How Is Business In Phuket?

[LivinginKata]

I agree that from what I hear businesses (bars esp) are struggling..

But did I read record arrivals numbers for 2010 ?? How can record arrivals be down 25 % (or did you mean spending down 25%) ??

Lots more Aussies and Russians.. Lot less Euros and big spending single guys.

A lot of visitors around, but they are not spending much money.

[DougLee]

If you leave a bar area by about.. 5 meters. There is no key money. our shop's rent is 15k baht, nothing more and its a lot more busy than any road in kata/patong/karon/rawai

where would that be and what kind of shop?

The only beautysalons I know making any money, are the ones focusing on lady boys. Since the lady boys have their working hours, beauty-business is 2pm to midnight. walking distance to their accomodation is a must

Every place i have been in ptown and koh kaew has had no key money and it's a lot easier to make money here since nothing is overpriced

[outofoz]

Every place i have been in ptown and koh kaew has had no key money and it's a lot easier to make money here since nothing is overpriced

Thanks for that info DougLee!

[DougLee]

Every place i have been in ptown and koh kaew has had no key money and it's a lot easier to make money here since nothing is overpriced

Thanks for that info DougLee!

there's still too many standard hair salon..

Only space for high tech hair salon or farang hair salons at one of the marinas.

[LivinLOS]

Every place i have been in ptown and koh kaew has had no key money and it's a lot easier to make money here since nothing is overpriced

But what can you charge when you take away that tourist easy money ?? Even when your not actually targeting tourists..

From memory my wifes highlights was about 2600b in Patong, about half that in Kathu and 800b up here. A wash and blow dry in Patong was 400 plus.. Out in the Phuket town orbit it will be what 100b ??

[petercallen]

We were in Patong today and there were more tourists there than i have seen in a very long time.

They did not seem to be spending much, just looking

[BangTaoBoy]

But what can you charge when you take away that tourist easy money ?? Even when your not actually targeting tourists..

From memory my wifes highlights was about 2600b in Patong, about half that in Kathu and 800b up here. A wash and blow dry in Patong was 400 plus.. Out in the Phuket town orbit it will be what 100b ??

That's a fair point, but I'd rather have 30 people paying 100 than one person paying 2600. And that's often how it will work. How many tourists get their hair cut on holiday? I wouldn't have thought that many.

As somebody said, the market is bar girls (not just ladyboys) so the ideal location would be just far enough outside to avoid exorbarant rents, but close enough for them to pop to on their scooters.

You will then have to get off you arse and go and drum up your customers, because if you sit and wait for them, you will have a long wait. Hand flyers out offering first cut free that kind of thing, free manicure or something. One thing's for sure, nothing happens quickly. Building up a book full of regulars takes a lot of time and patience, and as some body pointed out, unless you are offering something others aren't, it will never happen.

[DougLee]

That's a fair point, but I'd rather have 30 people paying 100 than one person paying 2600. And that's often how it will work. How many tourists get their hair cut on holiday? I wouldn't have thought that many.

As somebody said, the market is bar girls (not just ladyboys) so the ideal location would be just far enough outside to avoid exorbarant rents, but close enough for them to pop to on their scooters.

You will then have to get off you arse and go and drum up your customers, because if you sit and wait for them, you will have a long wait. Hand flyers out offering first cut free that kind of thing, free manicure or something. One thing's for sure, nothing happens quickly. Building up a book full of regulars takes a lot of time and patience, and as some body pointed out, unless you are offering something others aren't, it will never happen.

yes in thailand having low prices and lots of business is the only way to go.

Just the english teacher part of our customers are paying more than my monthly dining+wine+beerlao requirement, and they rarely spend above 100baht

[outofoz]

But what can you charge when you take away that tourist easy money ?? Even when your not actually targeting tourists..

From memory my wifes highlights was about 2600b in Patong, about half that in Kathu and 800b up here. A wash and blow dry in Patong was 400 plus.. Out in the Phuket town orbit it will be what 100b ??

That's a fair point, but I'd rather have 30 people paying 100 than one person paying 2600. And that's often how it will work. How many tourists get their hair cut on holiday? I wouldn't have thought that many.

As somebody said, the market is bar girls (not just ladyboys) so the ideal location would be just far enough outside to avoid exorbarant rents, but close enough for them to pop to on their scooters.

You will then have to get off you arse and go and drum up your customers, because if you sit and wait for them, you will have a long wait. Hand flyers out offering first cut free that kind of thing, free manicure or something. One thing's for sure, nothing happens quickly. Building up a book full of regulars takes a lot of time and patience, and as some body pointed out, unless you are offering something others aren't, it will never happen.

