How do they make money?

[Crazy chef 1]

Whenever I visit one of these megastores such as Thaiwatsadu,homepro or index there seems to be twice as much staff than customers who are doing #%{^¥ all...

If you have a question you will ask one,he will call the next one and so on but at the end you barely get a satisfying answer...

Last week I went to Thaiwatsadu to buy a ceiling fan and they had an impressive selection...though I pointed to one I like- Mai mee,next one- Mai mee...

Why the owners of these stores employ less staff and invest the saved labor cost to train the remaining staff how to answer questions,check the stock,approach customers in a professional way keep the shelves clean and just work efficiently...

I am quite sure their sales/ profit would double...

Or are these stores a kind of charity organisation or does the owners have that much money that they just don't care to earn more ???

[neverdie]

As opposed to entering a mega store in countries in Australia etc where you can't find staff and they're all too busy in the meal room or moving OH&S signs around the store ?

[neverdie]

Get back in the kitchen cc focus !

[Crazy chef 1]

Get back in the kitchen cc focus !

At least there is not to many staff and they know what they do and work efficient...

Thanks extensive training...you know what I mean?

[MAJIC]

How do they make money?

Cheap Chinese imports,

Cheap Labour in their shops

Little after sales service on faulty goods (i.e some shops only refund on faulty goods if returned in 7 days)

little competition,between department stores!

Need I say more?

[MJP]

Paint.

Savagely expensive.

[canopy]

One of my favorite hardware stores in the US is Ace hardware. When I go to the electrical section there is a licensed electrician staffed there ready to help. When I go to to the plumbing section, there is a licensed plumber staffed there ready to help. When I go to the lumber section there is a helpful guy with a radial saw ready to prep boards just how you want with perfectly square cuts. And so on and so forth. A lot of these guys are around 70 years old and they give good advice and know exactly what you need.

At stores in Thailand the staff are very young, 20 somethings, and have no experience with products they sell. They smile, greet, and try to be helpful. Demonstrating an on/off switch is their proudest moment. But they know nothing about the products and most cannot compare or contrast anything to help you make a decision. They may say "this (cheapest one) sells well" as their expert advice. They don't look at what the brochures say or the boxes. They often recommend things that are incompatible with each other and won't work. They sometimes give point blank bad advice. If you ask if they have a certain item they say no only for you to find later it is right behind where they were standing. What I do is ask to see any brochures, catalogs, product boxes, URLs, or displays of what I am looking at, thank them, tell them to go away, then figure out what I need. Thai shoppers don't seem to care about any of this so I guess this situation is just the way everyone here likes it.

Edited March 14, 2015 by canopy

[MJP]

One of my favorite hardware stores in the US is Ace hardware. When I go to the electrical section there is a licensed electrician staffed there ready to help. When I go to to the plumbing section, there is a licensed plumber staffed there ready to help. When I go to the lumber section there is a helpful guy with a radial saw ready to prep boards just how you want with perfectly square cuts. And so on and so forth. A lot of these guys are around 70 years old and they give good advice and know exactly what you need.

At stores in Thailand the staff are very young, 20 somethings, and have no experience with products they sell. They smile, greet, and try to be helpful. Demonstrating an on/off switch is their proudest moment. But they know nothing about the products and most cannot compare or contrast anything to help you make a decision. They may say "this (cheapest one) sells well" as their expert advice. They don't look at what the brochures say or the boxes. They often recommend things that are incompatible with each other and won't work. They sometimes give point blank bad advice. If you ask if they have a certain item they say no only for you to find later it is right behind where they were standing. What I do is ask to see any brochures, catalogs, product boxes, URLs, or displays of what I am looking at, thank them, tell them to go away, then figure out what I need. Thai shoppers don't seem to care about any of this so I guess this situation is just the way everyone here likes it.

Well, those simply aren't DIY stores. I mean if you have trained professionals to tell you what to buy and what to do, then it isn't do-it-yourself and therefore not a challenge and if it's not a challenge I mean where's the fun?

Now throw in the language barrier between yourself and the hopeless staff and the old woman and/or the kids making strange colour chart decisions . . . what else would you possibly want to be doing on a Sunday?

[samsensam]

you know top charoen optician; have shops everywhere, blue and white branding always seem to have short skirted female staff sitting in the window and hardly ever any customers.

i often wondered how they made any money and suspected they may be a front for money laundering.

i was dating a thai lawyer last year and mentioned this to her, she said they had been investigated for exactly these activities but cleared.

i still dont know how they make any money...

[CharlieH]

As I understand it they (thaiwatsadu/Homepro) etc dont employ most of them, they are employed by the various companies that supply the stock, they get a small salary& commission on sales.

