Less profit of isaan food shop owners?but big new cars!

[Sandman77]

Every shop here in village selling same, some fat crackers I cannot eat

Soft drinks water and beer!

Also shops near the road in my calculation win 3 bath a article

When have maybe 50 customers a day maximum profit in my callculation are 500 baht a day!

Should be enough for living , but today the shop owner bought a new car for daughter for 600000 k thb

First credit from bank was not enough borrow also from company and the bank together for show the car to the village people !

I really not understand how the Thai bank credit system works ,in other country's people get no credit also when have more money!

Normally I should support the locals

But most of them switch off there fridge in the night , that soft drinks tasteless ice cream are broken, and some fridge so cold that have ice cubes in soda glass bottel!

For sure we not have 7 here next tesco 15 km away!

I not understand why all private shops have no glass bottels?

[transam]

Credit is easy here, lenders staff will fiddle the paperwork, get grandma to back up the loan with her land, all very easy. BUT, look at all the car sales tents cropping up everywhere, crazy place this.

[Costas2008]

have ice cubes in soda glass bottel!

You finally gave me the laugh of the day. Seriously.Thanks dude.... .

P. S. Not my intention to hurt you. Why don't you go back to where you came from, after so much seems to be not good for you.-

lostinissan, I think you have lost it completely.

Just because the OP's, as mine, English is not our mother language, so to please you, we better go back to where we came from.

What an insensitive statement.

OP, it's very easy to get a loan from the bank here.

As long as you are not blacklisted, and you present 2 guarantors, you will be given a loan.

Now, how you pay pack, that's a different subject.

Where I live in Isaan, this thing is happening everyday.

Up to now, haven't heard of any repossessions.

I, too, am amazed, of how these people make some money.

There are about 20 similar shops in the small village I live in.

About glass bottles, don't know, beer is in glass bottles.

May be for soft drinks, have to charge you more till you return the bottle.

Switching off the fridge, never heard of that before, at least where I live.

Best regards and don't get offended by silly people.

[Dave 74]

Granny's land will soon be the bank's.

[hotrod4098]

the big fridge with glass doors costs round 2000 a month in electric..

i was running one for about a year..thats a big chunk out of the money you take...

with profit on beer around 10 thb a bottle..you need to sell around 10..just to pay the electric..

a average shop will make less than 5000 a month profit..

[MJP]

Granny's land will soon be the bank's.

As well as the pick-up truck.

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[longstebe]

It is a bit mad. It's all about how it looks to other people in most cases.

I think I do pretty well but I'm driving around in a 8 year old car, whilst like the OP mentions, the shopkeepers have a nice new shiny truck. It's bloody barmey........:-)

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Edited March 23, 2014 by longstebe

[wayned]

Just look at the signs posted all over! 0% down, 72 months to pay. They have no big initial investment lose if they can't pay and the local "sharks" are always willling to lend them money if they come up short one month.

[MJP]

It's no different to the UK. Only difference being the loan sharks in the UK are licensed by the government and charge much higher rates of interest.

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[SantiSuk]

In our village of about 500 people tops there are at least 5 mom and pop shops and as of last month a much larger convenience store (big city 711 size plus house, sitting right on top of my once quiet and slightly isolated house, unfortunately).

I sympathise with the OP - I like to support the local old dears (actually most of them are younger than me now I come to think of it!) but there is very little in there that I want to buy. Eggs, beer and the big flagons of water is about all I can come up with. Leo is usually fresh but I never touch soft drinks - invariably 6 months plus out of date! I don't buy next door as TW has fallen out big time with them for using our house wall as a retaining wall for their unnecessary 6 foot infill that results in them sitting on top of us.

They must be more sensible round here - don't know any of them with new cars, except the convenience store which is mega-financed by an absentee American. No expense spared - the family must have pumped at least 7 million into that property in 9 months. It's getting around 20 customers a day!

Edited March 23, 2014 by SantiSuk

[Dave 74]

0% down always gets the Thai peasants buying.

Two reasons:

1) With no downpayment needed, for once in their life they can have something that makes them feel big and rich and special and gets lots of face.

2) The overiding emotions of such blank out the reality of the payments they will need to pay, and an already short ability to consider future situations is completely whitewashed with the possibility of gaining such face.

2 years later land will be gone, loan sharks will be owed, extended family will be asked for loans based on lies (starting businesses etc), children will be burdened with payments.

Edited March 24, 2014 by Dave 74

[cdmtdm]

the bubble is getting bigger daily , when it pops this time it will be even more ugly than the last .... the defaults will be in monumental proportions , watch what happens to Yingluck over the rice scheme , that may be the last straw ....

[belg]

story from a friend: maid in company earns 9000 baht per month ... husband works as motosai taxi, no steady income .... got loan from bank for new VIOS at 10.000 baht per month...

go figure out ...

personally : get some cash in fixed deposit ... get intrest more than maid, but I could not even get a credit card from that same bank or they wanted to guarantee it with 3.000.000 in some strange insurance product... said bye to them and went to another bank with everything...

[stickylies]

i guess it's not just issaan shops, it's everybody everywhere... last 2 months alone 4 new cars in my soi previously honda wave-only. they (can) hardly drive the car but they make it up with washing and polishing it every week :-)

anyway, i'm glad it's cars and not the obligatory macho pickup with moron-soundsystem.........

[stickylies]

the bubble is getting bigger daily , when it pops this time it will be even more ugly than the last .... the defaults will be in monumental proportions , watch what happens to Yingluck over the rice scheme , that may be the last straw ....

i love them bubbles! wake me up when time is there ;-)

[PattayaPhom]

They have all off loaded their off plan condos in Pattaya at 100% profit

[sustento]

Is Google Translate broken again?

