Results

Measuring Impact

Results

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  • Sales Analysis
  • Profiles
  • Maps
  • Installation+Use
  • Coverage
  • Business Analysis
Figure 1_2
Are We Moving the Needle on Latrine Coverage?

Baseline Latrine Coverage: 29% Project Satisfactory Target: 41% Actual: 45% Improved, pour-flush latrine coverage in the seven provinces stands at 45%, up substantially from 29% at the project baseline in February 2012. There was a significant jump in coverage of 16% over a relatively short period of time (2.5 years) and represents roughly 173,000 new latrine installations across the project seven provinces. While the direct sales for the project overall were over 140,000, estimated installations…

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Figure 6_2
Latrine Sales Exceed “Excellent” Target

Project-connected enterprises cumulatively sold over 141,000 latrines by the end of October 2014. This exceeded the “excellent” target of 140,000 latrines, and was the result of nearly 80,000 latrine sales in the final year of the project (actually 13 months, with average unit sales of over 6,000 per month). The overall ratio of non-project-connected sales to project-connected sales was roughly 1:1. This could be from a “ripple effect”; that is, broader market activity stimulated as a…

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Figure 5_2
Reaching the Poor with Sanitation

One of the key questions for the project was the degree to which sanitation marketing penetrates poorer market segments. Willingness-to-pay research feeds into this learning, as do pilot financing mechanisms to reduce cash flow constraints for households wanting to purchase a latrine. Overall, we have seen a doubling (12% increase) in IDPoor coverage since the baseline in early 2012. 22% of SMSU customers were classified as IDPoor. This equates to roughly 30,000 IDPoor sales to date, well…

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Figure 18
Are The Latrines Being Used?

97% of respondents claim to use their latrine always or almost always. The usage rates for children and for infants are much lower than for adults. Only about 22% of households use their latrine to dispose of infant feces. SATISFACTION Across all 7 provinces we found that between 26-39% of customers were very satisfied with the latrine and that 48-61% were mostly satisfied with the product.

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Figure 37
Profitability of Latrine Business Owners

In order to assess Latrine Business Owner (LBO) performance in terms of revenue and profitability, LBOs were divided into quintiles based on monthly sales. Being an LBO is generally profitable. The sales data and revenue suggest that the sanitation business is profitable. Out of the 329 LBOs the project has worked with, 246 LBOs (75%) achieved breakeven with their latrine sales, which bodes well for the latrine business in general, since the next stage is…

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Why Do Some Latrine Business Owners Drop Out?

Even though it appears that the sanitation business is generally profitable, there have been a large number of ‘dropouts’. 191 of the 329 Latrine Business Owners (LBOs) engaged by iDE (58%) are no longer active. A significant portion of the currently inactive LBOs were quite successful. They had a good sales record and had become quite profitable before deciding to discontinue latrine sales. Profit potential alone may not be a strong enough incentive to continue…

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Table 25
Latrine Business Characteristics and Sales

Financing While 108 out of the 329 Latrine Business Owners (LBOs) (33%) took financing for their business, most of the LBOs who took financing fall in the middle or upper quintiles. A larger percentage of the better performing LBOs tend to take loans since they are invested in their business, comfortable taking risks, and willing to buy on credit from suppliers. LBO Training 191 LBOs (58%) finished all three components (technical, sales and business) of…

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Figure 39
Sanitation Teachers Boost Sales

The project introduced sales agents called Sanitation Teachers (STs) to professionalize sales. There is a clear correlation between successful Latrine Business Owners (LBOs) and involvement of sanitation teachers (see the chart above). Taking the top and bottom quintiles for example, 6 different STs support a top-performing (Tier 5) LBO at different stages of the business cycle, while only 1 ST serves a Tier 1 LBO.  Since a Sanitation Teacher does not consistently engage with an LBO…

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Measuring Latrine Business Performance

Gross Margin Gross margin is generally calculated as: Gross Margin = Net Sales – Cost of Goods Sold For measuring gross margin per business per quarter Gross Margin = (Number of latrines sold * sale price of each latrine) – (number of latrines sold * per unit cost of raw material and labor). The gross margin is important since it measures the first level of profit earned by the Latrine Business Owner (LBO). None of…

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Sustainability of the LBO Business

While the ratios spell financial success for a large number of the LBOs, sustainability must be viewed through additional lenses. This means looking into other data points and issues, such as: how many LBOs are still actively involved in the business? How many have dropped out of the project and how many have sold off their business altogether? What stands out in the profile of the active versus inactive group? What are the different categories…

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Reaching The Breakeven Point

The breakeven point is when business sales cover expenses. It is usually after reaching the breakeven point that a business is considered to have passed the first threshold of sustainability. The breakeven point = Fixed Costs / (Price – Variable Costs). By November 2014, 246 out of the total 329 Latrine Business Owners (LBOs) (75%) had achieved breakeven, a good sign for the latrine business in general. Of the 198 LBOs with Sanitation Teacher (sales agent) sales, 173…

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Profile of a Successful Latrine Entrepreneur: Nhoeas Hoeun

Hoeun, hailing from Svay Chek district of  Banteay Meanchey, has been working with the project since August 2013. He has the advantage of being involved with a subsidy project i.e. a large portion of his sales are guaranteed, and at a relatively higher price (as opposed to a non-subsidy sale). He has not attended any of the 3 training components that the project has offered (sales, marketing, technical), and has never worked through a sanitation…

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Profile of a Successful Latrine Entrepreneur: Chea Oun

Oun is from Oddar Meanchey, working with the project since Oct 2013. He has completed the sales and business component of the training (did not attend the technical one). He has had 9 different STs work with him over the period of one year he has been with the project, with 2.3 STs working with him every month. He has sold 622 units so far (ranking 72), with 360 of those sold through STs. On…

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Profile of a Successful Latrine Entrepreneur: Luon Vanna

Based in Siem Reap, Vanna has been involved with SMSU since May 2012. He has completed the full training course. He has worked 2 years 9 months as an LBO, and has made a total sale of 1304 (rank: 28) units, 525 of which were sold through STs. On average, he sells 52 units per month. He has worked with 7 STs so far, with an average of 1.2 STs per month. His capital expenditure…

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SMSU 1.0 Atlas_Page_04_2
Atlas of toilet sales

Shown here are a selection of maps that were made as a planning tool for SMSU 2.0 sales strategy and supply chain management scale-up.

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