Laraypas Indigenas Project Proposal by Ascend Travel

EST.

1995

Indigenous Weavers Production and Training Center Project Proposal in association with

Laraypas Indigenas Production & Training Center Section 1: Introduction

... 1-2

Section 2: The Concept The Products Market Opportunity Marketing Considerations Constructing the Laraypas Brand Distribution Strategy

... 3 ... 4 ... 5 ... 6 ... 6 ... 7

Section 3: Organization Legal Considerations Training Plan Management Team

... 8 ... 8 ... 8 ... 9

Section 4: Collaboration

... 10

... 11 Appendices ... 11 Total Project Budget ... 12-13 Construction Center Budget ... 14 Business Training & Marketing Budget ... 15 Sewing & Leather Shop Budget ... 16 Wood Shop Budget ... 17 Follow-Up & Subsequent Phases Budget ... 18 Sewing & Leather Shop Details Wood Shop & Natural Products Unit Details ... 19 ... 20-21 Production Center Blueprints

High above the Sacred Valley of the Incas, lies the community of Amaru. Amongst the mighty peaks of the Andes and nestled on a picturesque hillside dotted with trees and adobe houses, this village offers a glimpse into life as it once was for the Quechua People of Southern Peru. Amaru is a stunning example of people living in harmony with their natural environment. Its residents are warm and friendly, and quick to invite you to share in the abundance of their culture and traditions. It is a community devoted to preserving its ancestral ways while other nearby villages are letting them slowly slip away. Amaru’s proximity to Peru’s most famous artisan market and numerous other opportunities to sell their textiles in Peru’s tourist Mecca of Cusco would lead one to believe that these villagers are able to earn above the extreme poverty line. However Amaru, as well as the majority of other nearby communities, are not sharing in the economic boom provided by over a million tourist arrivals to Cusco each year. 75% of families in the region continue to live in extreme poverty.

Amaru, Pisac, Peru

Easily curable diseases and malnutrition are abundant. Agriculture is the primary economic activity, and lack of irrigation systems prohibits year-‐round farming. Typically, men seek work as construction workers or porters for the Inca trail during the dry season. These types of jobs mean long times away from home, poor

pay, and mistreatment at the hands of discriminatory managers. Most residents admit that they would like to see more economic opportunity within the community. This condition of poverty is witnessed by the over 1 million tourists who visit the Pisaq Market each year, as many of the villagers resort to begging. Most people visiting the iconic ruins of Machu Picchu make the small side-‐trip to Pisaq, which is located only 30 minutes away from the community of Amaru. The market has over 500 different vendors and a variety of artisan products. Despite what most tourists are made to believe, the artisan products that they purchase in the Pisaq and other markets in the tourist circuit are primarily produced in factories hours away from Cuzco, and very few authentic artisan goods make it to the shelves. In the village of Amaru, one group of villagers sees this an extraordinary opportunity. The Laraypas Indigenas, or “Indigenous Weavers” Association, is a group of villagers who have been working together for eighteen years to improve their community. They are involved in many initiatives to protect the environment, and preserve their ancestral traditions. Among these traditions is the art of Andean flat-‐weaving. Dating back more than 2,000 years, this ancient technique incorporates Andean symbols that tell the story of the community. The beautiful textiles they produce are sold to tourists at premium prices, but there simply isn’t enough demand for the weavings they create. The practical applications of the textiles are limited, and there is abundant competition from other communities who produce similar weavings. However, take a look around all the stores in Cusco and the Pisaq Market and you will notice that these beautiful and complex weavings are beginning to discover their true potential.

With the right training and adequate equipment, the Laraypas Indigenas Association can give the Community of Amaru the chance to pull itself out of extreme poverty. This project, in coordination with the local Secondary School, will also give the adolescents of Amaru the chance to learn useful skills and earn a respectable income without having to migrate away from the community. The project vision is as follows: Design and produce unique products using authentic indigenous weavings and/or iconography, distinguish Laraypas products against the unexceptional and indistinctive products that currently dominate the market. Teach the importance of continuous improvement and innovation.

Create economic opportunity within the community that increases family income, decreases emigration, and raises cultural awareness.

Improve education within the community (adults and adolescents) and set a strong example that can be used to spread the vision to other communities in the fight against poverty.

Tourist Arrivals

By providing the tools and training for creating unique products with high demand, the people of Amaru can capitalize on the growing number of tourist arrivals each year (see graph below). Each tourist is looking for unique gifts to bring back home, and tourists are willing to pay a premium for products that are socially conscious and give them a special connection to Peru. Tourist Arrivals to Peru, 1995-‐2012 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0

95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 Year

The Products

Phase 1 of the Laraypas Indigenas Production center will see the installation of the Sewing and Leatherworking Shop, the Woodshop, and the Natural Products Unit. Phase II (Date TBD) will see the implementation of the Jewelry Workshop and the Ceramics Workshop. Each addition is described in greater detail below:

Sewing and Leatherworking Shop (Phase I)

This will be the backbone of the construction center. All apparel items will be produced here. (See Page 18) Products include: Boots & Shoes, Purses & Handbags, Wallets, Suitcases/Travel Bags, Sweaters, Blankets, Hats, Scarfs, etc.

Woodshop (Phase I)

The woodshop will initially produce wooden accessories for apparel and later on more complex items. (See Page 19) Products include: Wooden Rings, Wooden Buttons, Bowls, Kitchen Utensils, etc. (All products made with native trees)

Natural Products Unit (Phase I)

This shop will produce cosmetic items that will be made with locally sourced medicinal herbs. (See Page 19) Products include: Natural Shampoos, Soaps, and Lotions.

