Farang Operated Businesses

[jb4446]

Apart from farang operated restaurants and pubs(too much competition) the farang business I find is far more expensive than a Thai operated one.From computers, laundry, advice centres etc,in comparison they are at least a third dearer,in one instance I obtained a product at one tenth the price that was quoted by a farang business,just a shrug of the shoulders and off the farang business man went when I pointed it out to him.

If by some misplaced loyalty they think a farang should do business with them likewise being a farang,then personally speaking I am not here to facilitate their presence or lifesyle here in Thailand.

Good to shop around,but it is thanks but no thanks to farangs doing business. .

[allane]

I certainly would not go out of my way to patronize a business, just because it was owned by a farang. They "require" three times as much as money as an equivalent Thai person, in order to be able to maintain their expensive lifestyle. That money has to come from someone, doesn't it ?

[stolidfeline]

That is not really a fair comparison. I can't speak for everyone, but among my circle of foreign business friends, all of us would admit readily that we are more expensive than the run-of-the-mill Thais. However, if you want a job done properly, or on time, without half of your property being smashed, then our rather large customer base - MOSTLY THAIS - speaks for itself.

The same goes for foreign owned restaurants. Most charge more because they do not buy the cheapest bits of tough meat from Klong Toey, the kitchens are usually clean and free of rats and cockroaches, they store their food in refrigerators (which are actually plugged in). They have proper utensils and not bendy stainless junk. They have decent plates and not filthy melamine ones. They have clean flush toilets. Their staff have access to clean water to wash their hands. They wash up in sinks not in a bowl in the street. Most places also train their staff in hygiene, and give better service.

As far as computers go, you can buy a cheap PC made of bits of chinese junk and the cheapest motherboards and parts, with a hacked and broken copy of Windows XP, installed with the wrong drivers and just about as stable as a volcano. Or you can get one that works. My shops mostly exist because the majority of our customers bring their PC's to us for repair and re-install of the O/S, replacement of the RAM that has been stolen by the shops in places like Pantip, etc. And once again, our customers are Thais who are fed up with slow machines with nonfunctioning software. Our prices are almost double.

If you find a Thai owned business which also offers the same level of service, then you will usually find they also charge a similar price.

Laundries may be an exception - it does not require much education to wash clothes. However, the best local laundry is Thai owned, has a lot of machines, uses tumble dryers instead of air drying in the dust on a clothes rack on the roof, and their prices are high. But their washing is always clean and immaculate.

Edited December 16, 2009 by stolidfeline

[Ulysses G.]

When Thai people can consistantly provide Italian food that is as good as an Italian. I will frequent their restauarants as well as the Italian guy's.

[BugJackBaron]

This is all well and good in theory, but I would rather judge each place

on a case to case basis - not on who the owner is.

Case in point, Farang food is sometimes better in farang owned places but not always.

It has been noted many times that the quality of farang food in Pattaya is low even

though many of these places are foreign owned.

For example, Seabreeze, which is just off soi boukow offers pretty good fish and chips for 110 Baht

and is Thai operated!

A crappy foreign owned fish and chip shop by jomtien complex, by contrast, charges 3 times the price.

[PattayaParent]

What gets me is the Farang owned places that charge Farangs more than they charge Thais!!!

I go out of my way not to go to them.

[doggie888888]

What gets me is the Farang owned places that charge Farangs more than they charge Thais!!!

I go out of my way not to go to them.

Yes...we should get a list going. I have seen other threads wanting to list Thai businesses that practise dual pricing. Let's have a list of known farang places that also do the same

I have been to a restaurant where they are not shy to charge above average prices for fried chicken only to present chicken nuggets. The reason: this is how our Thai supplier sells to us.

My builder liked to say "this is Thailand" whenever I presented him with list of problems, which incidentally he did not detect because his "European managed" company provides no Europoeans to manage or supervise cheap local staff. They charge European prices though...and are happy to blame their own Thai staff! Should have used a Thai builder...probably same stuff ups anyway.

Because of such experience, other HONEST foreigner owned businesses are bound to suffer because people like me are sceptical of foreign businesses here and have started to use Thai businesses more often which I otherwise might not have done if most of my experiences with foreigners are positive. At least when a Thai rips you off (probably as often as a foreigner in Pattaya) it costs less. But I am happy to say my experience with Thais, although mixed, have been mostly positive. It is such a myth that foreigners can give you results that Thais can't because the reality is some THAIS CAN and some FOREIGNERS CAN"T, especially in Pattaya.

[skate44]

What gets me is the Farang owned places that charge Farangs more than they charge Thais!!!

I go out of my way not to go to them.

Yes...we should get a list going. I have seen other threads wanting to list Thai businesses that practise dual pricing. Let's have a list of known farang places that also do the same

That sounds like an excellent idea. There should be a forum, website or some other public information board with a list of places that have duel pricing and also another list of their competition that do not charge you more depending on the colour of your skin.