[joesanunu]

If you ever had a business in Thailand, you will know about Thai staff.

Almost impossible to find reliable, ethical help. They hire 10 and hope to get 2 or 3 good ones.

Everywhere....same same...

[Crazy chef 1]

If you ever had a business in Thailand, you will know about Thai staff.

Almost impossible to find reliable, ethical help. They hire 10 and hope to get 2 or 3 good ones.

Everywhere....same same...

not in my business most of my staff is with me for more than three years and are reliable but it took a lot of training and compassion and that's exactly my point WHY do they don't TRAIN their staff to make a better customer experience and therefore sustainable and profitable business...

[Langsuan Man]

If you ever had a business in Thailand, you will know about Thai staff.

Almost impossible to find reliable, ethical help. They hire 10 and hope to get 2 or 3 good ones.

Everywhere....same same...

not in my business most of my staff is with me for more than three years and are reliable but it took a lot of training and compassion and that's exactly my point WHY do they don't TRAIN their staff to make a better customer experience and therefore sustainable and profitable business...

Because it is cheaper to hire untrained staff, keep them untrained, and hire new ones when they leave to go with their friends to the next place. Like you said, it has taken more than three years for you to do it, Thai employers just don't have the patience or the understanding of long term business practices. Why do you think they make is so hard for someone like you to do business here

It is like asking why Tesco or Big C don't have a night crew to put up stock, instead of clogging the aisles with boxes of goods waiting to be put on shelves when the stores are full of customers. It is their way of doing business

[Bluetongue]

I don't like going to Homepro, they are too hard sell, too many staff and always choose the highest priced item, I think because I am farang. Naturally because they are Thai the wife believes them, but doesn't ask hard questions and I end up walking out and going to one of the smaller stores that I know where the staff are usually much more knowledgeable. Watsadu has so much stuff it's rather like Bunnings, if you know what you want fine. I think the staff there are shy of engaging with farang. Nevertheless I prefer going to hardware stores on my own. I think they make money from buying from China on a huge scale and them marking it up. Don't forget their customers are overwhelmingly Thai, we may think they are probably undertrained however training does not replace experience and really most of them just don't have it. In the local hardwares I know staff who've been there the entire 6 years I've been here.

[sipi]

you know top charoen optician; have shops everywhere, blue and white branding always seem to have short skirted female staff sitting in the window and hardly ever any customers.

i often wondered how they made any money and suspected they may be a front for money laundering.

i was dating a thai lawyer last year and mentioned this to her, she said they had been investigated for exactly these activities but cleared.

i still dont know how they make any money...

I bought glasses from top charoen in Phon Charoen. They charged a fortune but I needed them. Their price was comparable if not more expensive than farangland. And it wasn't a case of "hit the farang", my Thai wife was with me and prices were marked.

I am guessing if they sell 1 pair a week they have made their money.

[Crazy chef 1]

As I understand it they (thaiwatsadu/Homepro) etc dont employ most of them, they are employed by the various companies that supply the stock, they get a small salary& commission on sales.

if they are employed by those companies than they should have even more knowledge about the product itself and if they get commission they should try even more to up sell ...but there is the word SHOULD...

and not to forget labor cost aren't that cheap anymore...

Edited March 14, 2015 by Crazy chef 1

[LuckyLew]

I think you will find that all stores are the same, big malls and department stores especially

To westerners it seems like over staff, but it is the norm hear

Maybe a lot of staff cause goods are expensive and salaries paid a peanuts

[Asiantravel]

OP I was just thinking about all this yesterday evening when I was at Central.

I can’t wait for the day when everyone in retailing is using an OSHbot or something similar.

When you ask the average shop assistant for help, so many cannot communicate effectively and they don’t have product knowledge. Look at this video and think about how these problems are overcome with these devices and the cost comparison? I.e. no salaries payable, no sick leave or other employee entitlements or benefits.

I can’t possibly see how pragmatic business leaders can avoid the transition to these kinds of machines sooner or later?

[berybert]

you know top charoen optician; have shops everywhere, blue and white branding always seem to have short skirted female staff sitting in the window and hardly ever any customers.

i often wondered how they made any money and suspected they may be a front for money laundering.

i was dating a thai lawyer last year and mentioned this to her, she said they had been investigated for exactly these activities but cleared.

i still dont know how they make any money...

Pop in, buy a pair of glasses and it will all become clear.

[Neeranam]

you know top charoen optician; have shops everywhere, blue and white branding always seem to have short skirted female staff sitting in the window and hardly ever any customers.

i often wondered how they made any money and suspected they may be a front for money laundering.

i was dating a thai lawyer last year and mentioned this to her, she said they had been investigated for exactly these activities but cleared.

i still dont know how they make any money...