Jewelry Shop (Phase II)

Pisaq is well known for silver jewelry. Amaru’s very first jewelry shop will help to bring production back to Pisaq. Products include: Silver Rings, Necklaces, Pendants, Bracelets, Earrings, Statues, Figurines, etc.

Ceramics Workshop (Phase II)

Ceramics incorporating Inca iconography are a hot item for tourists, and will be produced in Phase II of the project Products include: Ceramic Pots, Cups, Plates, Bowls, etc.

Examples of Indigenous Weavings from Amaru

Market Opportunity

The yearly market for authentic artisan goods in Southern Peru is in the millions of dollars. The District of Pisaq contains one of the biggest artisan markets in the region and is visited by most tourists on their way to the iconic Machu Picchu. Additionally, artisans have the opportunity to sell their products in the hundreds of storefronts that dominate Cusco’s central tourist area, as well as Peru’s capital, Lima. Most tourists complain that there’s very little variety between each stand and store. Almost all products do not come with any form of identification, and the tourists who purchase these products never get to make that important connection with the local producer. These considerations are important for the fast growing segment of responsible travelers. These types of tourists are interested in three things: engaging in experiential activities that help them learn about different lifestyles and cultures, supporting the local economy and having minimal impact on the social and environmental aspects of the destination, and interacting with locals and participating in their activities. Correspondingly, these responsible travel enthusiasts purchase products at premium prices that are 1) locally produced, 2) having cultural significance, 3) wearable or usable without being too overbearing, and 4) high in quality. Laraypas Indigenas will be uniquely situated to provide products that meet all of these criteria. The key to success of this project is following the above criteria, and executing the right marketing campaign to complement the products. Laraypas Indigenas will benefit from the experience of the Ascend Humanitarian Alliance’s 30 years of humanitarian project management. 5

Marketing Considerations

With the right training and a well-‐executed marketing campaign, Laraypas Indigenas will be able to capitalize on the enormous potential of its productive capacity. The Laraypas Indigenas Marketing Campaign will be undertaken with the following goals: 1) Tell the story of the community through brochures, product tags, and a basic website. Relay the social and environmental consciousness that Laraypas Indigenas has demonstrated for the past 18 years. 2) Create a brand, in fact, the first indigenous brand of Cusco. Not only by including the logo and basic information about the producers on each product, but also by constantly researching and innovating, by correctly pricing and placing the products, by understanding the different target markets and appealing to them, by keeping the right people involved with the project, and by maintaining an organizational culture which defines the Laraypas Indigenas Brand. 3) Form strategic alliances with businesses in which products are purchased wholesale, or offered on consignment, from Laraypas and offered at high-‐end stores in Cusco or other cities in Peru (and eventually internationally). By creating the right signage and understanding the potential retailers commission schemes and target consumer markets, this becomes possible.

Distribution Strategy

The success of this project depends on being able understand our distribution channels, and knowing when the product has met quality standards in order to advance to the next stage. Therefore, we have defined three different quality stages, and the corresponding distribution and marketing strategy for each stage. Amateur Stage: Products still show that the producer is refining his or her skills. Minor flaws are visible, needlework isn’t perfect, and product designs are rudimentary. Products that don’t sell well are reevaluated. Expert Stage: Producers have had time to develop their machine skills, and are becoming more creative and proficient with their designs. Minor flaws are still visible, but product designs are unique, durable, and attractive. Professional Stage: Producers have had time to perfect their manipulation of the sewing, leatherworking and woodshop machines, and have developed a high-‐quality product line that can be consistently produced in quantity.

Legal Considerations

This project will benefit from the legal structure that the Laraypas Indigenas Association already has in place. They are legally established as a Civil Association, which allows them to open bank accounts and write business receipts. This means that international collaborators, and later on customers, will be able to support or purchase from the Laraypas Association via bank transfers or credit card. Since Laraypa’s founders are from a rural village, their products are exonerated from an 18% value-‐added tax that other legally established producers and retailers are forced to pay. These favorable circumstances will give Laraypas Indigenas a distinct advantage over competitors. Handmade products are inherently more expensive than factory produced units because of the time that goes into making them. By not having to pay this tax, Laraypas Indigenas can offer superior products at a still reasonable price.

Training Plan

The training plan takes into account the necessity of the association members to become mentors for the rest of the community. Association members will train and work alongside others who are not immediate members of the association, like adolescents. The trainings will be divided into the three following categories: 1) Business Training – Ascend’s time-‐proven Business training course will be utilized in order to familiarize the association members with the basic business skills they will need to make this project a success. The course will be taught by founding member Timothy Marti as well as appropriate guest speakers from Cusco. 2) Machinery and Technical Training – Although the association has basic experience with industrial sewing equipment, training on how to maintain the equipment, how to operate it correctly, and how to utilize special features will be included in the project. The sewing machine shop where we are making the majority of our purchases has offered us five free trainings. 3) Design & Creativity Training – The association members have a lot to learn when it comes to designing things like purses and boots. We have contacted with local shoemakers, leatherworkers, and other experienced artisan workers to have them come and train at the production center once it is built. By paying them a small fee and covering all of their travel expenses, they will be willing to do the trainings. 8

Management Team Gregorio Sotalero Tacuri

Production Center Director Gregorio is a forward-thinking and imaginative individual from the community of Amaru. The former mayor of the town, he has directed the Laraypas Indigenas Association for 18 years. He has led a variety of development projects in rural tourism, health education, and irrigation, among others. Gregorio will be directing the implementation of the production center and guiding its development as he oversees day-to-day operations.

