Setting up a "passive business" in Thailand? (ie: laundry booth?)

[Guest]

Greetings,

 

Now that my girlfriend and I are running what I would call an "active business" that requires our attention +14 hours a day and require us to be present "on site", we are trying to set up what I call a "passive business" that doesn't require more than 15 minutes of presence on said activity site.

 

After a bit of thinking and tinkering, we came to the conclusion that a coin operated automated laundry machines shop would probably be among our best prospects, however as we have no experience whatsoever in operating one, does anyone here on the forums actually runs one? owns one? has ran one (in Thailand I insist) in the past? and if so, what are the expected returns on investments like? how much cash flow does it generate a day (I know that's a hard one to answer, depends on the location, the amount of laundry/dry cleaner machines on the premises, etc), etc, but as I said, if anyone could come up with some tangible numbers, that'd be more than welcome.

 

Also, besides of the automated laundry/dry cleaners business, does anyone know of any profitable "passive businesses" that are worth looking into in touristic areas? Read: Pattaya.

 

As a side note, when I mean "profitable", anything that nets us a "guaranteed" +300 baht a day, is actually considered as "profitable" in our books. We're not trying to milk millions of baht out of it but rather cover our daily expenses, which we have estimated at around 300 baht a day (Typically the meal(s) of the day+oil tank refill on our scooter).

 

As always, thank you for your time, rest assured it is very much appreciated.

 

Edit: Not sure whether this should be moved over to the "SME business in Thailand" subforums. To the mods, feel free to do so.

Edited July 8, 2019 by Guest

[Oxx]

One must ask what the demand would be.  With lots of laundries providing a very cheap service, including ironing and patching, I can't see a coin operated launderette being particularly attractive - except, possibly in backpacker areas.

 

And are you sure you wouldn't need someone to be on site all the time? Every launderette I've been in has had someone to keep an eye on things and to help with problems using the machines.  And without someone there, I rather suspect that some enterprising criminal would come and remove the machines.

 

For a passive business, had you considered those crane machines that have been popping up everywhere? Choose a popular toy as the reward, and you could do quite well.

[VocalNeal]

The word "business" derives from the word busy. So in my opinion anything one does will demand more than 15 minutes a day. 

 

Do you have the premises? 

[scubascuba3]

It's only a good idea in the right location. In Pattaya, the Ottera franchise has opened a few shops, nice design, hot water machines with dryers. Expensive machines 200k+ each.

I wouldn't bother with those cheap machines outside everywhere, their days are numbered.

From chatting to an owner of one, he pays franchise costs and his rent is too high so will struggle to make money.

I wouldn't bother with a franchise but kit out in a similar way

[Guest]

10 hours ago, scubascuba3 said:

It's only a good idea in the right location. In Pattaya, the Ottera franchise has opened a few shops, nice design, hot water machines with dryers. Expensive machines 200k+ each.

I wouldn't bother with those cheap machines outside everywhere, their days are numbered.

From chatting to an owner of one, he pays franchise costs and his rent is too high so will struggle to make money.

I wouldn't bother with a franchise but kit out in a similar way

Do you have any links to that franchise you're talking about? Never even heard of it.

 

[Guest]

10 hours ago, VocalNeal said:

The word "business" derives from the word busy. So in my opinion anything one does will demand more than 15 minutes a day. 

 

Do you have the premises? 

No, we don't.

[scubascuba3]

Do you have any links to that franchise you're talking about? Never even heard of it.
 

http://www.otteriwashdry.com/

If you type in otteri in googlemaps you'll see if you have any nearby. There's 3+ in the Pattaya area

[Guest]

Amazing and well.. there's one less than 1km away from where we live. Meh.

[1FinickyOne]

you are going to make an investment in machines, which need maintenance and rent in a store front that may need to be fixed hoping for 300 baht a day? 

 

Risking a fair amount of money to make near nothing does not sound like a prudent endeavor...

 

You could probably do better investing the money... right? 

[Srikcir]

On 7/9/2019 at 8:02 AM, Oxx said:

crane machines that have been popping up everywhere? Choose a popular toy as the reward, and you could do quite well.

Didn't the government recently crack down on such games as they constitute "second tier" gambling devices and, therefore, illegal?

https://forum.thaivisa.com/topic/1099046-clear-claw-crane-toy-gambling-games-out-of-chiang-mai-says-parent/

So potential risk in not only losing the business investment but fines, etc.

