Gem retailers turn in firing line from Phuket bus association

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Gem retailers turn in firing line from Phuket bus association

Darawan Naknakhon

 

ABTA president Mr Chonnawee-ek Ektwensakul (2nd from left) hands a letter to Ms Walairat Kanthong, a secretary from Royal Gems Co. Photo: Darawan Naknakhon

 

PHUKET: -- Four of the island’s gem retailers have come under fire from a local bus company who they say are denying local bus drivers of work by drafting in their own buses to provide transport for the shop’s clients.

 

Members of the Andaman Tour Bus Association (ABTA) met representatives from the Phuket Tourism and Sport office and four gem retailers yesterday (Aug 22) and submitted a letter stating that because they are using their own buses to transport customers to and from their outlets local drivers are now facing a shortage of work.

 

ABTA president Mr Chonnawee-ek Ektwensakul said, “Many companies have ordered buses which they use to carry tourists in Phuket. This has caused local tour operators and drivers to lose their jobs during low season.

 

“We want local officials to know that drivers belonging to ABTA are facing problems and want them solved fast.

 

“Small entrepreneurs are causing a price war with operators from other provinces that came to operate in Phuket, and they offer discount prices. We also have to compete with jewellery shops who provide their own buses for their customers,” he said.

 

“At present ABTA has 500 buses and 130 members. What we want is for the Royal Gems, Gems Gallery Phuket, Wang Thalang and Royal Gems Pavilion to stop bringing buses from other provinces to service tourists in Phuket.

 

Full story: http://www.thephuketnews.com/gem-retailers-turn-in-firing-line-from-phuket-bus-association-58804.php

 

-- © Copyright Phuket News 2016-08-23

 

[Dexlowe]

If the gems traders sent a secretary to accept the letter, then you can see how much importance they attach to the complaint.

 

Cry-babies. Waaaaaahhhhhh - 

[steelepulse]

Maybe these gem shops have been reading the news about how all the association buses and drivers have a lot of crashes, so they want to keep their customers safe.  Dead and injured customers don't buy.

[KarenBravo]

Maybe the reason the gem companies are out-sourcing their transport to operators from other provinces, is because they have already had dealings with ABTA and that they were found to be wanting....

[LivinginKata]

More likely these outside bus companies take much less commission than the locals. Seems to be no free market competition here in Phuket ....

[xvend]

Don't no about buses and how they receive commissions, but I caught a taxi from central last year and he pulled into the gem shop nearby and said something to the effect "you go inside, just walk through and come out"

 

Obviously I didn't, but you can assume this particular gem shop was paying the driver not by purchase, but by bodies through the door.

 

I can see this type of arrangement with bus companies being costly to gem shop.

[LivinginKata]

15 minutes ago, xvend said:

Don't no about buses and how they receive commissions, but I caught a taxi from central last year and he pulled into the gem shop nearby and said something to the effect "you go inside, just walk through and come out"

 

Obviously I didn't, but you can assume this particular gem shop was paying the driver not by purchase, but by bodies through the door.

 

I can see this type of arrangement with bus companies being costly to gem shop.

 

Taxis get a petrol voucher for just bringing people through the door. If they buy then the driver gets a big percentage. I was amazed at how much when a lady taxi/tour driver we knew told me how much. Was about 20% of the purchase price.

Edited August 23, 2016 by LivinginKata

[stevenl]

29 minutes ago, LivinginKata said:

More likely these outside bus companies take much less commission than the locals. Seems to be no free market competition here in Phuket ....

No, this is organised transport by the gem businesses, commissions are not applicable here (except for the tourguides, but these are employed by the tour company, not the bus).

[Deli]

And when will bus drivers finally in the firing line for their notorious reckless driving ?

[steveyinasia]

1 minute ago, Deli said:

And when will bus drivers finally in the firing line for their notorious reckless driving ?

I think that is scheduled for action on the first day of never.....

[huanga]

Simply put. If you can not stand the heat, don't stay in the kitchen. This is what free competition is like. Survival the fittest!

[Hawk]

"local drivers are now facing a shortage of work."

 

Not correct, they are simply facing a commission shortage.

 

[NamKangMan]

4 hours ago, stevenl said:

No, this is organised transport by the gem businesses, commissions are not applicable here (except for the tourguides, but these are employed by the tour company, not the bus).

 

That's what I originally thought, but I am not so sure with this comment. "What we want is for the Royal Gems, Gems Gallery Phuket, Wang Thalang and Royal Gems Pavilion to stop bringing buses from other provinces to service tourists in Phuket."

 

I thought they may have been leasing buses and employing drivers, but it appears they may simply be using buses from other provinces because the Phuket buses are too expensive, or demand too much commission. 

 

Edited August 23, 2016 by NamKangMan

[sweatalot]

2 hours ago, Deli said:

And when will bus drivers finally in the firing line for their notorious reckless driving ?

and the companies for hiring unqualified drivers and not making sure they are sober and free of drugs

[stevenl]

2 hours ago, Hawk said:

"local drivers are now facing a shortage of work."