Timothy Marti

Assistant Director Timothy earned his BS in Entrepreneurism from the University of Utah. In the three years he has spent with Ascend Alliance, he has worked as expeditions coordinator, internship manager and international intern. Tim has coordinated many successful development projects in poor, rural communities. He is also skilled in graphic design, web programming and accounting, and will be lending his talents to the Laraypas Association via business training and marketing outreach.

Lynn Merritt

Financial Manager Lynn spends his time and talents working with those in need. He has served at the President and/or Director level as well as on the Board for several non-pro�its over the past two decades. His career in service started in Massachusetts running a shelter for at risk children, and then moving back to Utah to work with abused children at Primary Children’s Medical Center. His personal philosophy is that “we are accountable to take care of ourselves, but we can have a profound in�luence on others”.

Brenda Rindlesbach

Project Oversight & Reporting

Brenda is currently the Operations Manager at Ascend’s Headquarters in Salt Lake City. She manages international development, organizes service expeditions, and oversees Ascend’s internship program. Humanitarian work has been her heart and passion. With over ten years of experience, Brenda has worked extensively in Ecuador, Bolivia, and Peru making a difference in the lives of small, remote communities. A teacher at heart, she strives to inspire those around her to see their true potential.

The Ascend Alliance At the forefront of the project, the Ascend Alliance will find the financing necessary to construct and equip the production center, provide business training for the participants, and follow-up for many years to come. Regional Direction of Foreign Trade and Tourism

DIRCETUR is a government organization that has committed to paying for training workshops for the artisans at the Laraypas Production Center. They will help foot the bill for the teacher wages and provide transportation to the community. The Municipality of Pisaq

The Municipality of Pisaq is very interested to see this program succeed. They would like to see it adapted to other communities if it is successful. They can help out with construction materials, by providing a spot in the Pisaq Market, and with transportation. Commission for Exportation and Tourism PromPeru is all about getting producers to export quality levels. They will help Laraypas meet understand quality standards and help them get in touch with potential exporters. Your Support

We need your help to make this project a success! Apart from financing, we need help with marketing, designing, modeling, technical skills, business training, and above all networking! Your face or organization logo goes here.

Total Project Budget Code

Item

Exchange Rate

2.65

Price per Category

Total Price ($)

PRODUCTION CENTER CONSTRUCTION BUDGET

PEN 52,441.28 $ 19,789.16

01.01 01.02 01.03 01.04 01.05

Structural Architectual Plumbing Electrical Installations Labor

PEN 15,345.00 $ 5,790.57 PEN 14,800.00 $ 5,584.91 PEN 601.00 $ 226.79 PEN 1,495.28 $ 564.26 PEN 20,200.00 $ 7,622.64

BUSINESS TRAINING + MARKETING BUDGET

PEN 29,760.00 $ 11,230.19

02.01 02.02 02.03 02.04

Tools & Accessories Training Materials Business Training Sessions Marketing

PEN 3,700.00 $ 1,396.23 PEN 1,460.00 $ 550.94 PEN 9,600.00 $ 3,622.64 PEN 15,000.00 $ 5,660.38

SEWING & LEATHER SHOP BUDGET

PEN 21,390.00 $ 8,071.70

03.01 03.02 03.03 03.04

Machinery Tools & Accessories Initial Materials Training

PEN 12,340.00 $ 4,656.60 PEN 3,550.00 $ 1,339.62 PEN 3,600.00 $ 1,358.49 PEN 1,900.00 $ 716.98

WOODSHOP BUDGET

PEN 23,000.00 $ 8,679.25

04.01 04.02 04.03 04.04

Machinery Tools & Accessories Initial Materials Training

PEN 15,000.00 $ 5,660.38 PEN 5,200.00 $ 1,962.26 PEN 900.00 $ 339.62 PEN 1,900.00 $ 716.98

FOLLOW-‐UP & SUBSEQUENT PHASES

PEN 63,300.00 $ 23,886.79

04.01 04.02 04.03

Subsequent Phases for 2014 (Natural Products, Jewelry, and Ceramics Workshops) Site Visits Follow-‐Up Marketing

PEN 37,000.00 $ 13,962.26 PEN 13,800.00 $ 5,207.55 PEN 12,500.00 $ 4,716.98

Total: PEN 189,891.28 $ 71,657.09

Transfer Costs (3%)

$ 2,149.71

Total Cost

$ 73,806.80

Construction of Laraypas Indigenas Production Center Code

Item

Unit

Quantity

Qnt. Ascend Qnt. Com+Mun Price per Unit

Price Ascend

2.65 Exchange Rate Com+Mun = Community & Municipality Contribution Price Com+Mun Total Price Total Price ($)

STRUCTURAL

PEN 15,345.00 PEN 8,163.00 PEN 23,508.00

01.01

Preliminary Preparation

PEN 8,000.00 PEN 140.00 PEN 8,140.00 $ 3,071.70

01.01.01 01.01.02 01.01.03

Land Acquisition Building Blueprints by Certified Engineer Leveling & Replanting

m2 unit m2

500 1 200

500 1 0

0 0 200

01.02.01 01.02.02 01.02.03

Land Clearing Manual Excavation of Foundation Elimination of Excess Material

m2 m3 m3

300 58 64

0 0 0

300 58 64

01.03.01 01.03.02 01.03.03 01.03.04 01.03.05

Concrete Flooring f'c=100 kg/cm2 h=2" Cement for Strip Footing 1:10 Cement-‐Gravel 30% Rock Framework Installation and Deinstallation for Stem Wall Up To 0.30 m Concrete 1:8+25% PM for Slab Foundation Concrete in Raised Floor System Mix 1:8 Cement-‐Gravel E=4"

