Bangkok's Ratchaprasong businesses offer up to 90% discounts to lure customers

[webfact]

Ratchaprasong businesses offer up to 90% discounts to lure customers
Somluck Srimalee,
Petchanet Pratruangkrai
The Nation


Protesters gathering in front of Siam Center shopping complex on Rama I Road in Bangkok.

BANGKOK: -- Businesses in the Ratchaprasong area have launched a promotion campaign offering discounts of up to 90 per cent in an attempt to lure shoppers and tourists back to the protest-plagued zone.

Tourist numbers in the area dwindled by as much as 50 per cent after the People's Democratic Reform Committee (PDRC) attempted to "shut down Bangkok" on Monday in the latest iteration of its three-month quest to replace the government with an unelected "People's Council".

Small and medium-sized businesses in this area, normally one of Bangkok's most robust shopping zones, do not have the economic wherewithal to survive if the protests drag on much longer, said Chai Srivikorm, president of the Ratchaprasong Square Trade Association (RSTA), so the promotional campaign was launched.

Particularly worrying is the expected loss of revenue if the protest continues through the Chinese New Year at the end of this month. Temporary staff will be the first to suffer layoffs, not only in shopping outlets but throughout the service sector, including hotels and restaurants.

That means 40,000-50,000 workers are at risk.

However, Chai acknowledged that it was difficult to quantify the overall business loss from the shutdown campaign, as some operators had actually benefited from additional custom from protesters.

For the first two days of the shutdown, restaurants in the area were sold out as protesters poured in. That boon was short-lived, however, as the number of customers dropped by about 60 per cent on Wednesday and Thursday. Restaurant space in Ratchaprasong totals 600,000-700,000 square metres.

In happier times, hotels around Ratchaprasong, which have 4,000 rooms, enjoy an average occupancy rate of 89 per cent. It is now 30 per cent.

While the number of foreign tourists shopping in the area has plummeted by half, Thai shoppers are compensating. Their numbers have increased by as much as 30 per cent.

Normally between 150,000 and 200,000 tourists per day visit the area, half of them foreigners. But now more than 70 per cent are Thais.

"We cannot estimate the number of visitors now because every evening more visit this area, both people who have joined with the PDRC and those who travel here when the PDRC sets up entertainment events," Chai said.

But regardless of how many people visit the area, the RSTA has tightened its safety measures and set up an up-to-date traffic-management plan.

Meanwhile, hotels are offering discounts of up to 40 per cent, restaurants up to 30 per cent, and retail outlets, including those selling brand-name fashions, at all the shopping centres around Ratchaprasong are offering discounts of 80-90 per cent to boost sales.

In a separate statement, Sirichai Praphan-Turakit, vice president for building operations of Platinum Fashion Mall in Pratunam, said the number of visitors had dropped significantly during the shutdown campaign, by 60 per cent according to the company's internal evaluation.

Meanwhile, the number of vehicles entering its parking building has declined heavily, by 90 per cent. However, most of its tenant stores are still operating normally, and have adjusted to the situation by focusing on online sales to replace the significant decline in the physical trade.

"We have launched security measures and other preparations, including staff practices, to deal with the situation," the statement said. "We have prepared our infrastructure system and basic utilities, internal communication system, and security equipment. This also includes an increase of our security staff to cover all areas of the shopping complex.

"We check all persons and vehicles passing in and out of all entrances of the shopping mall."


-- The Nation 2014-01-18

[Calimotty]

Meanwhile, the number of vehicles entering its parking building has declined heavily, by 90 per cent. However, most of its tenant stores are still operating normally, and have adjusted to the situation by focusing on online sales to replace the significant decline in the physical trade.

Focusing on dreams of replacing the significant decline.

[fakename]

Lots of numbers and percentages, but im guessing the numbers are just pulled out of a hat. As usual, numbers in Thailand dont mean anything.

[Costas2008]

"retail outlets, including those selling brand-name fashions, at all the shopping centres around Ratchaprasong are offering discounts of 80-90 per cent to boost sales."

I wonder what is their Mark-up if they can offer 90% discounts!

[EricBerg]

Meanwhile, the number of vehicles entering its parking building has declined heavily, by 90 per cent. However, most of its tenant stores are still operating normally, and have adjusted to the situation by focusing on online sales to replace the significant decline in the physical trade.

Focusing on dreams of replacing the significant decline.

Then go have dinner there or call a hotel for the price of a room. Discounts are big. But the profits are high too. They all will recover from a relatively short period of few customers. No need for dreaming there.

