Retail Business

[TonyLeung]

from what i have seen on thaivisa and various blogs, many farang teach for around 40k baht a month. That is 1300 baht/day.

It seems to me like you could use the following business model:

buy a product

rent a space

hire someone to sell that product

hire someone to make sandwiches

rent a space

hire someone to sell them

it shouldn't take you very long until you can generate more than 40k baht a month and not have to do anything but collect your profits.

bangkok is such a busy place that everywhere you go someone is selling something. i dont see any excuse besides laziness as preventing someone from making money.

i wouldn't even under estimate how much money those prepared-at-home a-la-carte food stands can make. i think farang take the wrong approach. they go and try to build a restaurant and sign a million baht lease. whats the point? keep it simple and do it like the locals do it.

[Manchester]

from what i have seen on thaivisa and various blogs, many farang teach for around 40k baht a month. That is 1300 baht/day.

It seems to me like you could use the following business model:

buy a product

rent a space

hire someone to sell that product

Earth shattering. Unique idea. Where do i sign?

hire someone to make sandwiches

rent a space

hire someone to sell them

I,m stuck on what to put inside them.

it shouldn't take you very long until you can generate more than 40k baht a month and not have to do anything but collect your profits.

bangkok is such a busy place that everywhere you go someone is selling something. i dont see any excuse besides laziness as preventing someone from making money.

Nor me. I,ll stick with my salary and expense account.

i wouldn't even under estimate how much money those prepared-at-home a-la-carte food stands can make. i think farang take the wrong approach. they go and try to build a restaurant and sign a million baht lease. whats the point? keep it simple and do it like the locals do it.

Sell insects? Eeeeeeewwwwwww !

You should do this fast.............make your millions. That way you can then afford to buy your bottles of whipped cream that are way over-priced. ( as per post of 4th November )

Edited November 20, 2007 by Manchester

[pattyboy]

To me it sounds like a fair bit of hassle for few baht, But I'm curious about what you're selling and how it's going

[TonyLeung]

i'm not selling anything. the point is just that 40k baht is a very small amount of money. if you started 3 micro business that generated 400 baht/day, you would have your salary.

[ThaidleHands]

i'm not selling anything. the point is just that 40k baht is a very small amount of money. if you started 3 micro business that generated 400 baht/day, you would have your salary.

Almost. But you wouldn't have the salary of the two people working for you, nor the rent on a commercial space, nor the utility bills, nor the business taxes, nor the permits, nor...

[percy2]

I'm with Tony on this one.

There are employers and there are employees.

I like my side of the fence.

Cheers

[torrenova]

Stock control, theft, staff turnover, wastage, premises, legality, tea money, your permits, plus add another 100 things to think about and suddenly you have Bt3000 a day costs and zero income. For most people coming here on the 40k income, they don't have savings to run such a "business" until it reaches profitability.

[Heng]

What about the 90% failure rate for startups, TL? Not everyone can afford to fail 9 times before they find their cash cow. There are an awful lot of people who can't afford to fail just 1-2 times.

[percy2]

What about the 90% failure rate for startups, TL? Not everyone can afford to fail 9 times before they find their cash cow. There are an awful lot of people who can't afford to fail just 1-2 times.

Got to cast your bread on the water to catch fish.

And you know more than most about fish

Cheers

[TonyLeung]

Stock control, theft, staff turnover, wastage, premises, legality, tea money, your permits, plus add another 100 things to think about and suddenly you have Bt3000 a day costs and zero income. For most people coming here on the 40k income, they don't have savings to run such a "business" until it reaches profitability.

the old lady and old man who have about 10 different thai foods in large pots on week days incur all of these costs? what about the guy selling ladies wallets next to them?

1. rent the space

2. buy the product

3. count how many of the product you have

4. hire someone to come there everyday

this would work better outside of central bangkok. there are a bunch of little tiny hole in the wall spaces on ramkenhang road by the university or outisde the mall bangkapi there is a covered market.

You wont make 400 baht a day doing this?

bangkok is a bustling city. minimum wage is 20 baht an hour. it shouldnt take Steve Jobs to find a way to make more than 40k baht a month without doing anything.