I bought a pair of specs there for 20,000. The profit they made probably kept the two workers for a month.

[Neeranam]

OP I was just thinking about all this yesterday evening when I was at Central.

I can’t wait for the day when everyone in retailing is using an OSHbot or something similar.

When you ask the average shop assistant for help, so many cannot communicate effectively and they don’t have product knowledge. Look at this video and think about how these problems are overcome with these devices and the cost comparison? I.e. no salaries payable, no sick leave or other employee entitlements or benefits.

I can’t possibly see how pragmatic business leaders can avoid the transition to these kinds of machines sooner or later?

Are you American? How many staff getting minimum wage or less can speak another language? Do you expect all Thais to learn your language?

One thing that does annoy me with these shops is that they often run around at the sight of me not bothering to see if I can speak Thai. Many employ Loatian and Burmese. Now there should be a requirement for the Burmese to speak Thai. I refuse to speak broken English in these places.

[Thian]

I like thaiwatsadu much better then homepro or homeworks.

You have to know how to shop there. I always avoid the main path where they are all waiting for customers, enter their streets from the back and they won't even notice you.

NEVER speak to the sales, before you know it there are 10 of them around you and they all don't know anything.

If you don't see the product you like then it's mod leo krap, mai mee. They don't have stock somewhere else.

If they approach me i don't say anything at all, just nod to them.

For things like fans better go to the Makro or powerbuy.

And never go to Homepro or Works in the weekend! Best time is late at night when the sales are tired and don't approach custumers. Also never bring your thai wife!

[2fishin2]

you know top charoen optician; have shops everywhere, blue and white branding always seem to have short skirted female staff sitting in the window and hardly ever any customers.

i often wondered how they made any money and suspected they may be a front for money laundering.

i was dating a thai lawyer last year and mentioned this to her, she said they had been investigated for exactly these activities but cleared.

i still dont know how they make any money...

Thanks for answering that question. Never customers and always new looking. In every mall small or large. And you know the big BKK malls rent isnt cheap.

[Crazy chef 1]

I like thaiwatsadu much better then homepro or homeworks.

You have to know how to shop there. I always avoid the main path where they are all waiting for customers, enter their streets from the back and they won't even notice you.

NEVER speak to the sales, before you know it there are 10 of them around you and they all don't know anything.

If you don't see the product you like then it's mod leo krap, mai mee. They don't have stock somewhere else.

If they approach me i don't say anything at all, just nod to them.

For things like fans better go to the Makro or powerbuy.

And never go to Homepro or Works in the weekend! Best time is late at night when the sales are tired and don't approach custumers. Also never bring your thai wife!

certainly i don't take my wife with me for different reasons...

hardware stores are man's world

she restrict my purchasing desire

she don't like if i get grumpy about the staff

she don't like the drive back home because i am still swearing....

[topt]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

Paint.

Savagely expensive.

I like thaiwatsadu much better then homepro or homeworks.

You have to know how to shop there. I always avoid the main path where they are all waiting for customers, enter their streets from the back and they won't even notice you.

NEVER speak to the sales, before you know it there are 10 of them around you and they all don't know anything.

If you don't see the product you like then it's mod leo krap, mai mee. They don't have stock somewhere else.

If they approach me i don't say anything at all, just nod to them.

For things like fans better go to the Makro or powerbuy.

And never go to Homepro or Works in the weekend! Best time is late at night when the sales are tired and don't approach custumers. Also never bring your thai wife!

Generally agree with most observations however there are some exceptions. Buying paint in Thai Watsadu Pattaya (and yes MJP I was shocked at the cost ) had some great advice from one of the employees. Also when I went back later for some other stuff she was willing to help me to get help from the other relevant "specialists".

In my experience there are normally a couple of decent staff in every big store but it can be difficult to "unearth" them....

Any expectation of experience from the staff in using most products I think however is probably a tad naïve

[Kaalle]

The girls are pretty though, that's something right?

[Asiantravel]

OP I was just thinking about all this yesterday evening when I was at Central.

I can’t wait for the day when everyone in retailing is using an OSHbot or something similar.

When you ask the average shop assistant for help, so many cannot communicate effectively and they don’t have product knowledge. Look at this video and think about how these problems are overcome with these devices and the cost comparison? I.e. no salaries payable, no sick leave or other employee entitlements or benefits.

I can’t possibly see how pragmatic business leaders can avoid the transition to these kinds of machines sooner or later?

