ryanhull Posted October 24, 2015 Share Posted October 24, 2015 Hey all, I live in a village NE thailand where I built my own small house sometime ago, our house is nice and modern but small and it has all the modern things a westerner would want (air-con, internet blah blah) and it built to a western standard yet slap bang in the middle of an oldskool Thai village. I mainly built the house for my 9 month old son, I am only 31 but if something happens to me or I die etc after 2 years of renting (paying 10K a month) I decided it would be peice of mind to know my son/wife will always have somewhere to call home for the future. Now, a few doors up are the in-laws, I have knows them for years and they are sweet people and really look out for us, they also take care of my son some days which they love and it gives us a bit of relax time... anyway trying to cut this story short, they own a small local shop which is part of there small house..... years ago most of the locals used to shop there and they made a decent profit, however in the last 6 months or so another local shop has won most of the trade due to factors such as more choice, a 1% money back at the end of the year of what you spend... really as village people watch there every bhats it means they will go elsewhere despite them being pretty much family to my in-laws. Plus as kids want selection and the latest candy/snacks they obviously go to the other shop. I have set it my mission to get my in-laws shop back to making the profit it once did. I am a business man, I have ran a successfulll UK company with a co founder for 6 years in London and it does ok, and I know the basics of business. I like to think I am a straight forward business man and do not let my dreams get in the way of reality if that makes sense. My in-laws are lucky to get 2-3 customers a day now. Some months ago I bought them a new drinks fridge which helped a bit but nothing big, now I spoke to my wife about this and as they are getting old we did mention them simply closing it down and relaxing, however as with most older folks they do not want to sit and do nothing and although make next to nothing running the shop enjoy doing something. One example which shocked me... they will go to there wholesaler who they have been going to for years and buy say water at 5 bhat a bottle, and sell it at 6 bhat a bottle... now given the fuel to go get it, and the running costs of the fridge, it leaves me to think what actual profit per bottle are they making? I would hesitate a guess at next to nothing. Anyway my wife said to me, she believes a big problem is the stock they sell, they are a bit set in there ways and still stock oldskool stuff from candy to drinks with a very limited selection plus they are set on keeping going to there own wholesaler which I believe is more expensive than makro, they are not keeping up with new products advertised and such, which the younger kids want the new candy/drinks and the older lot want the new brands of snacks/noodles etc. So the other day off I went to makro and filled my car with 5000 bhat`s worth of the latest snacks/drinks/noodles and what not as a bit of a test. I drove back to the village and opend my boot and showed them this and said bssicly I am not taking over just wanting to test something here, you should now stock this type of stuff.... the mother in law had a little tear in her eye purely at the thoughtfull gesture and the thought I had given it plus the fact I am trying to help the shop win back the customers and business it once had with the new products. Now although this has already slightly improved customers coming in, and the daily in-take is rising from what it was prior to my makro visit I am still considering new ideas. One idea is blowing the other shop`s loyalty scheme away by offering a 2% money back not yearly but monthly. Another idea I had was to get a microwave for them and a new meat fridge so they can do the 7-11 style hotdogs... the wife says it will not work as most wont pay the prices and the fridge itself will add to the power bill, I am semi seeing her point but also still think it will pull in more. We also had the idea of getting 2-3 computers in for the kids to game/surf the net and obviously will buy drinks as they do but looking into it, the price of the pc`s/power/software liscences etc would probably be not so good idea not to mention the kids sat around in her shop all day which would not be good. The wife recently bought a phone top up machine which was around 40k bhat and that gets used alot plus when someone top`s up they sometimes buy a drink and what not so that was a winner. Its a small local shop but I believe it has potential to get back the custom it once did. Anyone live in a village and go to the local shop? I am the only falang here so although I know all the locals well there is no point in stocking falang food as it wont get sold, aparently the wife did try an ice cream freezer and the cost in power to the ratio of ice cream sold was not worth it. So anyway sorry to babble on... my question to you guys bluntly, does anyone have any other ideas which might improve business for them? I do not mind throwing a bit of money at the shop to help in the long run, and really they never ask us for anything only give give give so its only fair, If this topic bores you, or you have anything negative to say pls move on (no offence) but any ideas/advice would be most appreciated. Cheers Link to comment Share on other sites More sharing options...
oncearugge Posted October 24, 2015 Share Posted October 24, 2015 I believe you have good intentions but .................................................? Link to comment Share on other sites More sharing options...
