A Bit On The Side !

[ripski70]

Hi everyone, I could really do with some advice. I am from the UK but am currently living and working as a teacher here in Bangkok. I work in an International school and have all the correct paperwork in other words legal, a wp to work as a teacher. To earn a little bit extra I have found a product I would like to import from Australia to Thailand and become the Master distributor. Is this feasible ? I am a newbie to global trade and so really need advice. What visa do you need ? What should be my main considerations ?

Many Thanks for any advice

[ubonjoe]

You already have the correct visa.

You would have to set up a company and then get another work permit to cover the work you are doing under that company.

I am moving your topic to the business forum whre you can get more advise on setting up a company and etc.

[torrenova]

The company route would be the most obvious choice and may be the only one but as the OP is looking to make more money to supplement his (her) teaching salary then I will presume that funds are limited.

I looked at a similar business idea some time ago and though it did not eventually go into operation, the logic remains.

I will pass over her any import duties and the like as that will be incorporated in part of the OP's business plan.

If the company producing the product is not doing business in Thailand already then you have to ask the question why ? If they have not studied the market then fine but if they have discounted it then the OP must consider why.

Does the company already export ? If not, then they may not be geared up for the export market and as such, the logistics of setting up such an operation would probably be too financially tasking.

To quote the OP, he states that he want to "earn a little bit extra" and he has "found a product". These two do not go well together with being the master distributor for Thailand. Master distributorships often require reasonable to large scale investments and good knowledge of the product, the local market, etc. Why would I give, even for receiving a cash payment, a master distributorship for Thailand to a teacher who does not know my company, does not know my product and does not have a distribution network in place ?

One area where my plan derailed was the quantities involved. To secure the best inward prices and marketing support etc. we were required to purchase quantities which we were unable to move without having significant capital tied up in stock. In effect, we did not have the distribution network in place for such quantities.

I was not going to be selling to end users but rather to business who would order from me and the Thai market in the main, is very fragmented. Shops buy from the nearest stockist. Just go to Macro and you find businesses all buying their wares yet the prices are unfavourable. We would never do this in the developed world.

I question the time the OP has to develop this idea. His teaching schedule will likely take up much of his time and the reliance on that salary means that reducing the workload is not possible. Developing a business is going to require immense inward and ongoing time investment and I do not see where the OP can allocate the time required.

One idea we thought of but as we already have companies we did not research the full legalities is the local office route. In effect, the parent company would establish a local office. Now the OP might be able to provide this without needing a company and associated costs. In effect, he would be acting as an agent for the company, working on commission, rather than as importer and distributor. The two parties would have to discuss this.

Another option is to find someone in Thailand who already has a company in place and who has contacts in the required field. There are pitfalls in this I know but the OP could, if lucky and with ingenuity, perhaps get a sole import agreement for Thailand (or perhaps more countries if the shipping and delivery costs were cheaper bringing it through another port) and act merely as the middleman between the Australian company and the Thai distribution network. Income would be on margins but I advise the OP not to get into paying the Oz company and then expect payment from the Thai (or Thai with western owners) company as he will get screwed over. You would need letters of credit, or advance payment etc.

I guess the biggest problem will be finding a market that allows the OP to make a profit. Who is the target market and will they pay the required price in sufficient numbers ? If he can assess that, then he can take the business plan forward.

As well as my more publicised businesses, I have for about 20 years been in the logistics and supply train business so if the OP would like to discuss matters further I welcome him to contact me directly.

[ripski70]

Many Thanks for your detailed reply that gives me lots to think about. The product is currently not available in Thailand but has been in Australia for about a year and has been well recieved. It is a coin operated vending machine that would go into pubs, clubs and gyms for example. The company would market the product here if I choose. As a Master regional distributor I would be required to purchase a certain number of units at a discounted price. I would then install these in larger venues myself or I would sell the units to reps in small batches who then do the leg work themselves and install and empty the unit. As mentioned I don't have a distribution network but I do have full confidence that this product will be extremely well recieved in Thailand.

[chiangmaibruce]

And of course, Thailand being 'copyland' ... is the machine actually made in Australia? Or made under license in China for example? Is the machine protected by international patent? Does the company in Australia have the resources and willingness to pursue breach of patent?