Looking For A Farang Partner

[Brewster67]

Hi all.

 

I have been studying a new product for the Thai market that is an updated version of a very popular Thai confectionery.

 

I have a wealth of business and food science experience. We already have a registered food based company here in Thailand that can be used as a shell for the brand, and for tax purposes, corporate taxes being the lowest form of business tax. Also any partner can be brought onto the company as a director to protect his/her investment.

 

The total startup cost is very low indeed at only around 80,000 baht and I am ready and solvent to match all investment baht for baht, I wouldn't have it any other way.

 

I am also very converse with FDA requirements and route to market in all of the big retailers here in Thailand with experience gained from another product researched that in the end decided not to implement due to much higher startup costs and risk factors involved.

 

The product is very low cost and very popular with one brand producing 200,000 units per month, having done a rough costing on production at 2 baht per unit with a retail price of around 8 baht with around 25% going to the retailer, leaving a rough profit of 4 baht (200%).

 

The route to market would be almost certainly

 

1. Makro (we have a contact there).

2. Tesco lotus.

3. Big C.

4. Amazon Coffee (We already have a trading relationship with several of their outlets and their central office).

5. Family Mart.

6. 7/11 The ultimate target... (easier to get into once your product has a background).

 

This product is also sellable in bulk through the internet, and myself and my wife also have a lot of experience in internet marketing and also affiliate sales, we can also design and build websites and assemble a sales network of affiliates.

 

I am not going to tell you there is NO RISK... There is always risk involved in business, but I believe that the lower your startup costs versus potential returns mitigates risk... It is not something I would feel easy about throwing a million baht into, but 40K?.. I would throw that in all day long.

 

Once the product is established, I fully intend to expand on it with other products. Once you have an existing relationship with retailers, getting your foot in the door is always a lot easier...

 

Why am I looking for a partner?..... The truth is that I have invested quite a lot of money in the past setting up other products that my wife produces and sells, and yes we are in profit and make a basic living, but my wife is not as motivated to expand as myself. i have always been a 'big thinker' she however, (and I don't want to be demeaning to Thais) But she seems to be happy with just making a living, which seems to be a very Thai trait. She seems to have hit a bracket where she herself is comfortable and can now stop.... She now moans when I want to invest money in other things so basically I said "I will do this, I will take on a farang partner we will invest 50/50 and I will show you how it is done, and you will support me, then you can watch as 50% of our potential profits go to someone else, and that is your lesson".... She agreed and that is that in a nutshell.

 

OK, so anyway, I will obviously not divulge the product info in public. ONLY serious people need send me a PM regarding your interest and we will talk more. I am happy to 'sort of' divulge the product info, but will not release the recipe until a deal is cemented and i think most will expect that.

 

I am very confident in this product and I am very confident this could well be a foundation for big future expansion with serious returns.

 

Thank you for taking the time to read this and good luck to all your business endevours here in the land Of Smiles.

 

 

Edited November 17, 2016 by Brewster67

[Brewster67]

Oh... I forgot to mention, I have a great idea for this product to be taken on by Amazon Coffee under a 'private label' initiative. Just selling 1 unit per day per outlet will net us around 170,000 baht per month in profit.

[lkn]

14 hours ago, Brewster67 said:

Oh... I forgot to mention, I have a great idea for this product to be taken on by Amazon Coffee under a 'private label' initiative. Just selling 1 unit per day per outlet will net us around 170,000 baht per month in profit.

 

That assumes that you get your product shipped to 42,500 (!) outlets free of charge, that no product is wasted, and that Amazon Coffee will be satisfied with a 25% margin on a private label product.

 

I wish you good luck with your venture, but you might perhaps be a tad too optimistic about this profit scenario.

[Brewster67]

7 hours ago, lkn said:

 

That assumes that you get your product shipped to 42,500 (!) outlets free of charge, that no product is wasted, and that Amazon Coffee will be satisfied with a 25% margin on a private label product.

 

I wish you good luck with your venture, but you might perhaps be a tad too optimistic about this profit scenario.

 

Thank you for your comment, it gives me an opportunity to clarify details.

 

We already have a working relationship with Amazon in a small capacity including their head office. 25% is a very good margin and is actually well within the norm in such an initiative.

 

The product will not be getting shipped to 42,500 outlets, they don't have that many, at the last count it is about 1,400 and they have a central distribution center that you need to deliver to and their logistics network does the rest.

 

My figures break down as follows.

 

1400 @ 1 unit per day x 30 (month) = 42,000 x 4 = 168,000 baht. I can't see wastage as a problem the product is 1 year shelf stable at ambient temperature.

 

The product would be packed in boxes of 30 units for this sort of arrangement. the initial consignment would normally be one box shipped to each outlet when they get their normal delivery, after that the outlet replenishes as and when.

 

The box is no more than 15cm x 20cm and is designed to sit on the counter at point of sale for maximum exposure. Based on at least 200 customers per day visiting your average amazon outlet, I would anticipate that Realistically speaking I would expect much more than 1 unit sale per day, but have rounded it down to counteract any 'over-optimism'.

 

working on the 4 baht margin, this is just a base figure collated on the average 8 baht price of 'similar' products at the likes of 7/11 and no way limits us or Amazon to that particular price point. The product is an actual premium version at a recipe not being sold anywhere else making it unique. Nothing from Amazon charging what they want, we are happy with our 4 baht profit per unit. They may even sell at 12 baht per unit and sell 20 units per day. We would wish them luck. :)

 

 

[lkn]

Sorry, I missed your profit figure was “per month” (since you mentioned daily sales).

 

What exactly are you looking for in a partner?

 

As you expect the initial investment to be 80k it seems like it’s not the capital that has you motivated to find a partner.

 

But you bring the product, experience in this market, contacts and relationships with retail chains, also experience with internet sales and affiliate marketing.

 

So what is there for the partner to do?

[cheechee]

Stay away.   Anyone who pitches deal here is likely to NOT know business.   Pie in the SKY!  ummm  delicious.........hahahaha.

[colinneil]

Another farang with a get rich quick scheme.

Stay out you will not get anywhere here Thais will steal your idea.

They will set up next to you in minutes, soon there will be hundreds doing it.

Keep your money, relax, chill out and enjoy the delights of Thailand.

[1FinickyOne]

Partners can be a lot of aggravation - why would you want one for so little investment... and why would anyone want to be a partner to teach your wife a lesson... 

 

You have all the connections and expertise and ideas - go it on your own. 

 

ps - if you are looking for a partner, they will want to know what they get in return for their small investment... 

[KittenKong]

On 17/11/2016 at 5:29 PM, Brewster67 said:

Why am I looking for a partner?..... ....... She now moans when I want to invest money in other things so basically I said "I will do this, I will take on a farang partner we will invest 50/50 and I will show you how it is done, and you will support me, then you can watch as 50% of our potential profits go to someone else, and that is your lesson".... She agreed and that is that in a nutshell.

 

So you are taking on a partner purely to spite your wife, and the whole thing revolves around an investment of 40,000B?

 

<deleted> me.