Sales Are Down...

[chiangmaioldhand]

    I went to a bar on Tapae Rd last night that has live music. It was 1.30am so obviously the music was finished. I just wanted a night- cap on the way home and the place looked busy. I hadn't been there in a very long time and so I was surprised to pay 95baht for a small Heineken. I don't mind paying a little extra for a place that offers more but.....  the place had obviously been economising when it came to purchasing cleaning materials and on maintenance. It was the sort of place that has you thinking 'What IS that smell?'. There was also a lot of girls hustling for drinks, which surprised me. I thought it was a music bar.  

  Is 95 baht for a small Heineken in such a place justified I wonder? I know they have live music but it isn't The Hard Rock Cafe!! I was only having one drink anyway, so I didn't mind paying, I'm just wondering have the bars been putting up the prices because they're not so busy? The usual thing - sales are down - whack up the prices to compensate!!!

[StevieH]

in bars' defence the thai government recently upped duty on beer and other drinks, so expect a price rise of some sort. 95 baht is still steep for a small heineken though.

[keo]

let's face it most places around Thapae are generally overpriced, and more often than not you will have to endure moronic holiday makers/backpacker and/or hideous bar girls.

Give me a 50 - 70 baht large Leo around Nimmanheiman over that any day.

[WinnieTheKhwai]

Which bar was that? The Inter one near the Gate?

[Maccheroncini]

Look at all the five star hotels in CM, they would rather starve than lower the price just a little so it could attract some customers.

[alant]

location location location.

[femi fan]

Look at all the five star hotels in CM, they would rather starve than lower the price just a little so it could attract some customers.

I take your point, but i'm not sure that works with five star hotels. If prices are too low, then their target customers won't stay there. And anyway, i doubt many of the five star brigade have had to curtail their holidays due to lack of funds...

[Ulysses G.]

The way it is supposed to work is all of the people who usually stay in 2 or 3 star hotels would rush over to the 5 star hotels and pay the same price for a lot better rooms. There are a lot more of them than the 5 star people.

[chiangmaioldhand]

Which bar was that? The Inter one near the Gate?

Yes. As regards to the tax hike - I believe that may mean an extra 5baht on a small beer but I'm still buying pre-tax-hike prices. I just couldn't see where they were justifying the prices. Surprisingly, the clientele seemed the sort that would want a large one for that price. Good luck to them if they can get away with it, but I'm just surprised that they can!!

Edited May 13, 2009 by chiangmaioldhand

[StevieH]

Which bar was that? The Inter one near the Gate?

Yes. As regards to the tax hike - I believe that may mean an extra 5baht on a small beer but I'm still buying pre-tax hike prices. I just couldn't see where they were justifying the prices. Surprisingly, the clientele seemed the sort that would want a large one for that price. Good luck to them if they can get away with it, but I'm just surprised that they can!!

i wouldn't pay 95b for a beek lek in chiang mai as it goes. vote with your feet i guess.

[annabel]

Hey....!!!!! ..... anyone out there wonder why gas has gone from 16 Baht a litre in Jan 2009 to 26.29 today May 13th for 91 Gasohol when gas is still at $55.00 / Barrel and not $125.00 / Barel like it was when 91 gsohol almost hit 28 Baht per litre ....? ....??? Or why , pork has gone up by 15 Baht per kilo to 25 Baht per Kilo...??? Or why a large can of tune ( 1.8 Kilo) went from 213 baht a can in Jan to 265 Baht a can 2 weeks ago and so on and so on...and yes there is a tax increase coming and many wholesalers and shops are claiming out of stock so they get the extra bucks on their old stock ..... Is that maybe why prices are going up and not because bussiness is down ....Ok, 95 Baht for a small Heineken is over board but there are a hel_l of a lot of HEAV increases out there and I keep asking myself WHY....? Why when the economy is the way it is and the government keeps saying that it's on an upturn (Yes , they are definitely blind folded) and then these insane increases in everything ....Even Eggs !!! Makor now selling for 52 to 55 Baht for 10 ...was 33 to 38 2 months ago !!

[WinnieTheKhwai]

Makro is expensive for some stuff. Eggs and vegetables are loads cheaper at local market, especially appointment-markets.

My personaly feeling is that some Farangs make far too much about this reverse market forces of increasing price. Usually it's just the last thing someone does before going out of busines.. They raise prices, any remaining customers move on, and then the place closes.

I wouldn't worry too much about it and just visit places where you do like the price vs value preposition.