 

Not correct, they are simply facing a commission shortage.

 

No, there are no commissions involved with this.

[JetsetBkk]

12 hours ago, Dexlowe said:

If the gems traders sent a secretary to accept the letter, then you can see how much importance they attach to the complaint.

 

Cry-babies. Waaaaaahhhhhh - 

 

Allow me...

[xvend]

12 hours ago, LivinginKata said:

 

Taxis get a petrol voucher for just bringing people through the door. If they buy then the driver gets a big percentage. I was amazed at how much when a lady taxi/tour driver we knew told me how much. Was about 20% of the purchase price.

 

All the tour bus stops have massive margins, One I can state from fact is the latex tour bus stop places, like 300% markup on cost from if you went through the normal channels to purchase the item. 

 

It's not only Thailand, Every country is the same way basically. Kickbacks everywhere for tour groups, from Napa, CA to Murano, Italy.

 

I was in Venice with a friend and not in a tour group, and researched the hell out of Murano glass, its value, and what to look for. Found a great piece at the correct price. The seller assured me they would ship it and cover the duties. It arrived into the states perfect, aside from a multi-thousand dollar duty owed.

 

In Napa, most of the higher endish wineries won't even accept tour bus people unless an entry fee is charged. Some by law and permits restricting visitors per day, but mostly because it yields negative results.

 

But, in some cases, and I won't name names these places are raking in $1,000,000+ DOLLARS per day on tours, That is why associations are formed. These such places can combine their resources and thereby can influence to local governments, anywhere in the world.

 

Edited August 23, 2016 by xvend

[madmitch]

There used to be two major gem outlets on the island, now there are at least four huge complexes, which to me equates to more work if the local bus companies are competitive.  If they're not prepared to compete then tough.

 

 

[simon43]

There used to be two major gem outlets on the island ..

 

Going slightly off-topic.

 

I wasn't aware that Thailand was a source of gemstones.  (Myanmar, Cambodia yes, but Thailand?)

 

Just exactly what do these gem stores sell that has made them so profitable?

[nkg]

51 minutes ago, simon43 said:

 

 

 

Going slightly off-topic.

 

I wasn't aware that Thailand was a source of gemstones.  (Myanmar, Cambodia yes, but Thailand?)

 

Just exactly what do these gem stores sell that has made them so profitable?

 

I'm going to go out on a limb and guess that it's gems that they are selling

 

I'm sure they are simply charging way over the odds. Very few people know how much gems and jewellry are worth off the top of their head, and a bunch of shopaholic Chinese tourists desperate to impress their friends back home are easy pickings.

Edited August 24, 2016 by nkg

[NamKangMan]

44 minutes ago, simon43 said:

 

 

 

Going slightly off-topic.

 

I wasn't aware that Thailand was a source of gemstones.  (Myanmar, Cambodia yes, but Thailand?)

 

Just exactly what do these gem stores sell that has made them so profitable?

 

44 minutes ago, simon43 said:

 

 

 

Going slightly off-topic.

 

I wasn't aware that Thailand was a source of gemstones.  (Myanmar, Cambodia yes, but Thailand?)

 

Just exactly what do these gem stores sell that has made them so profitable?

 

 

"Blood Jade" - plenty of information about it online.

 

Here's a couple of articles.

 

http://www.bloomberg.com/news/articles/2014-03-25/myanmar-s-growing-and-dangerous-jade-trade

 

https://www.globalwitness.org/jade-story/

 

The Chinese a big buyers of jade.

[simon43]

I'm going to go out on a limb and guess that it's gems that they are selling 

 

Yes, I guessed that much   But are these shops adding some 'value' by manufacturing beautiful jewellry using foreign gemstones?  Or are they simply selling cheap Chinese gems to Chinese tourists?

 

Without getting myself into the defamation 'hotpot', what exactly is famous about these gem stores?  What rare product can only be purchased in these stores? What great 'value-for-money' items are for sale?

 

I would certainly be interested to know where these gems originate and where they are set into the finished product, (if indeed, set products, rings, necklaces etc are sold in these stores).

 

I could say more.  But I better not ==> off topic

 

 

[KarenBravo]

Bangkok is a world centre for jewelry manufacturing. Much of it is designed to order.

As we all know, when you buy a gold chain, it's sold by weight irrespective of workmanship.

Pretty much the same in the jewelry trade with workmanship being a negligible part of the price.

Unfortunately, this just increases the profit margins of these jewelry  ware-houses which ONLY cater to foreigners and is not passed on to the customer.

 

They do sell quality jewelry, but, it's at vastly inflated prices.

[DrDave]

Back on-topic...

Let's see if I understand how this works. A group of independent suppliers of a service band together to form an association, and together apply leverage to extort the maximum amount of kickback from their customer base. If the customers balk at this, and instead choose to use a different set of suppliers of their choosing, the association enlists the aid of the local government to force the customers to purchase services solely from the association. 

 

Regardless of what we might think about each of the parties involved (gem shops and bus companies), I believe that this business model is illegal in many parts of the free world.