Are you American? How many staff getting minimum wage or less can speak another language? Do you expect all Thais to learn your language?

One thing that does annoy me with these shops is that they often run around at the sight of me not bothering to see if I can speak Thai. Many employ Loatian and Burmese. Now there should be a requirement for the Burmese to speak Thai. I refuse to speak broken English in these places.

" How many staff getting minimum wage or less can speak another language? Do you expect all Thais to learn your language?"

Did my post suggest anything of the sort? I try to communicate in the best Thai that I can possibly drum up and maybe it is my fault that my Thai is still not good enough for them to understand me.

But that does not overcome the other deficiency which is lack of product knowledge.

And it still doesn't overcome the fact technology will be cheaper and more efficient than using minimum wage workers no matter how many languages they can speak

[fey]

I like thaiwatsadu much better then homepro or homeworks.

You have to know how to shop there. I always avoid the main path where they are all waiting for customers, enter their streets from the back and they won't even notice you.

NEVER speak to the sales, before you know it there are 10 of them around you and they all don't know anything.

If you don't see the product you like then it's mod leo krap, mai mee. They don't have stock somewhere else.

If they approach me i don't say anything at all, just nod to them.

For things like fans better go to the Makro or powerbuy.

And never go to Homepro or Works in the weekend! Best time is late at night when the sales are tired and don't approach custumers. Also never bring your thai wife!

great advice for any place in thailand, actually.

dont forget the loss prevention aspect. they follow you around to watch your hands as well. very annoying. sometimes i think thats the main reason.

Edited March 14, 2015 by fey

[NeverSure]

One of my favorite hardware stores in the US is Ace hardware. When I go to the electrical section there is a licensed electrician staffed there ready to help. When I go to to the plumbing section, there is a licensed plumber staffed there ready to help. When I go to the lumber section there is a helpful guy with a radial saw ready to prep boards just how you want with perfectly square cuts. And so on and so forth. A lot of these guys are around 70 years old and they give good advice and know exactly what you need.

At stores in Thailand the staff are very young, 20 somethings, and have no experience with products they sell. They smile, greet, and try to be helpful. Demonstrating an on/off switch is their proudest moment. But they know nothing about the products and most cannot compare or contrast anything to help you make a decision. They may say "this (cheapest one) sells well" as their expert advice. They don't look at what the brochures say or the boxes. They often recommend things that are incompatible with each other and won't work. They sometimes give point blank bad advice. If you ask if they have a certain item they say no only for you to find later it is right behind where they were standing. What I do is ask to see any brochures, catalogs, product boxes, URLs, or displays of what I am looking at, thank them, tell them to go away, then figure out what I need. Thai shoppers don't seem to care about any of this so I guess this situation is just the way everyone here likes it.

Well, those simply aren't DIY stores. I mean if you have trained professionals to tell you what to buy and what to do, then it isn't do-it-yourself and therefore not a challenge and if it's not a challenge I mean where's the fun?

Now throw in the language barrier between yourself and the hopeless staff and the old woman and/or the kids making strange colour chart decisions . . . what else would you possibly want to be doing on a Sunday?

If I want to wire in an electric welder but I don't know what size wire or circuit breaker I need to carry the amperage it's wonderful to have someone who knows for sure and will walk with me to find it. I know how to install it "do it yourself" but I don't want to buy too small of wire and risk it getting hot. And on it goes.

Cheers.

[Crazy chef 1]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

Paint.

Savagely expensive.

I like thaiwatsadu much better then homepro or homeworks.

You have to know how to shop there. I always avoid the main path where they are all waiting for customers, enter their streets from the back and they won't even notice you.

NEVER speak to the sales, before you know it there are 10 of them around you and they all don't know anything.

If you don't see the product you like then it's mod leo krap, mai mee. They don't have stock somewhere else.

If they approach me i don't say anything at all, just nod to them.

For things like fans better go to the Makro or powerbuy.

And never go to Homepro or Works in the weekend! Best time is late at night when the sales are tired and don't approach custumers. Also never bring your thai wife!

Generally agree with most observations however there are some exceptions. Buying paint in Thai Watsadu Pattaya (and yes MJP I was shocked at the cost ) had some great advice from one of the employees. Also when I went back later for some other stuff she was willing to help me to get help from the other relevant "specialists".

In my experience there are normally a couple of decent staff in every big store but it can be difficult to "unearth" them....

Any expectation of experience from the staff in using most products I think however is probably a tad naïve

Paint and Thaiwatsadu:

me:i need white paint

clerk:inside or outside

me:outside

clerk:steel or wood

me:steel

clerk: no problem...and gave me a perfect white wood paint for inside-priceless...