Don't be a bellend lad.

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http://www.youtube.com/watch?feature=player_detailpage&v=oNuX7bs2qAM

[bangon04]

i guess it's not just issaan shops, it's everybody everywhere... last 2 months alone 4 new cars in my soi previously honda wave-only. they (can) hardly drive the car but they make it up with washing and polishing it every week :-)

anyway, i'm glad it's cars and not the obligatory macho pickup with moron-soundsystem.........

and yet nobody seems able to explain why the millions of second hand cars we see for sale are still so overpriced ...

If normal rules of supply and demand were in force, then the 10 year second hand old Vios would be worth 10000 Baht, not 200000 Baht.

[cooked]

I must get a sticker on my car: 'small, but paid for'.

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[swissie]

the bubble is getting bigger daily , when it pops this time it will be even more ugly than the last .... the defaults will be in monumental proportions , watch what happens to Yingluck over the rice scheme , that may be the last straw ....

Stepdaughter works in Bank, car loan department. Applicant must produce some kind of pay-slip going back 6 months, indicating that salary is higher than monthly payment. = Loan granted! The car itself is collateral enough.

Oh, by the way, we have other bubbles on the menu:

- Rice pledging scheme

- 30 Bht health scheme

- Free electricity and free city-water for low income Thais

- Mega infrastructure projects

- The real-estate price bubble above all others

I am sure, I missed a few.

AND: In my neighborhood, there is only 1 store that sees 50 customers a day, the rest far below.that. But nervermind, they all drive brand new pick-up's !

Cheers.

[lostmebike]

But not just isaan...

most Thais cry poverty yet inevitably will sporting a shiny, red plated car at some times in their lives.

[penwithcris]

A member of my family in Buriram Province was a local schoolteacher. Absolutely laden in debt his teaching salary used to pay off his loans every month

Eventually the crunch. He's now lost his house, his car and his job in the local school and is living with my wife's grandmother.

I think his cautionary tale is probably being repeated over and over again in Thailand

My wife always referred to him as 'big face' trying to exhibit wealth when he was, in fact, a pauper

Of course not all Thais are like this man but most seem prepared to take out long term loans to pay for cars and motorbikes etc.

Toyota allowed my wife to drive away a new Toyota Hi-Lux pick-up with little proof of sustainable income but she took out a 120 month loan which made the repayments more affordable

As for the Isaan shop my in- laws are able to clear around 500 a day which, extrapolated over a year gives them quite a decent living

[Eloelo]

Credit it seems is about to bring most of the western world to its knees, and soon Thailand!. as a friend said recently .I should make friends with a lawyer and a banker as you will not meet one in heaven.

[BenCrew]

0% down always gets the Thai peasants buying.

Two reasons:

1) With no downpayment needed, for once in their life they can have something that makes them feel big and rich and special and gets lots of face.

2) The overiding emotions of such blank out the reality of the payments they will need to pay, and an already short ability to consider future situations is completely whitewashed with the possibility of gaining such face.

2 years later land will be gone, loan sharks will be owed, extended family will be asked for loans based on lies (starting businesses etc), children will be burdened with payments.

'children will be burdened with payments.' ....and then sent packing to look for some muggins farang to bail them out.....and probably find one, at least.

[cdmtdm]

two of my staff are three months behind on monthly bike payments , someone came to the village three months ago selling hondas on terms , so they each got one and have yet to make a payment lol ... and they could not give a hoot about it ....

[SGD]

I did business and am friends with the owner of a rural "mom and pop" shop and some of the figures bandied around here are misleading. For starters, if you spend any time there, you'll see sometimes dozens of people come in and out, often the same people many times a day. Also, people drive to pick up beer and whisky. Adding credit on mobile phones is still a decent money earner for instance, though you simply cannot fathom out why the people don't just buy credit themselves.

Often they also have other business sidelines. The shop is often just making use of the ground floor of a building where the family lives upstairs or out back.

[Thaiready]

have ice cubes in soda glass bottel!

You finally gave me the laugh of the day. Seriously.Thanks dude.... .

P. S. Not my intention to hurt you. Why don't you go back to where you came from, after so much seems to be not good for you.-

yes...why don't you move along little donkey...everybody likes a little ass but not a smartass

[PeVee1st]

Most lending agencies do not care how long to pay off a loan, as long as regular money comes in.

Slme peopke pay back about twice the cost of the vehicle, but as long as you can show off your new car, who cares, after all TIT!!!!!!

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[kennypowers]

Because not every family in Isaan is poor. In fact, some are a lot richer than they'll ever let on to you.

[Dave 74]

i guess it's not just issaan shops, it's everybody everywhere... last 2 months alone 4 new cars in my soi previously honda wave-only. they (can) hardly drive the car but they make it up with washing and polishing it every week :-)

anyway, i'm glad it's cars and not the obligatory macho pickup with moron-soundsystem.........

and yet nobody seems able to explain why the millions of second hand cars we see for sale are still so overpriced ...

If normal rules of supply and demand were in force, then the 10 year second hand old Vios would be worth 10000 Baht, not 200000 Baht.

Actually this has changed with the amount of 100k baht back Eco Car Scheme of 2 years ago.

Many 2 yr old Eco cars have gone from 400k down to 255k baht in Thai classifieds.

The same amount as a 10 year old Yaris or Jazz with 150k km on the odo.