Internet Cafes-

[actiondell4]

I have always wanted to buy a internet cafe in Pattaya,I love computers and can sit on one for up to 3 days.

Whilst here on my holiday,i have spent most of my time going to internet cafes,i know it may sound boring to some.

I wondered if any of you expats or business people think there are profits to be made?

1 baht a minute taking into account electricity etc.

I have seen different set ups here ranging from the private cubilcle type to the ones where computers are facing everybody,what sort of things do you consider would make a good internet cafe?

I know some of them are now offering free glasses of water.I think GAMES may attract people.

I would love some feedback from you all.

[goldfish]

Start with simple mathematics. Knew of someone who opened an internet cafe, and closed down within a year. Took me 2 minutes to work out that he would need three of his six machines running full time during his opening hours just to cover the rent. It stood no chance of succeeding. I live on Samui. Sometimes I go past an internet cafe which is always packed at 4am with Thai kids. Have no idea why or how much they charge and not sure if a thai would use a farang owned shop

[actiondell4]

Well your probaly right.

Of course now we would have to start in areas with no internet cafes,probaly have to go 24 hours etc.

Thais seem to survive on owning one internet cafe?

I suppose something like making profits of 200,000 baht a year is good money to them,even though they are running /working their business 24 hours a day.

Also the hardest part is trying to find Thai staff who can speak english,have knowledge of computers and are helpful.

I really love computers,but at the same time,i need to bring in a income.

I was thinking of the cubicle concept particualarly in bar areas,however does anyone know about having GAMES in internet cafes,it seems you need a THAI ID number to log into games?

Apart from putting the price up ,how can one be suceesful in running a internet cafe in thailand,particulary pattaya?

Edited September 11, 2007 by actiondell4

[Manchester]

I,m not sure what part of Pattaya you visit but most of the internet cafes around here in Pattaya Tai charge 30 baht an HOUR.

I never could figure out where they made their money from.

Perhaps its from all the logging software they have to look for bank passwords etc.

[blizzard]

there cafes in bkk that charge 20 baht an hour if you buy in bulk. very nice places.

if you neeed incum sir this is not the way.

i like to eat but it is not the same same as running a restaurant......lol.

in hong kong they have signs that advertise cafes with hostesses, that might work. never could actually find one though.

lousy businesses ideas never end i guess. you all want the one that are obviously tough.

if you decide on opening one make sure your cashier knows how to calculate minnutes, so often i am undercharged, it happens so often i dont say anything anymore.

[Chang_paarp]

Do the maths.

Look at business brokers web sites to get an idea of the profits to be made in these ventures. Then look at some of the following.

Cost of computers.

Cost of "copy" software.

Cost of setting up business.

Cost of staff.

Cost of rent.

Cost of repairs to the equipment.

Cost of network.

Cost ofinternet connection.

Reliability of internet connection.

Then work out how much you will make charging 30-60B/hour.

Do you have enough to cover the quiet season?

You might make a proffit but B15,000 per month is not a good lifestyle.

Look for something with a better rate of return.

Good luck. Lots of it!!!!

[Edonista]

I,m not sure what part of Pattaya you visit but most of the internet cafes around here in Pattaya Tai charge 30 baht an HOUR.

I never could figure out where they made their money from.

Perhaps its from all the logging software they have to look for bank passwords etc.

and for online gaming they charge only 20 baht per hour. Same same for PS2 with 28 inches TV and free game renting.

[JR Texas]

I,m not sure what part of Pattaya you visit but most of the internet cafes around here in Pattaya Tai charge 30 baht an HOUR.

I never could figure out where they made their money from.

Perhaps its from all the logging software they have to look for bank passwords etc.

and for online gaming they charge only 20 baht per hour. Same same for PS2 with 28 inches TV and free game renting.

Market is flooded with crappy internet places............I would avoid it. BUT, if you insist on going down this road I would look for something new. I have not seen a really nice looking (Starbuck's like) place that is totally wireless. A wireless theme might be the next thing in internet cafes. It would have to be combined with something else.........serve some type of food and drinks. Nice seating.........air conditioned............might be tough to make a profit.

Need something that will bring in customers. Thai girls in thongs? THE THONG WIRELESS CAFE? "We Bend Over Backwards to Help You!"

[Heng]

You'd need a time machine to go back about 10 years so you can get in on this business when fewer folks were doing it.

As for Thais owning one shop, the two people I know who own internet shops also own about a dozen or so rented out properties so it's not really their bread and butter... just something to do and to have a place in close proximity to their rented out properties to keep an eye on things.

[madjbs]

There is an internet place at the bottom of my apartment and im not kidding when I say its 100% full for at least 8 hours a day. There are about 10 computers and they are all occupied by kids playing online games up till 4 am. It’s slightly annoying as none of the kids actually live in the apartment but deeper in the soi. Luckily for the owner there isn’t many other cafes around here.