m2 m3 m2 m3 m2

25 10 70 5.1 120

25 5 0 3 100

0 5 70 2.1 20

01.04.01 01.04.02 01.04.03

Large Wooden Eucalyptus Support Beams Small Beams, Bamboo, and Mud Plaster (Roofing Insulation) Traditional Andean Tile

unit m2 m2

40 210 175

0 150 175

40 60 0

01.02

01.03

01.04

Excavational

Simple Concrete

Roofing

PEN 10.00 PEN 5,000.00 PEN -‐ PEN 5,000.00 $ 1,886.79 PEN 3,000.00 PEN 3,000.00 PEN -‐ PEN 3,000.00 $ 1,132.08 PEN 0.70 PEN -‐ PEN 140.00 PEN 140.00 $ 52.83 PEN -‐ PEN 2,244.00 PEN 2,244.00 $ 846.79 PEN 1.00 PEN -‐ PEN 300.00 PEN 300.00 $ 113.21 PEN 28.00 PEN -‐ PEN 1,624.00 PEN 1,624.00 $ 612.83 PEN 5.00 PEN -‐ PEN 320.00 PEN 320.00 $ 120.75 PEN 3,670.00 PEN 2,959.00 PEN 6,629.00 $ 2,501.51 PEN 12.00 PEN 300.00 PEN -‐ PEN 300.00 $ 113.21 PEN 220.00 PEN 1,100.00 PEN 1,100.00 PEN 2,200.00 $ 830.19 PEN 16.00 PEN -‐ PEN 1,120.00 PEN 1,120.00 $ 422.64 PEN 190.00 PEN 570.00 PEN 399.00 PEN 969.00 $ 365.66 PEN 17.00 PEN 1,700.00 PEN 340.00 PEN 2,040.00 $ 769.81 PEN 3,675.00 PEN 2,820.00 PEN 6,495.00 $ 2,450.94 PEN 60.00 PEN -‐ PEN 2,400.00 PEN 2,400.00 $ 905.66 PEN 7.00 PEN 1,050.00 PEN 420.00 PEN 1,470.00 $ 554.72 PEN 15.00 PEN 2,625.00 PEN -‐ PEN 2,625.00 $ 990.57

ARCHITECTUAL

PEN 14,800.00 PEN 9,545.00 PEN 24,345.00

02.01

Bricklaying

PEN -‐

02.01.01

Adobe Brick ( 09x013x0.24) 1.5 cm. Mortar 1:1:5

150

02.02.01 02.02.02

Plastering of Interior Walls Plastering of Exterior Walls

m2 m2

70 90

0 0

PEN 15.00 PEN 15.00

PEN 1,050.00 PEN 1,350.00

02.03.01

Plastering of Hanging Ceiling (Includes Bamboo)

160

PEN 21.00

PEN 3,360.00

02.04.01 02.04.02 02.04.03 02.04.04 02.04.05

Wood Floring + Nails Basefloor 2" Concrete for external sidewalks f'c=175 kg/cm2 Framework Installation and Deinstallation Joint Sealing

m2 m2 Bags m2 m

160 27.5 30 10 25

160 27.5 30 0 0

0 0 0 10 25

PEN 18.00 PEN 18.00 PEN 26.00 PEN 17.00 PEN 3.00

PEN 2,880.00 PEN 495.00 PEN 780.00 PEN -‐ PEN -‐

02.05.01

4" Wooden Skirting Board + Concrete

PEN 14.00 PEN 910.00

02.06.01 02.06.02

Wooden Doors Window Frames

m2 m2

10 20

5 10

PEN 90.00 PEN 450.00 PEN 60.00 PEN 600.00

02.07.01 02.07.02 02.07.03 02.07.04 02.08 02.08.01

Door/Window Hinges 2" X 2" Locks for Wooden Doors Wooden Sign for Exterior of Building (Laraypas Logo) Inauguration Plaque Glass for Windows Double Paned Glass

Unit Unit Unit Unit

20 3 1 1

0 0 0 0

PEN 3.00 PEN 50.00 PEN 400.00 PEN 120.00

PEN 17.00 PEN 425.00

02.09.01 02.09.02 02.09.03 02.09.04 02.09.05

Latex Paint for Hanging Ceiling Latex Paint for Interior Walls Latex Paint for Exterior Walls Varnish for Window Frames Varnish for Wooden Doors

