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Richie1971

Building A Small Village Shop - Cost

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But in my opinion you will only make your sales target if its the first shop in the village. So look whats lacking.

Very true until someone else notices you look like your succeeding and then a further 15 will spring up!

Please note that i said 'look like' and not 'are succeeding.

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Richie, I understand. I just wanted to react to all those comments which say that an enterprise will fail if there is no farang to oversee it. Simply not true.

Regarding village shop costs. Since you have been here so long you probably know that costs would be the costs for walling up the area underneath the house, some kind of gate/door, some shelves a.d the stuff to sell. Easy to calculate if you get some quotes from a builder in the village and building material shops. And if it should fail you have build a nice new ground floor which you/they can use for other purposes.

But in my opinion you will only make your sales target if its the first shop in the village. So look whats lacking.

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You do mean you will only make your sales target if you are the biggest shop(best stocked) in the village yes?

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But in my opinion you will only make your sales target if its the first shop in the village. So look whats lacking.

Very true until someone else notices you look like your succeeding and then a further 15 will spring up!

Please note that i said 'look like' and not 'are succeeding.

True, but it depends on the village and the wealth of people on it. Setting up a shop with a good selection of stuff is not something a villager or farmer who occasionaly earns250 bath as a day labourer can do easily.

So try tp set up something which cannot be easily copied because of financial considerations, specific expertice required or contacts needed.

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Richie, I understand. I just wanted to react to all those comments which say that an enterprise will fail if there is no farang to oversee it. Simply not true.

Regarding village shop costs. Since you have been here so long you probably know that costs would be the costs for walling up the area underneath the house, some kind of gate/door, some shelves a.d the stuff to sell. Easy to calculate if you get some quotes from a builder in the village and building material shops. And if it should fail you have build a nice new ground floor which you/they can use for other purposes.

But in my opinion you will only make your sales target if its the first shop in the village. So look whats lacking.

Sent from my GT-S6102 using Thaivisa Connect App

You do mean you will only make your sales target if you are the biggest shop(best stocked) in the village yes?

Yes,

in a small isaan village with farmers and day laborers earning around 200 bath a day most village shops make only about 3000 bath a month from their normal sales. If you need 5000+ you need tobe the best or have that reputation or supplement income with other services. Around here some of the better shops also sell food or repair bikes, sell gas etc

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But in my opinion you will only make your sales target if its the first shop in the village. So look whats lacking.

Very true until someone else notices you look like your succeeding and then a further 15 will spring up!

Please note that i said 'look like' and not 'are succeeding.

I agree with the above.

You only have to look at the market at Kap Choeng on the Cambodian border to see the Thai mentality.

There are 100's of shops but the majority (I would guess over 70%) sell the same things, bags or shoes.

!n one soi I counted 5 shops next to each other selling shoes and the stock was the same in each, this was followed by 3 shops selling bags then another 2 shoe shops etc etc.

On the other side of the soi it wa almost identical.

Now to me this is insane because in a business like that, competion is not good because all one does is play one shop against the other to get the best price, consequently the profit margin is lowered and naturally there is less customers per shop.

I also noticed a similar thing in Pattaya with the Thai Massage shops. Too many of them in the same area in certain places 3 or 4 next to each other. When one had a 'promotion' then the rest had to follow or lose out on customers.

The same will happen in a small village IF you do ok.

Why not try something different like a bicycle shop that not only sells but repairs them. Most children need a bicycle to go to school or meet up with friends.

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Good idea. I stated the above not because I am a negative type of person (pint glass half empty) but I have been there,done that and got the divorce papers to prove it. wub.png

Personal responsibility and liaibility is the key. If you set anyone,anywhere up in business without adequate prior training and input into the business and it all starts on 'hand outs', those same hands will come begging for more when the nest-egg has vanished.

Look around your location and see who is making the money and why.

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I've never lived in such a village, just passed through so I know little, but I'd appreciate a chance to learn. I'm loving this thread. Random thoughts:

In the US busineeses love to bunch together to draw to their type of business. Thus food courts, shopping centers with several major jewelers in them... Lots of major chain restaurants in the same area... The idea is that if people are thinking of going to eat or to shop for jewelry, they go to that spot and sometimes only then decide where to eat or shop around different jewelers or shoe stores in that mall, etc. Just a thought...

Someone made a comment about kids liking farang food. Is that true? In the US food from other cultures is incredibly popular ie Chinese, Thai, Mexican, E. Indian, etc. Seems like half of the successful restaurants fall into that category. Ramble continues....