One of the places she is considering is Patong, ,amongst others. I'm not sure if she is expecting tourists or bargirls/ladyboys or Thais as customers I have to admit. I like the idea of getting out and drumming up business. Every repeat customer is money in her pocket. I know she did a flyer drop for her last place and that worked out okay, but I don't know if she would be pushy enough to really hustle for customers, which it seems you might need to do there. As for the offering something different...i wouldn't expect it would be anything off the wall.

After reading the helpful posts on this thread ..and other posts in relation to tourist numbers being down etcetera..I am seeing a lot of hard work and risk for possibly no return.

[BangTaoBoy]

After reading the helpful posts on this thread ..and other posts in relation to tourist numbers being down etcetera..I am seeing a lot of hard work and risk for possibly no return.

Most people will sit on their <deleted> and wait for the door to open, that won't cut it here. The kind of things you would need to do is go out on a motorbike, find a bar girl that wants a free haircut, take her back to the shop and treat her like royalty, then send her on her way, back to the bar where 15 other girls work, so she can spread the word. You could do that every day if you wanted, wouldn't cost a thing, except a bit of petrol and wear and tear on a pair of scissors!

You would need to be really aggresive and determined for it to work and be happy to loose money or break even at best for a very long time first.

I think you're last statement was probably right, I hope your partner understands that as well as you do.

[outofoz]

Most people will sit on their <deleted> and wait for the door to open, that won't cut it here. The kind of things you would need to do is go out on a motorbike, find a bar girl that wants a free haircut, take her back to the shop and treat her like royalty, then send her on her way, back to the bar where 15 other girls work, so she can spread the word. You could do that every day if you wanted, wouldn't cost a thing, except a bit of petrol and wear and tear on a pair of scissors!

You would need to be really aggresive and determined for it to work and be happy to loose money or break even at best for a very long time first.

I think you're last statement was probably right, I hope your partner understands that as well as you do.

I like the positivity and ideas re the promotion. if i was into the business or setting it up myself i would use that idea you suggest. I am fairly sure my GF wont understand it in my way of thinking though, so I will have to devise a plan to steer her thinking another way. I have done the hustle myself when i started my own business and times were tough..it was hard work 7 days a week but paid off in the end. My partner is hard working, but she isn't the hustle/ personal promotion kind of person and i don't think I want to commit to being that person in this circumstance.

[Soapa]

The only hairdressing business that I know of that makes money in Phuket is Tonie & Guy. They have a shop in central. If I was you I would not bother setting up any business here on Phuket. I have learned my lesson three times over.

[DougLee]

The only hairdressing business that I know of that makes money in Phuket is Tonie & Guy. They have a shop in central. If I was you I would not bother setting up any business here on Phuket. I have learned my lesson three times over.

you're not very business savvy, i know plenty of good higher end, yet still cheap hair salons that make good $

And lol at not opening businesses in phuket, i have a couple on my list to open, all are gonna make a ton of $ and we already are at #3.. all of them net a lot of(compared to investment) $ for very easy work. next 3 are of modest investment, 10-30k$ and will definitely net a LOT since theres a few market that are untapped in phuket.. very obvious markets but people are too busy opening hair salons, crappy restaurants and massage shops

Making money in thailand is easier than anywhere else, people are just plain dumb or lazy

Edited December 31, 2010 by DougLee

[KarenBravo]

A Happy New Year to all my Thaivisa friends and enemies.

Mods too (begrudgingly).

[BangTaoBoy]

you're not very business savvy, i know plenty of good higher end, yet still cheap hair salons that make good $

And lol at not opening businesses in phuket, i have a couple on my list to open, all are gonna make a ton of $ and we already are at #3.. all of them net a lot of(compared to investment) $ for very easy work. next 3 are of modest investment, 10-30k$ and will definitely net a LOT since theres a few market that are untapped in phuket.. very obvious markets but people are too busy opening hair salons, crappy restaurants and massage shops

Making money in thailand is easier than anywhere else, people are just plain dumb or lazy

Is this 'DougLee' that's setting up loads of new, succesfull, businesses in the near future, the same one that's off this, crappy, sex resort island ASAP, and never coming back? Hope you've got some trustworthy managers in place before you dissapear!

[barka]

The only hairdressing business that I know of that makes money in Phuket is Tonie & Guy. They have a shop in central. If I was you I would not bother setting up any business here on Phuket. I have learned my lesson three times over.

you're not very business savvy, i know plenty of good higher end, yet still cheap hair salons that make good $

And lol at not opening businesses in phuket, i have a couple on my list to open, all are gonna make a ton of $ and we already are at #3.. all of them net a lot of(compared to investment) $ for very easy work. next 3 are of modest investment, 10-30k$ and will definitely net a LOT since theres a few market that are untapped in phuket.. very obvious markets but people are too busy opening hair salons, crappy restaurants and massage shops

Making money in thailand is easier than anywhere else, people are just plain dumb or lazy

DONT shout to soon ..ive seen so many poeple like you come to Phuket and say what your saying...beleive me it is one of the hardest places in the world to make money.......If you dont beleive me wait and see....most of them have left with there tails between there legs and... broke....good luck in PHUKET..WELCOME to..LOS..