[JetSetFvr]

Too much overhead for financial reward. One could make more money with a bicycle cart making snow cones with exotic flavors..........hmmm

[MartiniMan]

install 5 coin-operated laundry machines - 25k baht per machine = 100k + modification for make coin-up 10k baht
setup electrics and water pump etc = 3 to 10k depends on premises and ease of job

premises = ? 5~10k+ per month approx 100k per annum
electric and water rates = ? (ongoing cost)

Total year 1 break even risk = approx 170k before utility rates (water, electric, staff, maintenance)

30 baht per wash * 5 per customers a day (conservative figures for worst case low usage) = 150 baht gross income

30 customers a day high season (far above any in my area)  = 900 baht gross

1 year full usage 5 wash per day 5250 baht

1 year full high season 30 customers per day 31,250 baht

Operating loss 138k

Years to profitable 5.44 (constant high season)

Years to profitable 32 (worst case)

Totally pointless business imho for risk to reward - i have three on my street and all the machines are buggered now after only a year so the risk is even higher now have to outlay again on new machines - no profit at all

Edited July 10, 2019 by MartiniMan

[CharlieH]

2 minutes ago, MartiniMan said:

install 5 coin-operated laundry machines - 25k baht per machine = 100k + modification for make coin-up 10k baht
setup electrics and water pump etc = 3 to 10k depends on premises and ease of job

premises = ? 5~10k+ per month approx 100k per annum
electric and water rates = ? (ongoing cost)

Total year 1 break even risk = approx 170k before utility rates (water, electric, staff, maintenance)

30 baht per wash * 5 per customers a day (conservative figures for worst case low usage) = 150 baht gross income

1 year full usage 5 wash per day 5250 baht

Totally pointless business imho

5 * 25 = 125 not 100 

You can also buy ready made coin op for around 12-15k 

 

[sanemax]

On 7/9/2019 at 8:02 AM, Oxx said:

 

For a passive business, had you considered those crane machines that have been popping up everywhere? Choose a popular toy as the reward, and you could do quite well.

You could combine the two  , wash peoples clothes in a washing machine and then put the clothes in one of those crane machine games and people have to win their clothes back ?

[ChouDoufu]

claw machines if you have the right prizes....

[johng]

5 minutes ago, ChouDoufu said:

claw machines

They have been deemed illegal gambling  this one was outside my local Big C for a couple of weeks before the "new law" was enforced.

[dabhand]

Get a cute kid with your girlfriend. Take a few videos and start up a YT channel and, voila.

 

Watch the millions roll in.....

 

https://youtubermoney.com/calculator/like-nastya-vlog-net-worth

[mserror]

There is a need for these in Bangkok. Wherever I travel I do laundry using washers and driers. Check out Laundry Empire in Sukhumvit, estimate their profitability.

[WebGuy]

Hi,

 

I ran this business in Thailand for 9 months in 2009-2010 i.e. I had a small laundry shop in the condo where I lived and was allowed by the condo owner to place three washing machines that worked on coins.

 

As you mentioned, a lot of hard work which was not the problem but the issue was that when we opened it, four laundry shops opened very close as well so we were fighting like animals with very low prices. We had a lot of customers but due to the stiff competition we earned only eight thousand baht a month from the laundry shop and around 5000 from those three coin washing machines. From that money we payed the worker 6000 and the rent 4500.

 

We realized a long ago that placing the coin washing machines is a golden goose because you just place them, maintain easily and they bring money, however, the condo owner did not let us have them without running the laundry shop. We went all around to find places where we could place them but the condo owners also knew that that business is a golden goose so no one let us do it.

 

We really did good marketing, special service bla bla things but after 9 months we sold the business to another guy who resold it after 5 days ????

 

The lessons learned were that it could work if you rent/buy a place where you place coin washing and drying machines under condition that it is very populated area and with no lots of competition which is very difficult to find.

 

I also have a friend who opened the same business with industrial washing machines (200 000 BTH per one) where he did cleaning service for hotels etc. He earned around 35 000 a month but had to pay for the rent 15 000. You know, such a service required a lot of space. And then there came a French next door and started running the same business. That was a last drop in the glass and he stopped.

 

There is also another aspect here in Asia. If a Thai couple opens a small laundry shop, they are ready to leave in that space so they just pay for the cost of the shop unlike we westerners usually do.

 

I realized that teaching was much easier and better paid than fighting in service industry with locals in Thailand.

 

I am not saying it is impossible but do and run approach could be a better solution. For example, you open a shop, start working and attract the customers and then sell it and do that again and again.

 

Feel free to contact me in a private message if you would like to have a talk over Skype and I will be happy to share all the details about our laundry business.

 

Cheers ????

 

 

[Guest]

6 hours ago, WebGuy said:

Feel free to contact me in a private message if you would like to have a talk over Skype and I will be happy to share all the details about our laundry business.

 

Cheers ????

 

 

You, kind sir are a Godsend.

