Why Thai's fail at business, examples I've seen

[KIWIBATCH]

2 hours ago, Brunolem said:

This is a perfect example!

Better be empty than lower the price...

 

And there are so many more examples, of a different nature...I will just give one, the shoe shops, but it is also valid for many kinds of shops.

They order 5 pairs of each size, say, 4 to 9 (women shoes)

The first day of sale, all the size 6 and 7 are sold, because 90% of women wear these sizes.

At the end of the season, they are left with all, or almost all of their size 4, 8 and 9, while having missed tens of size 6 and 7 sales.

So, what do they do when comes the time of the next order?

They again order 5 pairs of each size!

Tesco Lotus are very good at this 

[jackdd]

1 hour ago, Brunolem said:

My village borders a road that links 2 small cities, with all the traffic being local (0% tourists or lost drivers).

These drivers are not really interested in what stands along a road that they pass every day, or even twice a day.

As a matter of fact, the vast majority of them are driving at high speed (not seeing what stands on the sides) toward one of the cities, which is their destination and where they will buy whatever they need.

But it doesn't matter.

Actually that's not always true. Here in Udon near where i live is such a road and in the morning when everybody goes to work people they are selling "moo ping" and they are selling really well. A lot of people stop to buy their breakfast there, there is sometimes a queue of severals cars. So it depends on what you sell.

Edited February 28, 2018 by jackdd

[jenny2017]

21 minutes ago, Minnehaha said:

And given Thai culture they all want to have their own business. They do not play well together (collaborate) or team up. So I posit the number of Thais who have started their own business is much higher % than foreigners. 

Would you really consider a noodle soup stand a real business that can feed a whole family? 

[jenny2017]

1 minute ago, jackdd said:

Actually that's not always true. Here in Udon near where i live is such a road and in the morning when everybody goes to work people they are selling "moo ping" and they are selling really well. A lot of people stop to buy their breakfast there, there is sometimes a queue of severals cars. So it depends on what you sell.

But they obviously kill each other's business by just copying what others do. The good running business you're talking about could soon be a dead one. 

 

   The education isn't really good enough to teach them what business really is. Most smaller shopkeepers can't add five and seven without a calculator. If they don't get a new government with people who know the difference between a business and bossiness , then it's not going to get any better. It depends on how good the education is and you see the result on the streets.

[jenny2017]

15 minutes ago, KIWIBATCH said:

Tesco Lotus are very good at this 

  I'm just wondering what they  teach them at school....

[janclaes47]

I don't know that particular 7/11, but a 7/11 in Soi Nana failing. 555555555555555555555555555555555555555555

[geisha]

 Theres  a lot of reasons for failing buisnesses here. We all know them. What amazes me more , is that you choose a 7/11 as an example !!!!!

[sanemax]

5 hours ago, remorhaz said:

Thais and business...  here's a hypothetical that illustrates a point that I have seen in one way or another in Thailand.  A Thai owns a block of 10 rental units.  He rents them for 1,000 Baht each.  Unexpectedly 5 of his renters leave within the same month.  The owner then goes to the remaining 5 and tells them that rent is now 2,000 Baht a month.  In response to this 4 out of the remaining 5 leave.......................  

No, in the vacant Condos, all his Family and friends will move in and stay for free .

[Brunolem]

1 hour ago, jackdd said:

Actually that's not always true. Here in Udon near where i live is such a road and in the morning when everybody goes to work people they are selling "moo ping" and they are selling really well. A lot of people stop to buy their breakfast there, there is sometimes a queue of severals cars. So it depends on what you sell.

Sure, it depends where on the road.

If they set up business near a town border, or close to a traffic light, for example, they might be noticed...but if they open in the middle of nowhere on a stretch of road where everybody is driving at 100km/h, as is the case in my area, business is going to be hard to get...

 

Now, as Jenny said above, as soon as someone will have some success, others will come in droves and kill all profitability.

Here, and contrary to what generally goes on elsewhere, the share of the pie is never too small...because they believe that the pie is actually growing with the supply!

In other words, the larger the supply, the larger the demand!

Classical, as well as modern economists, haven't yet come up with a theory fitting that very special case.

[Brunolem]

1 hour ago, jenny2017 said:

  I'm just wondering what they  teach them at school....

To turn the volume all the way up to eleven!

That's notably the case in the nearest Tesco Lotus where non-hearing impaired customers are advised to use earplugs...

[1FinickyOne]

On February 27, 2561 BE at 1:46 PM, Cracker2000 said:

Ok so give me some examples other than having 3 mini-markets, massage shops, beauty parlors etc next to each other competing for the same customers but offering exactly the same prices and level of service?

In other areas of the world this is considered good business... many years ago, in NYC, 8th street was filled with shoe stores, Hudson Street had antiques dealers, - - if you wanted to shop shoes, or antiques, you knew where to go... more than plenty of businesses everywhere go out of business because they are run by people who are not as clever as they think, or not as clever as others.. way of the world, not just Thailand.

[1FinickyOne]

On February 27, 2561 BE at 1:46 PM, Cracker2000 said:

Ok so give me some examples other than having 3 mini-markets, massage shops, beauty parlors etc next to each other competing for the same customers but offering exactly the same prices and level of service?