I would be more than happy to support the honest businesses rather than feed the greed!

[jb4446]

Farang guy doing computers third rd selling windows 7 premium home for 5.5 thousand,Thais selling exactly the same for 3.8 thousand genuine too,somebody is taking the piss.

Edited December 18, 2009 by jb4446

[mr.buffalo]

I have also found that some farang bars feel justified in charging 90 baht for a bottle of Singha. Why? Do they think we should feel priviliged to drink in farang owned pubs? Are their overheads higher than other bars? Just greed and once bitten 90 baht for a bottle of beer my feet never carry me into the bar again.

[Jingthing]

For some more complicated services, Thais who are fluent in English charge more, and in many cases, it is justified.

[rayong09]

I have also found that some farang bars feel justified in charging 90 baht for a bottle of Singha. Why? Do they think we should feel priviliged to drink in farang owned pubs? Are their overheads higher than other bars? Just greed and once bitten 90 baht for a bottle of beer my feet never carry me into the bar again.

It would depend on the rent and key-money per bar.

[Ulysses G.]

Is the bar full of hot, slutty 18 year old girls who take customer service seriously? 90 baht might be too cheap!

[biker Bob]

Is the bar full of hot, slutty 18 year old girls who take customer service seriously? 90 baht might be too cheap!

:D :D

[Spoonman]

Farang guy doing computers third rd selling windows 7 premium home for 5.5 thousand,Thais selling exactly the same for 3.8 thousand genuine too,somebody is taking the piss.

Yeah thats pretty ordinary, was that OEM or retail, Retail is about 1000b more but 5500b is taking the piss as thats win7 pro (OEM) pricing.

whats the name of the shop on Third road.

[Rimmer]

None sense post deleted

[honda99]

Liberty computers on 3rd road, don't go anywhere near them they charge double than most of the shop around pattaya, FACT

[caf]

I have also found that some farang bars feel justified in charging 90 baht for a bottle of Singha. Why? Do they think we should feel priviliged to drink in farang owned pubs? Are their overheads higher than other bars? Just greed and once bitten 90 baht for a bottle of beer my feet never carry me into the bar again.

Farang businesses go for higher margins than Thais as their living styles are different, as one poster has already observed. It is not greed, it is just they want more money for their given lifestyle.

Some imports make some products more expensive, but labour rates and cost of living in general in Thailand is cheaper. Higher prices are down to higher margins. But it is their business - vote with your feet

[raro]

I have also found that some farang bars feel justified in charging 90 baht for a bottle of Singha. Why? Do they think we should feel priviliged to drink in farang owned pubs? Are their overheads higher than other bars? Just greed and once bitten 90 baht for a bottle of beer my feet never carry me into the bar again.

Farang businesses go for higher margins than Thais as their living styles are different, as one poster has already observed. It is not greed, it is just they want more money for their given lifestyle.

Some imports make some products more expensive, but labour rates and cost of living in general in Thailand is cheaper. Higher prices are down to higher margins. But it is their business - vote with your feet

exactly!

it depends on what you are buying...usually you get what you pay for. Moreover, the Farang operated place has automatically a higher overhead. To obtain a Workpermit (which costs money), he needs to have a minimum salary which is usually higher than a salary of a Thai in a comparable position. He needs to employ four staff whereas the Thai might employ only two as only two staff are needed. The Farang operated business must be VAT registered. The Thai could get away with no VAT registration. And so on.

[jb4446]

Oh well got my post deleted,but someone else answered

[Spoonman]

Liberty computers on 3rd road, don't go anywhere near them they charge double than most of the shop around pattaya, FACT

Thanks for that, ive never been in there but i know to avoid now.

[caf]

I have also found that some farang bars feel justified in charging 90 baht for a bottle of Singha. Why? Do they think we should feel priviliged to drink in farang owned pubs? Are their overheads higher than other bars? Just greed and once bitten 90 baht for a bottle of beer my feet never carry me into the bar again.

Farang businesses go for higher margins than Thais as their living styles are different, as one poster has already observed. It is not greed, it is just they want more money for their given lifestyle.

Some imports make some products more expensive, but labour rates and cost of living in general in Thailand is cheaper. Higher prices are down to higher margins. But it is their business - vote with your feet

exactly!

it depends on what you are buying...usually you get what you pay for. Moreover, the Farang operated place has automatically a higher overhead. To obtain a Workpermit (which costs money), he needs to have a minimum salary which is usually higher than a salary of a Thai in a comparable position. He needs to employ four staff whereas the Thai might employ only two as only two staff are needed. The Farang operated business must be VAT registered. The Thai could get away with no VAT registration. And so on.

