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 teacher. So far he has spent one year in the business, and has made a total sale of 2,744 units, which ranks 7th among the total units sold by the 329 LBOs. He has not taken any financing for his business, and has invested around $ 4,180 of his own money in productive assets. On an average, for every dollar of sales he makes 55 cents of profit (i.e. his operating profit ratio is 0.55). His sale price of a latrine set averages around $ 82.86, which is the 4th highest of all sale price, primarily because of the high margin of $46, the second highest of all (margins range from $ 48 to 50 cents when analyzed on an individual basis). In all probability this high margin is part of his arrangement with the subsidy project. His breakeven unit is only 92 (his high unit margin ensured only a small number to be sold before he expenses and earnings became equal), and he achieved that in his first quarter. Hoeun’s monthly profit is $10,415 which is the highest among all LBOs.