I used to be an investor in a restaurant - ordinary American restaurant. By far the most profitable meal was breakfast based on food cost as a percentage of gross. McDonald's most profitable meals are breakfast considering gross profit. How many egg McMuffins have they sold? How many of those lousy deep fried "hash brown" potatoes have they sold? You make a killing on pancakes and even more on waffles.

What if a person had an electric skillet, a small electic pancake grill, a waffle maker, some bread makers... If he cranked out egg McMuffins, skillet fried hash brown, pancakes and waffles, would they sell? Would they sell at a profit?

Does anyone sell the kids chocolate milk and hot cocoa, or is that too expensive? Do the kids have that anyway?

I have no clue. Just curious.

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Rant continues as thoughts come...

Soft ice cream is almost all profit. There's no cream in it. It's a skim milk product with sugar and flavor, and the machine makes the texture. Milk shakes from soft Ice cream are very high profit. Soft drinks made on site with a machine are so cheap the paper products cost more than the drink which is half ice... (Plastic straws and lids are called "paper.")

This is how McDonalds makes money. They can't make money on a hamburger because the food cost is too high and the competition too great. Beef is expensive. They make the money on the site-made soft drinks, the fries, the ice cream etc. They make money on breakfast.

I have to wonder about a soft ice cream machine that would at the flip of a switch turn out either ice cream or milk shake in a choice of two flavors.

Could the people afford that? Are paper and plastic affordable, or do you need to wash dishes?

Would people passing through the village stop?

Ever see a shop that even today makes its own cones for ice cream? It's like a waffle iron with a high sugar batter. When the cone is done the round "waffle" is pliable and formed around a cone mold, but when it cools it's hard and crispy and tasty.

I'm asking, not telling... smile.png

Edited by NeverSure
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Two basic issues involved . Business sense and sustainable loss. I'm sure that OP's in laws are hard working . The issue is whether they have the capability to run a business. If 6 months after making a heavy investment, you discover that they dont have a head for business, then the loss will be big.

So I'd say start them up with some tables under the house, stocked up with with general merchandise which can sell. Then after 6 months you'll have a fair idea of how it's going. They will get a feedback from their marketplace as to what sells and what is profitable. Then expand along those items and possibly make a more permanent structure with a bigger investment.

However, if after 6 months it turns out that this is not what they want to do or it's not profitable, then it's easy to close shop , sell of all the assets and cut losses. Wishing to help the in-laws is an honorable thing but it has to be tempered with the reality of life.

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Two basic issues involved . Business sense and sustainable loss. I'm sure that OP's in laws are hard working . The issue is whether they have the capability to run a business. If 6 months after making a heavy investment, you discover that they dont have a head for business, then the loss will be big.

So I'd say start them up with some tables under the house, stocked up with with general merchandise which can sell. Then after 6 months you'll have a fair idea of how it's going. They will get a feedback from their marketplace as to what sells and what is profitable. Then expand along those items and possibly make a more permanent structure with a bigger investment.

However, if after 6 months it turns out that this is not what they want to do or it's not profitable, then it's easy to close shop , sell of all the assets and cut losses. Wishing to help the in-laws is an honorable thing but it has to be tempered with the reality of life.

My brother is hard working, however he couldnt run a bath.

There are two types of people in the world, the ones who give orders and the ones who follow orders, all the hard work in the world cant compensate for the lack of a business brain.

For those who think its easy, theres more to it than going to Tesco/Lotus and stocking up on Mama noodles and Leo then driving back to some one buffalo town and jacking the price of everything you just bought up by 5 baht per item.

Selling 3 cigarettes for 10 baht may return 30+% profits, but the locals prefer the rolling tobacco, same with 50 baht Leos, the locals prefer 40 baht whisky.

Many times in these shops I see written in Thai, cash only, that may keep the locals off your back, but wait until worthless family members start helping themselves.

Lazy <deleted> sons who would rather play games than serve customers, lazy daughters more concerned with some pimply faced punk with zits on a motorbike than take orders.

Best of luck to you guys.

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Two basic issues involved . Business sense and sustainable loss. I'm sure that OP's in laws are hard working . The issue is whether they have the capability to run a business. If 6 months after making a heavy investment, you discover that they dont have a head for business, then the loss will be big.

So I'd say start them up with some tables under the house, stocked up with with general merchandise which can sell. Then after 6 months you'll have a fair idea of how it's going. They will get a feedback from their marketplace as to what sells and what is profitable. Then expand along those items and possibly make a more permanent structure with a bigger investment.