I agree your point particularly on overheads but net margins are generally still higher in farang businesses

[Benjie]

It seems to be the opposite down here in Phuket, I'm having some little bits and pieces of work done on the house and nearly every Thai quote is 2-3 times more expensive than the farang companies I have asked to quote. An example is a wardrobe I wanted built into my kids bedroom, several Thai companies/individuals quote 70,000 Baht and the two farang owned companies quoted less than 30k.

[onnut]

ok, why don't one of you guys here open up a pub and sell at thai prices? And then out of your gross profit provide the same sort of service and product as one of the businesses your refering to at the same time! See if you could survive on the net profit you have left.

Most foreign pubs and restaurants offer a much higher standard of quality and service, cleanliness and well maintained shops with comfortable seating in an A/C enviroment.

Ok for sure there are the odd shitty gaffs around, but the ones some of you are refering to are the higher priced well maintained places. I would rather pay 120 for a bottle and sit in a nice enviroment. A place where I could eat without the worry of being sick the next day. Sure, there are Thai owned places that offer the same but they also charge the same as the foreign owned places.

It's all down to what people want, and if there are people that will spend more on quality then these places will stay open. And there are plenty of people out there that want it.

I have also found that some farang bars feel justified in charging 90 baht for a bottle of Singha. Why? Do they think we should feel priviliged to drink in farang owned pubs? Are their overheads higher than other bars? Just greed and once bitten 90 baht for a bottle of beer my feet never carry me into the bar again.

Farang businesses go for higher margins than Thais as their living styles are different, as one poster has already observed. It is not greed, it is just they want more money for their given lifestyle.

Some imports make some products more expensive, but labour rates and cost of living in general in Thailand is cheaper. Higher prices are down to higher margins. But it is their business - vote with your feet

exactly!

it depends on what you are buying...usually you get what you pay for. Moreover, the Farang operated place has automatically a higher overhead. To obtain a Workpermit (which costs money), he needs to have a minimum salary which is usually higher than a salary of a Thai in a comparable position. He needs to employ four staff whereas the Thai might employ only two as only two staff are needed. The Farang operated business must be VAT registered. The Thai could get away with no VAT registration. And so on.

I agree your point particularly on overheads but net margins are generally still higher in farang businesses

[basjke]

ok, why don't one of you guys here open up a pub and sell at thai prices? And then out of your gross profit provide the same sort of service and product as one of the businesses your refering to at the same time! See if you could survive on the net profit you have left.

Most foreign pubs and restaurants offer a much higher standard of quality and service, cleanliness and well maintained shops with comfortable seating in an A/C enviroment.

Ok for sure there are the odd shitty gaffs around, but the ones some of you are refering to are the higher priced well maintained places. I would rather pay 120 for a bottle and sit in a nice enviroment. A place where I could eat without the worry of being sick the next day. Sure, there are Thai owned places that offer the same but they also charge the same as the foreign owned places.

It's all down to what people want, and if there are people that will spend more on quality then these places will stay open. And there are plenty of people out there that want it.

Well said.

[raro]

I agree your point particularly on overheads but net margins are generally still higher in farang businesses

prices are based on supply and demand. If there is nobody buying at a certain price, then the price will go down. At least where I come from. I saw other examples in Thailand where the prices go up if no one buys, but all of those examples were Thai (Chinese) run businesses.

[thaiman]

Is the bar full of hot, slutty 18 year old girls who take customer service seriously? 90 baht might be too cheap!

True true. And some wonder why businesses fail when all they can hire is old ugly women

[Tokay]

I certainly would not go out of my way to patronize a business, just because it was owned by a farang. They "require" three times as much as money as an equivalent Thai person, in order to be able to maintain their expensive lifestyle. That money has to come from someone, doesn't it ?

Or, you can patronize a Thai shop and roll the dice of having to do whatever it is you just paid for, 2 or 3 more times. I've found the level of "fail" to be overwhelming when buying or fixing anything at the locals shop, unless of course it's a 7-11 type store.

I live by these two rules: Behind every good man, is a good women with her foot in his arse. Behind every good shop in Thailand, is a farang.

[Spoonman]

Farang guy doing computers third rd selling windows 7 premium home for 5.5 thousand,Thais selling exactly the same for 3.8 thousand genuine too,somebody is taking the piss.

Just to come back to this, Wattana Computers on Pattaya Klang advertise Home Premium (full retail pack) for 5600b, which compared to prices from Australia is actually very competitive.

Edited December 22, 2009 by Spoonman

[caf]

I agree your point particularly on overheads but net margins are generally still higher in farang businesses

prices are based on supply and demand. If there is nobody buying at a certain price, then the price will go down. At least where I come from. I saw other examples in Thailand where the prices go up if no one buys, but all of those examples were Thai (Chinese) run businesses.

I think your experience is exceptional then. It is not just Chinese Thai businesses that have that economic strategy. The economics that we learn in western universities is not always relevant here. The American economist Maris made that point back in the seventies.