per kg. For a 3,500 kg (3.5 ton) excavator, this calculates to approximately ₱78,750 to ₱87,500.
  • By Volume (CBM): If charged by volume, rates start at ₱8,000 to ₱10,000 per cubic meter.
• Full Container Load (FCL): If you rent a private 20ft container:
  • Port-to-Port Freight: Approximately $436 to $1,200 (₱25,500 to ₱70,000) for the ocean freight alone.
  • DDP FCL: A 20ft container with all taxes and duties prepaid ranges from $2,500 to $3,500 (₱145,000 to ₱205,000). 

Additional Estimated Fees

If your shipping quote is "Port-to-Port" only, you must account for these separate costs:

• Customs & Brokerage: $150 – $600 per shipment.
• Port Handling: $300 – $600 per container.
• Insurance: Generally 1% to 2% of the equipment's value.
• Packing/Crating: $300 – $800 to secure the machine for transport. 

Actionable Links for Quotes

To get a precise quote for 2025, use these tools and providers:

• CargoBoss Rate Calculator – For all-inclusive CBM or weight-based sea freight from China.
• Sino Shipping Guide – For updated monthly container and LCL rates.
• Boxed Up Logistics (FB) – Popular for machinery and bulk imports to the Philippines. 

Re: PNL understanding, thin lot GP and why there is a need for prudent and frugal operations management

On Wed, Nov 5, 2025 at 6:59 AM Jorge Saguinsin <jorge@holygardens.ph> wrote:

 

Hi All,

This email outlines the fundamental principles of fiscal discipline and the necessity of prudent financial management and resource conservation within our business.

1. **Basic Business Formula: Sales - Cost = Gross Profit**

Our core objective is to consistently increase sales while simultaneously reducing costs and expenses. These are the primary drivers of our business, ensuring salaries are paid and operations are sustained. Unlike government entities, we must diligently account for every peso spent, as our revenues are not guaranteed.

2. **Break-Even Analysis of a Sales Transaction**

To illustrate, let's analyze the deductions from each sales transaction:

* **Standard Deductions (52% of Transaction Value):**

* VAT: 12%

* Memorial Care Fund: 15%

* Marketing Expense: 15%

* Collection Fee: 5%

* Insurance: 5%

* **Total: 52%**

* **Joint Venture (JV) Share:**

* Ranges from 40% to 50% (potentially higher if the land was purchased).

* **Development Cost (P3,500/sqm, potentially higher at current costs):**

* Lawn: P8,750

* SSN: P35,000

* GE: P105,000

**Example Application (for a lot previously sold at P60,000 during a promotion):**

* Total Selling Price (TSP): P60,000

* Less 52% Deductions: P31,200

* **Net Gross Profit:** P28,800

* Less JV Share (e.g., 50%): P14,400

* Less Cost of Goods Sold (COGS): P8,750

* **Gross Profit (GP): P5,650**

This P5,650 represents the margin available to cover our operating expenses. In this example, the profit margin is 9.4% (P5,650 / P60,000).

    Break even computation:

            Using 5,650 as margin as base:

           Monthly OE   (Estimate

                          Telephone:                              P2,000

                          Electricity                                 10,000

                          Water                                        20,000

                          Security F                                 25,000

                          Staff salary    6 x  16                96,000

                         Executive salary                        30,000

                         Total                                          183,000

                        BE  =   183,000/5,650              32 lots

                       This means for the entire year to break even we have to have 32 x 12 =     384!!!   Our target of 100, 200, 300 are not enough to break even!