[JoeThePoster]

"We check all persons and vehicles passing in and out of all entrances of the shopping mall."

The mirror under the car trick. I feel safe already.

[millwall_fan]

Are these real sales? Or the usual Thai sale, where you double the price and then stick a 90% discount sticker on the product?

[draftvader]

"Prices bombing on Ratchaprasong"

p.s. already burning in hell

[Mackie]

One thing for sure, you will not find a Millwall t-shirt on sales. No one sells t-shirts of some minor club headed for League one.

[noitom]

Are these real sales? Or the usual Thai sale, where you double the price and then stick a 90% discount sticker on the product?

Next will be "going out business sale."

[LuckyLew]

TAT new slogan ... Amazing Thailand, it begins with a huge discount

[namdocmai]

The last months there are almost no farang in Siam Paragon or Central world at all. I see asian tourists there though. I sure won't go in the city now and those discounts of 70-90% are all fake, maybe one product has 90% off and that one seemed to be sold out in 1 hour.

[noitom]

One thing for sure - Thais know how to "lure." A euphemism for catching fish. A few girls from a few of the entertaunment venues around Bangkok are consulting here on the luring.

[ginjag]

"retail outlets, including those selling brand-name fashions, at all the shopping centres around Ratchaprasong are offering discounts of 80-90 per cent to boost sales."

I wonder what is their Mark-up if they can offer 90% discounts!

All this UP TO 90% haha go in and see if you can find anything at 90%.

Udon Thani last year had UP TO 70% off nothing in the Robinsons had 70% off it was 20-30% if you were lucky.

Most Items you will find have a way over the top original price then the % off gives you a fraction under normal---con trick.

In Tesco Lotus chicken legs were reduced in price, on the price ticket it said 70bht the Kilo, it was marked out with a big red cross and 69 baht the kilo was written. even the staff were laughing.

[diehard60]

And you dont think suthep is wrong???? He should be held accountable for this. He is the reason no one wants to go to Bangkok anymore.

[belg]

risk your life and you might get up to 90% discount in hell

[ginjag]

And you dont think suthep is wrong???? He should be held accountable for this. He is the reason no one wants to go to Bangkok anymore.

Maybe the duff government have a hand in this don't you ??? why did I ask you that ??? because you won't think so.

[bkkfaranguy]

Actually the Siam group is owned by the rich BKK elites who typically support the dems, so I have no sympathy for them, but I do for the good hard working people caught in the middle.

[I knew this would happen]

I once talked to some guy who was responsible for marketing in a company. He told me exactly what you guys also guessed right. Double the price and give 90% discount. That´s the way it works, everywhere in the world. It´s stupid, it´s simple but it works and the customers still want it and ask for this kind of "scam".

But i feel sorry for everyone who is loosing money or even his job just because of this. Thailands needs to change somehow someday, but Suthep is not the saviour. He should be in jail right now for all the damage he did, he went too far.

Edited January 18, 2014 by I knew this would happen

[ultimate weapon]

I once talked to some guy who was responsible for marketing in a company. He told me exactly what you guys also guessed right. Double the price and give 90% discount. That´s the way it works, everywhere in the world. It´s stupid, it´s simple but it works and the customers still want it and ask for this kind of "scam".

But i feel sorry for everyone who is loosing money or even his job just because of this. Thailands needs to change somehow someday, but Suthep is not the saviour. He should be in jail right now for all the damage he did, he went too far.

but isn't that still quite a significant discount?

Here let's try. Take something worth 90 double the price to 180 at 90% discount it's now worth 18. At 90% discount of the original price of 90 it would be 9.

[MMarlow]

Are these real sales? Or the usual Thai sale, where you double the price and then stick a 90% discount sticker on the product?

That's a very good deal but Thai people aren't as stupid as your suggestion is.

Doubling the price of a 500 baht item, for example, puts it at 1000 baht. A 90% discount on 1000 baht is 900 baht. The discounted price is therefore 100 baht for something originally priced at 500 baht.

Would you have a problem with that kind of sale?

[MMarlow]

I once talked to some guy who was responsible for marketing in a company. He told me exactly what you guys also guessed right. Double the price and give 90% discount. That´s the way it works, everywhere in the world. It´s stupid, it´s simple but it works and the customers still want it and ask for this kind of "scam".

But i feel sorry for everyone who is loosing money or even his job just because of this. Thailands needs to change somehow someday, but Suthep is not the saviour. He should be in jail right now for all the damage he did, he went too far.

Eg. 500 x 2 = 1000, 1000 x 90% = 900, 1000 - 900 = 100. Bargain. QED.