 

We will definitely be in touch shortly.

 

Thanks!

Edited July 10, 2019 by Guest

[sanemax]

You would probably need someone there full time  , just go give change (10 Bahts) , show how the machines work to newbies and also to empty the machines when people leave their washing in for a long time  , and also to sell detergent 

[Guest]

1 hour ago, sanemax said:

You would probably need someone there full time  , just go give change (10 Bahts) , show how the machines work to newbies and also to empty the machines when people leave their washing in for a long time  , and also to sell detergent 

It can be fully automated these days.

[Isaanbiker]

23 minutes ago, tcp7 said:

It can be fully automated these days.

It can also be fully emptied in minutes these days. 

[myjawe]

On 7/9/2019 at 8:50 AM, scubascuba3 said:

It's only a good idea in the right location. In Pattaya, the Ottera franchise has opened a few shops, nice design, hot water machines with dryers. Expensive machines 200k+ each.

I wouldn't bother with those cheap machines outside everywhere, their days are numbered.

From chatting to an owner of one, he pays franchise costs and his rent is too high so will struggle to make money.

I wouldn't bother with a franchise but kit out in a similar way

 

Thank you for details, this is what I was thinking, with so expensive machines and rent, how can they expect to make money ?!

 

 

[scubascuba3]

 

Thank you for details, this is what I was thinking, with so expensive machines and rent, how can they expect to make money ?!

 

 

i doubt anyone ever has done a business plan in Thailand, probably just wing it most times. A franchise and cost of machines and high rent makes it a non starter. This Otteri probably has the same cost of machines in Japan but probably charge a higher amount per wash

 

[ChouDoufu]

17 hours ago, tcp7 said:

It can be fully automated these days.

someone has to make change, reset malfunctioning machines to prevent customers from kicking the doors in, ensure customers don't try to clean things that would damage the machines, clean up the garbage left by customers, and drive off the deadbeats.

 

we have one near us in the soi.  half the space in the shop is often taken up by loitering mc taxi guys smoking and playing cell phone games.

[rech]

hello, maybe you know more than me ?

https://forum.thaivisa.com/topic/1141531-laundromat-automatic-washing-machines-coins-operated-laundry-in-thailand-just-a-trend-or-profitable-business/

 

 

[rech]

On 7/10/2019 at 2:59 PM, WebGuy said:

Hi,

 

I ran this business in Thailand for 9 months in 2009-2010 i.e. I had a small laundry shop in the condo where I lived and was allowed by the condo owner to place three washing machines that worked on coins.

 

As you mentioned, a lot of hard work which was not the problem but the issue was that when we opened it, four laundry shops opened very close as well so we were fighting like animals with very low prices. We had a lot of customers but due to the stiff competition we earned only eight thousand baht a month from the laundry shop and around 5000 from those three coin washing machines. From that money we payed the worker 6000 and the rent 4500.

 

We realized a long ago that placing the coin washing machines is a golden goose because you just place them, maintain easily and they bring money, however, the condo owner did not let us have them without running the laundry shop. We went all around to find places where we could place them but the condo owners also knew that that business is a golden goose so no one let us do it.

 

We really did good marketing, special service bla bla things but after 9 months we sold the business to another guy who resold it after 5 days ????

 

The lessons learned were that it could work if you rent/buy a place where you place coin washing and drying machines under condition that it is very populated area and with no lots of competition which is very difficult to find.

 

I also have a friend who opened the same business with industrial washing machines (200 000 BTH per one) where he did cleaning service for hotels etc. He earned around 35 000 a month but had to pay for the rent 15 000. You know, such a service required a lot of space. And then there came a French next door and started running the same business. That was a last drop in the glass and he stopped.

 

There is also another aspect here in Asia. If a Thai couple opens a small laundry shop, they are ready to leave in that space so they just pay for the cost of the shop unlike we westerners usually do.

 

I realized that teaching was much easier and better paid than fighting in service industry with locals in Thailand.

 

I am not saying it is impossible but do and run approach could be a better solution. For example, you open a shop, start working and attract the customers and then sell it and do that again and again.

 

Feel free to contact me in a private message if you would like to have a talk over Skype and I will be happy to share all the details about our laundry business.

 

Cheers ????

 

 

 

 

So can you tell me why so many brands suddenly ?

 

 

[WebGuy]

Because of the technology development. The whole issue is that there is absolute competition in Thailand and especially when it comes to services. Condos won't rent you a place so you can put your washing machines but rather they will place their own machines. Or they will let you place your machines under condition to run a laundry shop. Just placing machines is almost a passive income with a minimum maintenance effort. 

 

If you had a condo, would you place your own machines or you would let me do it?