However, if after 6 months it turns out that this is not what they want to do or it's not profitable, then it's easy to close shop , sell of all the assets and cut losses. Wishing to help the in-laws is an honorable thing but it has to be tempered with the reality of life.

My brother is hard working, however he couldnt run a bath.

There are two types of people in the world, the ones who give orders and the ones who follow orders, all the hard work in the world cant compensate for the lack of a business brain.

For those who think its easy, theres more to it than going to Tesco/Lotus and stocking up on Mama noodles and Leo then driving back to some one buffalo town and jacking the price of everything you just bought up by 5 baht per item.

Selling 3 cigarettes for 10 baht may return 30+% profits, but the locals prefer the rolling tobacco, same with 50 baht Leos, the locals prefer 40 baht whisky.

Many times in these shops I see written in Thai, cash only, that may keep the locals off your back, but wait until worthless family members start helping themselves.

Lazy <deleted> sons who would rather play games than serve customers, lazy daughters more concerned with some pimply faced punk with zits on a motorbike than take orders.

Best of luck to you guys.

Another rank generalization from you..... two types really? What experience have you had of running a shop here,i am intrigued?

I think we all know the difficulties involved especially those that have dealt with this business idea hands on......from all your posts on this very helpful thread your negativity and generalization about anything Thai shines through,lazy this lazy that!!! we all do not have lazy members of our families as you must of experienced sometimes... if you think like this...why stay here?

Good luck to you and your lot.

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I've never lived in such a village, just passed through so I know little, but I'd appreciate a chance to learn. I'm loving this thread. Random thoughts:

In the US busineeses love to bunch together to draw to their type of business. Thus food courts, shopping centers with several major jewelers in them... Lots of major chain restaurants in the same area... The idea is that if people are thinking of going to eat or to shop for jewelry, they go to that spot and sometimes only then decide where to eat or shop around different jewelers or shoe stores in that mall, etc. Just a thought...

Someone made a comment about kids liking farang food. Is that true? In the US food from other cultures is incredibly popular ie Chinese, Thai, Mexican, E. Indian, etc. Seems like half of the successful restaurants fall into that category. Ramble continues....

I used to be an investor in a restaurant - ordinary American restaurant. By far the most profitable meal was breakfast based on food cost as a percentage of gross. McDonald's most profitable meals are breakfast considering gross profit. How many egg McMuffins have they sold? How many of those lousy deep fried "hash brown" potatoes have they sold? You make a killing on pancakes and even more on waffles.

What if a person had an electric skillet, a small electic pancake grill, a waffle maker, some bread makers... If he cranked out egg McMuffins, skillet fried hash brown, pancakes and waffles, would they sell? Would they sell at a profit?

Does anyone sell the kids chocolate milk and hot cocoa, or is that too expensive? Do the kids have that anyway?

I have no clue. Just curious.

Burgers go down really well and you will have kids coming on bikes from other villages and we now do two sizes 2 days a week and temple days and big holidays 10 baht and 20 baht then they buy a drink or as you say the ice cream,kids have more money now than say 2/3 years ago and spend there pocket money on things like this.

Have also tried the waffles and pancakes but they are not as popular and the shop is busy enough to let others do these items.

Banana shakes are very profitable when you have a garden full of them mixed with ice and a little milk,as is nam keng si and the various fruit cordials.

I make somtam burgars which the older kids seem to enjoy as well as the ordinary ones which they smother in sweet sickly mayo thumbsup.gif always good at the weekends.

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Two basic issues involved . Business sense and sustainable loss. I'm sure that OP's in laws are hard working . The issue is whether they have the capability to run a business. If 6 months after making a heavy investment, you discover that they dont have a head for business, then the loss will be big.

So I'd say start them up with some tables under the house, stocked up with with general merchandise which can sell. Then after 6 months you'll have a fair idea of how it's going. They will get a feedback from their marketplace as to what sells and what is profitable. Then expand along those items and possibly make a more permanent structure with a bigger investment.

However, if after 6 months it turns out that this is not what they want to do or it's not profitable, then it's easy to close shop , sell of all the assets and cut losses. Wishing to help the in-laws is an honorable thing but it has to be tempered with the reality of life.

My brother is hard working, however he couldnt run a bath.

There are two types of people in the world, the ones who give orders and the ones who follow orders, all the hard work in the world cant compensate for the lack of a business brain.

For those who think its easy, theres more to it than going to Tesco/Lotus and stocking up on Mama noodles and Leo then driving back to some one buffalo town and jacking the price of everything you just bought up by 5 baht per item.

