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 turning a profit.

Currently, 90% of active latrine businesses are profitable.

The table below shows the average sale price charged at each quintile. The top performing LBOs (who sell around 70 latrines per month) charge the highest sale price, earning total revenues of $3,904 and a monthly profit of $1,323. The bottom performers only have an average profit of $22 (they sell around 2 latrines per month). In the middle (Tier 3) are LBOs who make an average profit of $157 (selling around 13 latrines per month).

Table 21