stoneyboy Posted October 24, 2015 Share Posted October 24, 2015 Give then 4000 baht every month and be done,you will just keep throwing money into this venture believe me i speak from experience. Link to comment Share on other sites More sharing options...
ryanhull Posted October 24, 2015 Author Share Posted October 24, 2015 Give then 4000 baht every month and be done,you will just keep throwing money into this venture believe me i speak from experience. I get your point but, given I made one move to go to makro and buy new stock and already sales are improving I do not feel as though I should just give in just yet if you get me? If the shop once made good money, good money to them probably being 1000bhat per day sales, I am convinved it can be done again... now like I say the only reason the other locals go to the other store is for the 1% yearly loyalty scheme and lack of selection, so I will attempt the 2% monthly scheme, get even more variation of stock and if that does not help I will throw the towerl in, just wondering if you guys might have any more ideas to throw into the pot? Cheers Link to comment Share on other sites More sharing options...
AlexRRR Posted October 24, 2015 Share Posted October 24, 2015 (edited) Agree in improving product selection is a key, wouldn't implement a 2% rewards system the other shop my match or better it then you get a war on your hands, perhaps over a certain spend a low cost freeby is thrown in, better to run sales/discount on products like sweets and snacks changing products weekly. Most Thais don't put much effort into there shop front, a modern or funkiesh place will always attract customers, this is where i would start first with improved product line, and a few discounted sweets or snacks, just up grading the place and say a couple of tables and chairs outside under some shade to freshen it up to make it more appealing and spot to nibble or drink what they just brought included some potted plants in this area. Anymore and it becomes a money drain, it got along fine before and it can in the future the inlaws just want something to do. By the way do your market research, in this case hardly worth paying someone to do it, listen to the wife and friends there is only so much sales available in that village, typical Thai is if someones making money other will appear up the road then an other then an other, you risk a 3rd operator if both of the shops look like there going well, work towards a turn over your happy with but be mindful of your inlaws do they want to be run off there feet with higher turn over and reduced margins? Edited October 24, 2015 by AlexRRR Link to comment Share on other sites More sharing options...
OMGImInPattaya Posted October 24, 2015 Share Posted October 24, 2015 One-percent annual spend rebate...that's a good deal. What's the name of that store? Link to comment Share on other sites More sharing options...
Gecko123 Posted October 24, 2015 Share Posted October 24, 2015 (edited) Ryanhull: Commendable interest in helping out the in-laws, but please keep in mind... 1. You are seeking a sustainable competitive advantage in a market which has extremely low entry and exit barriers and razor thin profit margins. If there is now a new competitor in town, it's unrealistic to think that sales can be restored to former 1000 baht level. Even allowing for a hefty 30% profit margin, that's only 300 baht per day. Not exactly a cash cow. 2. Many of the ideas you are considering will require an on-going commitment to maintain (running to Makro to purchase items, keeping track of reward program, maintaining equipment, etc.) Are you signing up to provide long-term logistical support? Will in-laws be able to sustain all this into the future without your on-going help? Edited October 24, 2015 by Gecko123 Link to comment Share on other sites More sharing options...
Toknarok Posted October 25, 2015 Share Posted October 25, 2015 Thais love those 'icy' drinks. Buy yourself a decent blender which can crush ice cubes and you then top up with different flavoured syrups. Not really the right time of year at present as it's going to get cooler, but come Feb. they'll sell like hot cakes. Link to comment Share on other sites More sharing options...
h90 Posted October 25, 2015 Share Posted October 25, 2015 Give then 4000 baht every month and be done,you will just keep throwing money into this venture believe me i speak from experience. I get your point but, given I made one move to go to makro and buy new stock and already sales are improving I do not feel as though I should just give in just yet if you get me? If the shop once made good money, good money to them probably being 1000bhat per day sales, I am convinved it can be done again... now like I say the only reason the other locals go to the other store is for the 1% yearly loyalty scheme and lack of selection, so I will attempt the 2% monthly scheme, get even more variation of stock and if that does not help I will throw the towerl in, just wondering if you guys might have any more ideas to throw into the pot? Cheers 1000 Baht sales or 1000 Baht profit? 1000 Baht sales with these low profits doesn't sound like a plan. Link to comment Share on other sites More sharing options...