In other areas of the world this is considered good business... many years ago, in NYC, 8th street was filled with shoe stores, Hudson Street had antiques dealers, - - if you wanted to shop shoes, or antiques, you knew where to go... more than plenty of businesses everywhere go out of business because they are run by people who are not as clever as they think, or not as clever as others.. way of the world, not just Thailand.

[Cadbury]

On ‎27‎/‎02‎/‎2018 at 12:24 PM, Cracker2000 said:

7/11' on Soi 4, Nana, Bangkok  opposit Sub Soi 2.

The examples you quote signifies poor understanding of the area. That 7/11 has been around for yonks (13 years + to my knowledge) and is still going strong. Hardly looks like a failure. Nor do any of the other 7/11's or Family Marts in Soi 4. Perhaps you are the failure Mr. Marketing Man. Give Leo Burnett a try.... you might get a job there.

 

[JAZZDOG]

On ‎27‎/‎2‎/‎2018 at 1:54 PM, Cracker2000 said:

There isn't enough beer in Thailand for me to get drunk enough to think I could ever open a business here as a Farang in completion with a Thai and make a profit.

 

Its not so much as it being an uneven playing field in business.... its more like being asked to free climb the north face of the Eiger with a backpack full of bricks while the locals laugh at you and throw rocks...yes that seems a fair analogy

• Quote

Actually I have found LOS an easy place to run a successful business. My guesthouse/café here has been up and running 18 months averaging over 90% occupancy. The key is simple and the same as my other businesses in resort areas in several countries. Simply outshine the competition which isn't difficult, especially here. Our businesses are clean, modern and unique. Staff is attractive, smart and always smiling because we make their place of work pleasant. Finally price your product to sell which takes constant attention to market conditions. I say it's easy now just because I have been doing it a long time, paid my dues screwing up and now it is second nature. As is the norm people who throw shade come under two categories. They have never been there and read stats or been there and failed and need to find blame. Failure is a good thing if used as an education resulting in eventual success. Failure as a means to give up, not so much.

[Rhys]

CP would be a different model of course.

[swissie]

13 hours ago, Suradit69 said:

Exactly. In western countries the survival rate for small business start-ups is about 50% in the short term and less over longer periods.

 

According to Forbes and Bloomberg it's even worse.

 

https://www.forbes.com/sites/ericwagner/2013/09/12/five-reasons-8-out-of-10-businesses-fail/#698ffc0e6978

 

The "failure-rate" of new start-up's (worldwide) is almost scary.
In my home country, after having lost their job at the age of 55, many decide to go into business for themselves. Using their accumulated "pension-money" to fund the start-up. Many end up on "welfare" a couple of years down the road.
No wonder, that the amount of "pension-money" permitted for early withdrawl is now limited.

Easier in Thailand: Borrow the money from family and friends. If it dosn't work, say "sorry" and "I will pay back, eventually". 555
Cheers.

[swissie]

8 hours ago, jenny2017 said:

 

 I'm wondering why Thai have never thought about a one stop service for us. Beer, visa and girls. 

Brother, if that were the case, I would never have left Thailand.
Cheers.

[swissie]

Many examples of Thai "Business-Acumen" in this thread that us Farangs simply don't understand. Honestly: We don't really know how they "tick".

Something that does not stop us Farangs from marriying someone, that we really don't know how they "tick".

As possibly 80% of Thai start-up's fail, there is solace in the fact, that only 60% of Farang/Thai marriages fail.

Statistically, the failure-rate (Marriage PLUS Farang Investment) averages out at merely 70%. Not bad, considering that the "failure-rate" playing roulette in Las Vegas is close to 99% in the long run.
Cheers.

[1FinickyOne]

8 hours ago, jenny2017 said:

Would you really consider a noodle soup stand a real business that can feed a whole family? 

Hi Jenny - Yes. And fruit carts too. Have known some persistent workers who are in the same place at their jobs every day and then send their kids to college in other countries... 

[1FinickyOne]

8 hours ago, jenny2017 said:

Would you really consider a noodle soup stand a real business that can feed a whole family? 

Hi Jenny - Yes. And fruit carts too. Have known some persistent workers who are in the same place at their jobs every day and then send their kids to college in other countries... 

[inThailand]

Anyone who has looked seriously at starting a business here, comes to the same conclusion. High risk, headaches and low return. Most I have seen that are sucessful have a common trait....  low overhead.

[Kimber]

16 hours ago, remorhaz said:

Thais and business...  here's a hypothetical that illustrates a point that I have seen in one way or another in Thailand.  A Thai owns a block of 10 rental units.  He rents them for 1,000 Baht each.  Unexpectedly 5 of his renters leave within the same month.  The owner then goes to the remaining 5 and tells them that rent is now 2,000 Baht a month.  In response to this 4 out of the remaining 5 leave.  The owner than goes to his sole remaining renter and tells him that rent is now 10,000 Baht a month which immediately prompts his last renter to leave.  His entire complex stays empty for 2 months.  Finally a potential customer comes up and asks how much it is to rent one of his units - the owner answers "10,000 baht" - the owner is used to getting 10,000 baht after all.  The new customer immediately walks away.  At the temple the owner prays and lights an incense stick and dedicates a bottle of Red Fanta because obviously the Buddha is angry at him as he has no customers.  

