Building A Small Village Shop - Cost

[farang000999 1,899]

Most people buy in bulk at a local wholesaler, one of the big rip offs is a "Fridge". they never think through the cost of a MUST HAVE A FRIDGE and the return of kleeping things cold.

My in-laws use ice boxes, ice truck comes through every second day, they buy ice, keep things cold.

MUCH cheaper,

She has a noodle shop, very profitable, more so than having to re-sell things from a wholesaler, but you have to be a good cook to make it work and have no competition around.

Some wholesalers deliver. That works too, otherwise sometimes a trip to Macro you see people stocking up for the small village shops too.

Teaching people the basics of business is a good idea, sometimes they are keen, my in-laws where, they just need a few 1000's baht to get going and are totally self sufficient, so I had no problems helping them get going, and give a few tips on how to price things, and she is very popular in the village.

Why not? Kee Neo Farang!

My fridges where free one from Pepsi and 1 from coca cola also the trick is to use your shop as the main source for all the other little shops to buy from ....basically overpower them and give a wide variety of goods for the locals and children......it is also good as you say to have food on the go either rice or noodles or both.

Meat is a good seller and vegetables from the garden in the AM.

Basically a village shop here is an investment for years and an income even if it is small....nobody opens a shop if you are a farang and think you are going to get rich here,it is enjoyable at times but also hard work and the avenue to speak Thai is open wide for you.

If you can earn anything over 20.000 baht a month you are doing very well.

did you mean 2000 baht? lol at making 20 000 baht a month with a little village shop selling veggies. do these "veggies" make you see funny colors?

[how241 1,146]

OP don't waste your time or money, if your in laws had wanted a shop they would have opened one.

You will pay to make and stock, they will sell and spend. When all the stock is gone there will be no money to re stock, it's the Thai way and that's why little shops, noddle bars etc pop up and disappear.

Better to just send them money to live if they can't work, all these schemes are just away of justifying helping out the in laws. Jim

Not to be negative but this might be correct. Just offer to pay/give them a little money each month. Easier for all.

[SlyAnimal 1,151]

I think, you should give them the following 3 options:.

1/ Give them 3,000 Baht a month, every month and then they don't need to work

2/ Give them 24,000 Baht as a one time payment, to help setup their shop, their way, and give them 2,000 every month.

3/ You pay all of the setup costs for a shop, and assist with running it for the first 3 months, and give them 2,000 every month.

Pros / Cons:

Option 1 - Set monthly income for them, if they just want to live comfortably then they can do so. You should also decrease the amount of times which they potentially ask you for money, as they'll have a budget already, and hopefully savings.

Option 2 - The lump sum payment helps them to setup their business, then they only need to make 1000 Baht a month to get ahead, they should do that easily. From your perspective, it pays itself off in around years, and should leave your MIL/FIL in a much better position.

Option 3 - This should cost around the same as the lump sum payment in option 2. But it'd give you/them certainty that the business would be setup (Since if it blows the budget, you can cover it), and an opportunity to train them in western business practices. It would cost you time as well, but the long term benefits to their business could be quite substantial, and it would help with further developing the relationship between yourself and your MIL/FIL.

*The figures which I've given above, are just examples. Depending on your own situation, you might want to give them a bit more (I wouldn't recommend any less though, as it's already very low). Hopefully they'll become self sufficient from their business though, in which case any additional money you give them, will go into either improving their standard of living, or savings for the future.

Edit: Also I asked my gf how much she thought her mum's small shop cost to setup. She said around 10,000 for shelves, 20,000 for a fridge, and then maybe 70,000 for stock (Mainly Whiskey spikes up the costs on this. As maybe 2000-3000 per 12box of whiskey, and they'd want to have around 5+ different types of whiskey + a few boxes of Chang/Leos which are a bit pricey too (Likewise a decent amount of soda). Her shop isn't huge, but it's also bigger than a lot of the small village shops we see too.

Edited September 27, 2012 by SlyAnimal

[ALFREDO 971]

If you can earn anything over 20.000 baht a month you are doing very well.

did you mean 2000 baht? lol at making 20 000 baht a month with a little village shop selling veggies. do these "veggies" make you see funny colors?

Maybe 20.000 Baht turnover?

Working? Doing anything without a workpermit.

The involvement with a sometime helping hand in a small Thai village, in the country side, is,

as far as I see and saw it, not so dangerous and must not be in steady fear to be soon facing legal proceedings. (Different in cities and Tourist towns)

My German neighbor in a Chayaphum rural village, tried all kind of different farming, with and without animals and did even the heavy labor himself.

Over years, no problem.

Another buddy from the Netherlands, in a Udon Thani rural village, modified his Pick Up and drives with 2 dozens of school children to and from school,

for a small amount of money, paid from the school children, since long time. Sometimes he and his Pick Up, is also rented out as a Taxi.