Crossy Posted October 25, 2015 Share Posted October 25, 2015 +1 on the slurpee type ice drinks (if there's no-one else doing them of course). The last 12 months has seen a plethora of little stalls appear in our village north of Bangkok. Slurpee and coffee along with the traditional barbecue everything. If going into the food / drinks area something with little standing cost and no end-of-day waste is what they need. Link to comment Share on other sites More sharing options...
itsmylife Posted October 25, 2015 Share Posted October 25, 2015 Do a survey first what customer you targeting what they would spend most what item can sell most .secondly give the shop some makeover ,clean it ,paint it , brighter lighting ,new stock and some new arrangement will at lease give people some good impression . Link to comment Share on other sites More sharing options...
itsmylife Posted October 25, 2015 Share Posted October 25, 2015 Thais love those 'icy' drinks. Buy yourself a decent blender which can crush ice cubes and you then top up with different flavoured syrups. Not really the right time of year at present as it's going to get cooler, but come Feb. they'll sell like hot cakes. Hot season sell cold drinks Cold season sell Hot deserts ( chinese stuff ) Link to comment Share on other sites More sharing options...
Seann Posted October 25, 2015 Share Posted October 25, 2015 (edited) So you are 31 years old and retired in the middle of Nakhon Nowhere brainstorming how to raise the in-laws tiny store back to it's heyday of ~300b/day profit? And they are running a mini-mart with 2-3 customers a day? So like, what 20 baht a day profit? Is this a serious topic? Edited October 25, 2015 by Seann Link to comment Share on other sites More sharing options...
sipi Posted October 25, 2015 Share Posted October 25, 2015 My wifes sister bought a small fan oven (the round glass one with the fan in the lid) and has started making small pizzas. She makes the bases in the morning then adds toppings and cooks them on demand. Just simple pizzas with tomatoe sauce (paste is hard to find), sausage, mushroom or something inexpensive but tasty, and cheese. I think they are 40 baht for a small one (49 in town) and are selling quickly, especially amongst the younger ones. Link to comment Share on other sites More sharing options...
itsmylife Posted October 25, 2015 Share Posted October 25, 2015 My wifes sister bought a small fan oven (the round glass one with the fan in the lid) and has started making small pizzas. She makes the bases in the morning then adds toppings and cooks them on demand. Just simple pizzas with tomatoe sauce (paste is hard to find), sausage, mushroom or something inexpensive but tasty, and cheese. I think they are 40 baht for a small one (49 in town) and are selling quickly, especially amongst the younger ones. Maybe she can try making some sushi too. Link to comment Share on other sites More sharing options...
Gecko123 Posted October 25, 2015 Share Posted October 25, 2015 popcorn machine. sound and smell will attract kids. Link to comment Share on other sites More sharing options...
martynsnowmans Posted October 25, 2015 Share Posted October 25, 2015 My wifes sister bought a small fan oven (the round glass one with the fan in the lid) and has started making small pizzas. She makes the bases in the morning then adds toppings and cooks them on demand. Just simple pizzas with tomatoe sauce (paste is hard to find), sausage, mushroom or something inexpensive but tasty, and cheese. I think they are 40 baht for a small one (49 in town) and are selling quickly, especially amongst the younger ones. Roza tomato paste , is easy to find at every TESCO LOTUS i,ve been into 220 gm at 24 baht even comes with a plastic resealable lid for after you,ve open the ring pull .... and at some 7-11 as my mrs just told me ..... Link to comment Share on other sites More sharing options...
i claudius Posted October 25, 2015 Share Posted October 25, 2015 Many years ago my mother in laws shop went the same way ,when a bigger one opened just opposit her , it didnt really matter as by then her kids had got on ,one married very very well off guy (no not my wife) so money was not a problem , then about 10 years ago the daughter who had made a lot of money in Bangkok with a wholesale buisness ,got divorced ,returned home built a very large new house , new shop and again went into wholesale and took all the buisness , later she told my wife "revenge is sweet " when the other shops buisness started to decline Link to comment Share on other sites More sharing options...
CharlieH Posted October 25, 2015 Share Posted October 25, 2015 +1 on those ice drinks, the main seller around here appears to be iced coffee. Easy to do/maintain no waste. Link to comment Share on other sites More sharing options...
