Helping out the in-laws local shop to improve trade

[spidermike007]

Never get involved in a relatives or partners business.

Never build a house on family land in the boonies.

Never give or loan money to anyone, except for services rendered.

Never try to teach a Thai anything, unless you are employed as their teacher.

Four firm rules to live by in Thailand.

They have served me well.

Not necessarily true. Eight years ago I gave (not loaned) my wife's mom and dad the money to build a mini mart on family owned land. It has been a rousing success. They used their intelligence, hard work, enterprise and initiative to build a great business. They family has been financially secure ever since and my wife has had no need to provide them any support since. Her father has gone on to become a county supervisor (or its equivalent here) and they are self sufficient. Happy ending to this story. I knew there was risk involved. But I also believed in her and in them. She has a remarkable family.

[Nomyai]

Never get involved in a relatives or partners business.

Never build a house on family land in the boonies.

Never give or loan money to anyone, except for services rendered.

Never try to teach a Thai anything, unless you are employed as their teacher.

Four firm rules to live by in Thailand.

They have served me well.

This really is sensible. Many apply to marriages to ones own equals.

Addendum: Be very careful marrying a girl from village. Hours and hours of pre-marriage counseling. Go over the budgets of everyone. Get DNA tests to confirm everyones identity...........you get the idea.

[Craig krup]

My partner family run a similar set up. Main things I've observed in their successful defence from competitors:

Ice sells well but ice cream is a waste with intermittent power failures it goes to waste being dairy etc

Cold drinks and a blender super popular foskajes using ice and canned milk/coffee/soft drink they just sell the soft drink and charge 3 baht to make a shake - they don't do takeaway as plastic cups too dear

Kids get sent there to pick up stuff for folks and they keep small range of cheap candy in bags they can buy with the change type of candy kids like bought in bulk and sold in smaller quantities

Older kids and adults will buy snacks if they can smell and see them without going in. Maybe consider simply rearranging front.

These cheap ideas seem to be most of their trade as we'll as diplaying the winning lotto numbers locals come by to check them.

I was thinking about that. Where's the wholesaler in relation to the shop? If you could get a delivery late afternoon Friday and sell the whole lot at cost price, advertising it beforehand, you might make "Friday night ice cream" an institution. I'll bet a little family-size slab of cheap stuff is 20-25 baht from the wholesaler, and if it's sitting in polystyrene and you're rid of it all in two hours it could draw a lot of people in.

If it's 20 baht a slab you could give away 100 with any purchase as an experiment and it's only £40 if it all goes Pete Tong. The worst that happens is that half the community reacquires the habit of walking through the door.

[Craig krup]

Never get involved in a relatives or partners business.

Never build a house on family land in the boonies.

Never give or loan money to anyone, except for services rendered.

Never try to teach a Thai anything, unless you are employed as their teacher.

Four firm rules to live by in Thailand.

They have served me well.

Not necessarily true. Eight years ago I gave (not loaned) my wife's mom and dad the money to build a mini mart on family owned land. It has been a rousing success. They used their intelligence, hard work, enterprise and initiative to build a great business. They family has been financially secure ever since and my wife has had no need to provide them any support since. Her father has gone on to become a county supervisor (or its equivalent here) and they are self sufficient. Happy ending to this story. I knew there was risk involved. But I also believed in her and in them. She has a remarkable family.

Isn't the key thing whether it's something they're already doing successfully, have been for years and there's every reason to think they will? If someone has the classic scooter repair business - laying under the bloody thing with no stand and rubbish tools - then £1,000 is transformative, providing it doesn't get nicked. If a farmer has to lease a diesel rotovator all the time, and the rent works out as 30% of the purchase price, then £500 makes him bourgeois - he rents it to his neighbours when he isn't using it - and he saves a fortune in rent.

Under-capitalised countries offer huge possibilities for liberating loans/gifts. In India £20 can liberate a whole gaggle of women who make street food, and the returns are incredible. But it has to be something that they're already doing. Paying somebody to have a wee go at something they've never done, particularly if its something that (superficially) appears to be easy (like running a bar) is a recipe for disaster.