Selling 3 cigarettes for 10 baht may return 30+% profits, but the locals prefer the rolling tobacco, same with 50 baht Leos, the locals prefer 40 baht whisky.

Many times in these shops I see written in Thai, cash only, that may keep the locals off your back, but wait until worthless family members start helping themselves.

Lazy <deleted> sons who would rather play games than serve customers, lazy daughters more concerned with some pimply faced punk with zits on a motorbike than take orders.

Best of luck to you guys.

Another rank generalization from you..... two types really? What experience have you had of running a shop here,i am intrigued?

I think we all know the difficulties involved especially those that have dealt with this business idea hands on......from all your posts on this very helpful thread your negativity and generalization about anything Thai shines through,lazy this lazy that!!! we all do not have lazy members of our families as you must of experienced sometimes... if you think like this...why stay here?

Good luck to you and your lot.

"Another rank generalization from you..... two types really? What experience have you had of running a shop here,i am intrigued?"

So what do you do, follow or give orders?

No experience whatsoever, and no intention of ever getting involved or funding one, I am not a socialist, I have no intention of funding anything that doesnt cut it.

Already replied on a previous thread about what I have observed, guys working overseas and pouring their money into some black hole here in Thailand to buy "face" for the family.

"from all your posts on this very helpful thread your negativity and generalization about anything Thai shines through,lazy this lazy that!!! "

Read some of the other posts, not only I have observed.

"we all do not have lazy members of our families as you must of experienced sometimes"

Agreed.

"if you think like this...why stay here?"

You know nothing of me or my circumstances, however I will indulge you, I stay here for tax reasons.

We aint all skint pensioners or piss poor TEFLrs.

As for how long I will stay, I dont know, however I can walk away from here tomorrow without so much as a backward glance, personally, the mrs cant wait to leave here, but thats another story for another time.

We aint all , why bother.

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I've never lived in such a village, just passed through so I know little, but I'd appreciate a chance to learn. I'm loving this thread. Random thoughts:

In the US busineeses love to bunch together to draw to their type of business. Thus food courts, shopping centers with several major jewelers in them... Lots of major chain restaurants in the same area... The idea is that if people are thinking of going to eat or to shop for jewelry, they go to that spot and sometimes only then decide where to eat or shop around different jewelers or shoe stores in that mall, etc. Just a thought...

Someone made a comment about kids liking farang food. Is that true? In the US food from other cultures is incredibly popular ie Chinese, Thai, Mexican, E. Indian, etc. Seems like half of the successful restaurants fall into that category. Ramble continues....

I used to be an investor in a restaurant - ordinary American restaurant. By far the most profitable meal was breakfast based on food cost as a percentage of gross. McDonald's most profitable meals are breakfast considering gross profit. How many egg McMuffins have they sold? How many of those lousy deep fried "hash brown" potatoes have they sold? You make a killing on pancakes and even more on waffles.

What if a person had an electric skillet, a small electic pancake grill, a waffle maker, some bread makers... If he cranked out egg McMuffins, skillet fried hash brown, pancakes and waffles, would they sell? Would they sell at a profit?

Does anyone sell the kids chocolate milk and hot cocoa, or is that too expensive? Do the kids have that anyway?

I have no clue. Just curious.

Burgers go down really well and you will have kids coming on bikes from other villages and we now do two sizes 2 days a week and temple days and big holidays 10 baht and 20 baht then they buy a drink or as you say the ice cream,kids have more money now than say 2/3 years ago and spend there pocket money on things like this.

Have also tried the waffles and pancakes but they are not as popular and the shop is busy enough to let others do these items.

Banana shakes are very profitable when you have a garden full of them mixed with ice and a little milk,as is nam keng si and the various fruit cordials.

I make somtam burgars which the older kids seem to enjoy as well as the ordinary ones which they smother in sweet sickly mayo thumbsup.gif always good at the weekends.

Thanks. :)

Isn't a hamburger expensive to make with the meat? Is it a high profit item, or does it just draw people so they'll buy a high profit item?

Do you think you could get an actual soft drink machine that used the bottled syrups and carbinator so you could make soft drinks really cheap? Would the Coke distributor sell you the bottled syrups, and exchange the containers?

Do you think you could get a soft ice cream/milkshake machine?

Those two things are incredibly profitable items as the ingredients are very, very cheap even in the US.

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My friend has a village shop, pays ma and pa to sit there when he and she are not around. When the extended family know there not around they help them selves to the whiskey with nooooo probs from the ''staff''. sad.png

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