Edited November 21, 2007 by TonyLeung

[TonyLeung]

You should do this fast.............make your millions. That way you can then afford to buy your bottles of whipped cream that are way over-priced. ( as per post of 4th November )

if you took a survey among millionaires, id bet you find that they tend to think like this: this spray bottle of whipping creme is over priced at 160 baht a piece. the local thai lady managed to make her own. i should figure out how she did that, then i can save that money.

those who live month to month on their salary and dislike thinking buy the 160 baht spray bottle because its 'easier'.

[percy2]

Stock control, theft, staff turnover, wastage, premises, legality, tea money, your permits, plus add another 100 things to think about and suddenly you have Bt3000 a day costs and zero income. For most people coming here on the 40k income, they don't have savings to run such a "business" until it reaches profitability.

the old lady and old man who have about 10 different thai foods in large pots on week days incur all of these costs? what about the guy selling ladies wallets next to them?

1. rent the space

2. buy the product

3. count how many of the product you have

4. hire someone to come there everyday

this would work better outside of central bangkok. there are a bunch of little tiny hole in the wall spaces on ramkenhang road by the university or outisde the mall bangkapi there is a covered market.

You wont make 400 baht a day doing this?

bangkok is a bustling city. minimum wage is 20 baht an hour. it shouldnt take Steve Jobs to find a way to make more than 40k baht a month without doing anything.

Her indoors has basically done just that.

Rented a stall in a high traffic area B10,000 deposit

Bought stock B40,000 (clothes)

She now regularly clears (and has done from the start 3 months ago) B70,000 / month.

She employs 1 girl B8,000/month to sit at the stall every day.

It also costs her about 1/2 day / week re-stocking and stocktaking.

Takings are deposited in an ATM at the end of every day.

Not bad for something she regards as a hobby and relaxation, means she shops till she drops and turns a profit at the same time.

No wonder she gets upset when I say she was hired for her looks

Cheers

[Heng]

What about the 90% failure rate for startups, TL? Not everyone can afford to fail 9 times before they find their cash cow. There are an awful lot of people who can't afford to fail just 1-2 times.

Got to cast your bread on the water to catch fish.

And you know more than most about fish

Cheers

Absolutely, but as mentioned, not everyone can afford the bread and most end up losing it.

[thai_narak]

Stock control, theft, staff turnover, wastage, premises, legality, tea money, your permits, plus add another 100 things to think about and suddenly you have Bt3000 a day costs and zero income. For most people coming here on the 40k income, they don't have savings to run such a "business" until it reaches profitability.

the old lady and old man who have about 10 different thai foods in large pots on week days incur all of these costs? what about the guy selling ladies wallets next to them?

1. rent the space

2. buy the product

3. count how many of the product you have

4. hire someone to come there everyday

this would work better outside of central bangkok. there are a bunch of little tiny hole in the wall spaces on ramkenhang road by the university or outisde the mall bangkapi there is a covered market.

You wont make 400 baht a day doing this?

bangkok is a bustling city. minimum wage is 20 baht an hour. it shouldnt take Steve Jobs to find a way to make more than 40k baht a month without doing anything.

you made it sound so easy... make sure thai people like your product.

[RAZZELL]

She now regularly clears (and has done from the start 3 months ago) B70,000 / month.

Clears after expenses or turnover?

RAZZ

[percy2]

She now regularly clears (and has done from the start 3 months ago) B70,000 / month.

Clears after expenses or turnover?

RAZZ

net profit.

Cheers

[RAZZELL]

She now regularly clears (and has done from the start 3 months ago) B70,000 / month.

Clears after expenses or turnover?

RAZZ

net profit.

Cheers

Good luck to her

I better have a word with the "soon to be" MRS RAZZ...

RAZZ

[blizzard]

cum on guys, you believe percys numbers just coz he post it.

sounds not real to me.

something must be missing in ladies numbers.

[Heng]

Why not? Although 90% of new businesses fail, the 10% crowd is definitely out there. Do you know Percy2 personally or do you just have a problem with folks who might be doing okay business wise?

[sonicdragon]

cum on guys, you believe percys numbers just coz he post it.

sounds not real to me.

something must be missing in ladies numbers.