                       Thus as seen from reality/background:    wherein we had 1 sale, 10 sales,     

          To address this PNL issue:

          1   We have to increase sales by:

                Increasing sales

               1.  Asking for marketing plan

               2.  Increasing TLP

                   In HGOMP our former price of P75,000 is way below the competitors P150,000  same as in HGGMP

                Reduce cost:

             1.  Make our marketing events relevant to achieve sales;    Marketing is at "AT A PROFIT"

                 One sbu spent P190,000 for Marketing Event

            2.  Keep labor costs to a minimum;    

            3.  FInd the leaks the small holes where expenses are leaking

 Anyone;    please show computation on the contrary that we are making profit

                  is there a substitute for the formula -  sales- cost  =  GP,   BE  =  Total expenses/ GP plot

OTHERWISE WE SEEK ABCD FROM EVERYONE

                                   

Best regards,

Jorge Saguinsin

PNL understanding, thin lot GP and why there is a need for prudent and frugal operations management

Hi All,

This email outlines the fundamental principles of fiscal discipline and the necessity of prudent financial management and resource conservation within our business.

1. **Basic Business Formula: Sales - Cost = Gross Profit**

Our core objective is to consistently increase sales while simultaneously reducing costs and expenses. These are the primary drivers of our business, ensuring salaries are paid and operations are sustained. Unlike government entities, we must diligently account for every peso spent, as our revenues are not guaranteed.

2. **Break-Even Analysis of a Sales Transaction**

To illustrate, let's analyze the deductions from each sales transaction:

* **Standard Deductions (52% of Transaction Value):**

* VAT: 12%

* Memorial Care Fund: 15%

* Marketing Expense: 15%

* Collection Fee: 5%

* Insurance: 5%

* **Total: 52%**

* **Joint Venture (JV) Share:**

* Ranges from 40% to 50% (potentially higher if the land was purchased).

* **Development Cost (P3,500/sqm, potentially higher at current costs):**

* Lawn: P8,750

* SSN: P35,000

* GE: P105,000

**Example Application (for a lot previously sold at P60,000 during a promotion):**

* Total Selling Price (TSP): P60,000

* Less 52% Deductions: P31,200

* **Net Gross Profit:** P28,800

* Less JV Share (e.g., 50%): P14,400

* Less Cost of Goods Sold (COGS): P8,750

* **Gross Profit (GP): P5,650**

This P5,650 represents the margin available to cover our operating expenses. In this example, the profit margin is 9.4% (P5,650 / P60,000).

Break even computation:

            Using 5,650 as margin as base:

           Monthly OE   (Estimate

                          Telephone:                              P2,000

                          Electricity                                 10,000

                          Water                                       20,000

                          Security F                                25,000

                          Staff salary    6 x  16                96,000

                         Executive salary                       30,000 

                         Gas and fuel     P5k x4             20,000

                         Total                                         203,000

                        BE  =   203,000/5,650                 35 lots

                       This means for the entire year to break even we have to have 35 x 12 =     420 !!!   Our target of 100, 200, 300 are not enough to break even!

                       Thus as seen from reality/background:    wherein we had 1 sale, 10 sales,     

          To address this PNL issue:

          1   We have to increase sales by:

                Increasing sales

               1.  Asking for marketing plan

               2.  Increasing TLP

                   In HGOMP our former price of P75,000 is way below the competitors P150,000  same as in HGGMP

                Reduce cost:

             1.  Make our marketing events relevant to achieve sales;    Marketing is at "AT A PROFIT"

                 One sbu spent P190,000 for Marketing Event

            2.  Keep labor costs to a minimum;    

            3.  Find the leaks the small holes where expenses are leaking

he phrase "small holes sink a ship" is a proverb meaning that even seemingly insignificant problems, if ignored, can lead to major disaster. It originates from Benjamin Franklin's quote, "Beware of little expenses; a small leak will sink a great ship," which highlights how minor costs can accumulate to cause significant financial trouble. In a literal sense, while modern ships have bilge pumps to manage minor leaks, a hole, regardless of size, compromises the hull's integrity and, if large enough or in a critical location, can lead to catastrophic flooding. 

 Anyone;    Please show computation on the contrary that we are making profit

                  is there a substitute for the formula -  sales- cost  =  GP,   BE  =  Total expenses/ GP plot

                  Anyone with 10 years business experience or MBA

OTHERWISE WE SEEK ABCD FROM EVERYONE

                                   

Best regards,

Jorge Saguinsin

Best regards,

Jorge Saguinsin