[Benjie]

I've got out of the last 2 or 3 'fines' by simply pretending to be looking for my passport for a couple of minutes and not understanding anything the policeman has to say.

Most Thai women I know get their hair 'done' a couple of times a month, whatever that means.

Business is pretty slow but still steady, we have customers, they aren't spending as much as before but I think that's global, not local.

[BillR]

The only hairdressing business that I know of that makes money in Phuket is Tonie & Guy. They have a shop in central. If I was you I would not bother setting up any business here on Phuket. I have learned my lesson three times over.

So your a poor business person, not everyone can cut it. I am 3 for 3 in the businesses I started in Phuket and none of them are bars or salons:)

[DougLee]

Yeah i am bound to fail.

a thai restaurant that cost nothing to run, looks fancy hence making the poor thai and english teacher feel better about themselves. Healthy no msg food, only need to sell like 20 meals a day to stay afloat, average is only in the high hundreds even when it rains.

:lol:

hell, the guys next door who sell crappy khao pat and some other cheap 30baht meals are making enough to have a 10mb house

He must hate his life a lot to talk about his old exploits in the old UK, little jealous old man.

Even if my business went down which can't happen.. my salary is about a teacher's monthly salary every 5.5hrs.. im not worried

Fairly certain im more qualified than you'll ever be to answer questions about Thailand and money than you.. but LivingLos and a few others are probably a lot more qualified than me seeing as im still really young.

happy 2011 and may all the bars fail so that phuket can become a better place

Edited January 1, 2011 by DougLee

[LivinginKata]

A number of inflammatory posts and the responses have been removed.

Oh dear, this topic will soon be closed if this continues.

[grumpyoldman]

This business idea ranks right up there with a beer bar on Bangla, and the restaurant that tee rat wants to open with all your cash that she and her family will run.

OP a somtam cart would be a better idea, lower start up costs too.

[DougLee]

my mother in law made more than an english teacher with her sumtam cart last year

[LivinLOS]

And lol at not opening businesses in phuket, i have a couple on my list to open, all are gonna make a ton of $ and we already are at #3.. all of them net a lot of(compared to investment) $ for very easy work. next 3 are of modest investment, 10-30k$ and will definitely net a LOT since theres a few market that are untapped in phuket.. very obvious markets but people are too busy opening hair salons, crappy restaurants and massage shops

Making money in thailand is easier than anywhere else, people are just plain dumb or lazy

I totally disagree with the last statement.. I have been an entrepreneur all my life, I have had 5 days of salaried employment in the whole thing. And have run businesses all over the place not only my home country. A couple that became properly large scale.

For me the problem working here is that the return for the effort is so small. I am my biggest resource, so I should want the best return I can for my time, and in Thailand you have to (as Doug says in another post) be prepared to be paid in shiny beads and sea shells. High volume low value transactions, which is both very hard to scale up and expand and massively time intensive (start a Thai biz and then dont run it while you start a second, see what happens to the first). So the idea that 'Thailand is easier than anywhere else' is hogwash IMO. Put it this way, I started a venture in the UK last year, it actually went live in March, and turned over 250k GBP in Nov, and I barely have to run it, havent been there the whole time, etc etc.

In the last decade there I can count the number of people who have made a real success (a few 100k USD minimum) from the island on one hand, and every one was in developing and pimping property. The one I know who probably made the most success, who arrived, made a mil USD is assets, etc.. Was so leveraged into he market to expand that way hes now back to square 1.

Edited January 1, 2011 by LivinLOS

[Soapa]

The only hairdressing business that I know of that makes money in Phuket is Tonie & Guy. They have a shop in central. If I was you I would not bother setting up any business here on Phuket. I have learned my lesson three times over.

you're not very business savvy, i know plenty of good higher end, yet still cheap hair salons that make good $

And lol at not opening businesses in phuket, i have a couple on my list to open, all are gonna make a ton of $ and we already are at #3.. all of them net a lot of(compared to investment) $ for very easy work. next 3 are of modest investment, 10-30k$ and will definitely net a LOT since theres a few market that are untapped in phuket.. very obvious markets but people are too busy opening hair salons, crappy restaurants and massage shops

Making money in thailand is easier than anywhere else, people are just plain dumb or lazy

I suppose in your case its must a matter of time before the But seriously starting a new business here at this time, you are ether stupid or very brave, or you must have more money than sense. My last business venture on Phuket was untapped too, I even did a high profile interview with a local Thai TV channel, but I had enough with all the crap the locals made for me. The last straw was when I had a gun pointed at me and my building broken into. Maybe dumb, but not lazy. Happy new year.