m2 m2 m2 m2 m2

160 160 180 20 10

0 0 0 0 0

PEN 3.00 PEN 3.00 PEN 4.00 PEN 3.00 PEN 3.00

02.02 02.03 02.04

02.05 02.06 02.07

02.09

Plastering and Molding Hanging Ceilings

Flooring and Surfacing

Skirting Board

Woodworking Locksmithing

Paint

$ 8,870.94

PEN 55.00 PEN -‐

PEN 2,400.00 PEN 3,360.00 PEN 4,155.00

PEN 910.00

PEN 1,050.00

PEN 730.00

PEN 60.00 PEN 150.00 PEN 400.00 PEN 120.00

PEN 425.00

PEN 1,770.00

PEN 480.00 PEN 480.00 PEN 720.00 PEN 60.00 PEN 30.00

$ 9,186.79

PEN 8,250.00 PEN 8,250.00 $ 3,113.21

PEN 8,250.00 PEN 8,250.00 $ 3,113.21 PEN -‐ PEN 2,400.00 $ 905.66 PEN -‐ PEN 1,050.00 $ 396.23 PEN -‐ PEN 1,350.00 $ 509.43 PEN -‐ PEN 3,360.00 $ 1,267.92 PEN -‐ PEN 3,360.00 $ 1,267.92 PEN 245.00 PEN 4,400.00 $ 1,660.38 PEN -‐ PEN 2,880.00 $ 1,086.79 PEN -‐ PEN 495.00 $ 186.79 PEN -‐ PEN 780.00 $ 294.34 PEN 170.00 PEN 170.00 $ 64.15 PEN 75.00 PEN 75.00 $ 28.30 PEN -‐ PEN 910.00 $ 343.40 PEN -‐ PEN 910.00 $ 343.40 PEN 1,050.00 PEN 2,100.00 $ 792.45 PEN 450.00 PEN 900.00 $ 339.62 PEN 600.00 PEN 1,200.00 $ 452.83 PEN -‐ PEN 730.00 $ 275.47 PEN -‐ PEN 60.00 $ 22.64 PEN -‐ PEN 150.00 $ 56.60 PEN 400.00 $ 150.94 PEN -‐ PEN -‐ PEN 120.00 $ 45.28 PEN -‐ PEN 425.00 $ 160.38 PEN -‐ PEN 425.00 $ 160.38 PEN -‐ PEN 1,770.00 $ 667.92 PEN -‐ PEN 480.00 $ 181.13 PEN -‐ PEN 480.00 $ 181.13 PEN -‐ PEN 720.00 $ 271.70 PEN -‐ PEN 60.00 $ 22.64 PEN -‐ PEN 30.00 $ 11.32

PLUMBING

03.01 03.02 03.03 03.04 03.05 03.06 03.07

PVC Pipe PVC Joints PVC Tees Sink and Faucet + Installation Toilet + Installation Water Valves Urinal + Installation

ELECTRICAL INSTALLATIONS

03.01 03.02 03.03 03.04 03.05 03.06 03.07 03.08 03.09

Fluorescent Light Installations Basic Light Installations Double Light Switch Double Heavy-‐Duty Sockets PVC Pipe -‐ For Light Sockets PVC Pipe -‐ For Light Switches Emergency Light + Installation Grounding Well Electric Box with 6 Hookups

LABOR

03.01 03.02 03.03 03.04 03.05 03.06

Work Foreman Skilled Laborers Community Organizer Ascend Organizer Community Labor Transportation (Materials)

PEN 601.00 $ 226.79

6 7 8 1 1 2 1

0 0 0 0 0 0 0

PEN 15.00 PEN 3.00 PEN 5.00 PEN 120.00 PEN 200.00 PEN 15.00 PEN 100.00

PEN 90.00 PEN 21.00 PEN 40.00 PEN 120.00 PEN 200.00 PEN 30.00 PEN 100.00

PEN 1,495.28 PEN -‐

PEN 1,495.28 $ 564.26

Unit Unit Unit Unit m m Unit Unit Unit

6 3 6 12 30 20 2 1 1

0 0 0 0 0 0 0 0 0

PEN 85.00 PEN 40.00 PEN 8.50 PEN 8.00 PEN 8.00 PEN 8.00 PEN 44.14 PEN 90.00 PEN 140.00

PEN 510.00 PEN 120.00 PEN 51.00 PEN 96.00 PEN 240.00 PEN 160.00 PEN 88.28 PEN 90.00 PEN 140.00

Unit Unit Unit Unit 5 Hr Shifts Unit

1 2 1 1 600 1

1 2 1 1 0 1

0 0 0 0 600 0

PEN 4,500.00 PEN 3,600.00 PEN 2,000.00 PEN 4,500.00 PEN 15.00 PEN 2,000.00

PEN 4,500.00 PEN 7,200.00 PEN 2,000.00 PEN 4,500.00 PEN -‐ PEN 2,000.00

PEN -‐ PEN -‐ PEN -‐ PEN -‐ PEN -‐ PEN -‐ PEN -‐ PEN -‐ PEN -‐ PEN -‐ PEN -‐ PEN -‐ PEN -‐ PEN -‐ PEN -‐ PEN -‐

$ 33.96 $ 7.92 $ 15.09 $ 45.28 $ 75.47 $ 11.32 $ 37.74 $ 192.45 $ 45.28 $ 19.25 $ 36.23 $ 90.57 $ 60.38 $ 33.31 $ 33.96 $ 52.83

PEN 20,200.00 PEN 9,000.00 PEN 29,200.00 $ 11,018.87

Total:

PEN 601.00 PEN -‐ Unit Unit Unit Unit Unit Unit Unit

PEN -‐ PEN -‐ PEN -‐ PEN -‐ PEN 9,000.00 PEN -‐

PEN 4,500.00 PEN 7,200.00 PEN 2,000.00 PEN 4,500.00 PEN 9,000.00 PEN 2,000.00

$ 1,698.11 $ 2,716.98 $ 754.72 $ 1,698.11 $ 3,396.23 $ 754.72

ASCEND COM+MUN TOTAL TOTAL $ PEN 52,441.28 PEN 26,708.00 PEN 79,149.28 $ 30,559.57 Price in $: $ 19,789.16 $ 10,311.97

Business Training & Marketing Budget Code

Exchange Rate Item

Tools & Accessories

01.01 01.02 01.03 01.04 01.05

Basic Laptop for Accounting/Inventory/etc. Printed Legal Transaction Receipts Color Printer Office supplies: Folders, Stationery, Staplers, etc. Misc. Tools & Accessories

Training Materials

02.01 02.02 02.03 02.05

Ledger Workbooks Calculators Notebooks & Pens Misc. Training Materials

Business Training Sessions

03.01 03.02 03.03 03.04 03.05 03.06 03.07 03.08 03.09 03.10 03.11 03.12 03.13

#1 Introduction and Motivation #2 The Importance of Keeping Records #3 Establishing Goals #4 Personality Types #5 Cashflow #6 Marketing 1 #7 Marketing 2 #8 Sales Training #9 Exporting and Customs #10 Review Graducation Ceremony Site Visits (During training -‐ Follow-‐up site visits are on the follow-‐up budget) Misc. Business Training