Edited May 13, 2009 by WinnieTheKhwai

[Priceless]

Hey....!!!!! ..... anyone out there wonder why gas has gone from 16 Baht a litre in Jan 2009 to 26.29 today May 13th for 91 Gasohol when gas is still at $55.00 / Barrel and not $125.00 / Barel like it was when 91 gsohol almost hit 28 Baht per litre ....? ....??? Or why , pork has gone up by 15 Baht per kilo to 25 Baht per Kilo...??? Or why a large can of tune ( 1.8 Kilo) went from 213 baht a can in Jan to 265 Baht a can 2 weeks ago and so on and so on...and yes there is a tax increase coming and many wholesalers and shops are claiming out of stock so they get the extra bucks on their old stock ..... Is that maybe why prices are going up and not because bussiness is down ....Ok, 95 Baht for a small Heineken is over board but there are a hel_l of a lot of HEAV increases out there and I keep asking myself WHY....? Why when the economy is the way it is and the government keeps saying that it's on an upturn (Yes , they are definitely blind folded) and then these insane increases in everything ....Even Eggs !!! Makor now selling for 52 to 55 Baht for 10 ...was 33 to 38 2 months ago !!

I won't argue with your point that prices in general have increased. However, the crude oil price was around (or just below) $40 in January/February but was over $60 today May 13th (see graph below). That's a more than 50% increase, so it would explain most of the price increase at the pump.

/ Priceless

Edited May 13, 2009 by Priceless

[annabel]

Makro is expensive for some stuff. Eggs and vegetables are loads cheaper at local market, especially appointment-markets.

My personaly feeling is that some Farangs make far too much about this reverse market forces of increasing price. Usually it's just the last thing someone does before going out of busines.. They raise prices, any remaining customers move on, and then the place closes.

I wouldn't worry too much about it and just visit places where you do like the price vs value preposition.

Ok fair enough if someone has the time to run around from one end of the city to the other to compare prices and get the lowest price for individual items...BUT what about gas prices which are the same 26.29 at all gas stations which is a mere 1.50 or so less than what it was when gas was a $125 usd/ barel....?????

[WinnieTheKhwai]

Ok fair enough if someone has the time to run around from one end of the city to the other to compare prices and get the lowest price for individual items...

It's not running around and checking.. Vegetables I buy at Doi Kham (only what's on sale) and at local markets; Everything else I buy at Makro, with the exception of the occasional sausage or tidbit from Rim Ping or Big C if it's something Makro doesn't have, or only has in package sizes that would take me a year to get through. it's not that hard really.

As for fuel, I believe Priceless answered that. A little bit is tax that's being added, as the government finds itself running out of funds fast. Overall though fuel prices aren't higher than most other countries.

Edited May 13, 2009 by WinnieTheKhwai

[IanForbes]

Sales are down so raise the prices is the Thai way, unfortunately. It just goes with the Thai lack of seeing into the future more than 30 seconds. I'm generalizing, of course, but it is very evident in so many things I see happen every day. Bike riders go flying down narrow, winding sois without considering the road might be blocked right around the corner. I've said it many times that if I offered a Thai 100 baht today, but if they waited until tomorrow I would give them 1000 baht, they would take the 100 baht today every time. Tomorrow just isn't on their radar screen.

Many times I've seen Thais change their mind at the last possible moment and do something irrational, rather than follow through with a well thought out plan. It is frustrating for a falong until you come to realize it is just the Thai way. Rational thought and long term planning is just not in their culture. Again, I'm just talking about the mostly uneducated part of Thai society. There are many brilliant Thais and some great business people.

[WinnieTheKhwai]

I've said it many times that if I offered a Thai 100 baht today, but if they waited until tomorrow I would give them 1000 baht, they would take the 100 baht today every time. Tomorrow just isn't on their radar screen.

Does that actually work for you? With me that just leads to the remote control being held hostage with the threat of chucking it out the hotel room window...

[femi fan]

Sales are down so raise the prices is the Thai way, unfortunately. It just goes with the Thai lack of seeing into the future more than 30 seconds. I'm generalizing, of course, but it is very evident in so many things I see happen every day. Bike riders go flying down narrow, winding sois without considering the road might be blocked right around the corner. I've said it many times that if I offered a Thai 100 baht today, but if they waited until tomorrow I would give them 1000 baht, they would take the 100 baht today every time. Tomorrow just isn't on their radar screen.

Many times I've seen Thais change their mind at the last possible moment and do something irrational, rather than follow through with a well thought out plan. It is frustrating for a falong until you come to realize it is just the Thai way. Rational thought and long term planning is just not in their culture. Again, I'm just talking about the mostly uneducated part of Thai society. There are many brilliant Thais and some great business people.