[DougLee]

Rule #1 with making money in thailand.. Dont be high profile and don't steal thai jobs(even though they are too lazy to ever do them).

[barka]

And lol at not opening businesses in phuket, i have a couple on my list to open, all are gonna make a ton of $ and we already are at #3.. all of them net a lot of(compared to investment) $ for very easy work. next 3 are of modest investment, 10-30k$ and will definitely net a LOT since theres a few market that are untapped in phuket.. very obvious markets but people are too busy opening hair salons, crappy restaurants and massage shops

Making money in thailand is easier than anywhere else, people are just plain dumb or lazy

I totally disagree with the last statement.. I have been an entrepreneur all my life, I have had 5 days of salaried employment in the whole thing. And have run businesses all over the place not only my home country. A couple that became properly large scale.

For me the problem working here is that the return for the effort is so small. I am my biggest resource, so I should want the best return I can for my time, and in Thailand you have to (as Doug says in another post) be prepared to be paid in shiny beads and sea shells. High volume low value transactions, which is both very hard to scale up and expand and massively time intensive (start a Thai biz and then dont run it while you start a second, see what happens to the first). So the idea that 'Thailand is easier than anywhere else' is hogwash IMO. Put it this way, I started a venture in the UK last year, it actually went live in March, and turned over 250k GBP in Nov, and I barely have to run it, havent been there the whole time, etc etc.

In the last decade there I can count the number of people who have made a real success (a few 100k USD minimum) from the island on one hand, and every one was in developing and pimping property. The one I know who probably made the most success, who arrived, made a mil USD is assets, etc.. Was so leveraged into he market to expand that way hes now back to square 1.

LOS i agree..100% i have been in business over here a long time.. and still get income from uk were i made my money.... not here .. .ive been lucky here.... ive paid for my house and cars out of the profit i have made here..now i am retired and i can honestly say..no thanks.. to any deal offerd me... in Thailand

..to many problems for foreign investors.....Make you rmoney in your own country where you know the rules...

[Soapa]

Rule #1 with making money in thailand.. Dont be high profile and don't steal thai jobs(even though they are too lazy to ever do them).

How could I have stole Thai jobs, when they was not there in the first place. But I did have three full time Thais working for me. I was creating jobs for Thais not stealing them.

Anyway I had a work permit and paid my taxes, so I had the right to work in Phuket. Its funny how some members of this forum jump to the wrong conclusions and are very quick to slag off anyone before knowing the true facts. Or are you just fishing for retaliation to your remarks? Not all Thais are lazy DougLee.

[barka]

Rule #1 with making money in thailand.. Dont be high profile and don't steal thai jobs(even though they are too lazy to ever do them).

your already trying to make yourself...high profile...time will tell////

[Samuian]

...edited to shorten...

These "hair salons" are usually just a dumb excuse to sit on your ass all day chit chatting with your friends while every once in a while someone actually pays 300B for a haircut, which she'll have to split with the stylist. Do the math.

We have several very simple "Chair and Mirror - Hairdo - Saloons" and all of them do very well, haircut, short massage, Ice towel facial treatment = 80 baht for Locals, 120-150 for Farang.... !

My estimate is that on busy days they cash in 1600-2400 Baht which takes only 20-30 customers adn they tend to be very busy in theevenings - till closing time 22:00

While the fancier shops are empty most of the time - and here "sit on your ass all day chit chatting with your friend" applies defenatly.... but some of them survive

Edited January 1, 2011 by Samuian

[geriatrickid]

That's a fair point, but I'd rather have 30 people paying 100 than one person paying 2600. And that's often how it will work. How many tourists get their hair cut on holiday? I wouldn't have thought that many.

As somebody said, the market is bar girls (not just ladyboys) so the ideal location would be just far enough outside to avoid exorbarant rents, but close enough for them to pop to on their scooters.

You will then have to get off you arse and go and drum up your customers, because if you sit and wait for them, you will have a long wait. Hand flyers out offering first cut free that kind of thing, free manicure or something. One thing's for sure, nothing happens quickly. Building up a book full of regulars takes a lot of time and patience, and as some body pointed out, unless you are offering something others aren't, it will never happen.

Let's do a cost analysis;

1 standard customer: Cost of materials, water, electricity, general maintenance = 50 baht . Charge 100 baht for services. pay hairdresser 50% or 50 baht. This leaves 0 profit.

1 high end customer = 150 baht in costs . Charge 2600 for services, pay hairdresser 1000 baht. This leaves 1450 baht profit.

Hmmmm. I think I would rather have the 1 highend customer.