BKKdreaming Posted October 25, 2015 Share Posted October 25, 2015 How much does a slurpee machine cost ? Just wondering how many you have to sell to pay for the machine ? Link to comment Share on other sites More sharing options...
sickwaterbuffalo2 Posted October 25, 2015 Share Posted October 25, 2015 Why buy them expensive stuff like slushy machines?Why not teach them the basics of running a small shop like simple accounting ?keeping books on in and outgoing stock? If not prepare to loose a lot of money in the ville coming from your pay check every month. Link to comment Share on other sites More sharing options...
ryanhull Posted October 25, 2015 Author Share Posted October 25, 2015 So you are 31 years old and retired in the middle of Nakhon Nowhere brainstorming how to raise the in-laws tiny store back to it's heyday of ~300b/day profit? And they are running a mini-mart with 2-3 customers a day? So like, what 20 baht a day profit? Is this a serious topic? I will get the negative numpty out the way first,.... no I am not living in Nakhon I live near Roi Et, and I am not retired I part own a successful London company. 300 bhat a day profit to my in-laws is not bad going when you consider that per month and the low living costs they have... plus it is not just about the money it gives them something to do and a sense of well being which I am sure any elderly person really wants... like I said in my post, nothing positive to say then do not bother saying anything at all because you`ll just get it back from me mate x10, kindest regards Agree in improving product selection is a key, wouldn't implement a 2% rewards system the other shop my match or better it then you get a war on your hands, perhaps over a certain spend a low cost freeby is thrown in, better to run sales/discount on products like sweets and snacks changing products weekly. Most Thais don't put much effort into there shop front, a modern or funkiesh place will always attract customers, this is where i would start first with improved product line, and a few discounted sweets or snacks, just up grading the place and say a couple of tables and chairs outside under some shade to freshen it up to make it more appealing and spot to nibble or drink what they just brought included some potted plants in this area. Anymore and it becomes a money drain, it got along fine before and it can in the future the inlaws just want something to do. By the way do your market research, in this case hardly worth paying someone to do it, listen to the wife and friends there is only so much sales available in that village, typical Thai is if someones making money other will appear up the road then an other then an other, you risk a 3rd operator if both of the shops look like there going well, work towards a turn over your happy with but be mindful of your inlaws do they want to be run off there feet with higher turn over and reduced margins? Thanks mate, I think the freebie is a good idea, i think the in-laws just want some customers as they are bored you see aside from looking after my son occasionally heh Link to comment Share on other sites More sharing options...
ryanhull Posted October 25, 2015 Author Share Posted October 25, 2015 Commendable interest in helping out the in-laws, but please keep in mind... 1. You are seeking a sustainable competitive advantage in a market which has extremely low entry and exit barriers and razor thin profit margins. If there is now a new competitor in town, it's unrealistic to think that sales can be restored to former 1000 baht level. Even allowing for a hefty 30% profit margin, that's only 300 baht per day. Not exactly a cash cow. 2. Many of the ideas you are considering will require an on-going commitment to maintain (running to Makro to purchase items, keeping track of reward program, maintaining equipment, etc.) Are you signing up to provide long-term logistical support? Will in-laws be able to sustain all this into the future without your on-going help? 300 bhat a day to us guys is obviously nothing, but 300 bhat a day say a month is not bad going at all out here... crazy I know. Also they do have there own truck and my father in-law quite likes a drive out to get away from his mrs for a bit heh so thats fine, I think I will take him next time to Marko as he will probably get a bit overwhelmed if he goes alone, regading keeping track... the mother in-law does everything on paper now, I wondered downloading her an epos system and sticking one of my old computers in there but way over the top so I will leave her with her pen and paper heh cheers My wifes sister bought a small fan oven (the round glass one with the fan in the lid) and has started making small pizzas. She makes the bases in the morning then adds toppings and cooks them on demand. Just simple pizzas with tomatoe sauce (paste is hard to find), sausage, mushroom or something inexpensive but tasty, and cheese. I think they are 40 baht for a small one (49 in town) and are selling quickly, especially amongst the younger ones. Thanks mate... is that just one of the ovens we have, say the 4000 bhat makro oven jobs? popcorn machine. Good call will consider that appreciated ---- Thanks alot all for the replies... slurpy/ice drinks, popcorn machines and mini pizzas... all good ideas I will give serious consideration too, appreciated lads Link to comment Share on other sites More sharing options...
GuestHouse Posted October 25, 2015 Share Posted October 25, 2015 Do it Thai way. Just carbon copy the competition. And don't kids yourself that you can change the market, your wife is correct, the locals will not spend money on 'expensive' hot dogs. As for the advice to simply give them Bht4000 a month, well yes if you want them to become dependents upon your largesse. Far better they earn as much of their own living as they can. Link to comment Share on other sites More sharing options...