 

The absolute inability to connect cause with effect and understand that for a person to have something greater tomorrow they must not consume it or waste it today.  I blame the weather.  In Europe or North Asia if you didn't plant your crops properly and harvest them carefully you starved during the winter.  This has a tendency to shake out the lazy within a few generations.  In Thailand if you're lazy and wake up at 1pm every day and don't plant anything it doesn't matter.  When hungry you simply go tear a piece off any number of trees and eat, year round.  If you save something chances are someone will be along to take it or want to "borrow" it from you so why save anything?  Only today matters.  Ask a Thai this: would you rather get 60,000 Baht at the end of each month or 1,000 Baht each and every day.  They'll all take the 1,000 per day.  You could die today after all!  Future planning?  You think to mut.  I'll come back tomorrow?  A grave insult.  Running a business requires future thinking which is hard to do if none of your ancestors ever did this.

 

My regular TG has one of those worthless Thai tertiary degrees that lacked any grounding in rational, objective thought process or analysis. 

 

Last year my little darling comes up with a business idea,  SMOOTHIE SHOP ! 

Her friend has a Smoothie shop and sometimes makes 10,000 baht on busy market days in Swampy. 

"Leerlee" ?

 

So we take the time to understand what a Business case is, then the satang drops and she tells me "too many Smoothie shop in market now".    More discussion reveals that her "friend" wants to sell the Smoothie shop.  555

 

Over the years I've come to understand that most Thai schools and tertiary institutions ....aren't.

 

 

[simoh1490]

Forbes tell us that 90% of new businesses fail, I seriously doubt that Thai startups are any different - here's the reasons why:

 

[Kimber]

11 hours ago, jenny2017 said:

  I'm just wondering what they  teach them at school....

For the Plebs in government schools, it's Buddhism and being Thai  after that rote learning written Thai and veneration of the King (no disrespect intended); and acceptance of authority and your place in life. 

 

Subservience and acceptance at an early age.

 

[simoh1490]

Just now, Kimber said:

For the Plebs in government schools, it's Buddhism and being Thai  after that rote learning written Thai and veneration of the King (no disrespect intended); and acceptance of authority and your place in life. 

 

Subservience and acceptance at an early age.

 

Rubbish, have you ever been inside a Thai government school, have you ever seen the curriculum and talked to the teachers! You have no idea what you're talking about, none whatsoever.

 

 

[Kimber]

6 minutes ago, simoh1490 said:

Rubbish, have you ever been inside a Thai government school, have you ever seen the curriculum and talked to the teachers! You have no idea what you're talking about, none whatsoever.

 

 

Leerlee ?

 

I lived in Thailand for years and I'm there anything up to 6 months incrementally every year. 

 

My long term Thai girlfriend has 3 small kids (from 3 to 8 years) who attend school in Phichit, and I've sat in and watched their schooling as happens on more occasions than I can remember.

 

So tell me how many Ex Pats you know who send their kids to Thai government schools......those of them that can afford not to that is.

 

Care to discuss the issue of corporal punishment in Thai government schools ?   Tell me how much you really know. 

 

BTW did you notice how inoffensive my reply was ?

 

[simoh1490]

1 minute ago, Kimber said:

Leerlee ?

 

I lived in Thailand for years and I'm there anything up to 6 months incrementally every year. 

 

My long term Thai girlfriend has 3 small kids (from 3 to 8 years) who attend school in Phichit, and I've sat in and watched their schooling as happens on more occasions than I can remember.

 

So tell me how many Ex Pats you know who send their kids to Thai government schools......those of them that can afford not to that is.

 

Care to discuss the issue of corporal punishment in Thai government schools ?   Tell me how much you really know. 

 

BTW did you notice how inoffensive my reply was ?

 

I've watched five children of my extended family go through the government system of schooling over the past 16 years I've lived here, one finished up in Med school, two others ended up in CMU, all without any financial assistance from me. Tung Siliam school in Sukhothai Province produces a large number of graduates who go on to higher level education at good quality institutions in Thailand, they wouldn't do that with the simplified curriculum you portray and I'm certain that school is not the only one. Expats kids and corporal punishment, who knows, who cares.

[jerry921]

35 minutes ago, Kimber said:

So we take the time to understand what a Business case is, then the satang drops and she tells me "too many Smoothie shop in market now".    More discussion reveals that her "friend" wants to sell the Smoothie shop.  555

Congrats. That's the most hopeful thing I've read on here all week.

[inThailand]

Whats really amazing is how many falangs fund a GF's new business without a business plan or even common sense.

[Minnehaha]

12 hours ago, jenny2017 said:

Would you really consider a noodle soup stand a real business that can feed a whole family? 

Not what I am talking about. Sorry. To understand my post u need to read it and think : is he talking about the viability of a biz or is  he making an observation about how Thais work together or dont work together. Good luck