A Few Costs in Bangkok

[RustBucket]

Hi.

I am running a business with my wife in the Northeast and it has become very successful in its niche, and we are wanting to come down to BKK to do a bit of fieldwork so we can expand to there.

Can any of you good folks living down there help me out with a bit of advance advice on certain costs? It would help me with a bit of costings before we travel down there and i like to be a bit prepared.

First of all, how much is the rent on say a double shop house anywhere in the cheapest part of the suburbs.... It is not essential and can quite literally be stuck away off the beaten track as it is not for retail purposes, only for light production work.

Secondly, what is the going rate for unskilled or low skilled workers for simple production work?.... This can be migrant workers also, as we can legally employ them. The work probably suits females more than men.... This would be 8 hours a day Mon - Fri.

Lastly, what would the going rate be for a small van driver to do deliveries?...... This would be about 6 hours per day, 6 days per week.

I really would appreciate any help if you have the local knowledge.

Thank you very much in advance.

[gemguy]

There will be more expenses in many aspects.

Just getting around for taxi and travel costs will have to be factored in.

You can sometimes get a good deal on house in certain areas for as low as 15,000 baht ...but expect to pay onwards of 20,000 to 30,000 or more for a suitable house ...assuming the owners of the house agree that you can operate your business there.

Shop houses in any hi traffic, popular trendy areas will cost you far more than you would be willing to pay and could easily be a main factor as to how the business can fail...with the crazy rents that they are demanding and obtaining from everyone...including signing long leases and including as much as 3 month security deposit and the first months rent up front and to be paid at the beginning of each month.

Expect to pay minimum of 50,000 bath to easily over 100,000 baht per month in many areas where there is high traffic and or popular areas BECAUSE OF ALL THE PUBLIC INFRATRUCTURE AND DEVELOPEMENT ALREADY EXISTING IN THE AREA....SAME AS ANY BIG CITY IN ANY COUNRY

Legal services are not cheap for any business legalities that you have to take care of and then there is all the registration fees and permits etc. that you should have.

You really do have to shop around for the best prices and you will be shocked at some price quotations verse others that provide the service for notably less....while you cannot afford to use the services of just "any" supposedly good lawyer or law firm.

On that one you really need to do you home work and shop around

If your business is not dependent on high traffic then shop house affairs or mini sized commercial or industrial space can be found in various areas for as low as 10,000 baht per month and up to around 20,000 baht per month for say 100 plus square meters of shop / office space. ...sometimes already semi developed interiors...but usually just a newly constructed small sized shop affair and you have to finish it off inside yourself.

If the interior is already completed and suitable for your business then you are looking at a minimum of 20,000 baht per month and usually 2 months up front deposit and 1 month up front rent due on the 1st week of each month.

Most of the people or companies that lease such space are pretty easy to get along with and really do not care what you are doing and really do not ask.....but best to explain what you are going to be doing so there is no misunderstandings and or conflict of interest with the owners of the shops next door or in near proximity to what ever business you are doing.

Many of those shops have been purchased by individual Thai people and they lease them out...same like a condo they purchased and find a tenant to lease.

Electricity is not overly expensive but you can run up a sizable electric bill if you have say 2 air conditioners running for say 12 hours a day along with all the other electrical consumption ...so don't be surprised when the electric bill arrives for 1 month and it could be over 10,000 baht...or more.

Then you have to take care of the month by month accounting cost and auditing cost...but I can not say or estimate those related expense, relative to your business...but it costs money to do so and comply with the government regulations concerning maintaining and operating a money making business enterprise in the Bangkok region ...verse the up country regions.

One of the irksome things about operating a company here in Thailand is ....no matter what...even if you are not making any profit for the first while or first 2 years, while spending, spending and more spending and yet to realize any clear profits.....you still have to pay taxes...and more than you would want to pay......and pay the prices to do the accounting and business auditing needed to satisfy the Tax department...and then pay some taxes.

I hope I helped

Cheers

[Eaglekott]

Very hard or almost impossible questions to answer, everything depends.

For a shop house you might get one that is almost falling apart for 10,000Baht each month, even lower if you go to a "Slum" area, and a new constructed one can be 200,000/ month or higher. All depends of location size and condition.

I believe the minimum salary is around 10,000 /month + your company part of the social security, but if you pay minimum don't expect your workers to show up tomorrow. Actually can't be sure they show up even if you give them a good salary.

If you want them to be able to communicate in English, add 10,000 Month.

Same for driver, but remember in Bangkok it might take a day to go from one side of the town to the other and back.

[Eric Loh]

From my experience, a 4 floors shop in LadPrao cost 20,000B a month. I also have a larger factory of about 500 square feet in the suburb costing 60,000B. I was told a single floor shop rent for 5,000B in the suburb. I have Thai workers that I paid 9,000 B and bit more for driver. Hiring foreign will be cheaper. I have few Mynmar workers that I pay about 8,000B. But you would need a incorporated company to obtain their work permits. Good luck.