[spidermike007]

Never get involved in a relatives or partners business.

Never build a house on family land in the boonies.

Never give or loan money to anyone, except for services rendered.

Never try to teach a Thai anything, unless you are employed as their teacher.

Four firm rules to live by in Thailand.

They have served me well.

Not necessarily true. Eight years ago I gave (not loaned) my wife's mom and dad the money to build a mini mart on family owned land. It has been a rousing success. They used their intelligence, hard work, enterprise and initiative to build a great business. They family has been financially secure ever since and my wife has had no need to provide them any support since. Her father has gone on to become a county supervisor (or its equivalent here) and they are self sufficient. Happy ending to this story. I knew there was risk involved. But I also believed in her and in them. She has a remarkable family.

Isn't the key thing whether it's something they're already doing successfully, have been for years and there's every reason to think they will? If someone has the classic scooter repair business - laying under the bloody thing with no stand and rubbish tools - then £1,000 is transformative, providing it doesn't get nicked. If a farmer has to lease a diesel rotovator all the time, and the rent works out as 30% of the purchase price, then £500 makes him bourgeois - he rents it to his neighbours when he isn't using it - and he saves a fortune in rent.

Under-capitalised countries offer huge possibilities for liberating loans/gifts. In India £20 can liberate a whole gaggle of women who make street food, and the returns are incredible. But it has to be something that they're already doing. Paying somebody to have a wee go at something they've never done, particularly if its something that (superficially) appears to be easy (like running a bar) is a recipe for disaster.

This was a new enterprise for them. But, the village needed a good market, they had a prime pice of land for it, and they were motivated and honest people. It paid off. It has been a success story.

[Nomyai]

Under-capitalised countries offer huge possibilities for liberating loans/gifts. In India £20 can liberate a whole gaggle of women who make street food, and the returns are incredible.

<deleted>....im not an Indian women-thank god almighty. But referring to them as a GAGGLE has to be the most insulting thing ive seen here........................hahahahaha.

[Craig krup]

Under-capitalised countries offer huge possibilities for liberating loans/gifts. In India £20 can liberate a whole gaggle of women who make street food, and the returns are incredible.

<deleted>....im not an Indian women-thank god almighty. But referring to them as a GAGGLE has to be the most insulting thing ive seen here........................hahahahaha.

I actually had a mental picture of them dividing up the £20 worth of rice and lentils that they'd bought from the wholesaler 20% cheaper than they would have paid if they'd bought little bags at a time. It was a gaggle. It ain't pejorative. I frequently form part of a gaggle, sometimes a mob and not rarely a whinge.

[tonray]

Another thought is if there is any seating area with shade and some nice plants for ambiance, put up a sign that says "Community Center" or "Village Meeting Place" or something catchy in Thai of course. Thais love to congregate and chew the fat....and they will snack and drink coffee and soft drinks while doing so.

I would bet that you would not only increase sales, but your in laws would have new social status in bringing everyone together and would enjoy it themselves too.

[Nomyai]

Another thought is if there is any seating area with shade and some nice plants for ambiance, put up a sign that says "Community Center" or "Village Meeting Place" or something catchy in Thai of course. Thais love to congregate and chew the fat....and they will snack and drink coffee and soft drinks while doing so.

I would bet that you would not only increase sales, but your in laws would have new social status in bringing everyone together and would enjoy it themselves too.

REALITY is parents are losing face. They have a rich farang who wants them to bust their butts for a measly $9 a day.

[GarryP]

Never get involved in a relatives or partners business.

Never build a house on family land in the boonies.

Never give or loan money to anyone, except for services rendered.

Never try to teach a Thai anything, unless you are employed as their teacher.

Four firm rules to live by in Thailand.

They have served me well.

I don't doubt that they have served you well. I agree with you only to the extent that you should never do those things if you do not know the people you are dealing with. You must first get to know the relatives very well, learn what kind of people they are, etc. before considering even making an investment. Otherwise you have a good chance of getting hurt.