Edited September 12, 2007 by madjbs

[andy1308]

In terms of Bangkok, outside of the main tourist spots the general rate appears to be 15-20 baht per hour at the popular internet cafes that are almost always full with Thai kids. It's a wonder to me how the owner with just a dozen machines can make ends meet. I guess they're happy making 5,000 baht a month.

The simple fact is that you will need to offer something new or something better or something additional to what is already available. Ask yourself why a user should use your business as opposed to the one down the road? If you can truly see things from your customers' perspective then you'll be half way to your goal.

[blizzard]

very hard to believe sir. i have seen the onslaught of game playing kids but it is for a limited time, usually when skool lets out .

only places open to 4am are those located in red light districts.

would you please specify yr location i might want to open up a shop..............lol.

[Prakanong]

I,m not sure what part of Pattaya you visit but most of the internet cafes around here in Pattaya Tai charge 30 baht an HOUR.

I never could figure out where they made their money from.

Perhaps its from all the logging software they have to look for bank passwords etc.

and for online gaming they charge only 20 baht per hour. Same same for PS2 with 28 inches TV and free game renting.

Market is flooded with crappy internet places............I would avoid it. BUT, if you insist on going down this road I would look for something new. I have not seen a really nice looking (Starbuck's like) place that is totally wireless. A wireless theme might be the next thing in internet cafes. It would have to be combined with something else.........serve some type of food and drinks. Nice seating.........air conditioned............might be tough to make a profit.

Need something that will bring in customers. Thai girls in thongs? THE THONG WIRELESS CAFE? "We Bend Over Backwards to Help You!"

A concept similar to this, not wireless but Mac's down Thong Lor in 99 - the same guy who has Big Johns Pies (same location???)

It was very nicely fitted out and served coffee and had a half decent menu

Does not look like it worked as its now a backpacker joint and pie place?

I am with you on the concept though - the way to go would be a trendy place - the internet just a added value but making mney off the coffee, cakes etc - might work in Bangkok but Pattaya is a different market

[JimmyCA]

Maybe an internet shop with a happy ending would be a hit in pattaya... depends on how much farangs are attracted to your shop

[blizzard]

i bet places that provide happy endings dont nee d the inconvenience of an internet place attached to their business. a well run happy ending shop cansurvive on its own.....lol.

[madjbs]

Sorry there is already a shop here. However, unfortunately the new owner hasn’t caught on that if they stay open very late the gamer kids buy loads of beer from the shop, it also means I cant pop downstairs and buy a beer after 9pm

And BTW I dont live near any red light districts.....or green or yellow or pink.

[britmaveric]

Most cafes have another side business associated, like travel agent/pharmacy/bar - you get the picture. Won't make enuf dosh by itself.

[monty]

I guess most internet places in Pattaya make more from assisting/translating the local working girls in their electronic negotiations with their farang sponsors then they make from the actual internet usage

Anyway, I feel that nowadays the trend is moving towards offering internet for free, and make your income from the other stuff you sell, like for example the drinks/snacks in a coffeeshop.

Do a search for free wifi, and I can assure you you will find tens of places in Pattaya alone offering free wifi, many of them with pc's for you to use if you don't have your own laptop or wifi capable pda...

[Cuban]

Yes the issue is all about income (limited) and your expenditure (large) in an area that you have an emotional involvement.

Game players want HiRes graphics cards and fast new PCs to play the latest games, many places I know that do this charge 15 Baht an hour.

Net surfers (in Pattaya) generally want email a bit of home news and a simple basic PC will do, so this is cheaper to provide.

Will all due respect to this idea if you have not already worked out the figures for running costs and your returns I would question your ability to get into this business.

I've just knocked up a quick spread sheet to compare a few figures, and I have been generous (underestimate) with your running costs, given cheap accommodation (10,000/month) and 25% PC usage open 24 hrs to break even paying yourself a bread line salary below the 50k limit and buying cheap PCs it will take 2 years charging 2 Baht per minute to recoup the initial outlay, charging 1 Baht will take more than 5 years. And this ignores upgrading hardware and days when the business is closed.

To make money you need to provide added services, drinks, food, photo processing etc. I have not included these costs.

In this line of business location is of prime importance, so your rent would be higher, people expect a nice environment so you will be paying more for aircon etc.

To run 24 hours you need more staff (should be 4:1 for WP), managing staff is different from managing PCs, you will find this the biggest headache and the reason that the successful Netcafés run on smart cards - their use keeps the staff honest.

Unless you can take over an existing business that is failing so you are getting the hardware below market value I don't think it will give you a salary to live on, certainly not one that allows you to go out for a beer at night.

I have not even touched on the problem with viruses and spammers hijacking your connection or your PCs as zombie email servers.