I don't think the more educated part of thai society are much different over their visions into the future. I spent my first few years meeting and talking to hundreds of bkk thais who could all afford evening education and it used to astound me about their lack of attention to the future.

Of course, living today for today is one marvellous approach to life. It's just that in general it's so alien to westerners, so seeing it as a cultural way of life can be shocking. And even years later, it still amazes.

But one of the things with thais is, as soon as you think you have got an aspect of their character worked out, something happens to burst your bubble of 'knowledge'. They do see into the future, but in different ways. I mean, which other country does such a roaring trade in palm reading and all those other prediction methods for one's future??

As for that inter bar, they've always been extremely expensive for their beers, and i've only ever been there to play on pool nights, ie when i had to go.

[alant]

sales down raise prices, ever considered that the thais may have got it right, after all it is the western economies that imploded, the £ sterling that crashed by 30% all those expert bankers that know better than you. no businesses failing in thee uk, europe and the us then.

[tigerbalm]

I think a lot of the price rises on a lot of things we are seeing are tax related from the Government i understand they have been borrowing heavily and will need some extra income to repay these debts and lets face it Alchohol cigs and Gasoline hikes are a easy way to collect extra revenue, it certainly happens in the Uk every year even in a resession.

I just wonder if there are any Thai people with businesses on here that would like to share there thoughts (i am sure we would like to hear your views) on how it is effecting them and is it true how we western people have this idear that when trade is down most Thai people like to put the price up..whats the logic behind this?

[Ulysses G.]

sales down raise prices, ever considered that the thais may have got it right, after all it is the western economies that imploded, the £ sterling that crashed by 30% all those expert bankers that know better than you. no businesses failing in thee uk, europe and the us then.

Don't forget about 1997!

Edited May 14, 2009 by Ulysses G.

[alant]

sales down raise prices, ever considered that the thais may have got it right, after all it is the western economies that imploded, the £ sterling that crashed by 30% all those expert bankers that know better than you. no businesses failing in thee uk, europe and the us then.

Don't forget about 1997!

sorry suffer from ...... I forget

seriously though that is before my living here time so the actual effects I didnt experience

[ubonjoe]

Deleted posts and replies to them that crossed the line of the prostitution discusssion rule.

[Priceless]

Makro is expensive for some stuff. Eggs and vegetables are loads cheaper at local market, especially appointment-markets.

My personaly feeling is that some Farangs make far too much about this reverse market forces of increasing price. Usually it's just the last thing someone does before going out of busines.. They raise prices, any remaining customers move on, and then the place closes.

I wouldn't worry too much about it and just visit places where you do like the price vs value preposition.

Ok fair enough if someone has the time to run around from one end of the city to the other to compare prices and get the lowest price for individual items...BUT what about gas prices which are the same 26.29 at all gas stations which is a mere 1.50 or so less than what it was when gas was a $125 usd/ barel....?????

I don't have the exact numbers at hand, but fuel (at least the diesel that I buy) was seriously over 40 baht/litre when the crude oil was around 140 $/barrel.

/ Priceless

Edited May 14, 2009 by Priceless

[WinnieTheKhwai]

I don't have the exact numbers at hand, but

When's your birthday? Cause I have an advance birthday present for someone who appreciates data:

http://www.pttplc.com/EN/nc_oi.aspx?

All historical fuel prices for every type of fuel, back to 2006.

[Priceless]

I don't have the exact numbers at hand, but

When's your birthday? Cause I have an advance birthday present for someone who appreciates data:

http://www.pttplc.com/EN/nc_oi.aspx?

All historical fuel prices for every type of fuel, back to 2006.

Thank you A virtual gold mine. (And the price was "seriously over" 40 baht/litre at 44.24!)

/ Priceless

[WinnieTheKhwai]

Right, and that was for Bangkok. Chiang Mai prices are a bit higher due to the cost of trucking the stuff up here.

[MaiDong]

I've said it many times that if I offered a Thai 100 baht today, but if they waited until tomorrow I would give them 1000 baht, they would take the 100 baht today every time. Tomorrow just isn't on their radar screen.

Does that actually work for you? With me that just leads to the remote control being held hostage with the threat of chucking it out the hotel room window...

Classic! hahahaha

[tigerbalm]

Regarding increasing prices it is not always the case i was at a local bar in the village last night just having a beer and i was asking if the price of beer had gone up yes she said 45 to 50( large bottle)..what about whiskey oh no it still the same same 20 Bht.

Then i notice next to me a Thai guy ordering one and she poured a whiskey for him in to one of those small 1 shot containers but only filled it to what looked to be about 10 mil below the brim.

There you have it some times prices remain the same but quantity goes down.

You just cant win