I loaned a motorcycle taxi guy 120k and he has not missed a repayment to date, often turning up to make a payment before the due date, afraid that he will be busy when the payment is due or I will be out. I don't think it fair to paint everyone with the same brush. On the other hand, there are some of my wife (now deceased)'s friends and in-laws who I would not give the time of day.

What I am trying to say is that you cannot paint everyone with the same brush. You just need to be sensible.

[rickb]

I think your wanting to help your in-laws is very noble. Some of your ideas are good and I urge you to continue to help. I'm very familiar with small Mom & Pop stores. Makro is a good start for buying supplies at wholesale prices. But, in many towns, there are wholesale stores that sell beer and liquor at prices better than Makro. If you can find one of these stores in your neighborhood, you'll buy cheaper and increase your profits. A bottle of water should cost a little more than 3 baht per bottle. Then you sell it at 6 baht and have a very significant profit percentage. You can also find wholesale stores that deliver, which is something Makro doesn't do. All small mimi-marts should sell beer (Chang, Leo and Singh), white liquor (30 and 35 degrees) and red liquor (Hong Thong, Blend, etc.). These products attract the customers. So I suggest you sell these at a price a baht or two cheaper than the other store(s). You'll be amazed at how Thais will go to certain stores just to save a baht or two. Cold drinks are another good seller, if you already have a refrigerator. And variety is important when selling drinks. Snack food (Lays, Tasto, Homonie, Snack Jacks, etc.) are great sellers and usually bring in 20% profit. Here again, variety is important. We started off selling 5 baht snacks years ago and we slowly changed it to 20 baht size and now hardly ever sell the small bags at 5 baht. Other big sellers are rice and cooking oil. Rice is not a big profit margin item. But, if the price is right, you'll attract the customers to the store and, perhaps, they'll buy something in addition to the rice each time. Cooking oils come in several varieties and can sell for 38 baht, 42 baht or 55 baht, with pretty good profit margins. Here again, if you cut the normal price by 1 baht, I'm certain the customers will come to your store. Selling "on-line" telephone top ups is also a good idea. But the best way to go is simply to buy three very cheap mobile phones and use them to top up the customers' phones. A typical service charge of 2 baht per top up is accepted readily by the customers. Unfortunately, it sounds like you've already invested 40,000 baht for the top-up machine, which normally charges 3 baht per top-up. So you are going to have to wait a very long time before you will break even (if ever) and start making a profit from that investment. Good luck in the future.

[Nomyai]

I think your wanting to help your in-laws is very noble. Some of your ideas are good and I urge you to continue to help. I'm very familiar with small Mom & Pop stores. Makro is a good start for buying supplies at wholesale prices. But, in many towns, there are wholesale stores that sell beer and liquor at prices better than Makro. If you can find one of these stores in your neighborhood, you'll buy cheaper and increase your profits. A bottle of water should cost a little more than 3 baht per bottle. Then you sell it at 6 baht and have a very significant profit percentage. You can also find wholesale stores that deliver, which is something Makro doesn't do. All small mimi-marts should sell beer (Chang, Leo and Singh), white liquor (30 and 35 degrees) and red liquor (Hong Thong, Blend, etc.). These products attract the customers. So I suggest you sell these at a price a baht or two cheaper than the other store(s). You'll be amazed at how Thais will go to certain stores just to save a baht or two. Cold drinks are another good seller, if you already have a refrigerator. And variety is important when selling drinks. Snack food (Lays, Tasto, Homonie, Snack Jacks, etc.) are great sellers and usually bring in 20% profit. Here again, variety is important. We started off selling 5 baht snacks years ago and we slowly changed it to 20 baht size and now hardly ever sell the small bags at 5 baht. Other big sellers are rice and cooking oil. Rice is not a big profit margin item. But, if the price is right, you'll attract the customers to the store and, perhaps, they'll buy something in addition to the rice each time. Cooking oils come in several varieties and can sell for 38 baht, 42 baht or 55 baht, with pretty good profit margins. Here again, if you cut the normal price by 1 baht, I'm certain the customers will come to your store. Selling "on-line" telephone top ups is also a good idea. But the best way to go is simply to buy three very cheap mobile phones and use them to top up the customers' phones. A typical service charge of 2 baht per top up is accepted readily by the customers. Unfortunately, it sounds like you've already invested 40,000 baht for the top-up machine, which normally charges 3 baht per top-up. So you are going to have to wait a very long time before you will break even (if ever) and start making a profit from that investment. Good luck in the future.

op objective is to make $9-$10 a day not $4-$5.............hahahaha.