Let's see. 40k investment in stock. Lets imagine there are a few other start up costs - 60k total investment. Clearing net profit of 70k - payback period was about 3 weeks and it generates 117% return on investment per month ! Even without compounding it's still a 1400% per annum ROI ! And the annual ROI could be very much higher than 1400% when compounded if you simply duplicate the business at other location using the profits - and presumably there would be economies of scale (particularly in the time spent restocking). I'm not saying it's impossible, but it's very hard to believe. If true there should a large group of competitors starting up at the same site within no time.

I tend to agree with blizzard.

[percy2]

cum on guys, you believe percys numbers just coz he post it.

sounds not real to me.

something must be missing in ladies numbers.

Let's see. 40k investment in stock. Lets imagine there are a few other start up costs - 60k total investment. Clearing net profit of 70k - payback period was about 3 weeks and it generates 117% return on investment per month ! Even without compounding it's still a 1400% per annum ROI ! And the annual ROI could be very much higher than 1400% when compounded if you simply duplicate the business at other location using the profits - and presumably there would be economies of scale (particularly in the time spent restocking). I'm not saying it's impossible, but it's very hard to believe. If true there should a large group of competitors starting up at the same site within no time.

I tend to agree with blizzard.

The key to the enterprise was location.

Very high foot traffic with protection for stall holders not being allowed to duplicate merchandise.

If and when she can find another similar location she will expand to another site.

Its roi is incredible , thats what I was pointing out in my first post.

Of course this is an online forum so I'm not unduly upset that people are suspicious of the veracity of my numbers.

Cheers

[sonicdragon]

The key to the enterprise was location.

Very high foot traffic with protection for stall holders not being allowed to duplicate merchandise.

You mean that only she is allowed to sell that particular product (clothes) in that location ? Why would the landlord agree to something like that ? How long is the lease period ? You mentioned a 10k "deposit" - how much is the monthly rent ?

[blizzard]

lanlord aint chumps! they tend to not let retailers make all the money, they want their share too.

with percys numbers lanlord woul be pissed, bigtime.

give me location and wot she sells, i will check it out.

from what i see in bkk high traffice areas have peoplple selling all the same dam_n thing.

if lanlord give exclusivity, where he gonna get tenants from to fill stalls.

hey, i aint mad if yr ldy makes big baht, its just hard to believe it the way you presented it.

[percy2]

The key to the enterprise was location.

Very high foot traffic with protection for stall holders not being allowed to duplicate merchandise.

You mean that only she is allowed to sell that particular product (clothes) in that location ? Why would the landlord agree to something like that ? How long is the lease period ? You mentioned a 10k "deposit" - how much is the monthly rent ?

1yr rolling contract.

10k deposit . 10k / month.

Cheers

[percy2]

give me location and wot she sells, i will check it out.

Forgive me if I don't.

from what i see in bkk high traffice areas have peoplple selling all the same dam_n thing.

if lanlord give exclusivity, where he gonna get tenants from to fill stalls.

You will actually find that in many retail locations tenants demand and get exclusivity.

hey, i aint mad if yr ldy makes big baht, its just hard to believe it the way you presented it.

Its difficult to present in another way.

Cheers

[blizzard]

you might as well tell us what she sells and cost of products. and how many she sells.

we can then determine if lady is full of it.....lol.

[Heng]

you might as well tell us what she sells and cost of products. and how many she sells.

[fletchsmile]

from what i have seen on thaivisa and various blogs, many farang teach for around 40k baht a month. That is 1300 baht/day.

It seems to me like you could use the following business model:

buy a product

rent a space

hire someone to sell that product

hire someone to make sandwiches

rent a space

hire someone to sell them

it shouldn't take you very long until you can generate more than 40k baht a month and not have to do anything but collect your profits.

bangkok is such a busy place that everywhere you go someone is selling something. i dont see any excuse besides laziness as preventing someone from making money.

i wouldn't even under estimate how much money those prepared-at-home a-la-carte food stands can make. i think farang take the wrong approach. they go and try to build a restaurant and sign a million baht lease. whats the point? keep it simple and do it like the locals do it.

The bit you're missing is that many foreigners can't legally do it that simplistically. Visas, work permits, reliable Thai to hire, etc. Percy's example works for his Mrs, who is a Thai, not a foreigner. Let's say you try this, without it being your Mrs. My prediction:

buy a product

rent a space

hire someone to sell that product

generate a profit

x 2-3 months

In the simplistic world you're working in, consider how you'd address the following:

- 1st month: person hired decides they can make a quicker profit by just taking your stock and leaving without trace, when you are not watching. 8k salary vs 40k of stock = 5 months salary

- 2-3 months later the person you hired realises how easy it is. You are no longer needed. You get cut out of the picture.

