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How Is Business In Phuket?


outofoz

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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. laugh.gif

Very clever. How exactly is it you intend to get this high paying customer through the door though? when they are outnumbered by the lower paying ones 1000/1. Your fantastic witt perhaps?

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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

I have been to those places, you look like a goof after a haircut there.

the nicer salons which cost about 300baht are much much better at cutting hair, they take pride in what they do. The one i use is only 300baht and there's always someone with a new Beamer or mercedes getting a haircut there, must mean something

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I have been to those places, you look like a goof after a haircut there.

the nicer salons which cost about 300baht are much much better at cutting hair, they take pride in what they do. The one i use is only 300baht and there's always someone with a new Beamer or mercedes getting a haircut there, must mean something

Yes. You are easily impressed by things that mean nothing!

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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. laugh.gif

Very clever. How exactly is it you intend to get this high paying customer through the door though? when they are outnumbered by the lower paying ones 1000/1. Your fantastic witt perhaps?

In the examples i gave, the services were about the same, it was only location.. So it comes down to the issue of location and key money, salons around Patong are frequented by girls, with lots of time in the afternoons, who may well have taken 2k of a punter lats night and have a couple of guys sending 20 - 50k a month in sponsor money. A salon in Phuket town deals with normal Thai women, who have far less disposable income, time, and possibly need to work their looks. Then of course is the face aspect of bar girls spending lots of money on show off (compensation) ways..

So this is where it comes back to key money and crazy rents.. On one side they are a massive cost, on the other its only the locations that have this which have easy access to girls who can drop 500 baht a few times a week.

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In the examples i gave, the services were about the same, it was only location.. So it comes down to the issue of location and key money, salons around Patong are frequented by girls, with lots of time in the afternoons, who may well have taken 2k of a punter lats night and have a couple of guys sending 20 - 50k a month in sponsor money. A salon in Phuket town deals with normal Thai women, who have far less disposable income, time, and possibly need to work their looks. Then of course is the face aspect of bar girls spending lots of money on show off (compensation) ways..

So this is where it comes back to key money and crazy rents.. On one side they are a massive cost, on the other its only the locations that have this which have easy access to girls who can drop 500 baht a few times a week.

That's why to make a go of it, I think you would need to combine the two. A slightly out of the crazy expensive zone location, but still attracting that particular group of customers. Most, if not all bar girls have bikes or access to bikes, so the sallon wouldn't need to be within walking distance of Bangla. How far away you need to go before the prices drop enough, I wouldn't know, but I'm sure you could still stay within a 2 minute bike ride and get an affordable place.

Like I said before though, don't expect the customers to come to you, and don't expect to have enough regulars to make a go of it, for a long, long time. Over all, not worth the grief in my opinion, and I think The OP has realised that as well.

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In the examples i gave, the services were about the same, it was only location.. So it comes down to the issue of location and key money, salons around Patong are frequented by girls, with lots of time in the afternoons, who may well have taken 2k of a punter lats night and have a couple of guys sending 20 - 50k a month in sponsor money. A salon in Phuket town deals with normal Thai women, who have far less disposable income, time, and possibly need to work their looks. Then of course is the face aspect of bar girls spending lots of money on show off (compensation) ways..

So this is where it comes back to key money and crazy rents.. On one side they are a massive cost, on the other its only the locations that have this which have easy access to girls who can drop 500 baht a few times a week.

That's why to make a go of it, I think you would need to combine the two. A slightly out of the crazy expensive zone location, but still attracting that particular group of customers. Most, if not all bar girls have bikes or access to bikes, so the sallon wouldn't need to be within walking distance of Bangla. How far away you need to go before the prices drop enough, I wouldn't know, but I'm sure you could still stay within a 2 minute bike ride and get an affordable place.

Like I said before though, don't expect the customers to come to you, and don't expect to have enough regulars to make a go of it, for a long, long time. Over all, not worth the grief in my opinion, and I think The OP has realised that as well.

My response was mainly in response to Dougs suggestion that Phuket town or Khaw keow would be possible locations due to no key money..

In either locations the salon would cater to purely locals without much tourist connection.. Which in turn means its going to need to be right at the lowest rung of fees.

As for how far many of these girls travel.. Seems they stay very much in their orbit. Salon is only going to be used if its local to them. Travelling for it strikes me as highly unusual for that kind of thing.

Anyway its got the point on the Salon angle about all that can be said is sorta said.. Its a low margin operation, to be in an area with fees above tiny tiny amounts will need high rent, and to operate it you will compete against people who are funded by their partners. Theres already one every 50m in the busy areas and I struggle to think of a less interesting proposition (another internet cafe maybe).

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I was amazed at a shop that was taken over by a Thai girl, straight out of beauty school, done a 2 weeks coarse and her boyfriend fitted this shop out for, wait for it 200,000B!!!!!!.

This is how crazy they are, within a month she decided on a whim that she didn't want the shop any more, of coarse not her money so that horrible attitude of "i don't care, not my problem"and the farang with not one penny back, literally just handed the keys back and one of her friends snaked in a lifted the fittings.

Genuine story!!!!!!, who's to blame, is it the sad love sick stupid farang, or the manipulative thai girlfriend, knowing she is fleecing him every day, or are they both to blame as much as each other.

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Can we stop with the ..... story.. Most of us here are normal human beings with human thai girlfriends or wifes that had real jobs..

Thanks (polecleaner)

Edited by LivinginKata
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Can we stop with the mongers story.. Most of us here are normal human beings with human thai girlfriends or wifes that had real jobs..

Thanks (polecleaner)

But the fact remains.. In large parts of the island, thats what a business has to both compete against and the customer base.

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My GF has reasonable business acumen, but nothing out of the box. She knows bkk but not Phuket. The inspiration for Phuket is some work she did there to help a business friend out a few years back, the friend encouraging her to start her own shop as business was good. For me, one of the main themes on this thread is that business in Phuket is difficult for a lot or people for various reasons even when they are Phuket locals. It is a hair salon we are talking about (of which there are many) and my GF doesn't know Phuket business conditions and practices and I sure as hell have no clue. From some of the ideas and comments made I can see someone possibly making a go out of a salon catering to bargirls/ladyboys that had a different edge . It just wouldn't fit my GFs personality though setting that type of business up........

I think I'll just come to Phuket for a holiday.

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...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

On busy days 1600-2400 minus labour / key money / rent / electrics

On not so busy days a bit less

You must be making a fortune

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You also need to remember, that a large amount of business' that do make a go of it, are because they have no overheads at all. The business is operated out of the shop house that has been owned by the family for decades. It doesn't take much to make a living when you have no rent, no key money, no extra electric or water bills etc.

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At the end of the day ...if you are a hairdreser . the business is .YOU...thats why the good ones only rent a ..chair.. and leave the big overheads to the owners.....i was once given the best advice in business ever and i have never forgoten it....if you can go out on a monday and make your overheads...THE REST OF THE WEEK IS...PROFIT

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