Marketing

04.01 04.02 04.03 04.04 04.05 04.06

Website Informational Pamphlet printed on Recycled Material Product cards for each producer printed on Recycled Material Business Cards Catalog development (Modeling, Printing, Design) Misc. Marketing

Unit

Quantity

Price per Unit

Total Price

2.65 Total Price ($)

PEN 3,700.00 $ 1,396.23 Unit Unit Unit Unit Unit

1 1 1 1 1

PEN 1,500.00 PEN 1,500.00 PEN 200.00 PEN 200.00 PEN 900.00 PEN 900.00 PEN 600.00 PEN 600.00 PEN 500.00 PEN 500.00

Unit Unit Unit Unit

30 30 30 1

PEN 10.00 PEN 20.00 PEN 12.00 PEN 500.00

Class Class Class Class Class Class Class Class Class Class Event Event Unit

1 1 1 1 1 1 1 1 1 1 1 10 1

PEN 500.00 PEN 500.00 PEN 500.00 PEN 500.00 PEN 500.00 PEN 500.00 PEN 500.00 PEN 500.00 PEN 500.00 PEN 500.00 PEN 500.00 PEN 500.00 PEN 500.00 PEN 500.00 PEN 500.00 PEN 500.00 PEN 500.00 PEN 500.00 PEN 500.00 PEN 500.00 PEN 600.00 PEN 600.00 PEN 300.00 PEN 3,000.00 PEN 1,000.00 PEN 1,000.00

Unit Pamphlet Card Card Unit Unit

1 1000 1000 1000 1 1

$ 566.04 $ 75.47 $ 339.62 $ 226.42 $ 188.68

PEN 1,460.00 $ 550.94 PEN 300.00 PEN 600.00 PEN 360.00 PEN 500.00

$ 113.21 $ 226.42 $ 135.85 $ 188.68

PEN 9,600.00 $ 3,622.64 $ 188.68 $ 188.68 $ 188.68 $ 188.68 $ 188.68 $ 188.68 $ 188.68 $ 188.68 $ 188.68 $ 188.68 $ 226.42 $ 1,132.08 $ 377.36

PEN 15,000.00 $ 5,660.38

Total:

PEN 3,000.00 PEN 3.00 PEN 2.00 PEN 1.50 PEN 4,000.00 PEN 1,500.00

PEN 3,000.00 $ 1,132.08 PEN 3,000.00 $ 1,132.08 PEN 2,000.00 $ 754.72 PEN 1,500.00 $ 566.04 PEN 4,000.00 $ 1,509.43 PEN 1,500.00 $ 566.04

PEN 29,760.00

$ 11,230.19

Sewing & Leather Shop Budget Code

Exchange Rate Item

Machinery

01.01 01.02 01.03 01.04 01.05 01.06 01.07

Straight Stitch Industrial Sewing Machine Industrial Overlock/Serger Cylinder Arm Machine Knitting Machine Skiving Machine Cutting Machine Misc. Machinery

Tools & Accessories

02.01 02.02 02.03 02.04 02.05 02.06 02.07

Leatherworking Kit Boot & Shoe Molds Sewing Machine Repair Kit Sewing Machine Spare Parts First-‐Aid Kit Furniture (Cabinets, Tables, Chairs, Desks, Shelving, Whiteboard, etc.) Misc. Tools & Accessories

Initial Materials

03.01 03.02 03.03 03.04 03.05 03.06

Leather and Suede for Leather Shop Fabric for Sewing Shop Boot and shoe soles, shoelaces, fastenings, etc. for shoe production Zippers & Buttons Designs, Patterns, Molds, etc. Misc. Initial Materials

Training

04.01 04.02 04.03 04.04 04.05 04.06

Basic Machine Maintenance & Repair Basic Leatherworking Intermediate Leatherworking Basic Shoemaking Intermediate Shoemaking Knitting Machine

Unit

Price per Unit

Total Price

Total Price ($)

PEN 12,340.00 $ 4,656.60 Unit Unit Unit Unit Unit Unit Unit

1 1 1 1 1 1 1

PEN 1,800.00 PEN 2,900.00 PEN 2,100.00 PEN 2,500.00 PEN 2,190.00 PEN 350.00 PEN 500.00

$ 679.25 $ 1,094.34 $ 792.45 $ 943.40 $ 826.42 $ 132.08 $ 188.68

Unit Unit Unit Unit Unit Unit Unit

1 1 1 1 1 1 1

PEN 350.00 PEN 350.00 $ 132.08 PEN 300.00 PEN 300.00 $ 113.21 PEN 150.00 PEN 150.00 $ 56.60 PEN 1,000.00 PEN 1,000.00 $ 377.36 PEN 100.00 PEN 100.00 $ 37.74 PEN 1,500.00 PEN 1,500.00 $ 566.04 PEN 500.00 PEN 500.00 $ 188.68

Unit Unit Unit Unit Unit Unit

1 1 1 1 1 1

PEN 1,000.00 PEN 1,000.00 PEN 400.00 PEN 400.00 PEN 1,000.00 PEN 1,000.00 PEN 400.00 PEN 400.00 PEN 300.00 PEN 300.00 PEN 500.00 PEN 500.00

Class Class Class Class Class Class

1 4 4 4 4 2

PEN 100.00 PEN 100.00 PEN 100.00 PEN 100.00 PEN 100.00 PEN 100.00

PEN 3,550.00 $ 1,339.62

PEN 3,600.00 $ 1,358.49 $ 377.36 $ 150.94 $ 377.36 $ 150.94 $ 113.21 $ 188.68

PEN 1,900.00 $ 716.98

Total:

Quantity

2.65

PEN 100.00 $ 37.74 PEN 400.00 $ 150.94 PEN 400.00 $ 150.94 PEN 400.00 $ 150.94 PEN 400.00 $ 150.94 PEN 200.00 $ 75.47

PEN 21,390.00 $ 8,071.70

Woodshop Budget Code

Exchange Rate Item

Machinery

01.01 01.02 01.03 01.04 01.05 01.06 01.07 01.08 01.09 01.10 01.11

Industrial Table Saw Industrial Router Table Miter Saw Belt Sander Drum Sander Lathe Jointer Drill Press Power Drill Jig Saw Shop Vacuum

Unit

Tools & Accessories Woodcarving Kit Safety Gear Extra blades for cutting machines Sandpaper First-‐Aid Kit Furniture (Cabinets, Tables, Chairs, Workbenches, Saw Horses, Storage, Jigs, etc.) Misc. Tools & Accessories (Tape measure, squares, hammers, nail punch, level, wood chisels, hand saw, screwdrivers, clamps, etc.)

Initial Materials Local Wood (Chachacomo, Arrayan, Sauco, etc.) Wood Glue Supply Designs, Patterns, Molds, etc. Misc. Initial Materials

Training

04.01 04.02 04.03 04.04 04.05 04.06

Basic Machine Maintenance & Repair Basic Woodshop Intermediate Woodshop Basic Woodcarving Intermediate Woodcarving Misc. Training

Price per Unit

Total Price

Total Price ($)

PEN 15,000.00 $ 5,660.38

02.01 02.02 02.03 02.04 02.05 02.06 02.07

03.01 03.02 03.03 03.04

Quantity

2.65

Unit Unit Unit Unit Unit Unit Unit Unit Unit Unit Unit

1 1 1 1 1 1 1 1 1 1 1

PEN 1,900.00 PEN 2,100.00 PEN 1,900.00 PEN 800.00 PEN 1,300.00 PEN 2,100.00 PEN 1,700.00 PEN 1,400.00 PEN 600.00 PEN 700.00 PEN 500.00

Unit Unit Unit Unit Unit Unit Unit

1 1 1 1 1 1 1

PEN 800.00 PEN 800.00 PEN 300.00 PEN 300.00 PEN 500.00 PEN 500.00 PEN 300.00 PEN 300.00 PEN 100.00 PEN 100.00 PEN 3,500.00 PEN 3,500.00 PEN 500.00 PEN 500.00

Unit Unit Unit Unit

1 1 1 1

PEN -‐ PEN -‐ PEN 100.00 PEN 100.00 PEN 300.00 PEN 300.00 PEN 500.00 PEN 500.00

Class Class Class Class Class Class

1 4 4 4 4 2

PEN 100.00 PEN 100.00 PEN 100.00 PEN 100.00 PEN 100.00 PEN 100.00

$ 716.98 $ 792.45 $ 716.98 $ 301.89 $ 490.57 $ 792.45 $ 641.51 $ 528.30 $ 226.42 $ 264.15 $ 188.68

PEN 5,200.00 $ 1,962.26 $ 301.89 $ 113.21 $ 188.68 $ 113.21 $ 37.74 $ 1,320.75 $ 188.68

PEN 900.00 $ 339.62 $ -‐ $ 37.74 $ 113.21 $ 188.68

PEN 1,900.00 $ 716.98

Total:

PEN 100.00 PEN 400.00 PEN 400.00 PEN 400.00 PEN 400.00 PEN 200.00

$ 37.74 $ 150.94 $ 150.94 $ 150.94 $ 150.94 $ 75.47

PEN 23,000.00 $ 8,679.25

Follow-‐Up & Subsequent Phases Code

Exchange Rate Item

Unit

Subsequent Workshop Development

01.01 01.02 01.03

Natural Products Workshop (Soaps, Shampoos, Lotions, etc. w/ local healing plants) Jewelry Workshop (Silver jewelry) Ceramics Workshop

Site Visits

02.01 02.02 02.03 02.04

Site Visits by Ascend Coordinator Site Visits by Production Specialists Follow-‐Up documentation + reporting Administrative Travel

Marketing

03.01 03.02 03.03 03.05 03.06

Website Updates & Refinement Trade Show Participation Budget (Transporation + Signage + Registration Fees) New Marketing designs for banners, product tags, etc. Subsequent Catalog development Misc. Follow-‐Up Marketing

Price per Unit

Total Price

Total Price ($)

PEN 37,000.00 $ 13,962.26 Unit Unit Unit

1 1 1

PEN 12,000.00 PEN 12,000.00 PEN 22,000.00 PEN 22,000.00 PEN 15,000.00 PEN 15,000.00

$ 4,528.30 $ 8,301.89 $ 5,660.38

Visit Visit Unit Unit

8 8 1 2

PEN 400.00 PEN 3,200.00 $ 1,207.55 PEN 400.00 PEN 3,200.00 $ 1,207.55 PEN 400.00 PEN 400.00 $ 150.94 PEN 3,500.00 PEN 7,000.00 $ 2,641.51

Unit Unit Unit Unit Unit

1 3 1 1 1

PEN 2,000.00 PEN 2,000.00 PEN 1,500.00 PEN 1,000.00 PEN 2,000.00

PEN 13,800.00 $ 5,207.55

PEN 12,500.00 $ 4,716.98

Total:

Quantity

2.65

PEN 2,000.00 PEN 6,000.00 PEN 1,500.00 PEN 1,000.00 PEN 2,000.00

$ 754.72 $ 2,264.15 $ 566.04 $ 377.36 $ 754.72

PEN 63,300.00

$ 23,886.79

Sewing & Leather Shop Needed Equipment Straight Stitch Industrial Sewing Machine •

The Tools of Innovation The Laraypas Indigenas Sewing and Leather Shop will be equipped with industrial-grade equipment in order to meet the needs of a real business. After an intensive investigation into the tools needed to make the products that people want to buy, we have made a list of the machines and the brands that are available to purchase in Peru. We have paid special attention to brands that have technicians and spare parts available locally to avoid long downtimes if a machine breaks down.