A little ma n pa isan village store humour!

[MonkeyLoo]

Put your energy into something more than the small village shop. In my opinion its a total waste of time and money. Why bother?

[tonray]

Put your energy into something more than the small village shop. In my opinion its a total waste of time and money. Why bother?

Because he actually cares about his new family...unlike some of the other emotionally crippled misanthropes marooned here by the cruel hand of fate. There are 2 types of people in the world: those who brighten the days of others and those who drag a grey cloud of misery wherever they go. Go ahead and ask yourself which group you belong to.

Edited October 31, 2015 by tonray

[ryanhull]

Hey guys, thanks again for the replies... to the negative ones please dont waste your time commenting it really does not rattle my cage at all and half of you would'nt have the <deleted>to say it to my face so don't say it behind your keyboard, grow up and stop acting like you know everyones life inside and out.

Unfortunatly my father in law had a heart attack on early friday morning whilst we was in bangkok so we have rushed back to the village... he is now in Hospital, hoping for a recovery but currently is not looking good, all of this will thread will obviously be on hold but hopefully when things get back to normal I will try out some of these ideas and truely appreciate the replies/pm`s you have all given me.

Cheers

[BKKdreaming]

Best wishes to your Father in laws recovery.......

[Supaluke]

I think this is a great topic.

Also, have a read of the OP's home build, it's also great read, lot's of money saving good ideas, heaps of photos and I was inspired by it.

I'm only on page 4 of reading the replies and one thing that has stood out as missing is the implementation plan.

My (generally speaking) experience with Thai people is it can be tricky trying to get them to accept new ideas, particularly when they come from someone younger and a Westerner.

So, after garnishing the good ideas here, maybe work on a plan for how they communicated to your partners parents.

One way might to be to present an idea, ask the In-Laws how it could be modified to work in their shop, then they might take ownership of the concept and, if they claim it as their own, you're on a winner.

Good luck with it.

[Supaluke]

Ryan, best wishes for the FIL's recovery.

[Nomyai]

Put your energy into something more than the small village shop. In my opinion its a total waste of time and money. Why bother?

Because he actually cares about his new family...unlike some of the other emotionally crippled misanthropes marooned here by the cruel hand of fate. There are 2 types of people in the world: those who brighten the days of others and those who drag a grey cloud of misery wherever they go. Go ahead and ask yourself which group you belong to.

Hope the father recovers.

But could it be OP wants the wifes family off the GRAVY train. Lets be real.. see things as they are not what you want them to be!

OP is talking $10 in their heyday. Op could support them on $7 a day-he wouldnt feel it one bit.

[MonkeyLoo]

Put your energy into something more than the small village shop. In my opinion its a total waste of time and money. Why bother?

Because he actually cares about his new family...unlike some of the other emotionally crippled misanthropes marooned here by the cruel hand of fate. There are 2 types of people in the world: those who brighten the days of others and those who drag a grey cloud of misery wherever they go. Go ahead and ask yourself which group you belong to.

Hope the father recovers.

But could it be OP wants the wifes family off the GRAVY train. Lets be real.. see things as they are not what you want them to be!

OP is talking $10 in their heyday. Op could support them on $7 a day-he wouldnt feel it one bit.

Lets hope the OPs Father in law recovers. I wish him all the best.

Its an honorable thing what the OP is trying to do, however as a realist I really don't think its worth the time and energy. If that is seen by some as a negative thing to say then so be it.