Observations (TIT)

[Big Boy]

In my short time living in Thailand I've seen many things which I have found interesting, but don't warrant a thread on their own. I thought that it might be interesting to start a thread where we can mention one-off events. Let's see if it rolls.

I'll start it off with something that surprised me this morning.

I was at Petcharat Hospital this morning (thankfully not for me this time ), and there were 2 Police Officers there with 5 people in custody. They were each having a blood test. When the blood tests had been carried out, one of the officers went up to the cashier's desk, took out a wad of money and paid for the tests.

OK, I know this is Thailand, but I found it fascinating that an organisation such as the police do not have an account at the hospital, but actually have to pay in cash each time they take in prisoners for treatment.

[moja]

The account would probably never be paid!

[buksida]

It surprised me that govt departments also had to pay for their own premises which is why HH immigration (despite probably being one of the highest revenue generating departments in town) were always looking for low/no rent options such as spare houses on soi 102 property developments, a vacant office in a block leased by a developer, or tacking onto the side of a restaurant.

[PeteC]

Sounds like a drug screening test to me.

[Big Boy]

That's what I thought, but it was the fact he had to hand over cash for the service that amazed me. Seeing the BIB handing out cash was amazing in itself .

[ken.p]

BB, I guess it’s a case of Speculate to accumulate.

[Big Boy]

My latest observation has been the number of shop houses popping up everywhere, Many of these shops are in the remotest of areas, yet many have been occupied. Unless they are selling something unique, where is their customer base? There are too many, so they can't all be selling something unique - I can only guess many of these businesses are doomed to failure.

Have Thais heard of 'market research'?

The strange thing is that developers must have done some warped market research thinking that they could sell these places in the first place, but they have, There are many more still being built miles from the nearest customer base

I honestly don't understand the logic. I suppose it's similar to Pyramid Selling. Get in early, and you can make it work. Get in late, and you will lose.

[tuktukmike]

Too true bb

Up nhong plub this is all the rage but if for instance someone opens a barbers/hairdresser shop you can guarantee another will open almost next door.

We see on a weekly basis businesses spring up and within no time at all their gone again, sometimes we speculate that maybe they got a small lottery win and they decide to become business owners only to fail when the money runs out.

Also a favourite is to do 3 weeks training and open a hairdresser, something that takes years in the uk and is the reason the wife cant get a decent cut in hua hin .

As you say where is the business plan.

Ttm

[richard]

Often shops spring up when they are tipped off development is forthcoming. Very common in Bangkok where it is rumoured a sky-train stop is due in the future. Saw it in HH a few years back before the concrete moved in big time. The infrastructure was in place (electricity etc). Years ago I was nearly persuaded to invest in what seemed like a sea of pineapple fields but declined. What's there now? Black mountain golf club and it's surrounding concrete developments

[Big Boy]

That thought has crossed my mind, but many of these are 2 bit businesses. Where is the capital to sustain these businesses until the contractor starts building, and eventually sell the promised developments. What happens to any shelf lifed stock? How many developments around Hua Hin have totally failed, or just have 2 or 3 occupied properties?

[cozza]

I think a lot of the larger developments are by those with big capital who can afford to wait or those who need to clean their money...its a toy for the rich to own property in Hua Hin

[deepee]

Suspect these kind of developments might be done by locals who have cashed up by selling off some of their land and reinvested excess cash into shop houses, flats and the like next to where they still live so they can keep an eye on things. This is going around our area up towards Huay Sai Tai. Some of these folks who would have been not very well off just a few years ago are now sitting on millions of Bahts worth of property and they are ever so happy just to sit around and watch the place grow up around them.

[deepee]

And something I have come across which will crush the heart of many a foodie out there.If you get up early enough and wander out among the markets and the street vendors you will see pick ups pull up and deliver all around the area prepared foods like soups,curries and coconut milk treats. All each vendor has to do is undo the elastic band and pour it out of the bag into their pots . Then we none the wiser punters wander on past later wondering which one may have the tastier food.
A gross example of this goes on over Siracha/Bang Saen way. I love my sticky rice stuffed in bamboo( khao larm) and that was THE place to go in the whole of Thailand. If you drove thru town there a million and one sellers of the stuff, stall after stall of it.
Happen to be taken down around the back of the big shopping centre last year and came across the factory that makes it all up for the whole lot of them!

[Arlo]

My latest observation has been the number of shop houses popping up everywhere, Many of these shops are in the remotest of areas, yet many have been occupied. Unless they are selling something unique, where is their customer base? There are too many, so they can't all be selling something unique - I can only guess many of these businesses are doomed to failure.

Have Thais heard of 'market research'?

The strange thing is that developers must have done some warped market research thinking that they could sell these places in the first place, but they have, There are many more still being built miles from the nearest customer base

I honestly don't understand the logic. I suppose it's similar to Pyramid Selling. Get in early, and you can make it work. Get in late, and you will lose.

I have thought about this to. Let's say though that its a shop in the middle of no where. How much does it cost to rent? I know they are not that much and if you are a Thai family and have to pay rent to live somewhere then maybe they figure the husband goes to work elsewhere to get a paycheck and they can open a business and live in the same shop. They would have to pay rent somewhere so why not have a place to live and a place that might bring in some extra cash. The kids or grandkids can still be looked after by family. If business does get good then whoever went to work somewhere else that pays can now work at the shop.

For the developers who build all the shop houses I would imagine they own the land and figure they can take a loan out on the land and build some cheap shops. They have now developed on the land and have rent coming in every month. With the land developed it probable makes it worth more.

[johnnyk]

Property taxes are minimal in Thailand and Thais don't like paper money. Putting money into dirt, bricks and mortar makes sense to them. If they can live in it so much the better and I'm guessing at least some of them figure the town will build outward eventually to their shop house. Developed, serviced land is always worth more than vacant land with poor soil.
And don't discount the wash, rinse and spin cycle. Falangs frequent the Thai laundromat as well.