- 2-3 months later landlord has seen you business, sees how easy it is. stops renting to you and hires someone himself

Without work permits, visas, company, you have no legal basis to protect against any of the above, and nothing you can do when they decide the profit would be better in their pockets.

Let's face it your model is all cash in hand. Extremely easy for Thais to change whose hand the cash goes into. As a foreigner you cannot be seen to have any involvement in the trade, or its illegal. (BTW believe it or not Thais know this )

Edited December 14, 2007 by fletchsmile

[ezzra]

from what i have seen on thaivisa and various blogs, many farang teach for around 40k baht a month. That is 1300 baht/day.

It seems to me like you could use the following business model:

buy a product

rent a space

hire someone to sell that product

hire someone to make sandwiches

rent a space

hire someone to sell them

it shouldn't take you very long until you can generate more than 40k baht a month and not have to do anything but collect your profits.

bangkok is such a busy place that everywhere you go someone is selling something. i dont see any excuse besides laziness as preventing someone from making money.

i wouldn't even under estimate how much money those prepared-at-home a-la-carte food stands can make. i think farang take the wrong approach. they go and try to build a restaurant and sign a million baht lease. whats the point? keep it simple and do it like the locals do it.

The quickest way to make a million in Thailand is to start with two,

I should know, I have been there,

[stevemiddie]

The key to the enterprise was location

This is true. Very high foot traffic in good locations always attracts very high rentals. 10k sounds like a BARGAIN. Your landlord must be thrilled to bits with the money you make.! So thrilled...............he will cancel the agreement with you after 12 months.........and get his 3rd cousin removed ( name Somchai ) to set up stall and sell the same!

.

stall holders not being allowed to duplicate merchandise.

Another Thai quirk. All these landlords and their " exclusitivity" promises. I see this often. My wife tried to set up a noodle stall in Silom. Bugger me...there was another stall 20 yards away. DENIED. The landlord was NOT INTERESTED in taking our money. ( exclusive rights and all that ) WE discovered that the only thing we could sell was........Used Airplane parts..............even then we could only sell the parts for the Airbus 330.........some other enterprising Thai already had the exclusive rights to sell Boeing used parts. We did manage to get hold of a couple of used Rolls Royce engines for the Airbus but the police kept complaining about how we were blocking the footpath...........and most of the road too come to think of it.

We had to sell them cheap just to get rid.

If and when she can find another similar location she will expand to another site.

Don,t bother.............I,m already signing up on all the cheap rental places in high foot traffic areas. I already have exclusive rights in process and such has been the response that I can now only offer the following stalls to you for the sale of the folowing :-

Pictures of pink catfish. ( SOLD )

Hand made solid gold chopsticks.

Bright blue ladies shoes.

Flags of Yemen and Sudan ( UNDER CONSIDERATION )

Walking sticks for elephants

And finally........the very best.....the Numero Uno! ,,,,,,,,,,,,,,,,,,,, 7-11!................ Now thats a concept!

Its roi is incredible , thats what I was pointing out in my first post.

Its your missus that has the stall for the used Boeing spare parts. I,m right aren,t I?

Of course this is an online forum so I'm not unduly upset that people are suspicious of the veracity of my numbers.

Thats the spirit!

With the annual 840,000 baht clear profit you are making from your BARGAIN rental stall............you can buy a condo every year! Rent them out..............you,ll be a billionaire in 3 years!

PS..........A little bit curious why Thailand does not zillions of stall holding millionaires? MAYBE they all drive dirty Isuzu pick-ups so we don,t get suspicious !

Better still.......buy some cheap land in a good location ( gotta be cheap so you can rent out at 10k a month ) rent all the stalls out with exclusive rights and HEY! Hello Mr SEXY Trillionaire !

Cheers

Seriously. Good luck to you. And DO NOT tell anyone what your missus does! You know that they will all want to jump on the bandwagon and start selling COPY spare parts thus driving you out of business.

Edited December 17, 2007 by stevemiddie