Product List The Laraypas Indigenas Sewing and Leather Shop will be utilized to fabricate the following items: • Leather Shoes & Boots • Leather Purses & Handbags • Leather Wallets • Leather Suitcases & Travel Bags • Leather Belts • Knitted Rugs • Knitted Sweaters • Knitted Blankets • Alpaca Booties • Hats & Gloves • Pencil Bags • Shawls & Scarfs • Bracelets & Keychains

• •

The straight stitch machine will be the workhorse of the sewing shop. Useful for sewing leather and textile, it will be used for most seaming operations. Applications include: Andean textiles, Leatherwork, all seaming Available in 3 different options:

Industrial Overlock/Serger • Used for hemming, edging and seaming. This device can be used to sew heavy-duty and decorative seams on Andean textiles so they can be incorporated into other products where durability is an issue. • Applications include: Andean textiles, Clothing, Purses, Pencil Bags, etc. • Available in 2 different options:

Cylinder Arm Machine • • •

Used for sewing on the soles of boots/shoes. Also used for sewing on the bases of heavy-duty purses. Applications include: Boots/Shoes, Purses, Suitcase Bags, Leatherwork in general Available in 2 different options:

Knitting Machine • The Knitting machine will be used to assist in creating larger items with the abundant alpaca and sheep’s wool in the area. • Applications include: Rugs, Sweaters, Table Runners, Blankets, Purses, etc. • Available in 1 option:

Needed Training The following training will be needed in order to maximize the potential of the sewing & leather shop: • Basic machine maintenance and repair • Basic Leatherworking • Intermediate Leatherworking • Basic Shoemaking • Intermediate Shoemaking • Using the knitting machine

Cost of Implementation The estimated costs below represent the costs of the equipment, training, and initial materials to implement the sewing & leather shop: • $6500 - Equipment • $1000 - Training • $1000 - Initial Materials • $8500 - Total Cost

Skiving Machine • • •

Used to skive out the thin edges of leather and create clean and consistent ends with precision. Applications include: Shoes, boots, bags, suitcases, belts, wallets, purses, Leatherwork in general Available in 2 different options:

Cutting Machine • Used to make precision cuts without sacrificing the structural integrity of the Andean Textile or cloth being used. • Applications include: Cutting of Andean Textiles and other cloths • Available in 1 option:

Other Equipment Needed:

• Leatherworking tools, boot & shoe molds, designs for purses and suitcases, more to be determined...

Woodshop Needed Equipment Table Saw • •

Industrial grade cabinet table saw for basic wood cutting Applications: Ripping lumber, crosscutting, bevel cuts, etc.

Router Table • •

The Tools of Innovation The Laraypas Indigenas Woodshop will be equipped with industrial-grade woodworking equipment in order to meet the needs of a real business.

Miter Saw • •

Product List

Wood Buttons for sewing shop Wooden Bowls Wooden Jewelry & Beads Wood Carvings Wooden Tools Jewelry Boxes

• •

Industrial grade band saw for wood cutting Applications: Cutting irregular or curved shapes, etc.

Sanders • •

Industrial grade Belt Sander and Drum Sander for wood finishing Applications: Sanding and finishing in general, etc.

Jointer • •

Needed Training • • • •

Industrial grade miter saw for making precision angled cuts Applications: Framing, molding, carpentry in general, etc.

Band Saw

The Laraypas Indigenas Woodshop will be utilized to fabricate the following items: • • • • • •

Industrial grade router table for wood finishing Applications: Round overs, edge work, small boxes, patterns, etc.

Industrial grade jointer for smoothing and straightening wood Applications: Preparing local wood for use in artisan woodworking

Drill Press

Basic machine maintenance and repair Safety procedures Basic Woodworking Intermediate Woodworking

• •

Industrial grade drill press for holes, reaming, tapping, etc. Applications: Wooden Rings, wooden buttons, jewelry boxes, etc.

Other Equipment Needed: •

Power drill, Jig Saw, Vacuum, Safety gear, replacement parts, sandpaper, work benches, woodcarving tools

Natural Products Unit Hygiene and beauty products represent another opportunity for the Laraypas Indigenas Association. This section of the production center will produce a unique variety of soaps, shampoos, and lotions that will incorporate locally-sourced medicinal herbs. The Association has produced these types of products in the past, but without a strong marketing campaign they were not able to sell enough to break even.

The Tools of Innovation The Laraypas Indigenas Natural Products unit will be equipped with basic materials, molds, and industrial cookware.

Product List The Laraypas Indigenas Natural Products Unit will be utilized to fabricate the following items: • Natural Soaps • Natural Shampoos • Natural Lotions & Bath Salts

Needed Training • Creating Soap, Shampoos & Lotions • Incorporating Medicinal Herbs • Testing & Quality Control

The natural products unit will produce items that: • Include locally-sourced medicinal herbs •Are safe to be put on the skin • Can be produced with locally available materials • Can be sold without having to go through a lengthy licensing process • Are desirable to tourists and make great gifts • Made entirely from organic materials

Laraypas Production Center Blueprints (Lateral View)

Laraypas Production Center Blueprints (Top View)