[kiakaha]

With the current proliferation of open wifi signals, dirt cheap or free internet cafe access, the only way to make $ these days is by providing a free internet service as a lure to get the punters into your place so they can spend on other goods and services you have on offer to make a profit from.

[onethailand]

While I agree for the most part that making money from internet services is becoming more and more difficult (and Cuban's estimates are pretty good), I must disagree with the "moving to free internet" idea that some of you have brought up, for a few simple reasons:

1. Not everyone travels overseas with notebooks - so free wireless is not an option for them

2. Not everyone is competent enough to get their wireless connection working

3. Some people prefer desktop computers to notebooks

4. Not all wireless connections are stable, or fast enough for reasonable surfing

5. Not everyone carries their notebook wherever they go, and just want half an hour to check email

6. Not every free wireless connection comes with a place to sit down

7. Wireless connections are sometimes not stable enough for VOIP because of interference

8. Not everyone will go out of their way to find free wireless access

9. Location is the key factor in determining your pricing and profitibility

10. Put in enough bandwidth and people will gladly pay for fast connectivity.

I can think of a few more things, but that's more than enough reason to discount the free internet idea. Yes, it will work for some people as an added incentive for people to visit their cafe or whatever. But sometimes the profit from the internet is better than the profit from the cafe.

In case anyone was wondering, I used to own one. Internet always made some money even at high prices (40 baht for 30 minutes). I also know that I would have made less money if I offered free internet, despite the fact that you could get free open access internet just two floors below and it was advertised as well, and that cafe was a well-known brand name.

But no way would I be able to command those prices in a small neighborhood, that's for sure, and in those areas you can't hope for more than a little income to survive on.

Take my word for it - even in Bangkok there is hardly a proliferation of free, open wifi.

As for Pattaya - well, I think it's safe to say I wouldn't try to open up there unless I was the only shop in the Royal Garden or I got space in the Royal Cliff.

Edited September 13, 2007 by onethailand

[Heng]

Yeah, I'd have to agree. Business here doesn't always follow a particular trend. Even the guy that purchased the now decade OLD -and that's very old as far as IT goes- Netzero (free internet with ads) franchise rights to Thailand couldn't make it fly.

[somchai23]

Just want to add:

• At Phuket International Airport, Internet was like 300 THB per hour. But, I don't think their in business anymore. Long time now since I went there.
  
• Internet Cafes in Phuket Town range from 10 THB per hour to 40 THB per hour
  
• The one that is at 40THH per hour is really classy. leather chairs, private cubicles, and they have all kinds of food and drinks. I think you can make money on serving snacks, sandwiches, beer.
  
• Make your self unique. You can also make a extra money selling food and drinks, and printing, and copying, PlayStation Games, etc...
  

--

Somchai in Phuket

SMS Text: 0803264071

Skype ID: phuketholidays

[dachippe]

I have 1 internet and online game cafe in bkk and now im opening a second one. The one running now has been open for 9 months and doing well.

I can give you some nr. Open 24 hours a day charging 10thb per hour. Average useage time on each machine is 15 hours. I got 19 machines in this shop so that rounds up to about 85500 a month. Drink sales, printing and so one (mostly coke, water and snacks) is about 18000 per month so all in all 103500.

And here are my costs rent 6500 per month internet 16mb true and 16 mb maxnet line 2500 per month for both. Electricity 8000 per month (some what hight due to ac), 2 employees 5500 each, maintenance repair costs and maerials (paper ink coke snacks etc) 6000 so to sum up 34000 per month in cost but then i save about 100thb per machine per month to pay yearly licence fee. So profit is around 69500 per month no bad for a job i work 8 hours a day(lazy work).

There is only one reason why the shop is going well. Its universities students dont dont have the same time restrictions(by law) and money issues that younger kids do and they play alot, buys drnks and snacks too. They also do school work etc so if you want to run a internet shop only way of making it is to target a location with universities. Start upcost for me was 341000 but I did everything myself, built own computers, servers, wan, installations and so forth.

A tip make sure you go for a no harddisk system its cheaper in so many ways, no hdd for every machine only server needed, less electric usage, less heat buildup, less maintenance,repair costs, no virus, spams file corruption and best of all. you only have install the softwares on the server once so with patched updates and stuff like that you only need to do it to server and not every singel machine. Saves alot of downtime when you could be earning on those machines instead.

[MrE]

In the eleven years I have lived in Thailand, I have never seen an internet cafe that looks like it is making a decent profit. As more and more people buy computers and smart phones, the cafes are going the way of video rental shops. If you are determined to open a business, choose something that there are not a lot of. So that means not a bar, not a restaurant and not a guesthouse/hotel. I have seen hundreds of these being sold over and over again to foreigners who think it would be fun to run a business here. In a year or so, they lose their investment, sell it to another foreigner and go home.