No official complains! He is part of the community, but lives alone, his Ex GF is in Sweden with the 'new' guy from the Internet.

All what he invested in land and the house he built and lives in, is in his Ex GF name.

Until now that is accepted.

To the -OP-

-Skyanimal- and some others said it well and all already.

Edited September 27, 2012 by ALFREDO

[Semper 1,699]

Another idea would be to marry your gf and pay the sinsod.

[Richie1971 10]

Some good replies - However the family are neither drinkers or layabouts - I have a feeling some of the posters have had bad experiences in the past (or more likely living the dream nightmare with a Leo and a keyboard for company) and are feeling bitter - I merely asked about the set up costs for a shop in a village, nothing more nothing less

[maprao 819]

I wanted to do this and my wife told me NO.

People take stuff telling they will pay and then do not. This surprised me.

I then thought of a laundry operating "Thai" prices and she thought that might work....Any business in a village is hit or miss. They seem to come and go where I am.

[Farma 985]

Once the shop is set up what plans does the OP have when it comes to resupply. Do the parents have access to a pickup that can make the weekly trips to wholesalers in Ubon or closer. Ice, water and icecreams are regularly delived by the supplier. Is there a makro or other similar sized wholesaler for the other stock nearby.

Depending on the size of the village it's also worth thinking about a 7-11 opening up nearby. Regardless of what you think of 7-11 and their prices it's a strong brand that sucks the life out of many small town/village shops and mini marts.

[jamescollister 973]

Some good replies - However the family are neither drinkers or layabouts - I have a feeling some of the posters have had bad experiences in the past (or more likely living the dream nightmare with a Leo and a keyboard for company) and are feeling bitter - I merely asked about the set up costs for a shop in a village, nothing more nothing less

Set up cost, same as anywhere minus the building cost or rent. A fridge is similar in price here to Australia, imagine same UK, freezer ditto. Stock cheaper , less tax.

Do they have a pick up to go buy from bulk suppliers, if not they will not compete in price with the shop down the road. I know some supplies deliver, but that is at a cost.

To set up a proper, profit making store with goods to sell will cost.

If you are looking at making a real attempt at your in laws having a fair go at a shop that will support them, a lot of money.

If you are talking a shop that turns 300 Baht a day and makes a profit of 60 Baht, then not much. jim

[Richie1971 10]

I have heard from over yonder that some sort of fertilizer/weed killer for the paddies is in much demand and can only be obtained in the next town, everyone is supposed to use these products so might be more viable than a Lao Cao/Leo top up station. Probably taste better than Lao Cao as well

[jamescollister 973]

I have heard from over yonder that some sort of fertilizer/weed killer for the paddies is in much demand and can only be obtained in the next town, everyone is supposed to use these products so might be more viable than a Lao Cao/Leo top up station. Probably taste better than Lao Cao as well

Again the fertilizer sales people tour villages,trying to sell there goods. They often run on a buy now pay later, if your credit is good. The bigger towns have bulk supplies, who deliver and the bigger buyers, like me get interest free credit for a month or 2.

Small shops sell small bags, small turn over, big stores have trucks and forklifts, big investment. Jim

[Richie1971 10]

Another valid consideration Jim

[jamescollister 973]

Op, how about we take a different tact on the subject, How much do you want your in laws to generate [profit ] from the business. How much are you willing to give, money wise.

Thailand is not some sort of magic utopia, where everything is cheap and when you sell you make a fortune. Businesses here run the same as in the west. 10% is a good return, here or anywhere.

Just like in the west most small unprepared businesses fail, if there is an opportunity Thais with money are not slow to take it.

So if we say you want them to earn say 300,000 a year, you are looking at an investment of 3 mil. ball park numbers.

Before anyone jumps up and says you can do it on less, yes Bill Gates started with nothing and a few others, but most have to pay for the job.

OP have a look a bahtandsold. People would not be paying that kind of money if they could just set up on the cheap and make the same profits.

If you find an opening that makes money in a village please tell me.

On the fertilizer side, I have a factory and was approached by a fertilizer company about setting up a sales point. The amount of money I would have needed for trucks forklifts, warehouse etc was not that much different than it would have cost [owing the land ] in the west and no local store could compete on cost. Jim

[somo 789]

Perhaps the richest lady in our village owns the village store but that is just a front for her drug dealing.

However she does claim to make good money from her second hand clothes. Think she goes to markets close to the Cambodian border to buy them (Aranyaphatet??)

[jamescollister 973]

Perhaps the richest lady in our village owns the village store but that is just a front for her drug dealing.

However she does claim to make good money from her second hand clothes. Think she goes to markets close to the Cambodian border to buy them (Aranyaphatet??)

They not second hand clothes, they are given by the big brand names as a donation to the poor of Cambodia [ over stocked and a tax write off ] The clothes never see the poor and are sold in border towns. My wife loves it, designer brands at 30 Baht.

Don't get caught taking a truck load to BKK though. Jim