Of course the customers want it because it wouldn't be a scam, if it ever happened, of course. It would be called a bargain. The only stupid, simple thing was that marketing guy that you claim to have talked to. I would imagine he was looking for a new job fairly quickly.

[englishoak]

Are these real sales? Or the usual Thai sale, where you double the price and then stick a 90% discount sticker on the product?

That's a very good deal but Thai people aren't as stupid as your suggestion is.

Doubling the price of a 500 baht item, for example, puts it at 1000 baht. A 90% discount on 1000 baht is 900 baht. The discounted price is therefore 100 baht for something originally priced at 500 baht.

Would you have a problem with that kind of sale?

thats not how it works the wording is deceptive, you have an item you cant sell so you discount it 90% say some XXXXX large tshirt no one buys. the rest of the stuff you do what you like with double it and discount give 20% etc etc Then you can claim upto 90% discount as long as its just one item in the whole store.

[oldthaihand99]

Rarely are sales at 90% off. Usually much less than that. If you double the price beforehand & then offer 50% off, the price is the same as it usually is. If it's 25% off, the original price would have been lower than the on sale price.

[oldthaihand99]

Best to know what the value of an item is so you can guage whether or not a store's price on an item is really an "on sale" or bargain price.

[ginjag]

Are these real sales? Or the usual Thai sale, where you double the price and then stick a 90% discount sticker on the product?

That's a very good deal but Thai people aren't as stupid as your suggestion is.

Doubling the price of a 500 baht item, for example, puts it at 1000 baht. A 90% discount on 1000 baht is 900 baht. The discounted price is therefore 100 baht for something originally priced at 500 baht.

Would you have a problem with that kind of sale?

thats not how it works the wording is deceptive, you have an item you cant sell so you discount it 90% say some XXXXX large tshirt no one buys. the rest of the stuff you do what you like with double it and discount give 20% etc etc Then you can claim upto 90% discount as long as its just one item in the whole store.

Agreed ,exactly my earlier post pointed out, it is legal and the shops know this if only 1 item is at that "90%"

BUT here it doesn't matter if they said 200% off no one would ask WHERE is these items at that price. Tell me any Thai that would question management.

[I knew this would happen]

I once talked to some guy who was responsible for marketing in a company. He told me exactly what you guys also guessed right. Double the price and give 90% discount. That´s the way it works, everywhere in the world. It´s stupid, it´s simple but it works and the customers still want it and ask for this kind of "scam".

But i feel sorry for everyone who is loosing money or even his job just because of this. Thailands needs to change somehow someday, but Suthep is not the saviour. He should be in jail right now for all the damage he did, he went too far.

but isn't that still quite a significant discount?

Here let's try. Take something worth 90 double the price to 180 at 90% discount it's now worth 18. At 90% discount of the original price of 90 it would be 9.

Of course the math behind that is wrong, I meant that the inital offer will already contain a large discount tag like 50% which is already included in the calculations.

But he works for a company that sells furniture, not everyone does this of course. It would destroy the reputation of the product (or the brandname). Let´s say they want 500€ for something, then they just go ahead and say that this thing would acutally cost 999€ but right now we have a limited 50% promotion. But they´ll never ask for that 999€, that is just for show and to make the customers believe that the product they buy is even better. The customers still fall for that "cheap" trick. Because when you are in the shop these awesome discounts will stop your brain from being reasonable. Just watch the flyers and brochues in Germany, every front page has something like OMG 50-70% discount.......all the time

Sorry for the OP

Edited January 18, 2014 by I knew this would happen

[celso]

Too bad it doesn't say which businesses.

I spent 25k in Zen centralworld today on home appliances, didn't get any discount :/

[jackrich]

Too bad it doesn't say which businesses.I spent 25k in Zen centralworld today on home appliances, didn't get any discount :/

You failed to read the fine print. Discount doesn't apply to rich farang, only poor Bangkokian with Benz.

Edited January 18, 2014 by jackrich

[marcusd]

Meanwhile, the number of vehicles entering its parking building has declined heavily, by 90 per cent. However, most of its tenant stores are still operating normally, and have adjusted to the situation by focusing on online sales to replace the significant decline in the physical trade.

Focusing on dreams of replacing the significant decline.

EXACTLY!!! Western countries LARGE department stores take a few years to get ONLONE sales up and going to replace lost revenue (and that is still in decline) BUT Thai shops can do it in a day! WOW have we a lot to learn fgrom thai genious!

And 90% of name brands. Yeah Right!! I would like to see what the price was the day before 90% off was declared!

IDIOTS!