JohnC Posted October 25, 2015 Share Posted October 25, 2015 I think the point here for the in laws is they enjoy the social interaction the shop brought, gossiping with neighbours/family and keeping them occupied, it's not always about money although they need to cover their overheads. A survey in UK with older people found what they missed most was when they were working they had the social side with workmates etc, it's not always about money as I said. I think do some market research and come up with a gap in the market that will increase their income without getting into a price war with their competitors after all they have to live in the village and better a friend than an enemy. Just my humble opinion. Link to comment Share on other sites More sharing options...
totally thaied up Posted October 25, 2015 Share Posted October 25, 2015 Go and buy a half decent blender - costs for a average one around 1800 baht and then buy a carton of soda water and the mix (about 80 baht a bottle for the better stuff - that Hayles at 40 baht a bottle is shit) and then teach them to make a slushie. My partners Mum does this during the hot season and she makes on average, 300 baht a day in profit as I talked her into using a wide variety of mixes. She use to cut rice all the time or pick nuts but now is too old and was only being paid 90 baht a day for that job and she thinks 300 a day is the bomb for generally sitting under a tree all day keeping cool. She started to make lime drinks as experiments over time adding some sugar syrup to the mix and they took off. I just bought her a coffee machine a few months ago for her birthday present and that is adding to the mix. She has the only half decent coffee machine in her village (not nes cafe shit) and we spent a bit of money (about 15,000) on a concrete block, cover, some fans and a set of tables and chairs. Her Ladyboy 'daughter' (my partner in life) has a successful business but as the bread winner for the family, told her Mum she needs to work as it is good for her and to tell you the truth, she cannot be happier now. We do not give her a cent but every time I come out to the Village, I bring one or two cartons of soda water and maybe a mix for her. Good on you for trying to help out. I know a lot of others in our village that scab off farangs and do jack shit and do nothing but complain that the daughters not giving them enough but I also have met my share of good Thais that just like simple things. It doesn't always need to be about money... Link to comment Share on other sites More sharing options...
DLock Posted October 25, 2015 Share Posted October 25, 2015 I commend your good intentions. I think about the small village shops near where I live. There are 3 of them and they all look pretty much the same and all seem to survive ok. They all have 2 or 3 concrete tables and chairs out front for people to sit an eat/drink/chat. The motorcycles stop there, as do kids on what home from school or the local drunks. They all sell the basic same basic items, but they all differentiate and some sell a bit more basic hardware stuff, one trades empty gas bottles and another has more fruit and vegetables. So rather than trying to copy, I'd spend some time looking at what the other shop doesn't have, and doing that...and try to stay ahead as that shop copies. Agree with the other poster on lighting and painting, and maybe try to get some signage and large posters to brighten the place up...maybe come up with an innovative brand name like "6/12" or "Moodfart" (play on Foodmart) or "Mikro". Good luck. Hope you can help them out... Link to comment Share on other sites More sharing options...
thaiduncankk Posted October 25, 2015 Share Posted October 25, 2015 40k for a phone top-up machine will take forever to recover the outlay. Try asking the customers what they think would improve the business, and if it is feasible, give it a try. They are the bread and butter, then it will be a case of trial and error. It won't happen overnight, but if you know what the customer wants it makes it a lot easier. Link to comment Share on other sites More sharing options...
Daffy D Posted October 25, 2015 Share Posted October 25, 2015 Lots of good ideas and suggestions, can't really add to that. Just a thought about incentive for repeat custom. A while ago one of those slurppy/coffee huts opened just down the road and I used to take the kids as a treat. The lady running the shop gave out little vouchers with every purchase and if you collected 10 you got a freebie. The thing is the kids wanted to collect the vouchers it was an attraction of the place, they would bug me to take them so they could get enough vouchers and claim their freebie. The vouchers themselves were nothing special just some scraps of paper printed off on a computer. Near the kids school there is slurppy/mixed drinks stand that also gives out vouchers with each purchase. Again the kids like to go there because they like to collect the vouchers, it gives them something tangible to have/hold/collect. Not sure exactly how this system works because sometimes I see the kids cashing in their vouchers for cash. There vouchers are bit more sophisticated in that they are laminated so can be used again. Link to comment Share on other sites More sharing options...
beano2274 Posted October 25, 2015 Share Posted October 25, 2015 do they have someone who could deliver items, could this not work? Link to comment Share on other sites More sharing options...
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