New Business - Laundry Service - Help!!

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STEVE G
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Post by STEVE G »

Hi Simon, when I lived in Indonesia there was a similar situation with an abundance of cheap laundries in the area, however a French dry cleaning group (cinque 5 or something) set up a big commercial operation and were very successful, even charging much higher prices.
If you were tempted to try that line of business, I would think of aiming for the quality end of the market and not volume. However read all the above comments regarding the pitfalls of starting any business in Thailand, it’s a bit of a minefield!
Incidentally, my parents live in Nottingham and when the washing machine conks out, they can’t find a laundry for miles!
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Post by simonrogers1975 »

Steve,

Very good in the UK I am into money Laundering not laundry being an accountant (just kidding). A laundry in the UK, never work unless it is outside a university - I should know :D

To be honest I am going to give it a try. I believe that people that are tourist may end up paying more for quality, as they may not trust the local small one-man banders. I am not saying for one minute the quality is any different but people do prefer a professional looking service because that is what they trust. Again not saying this is wrong but there is an opportunity to capitalize on this.

Hence the reason why I was going to buy the good ones out and employ them for more money but charge more to the tourists who are not so aware of cheaper (and equal in quality) as the expats and locals.

Any ideas from anyone? Please note that I am not suggesting that people will be ripped off, but I believe in paying more myself when I know I am going to get the best.

Thanks to you all for this lively debate.

Simon
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Post by Roppongi »

Simon, just wondering what market you plan to target as from my humble observations I note the following:

Expats
If the wife or live-in doesn't do it, they hire some lady for the going rate of around 500 baht for the month. Not much of a margin there.

Hotels
Many farm it out to the shacks across the street and make 3-500 percent on the deal. Tourists just don't want to deal with the hassle. Throw it in a bag and give it ot the maid. Who really cares about the shop front?

Thais
Can't see them wanting a premium service or in a position to pay for it.

So that leaves you with who?

It's pretty much a saturated market.
Last edited by Roppongi on Fri Sep 01, 2006 7:35 pm, edited 1 time in total.
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Post by Jankou »

I like to read posts from this forum, but there are one thing that I can't understand. If someone ask something about business at a Thailand, a normal answer is allmost everytime negative. Why? I think that the most of people afraid of to start business in a Thailand, so it is really nice to give "positives" advices for the other peoples. I know it is not easy to have a successful bar, guesthouse etc...But it's not criminal to plan and dream about a life in a "heaven". :shock:

My opinion is that Hua Hin is growing fast and there are going to be bigger and bigger shops and so on. So if you get a good place for your laundry business, 120% quality, first class delivery reliability and a reasonable prices, why not? I can use service which really works. So many times I have had a problems with a clothes because unfortunaly the deal wasn't the deal (Oh solly, come tomollow washing machine bloken[no doubt]). :cuss:
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Post by chelsea »

Simon, I think that if you were looking at the dry cleaning (on site) side of things rather than wash and iron, there would be a huge market in the way of staff uniforms, hotel curtains and the more upmarket beadspreads etc.

One of the other posters was correct in what they were saying about the good hotels farming out to small shacks etc. I saw some of them in action while walking around HH a few weeks ago.

It was amazing, as all of the places that I used were all flat out, and the standard of wash, iron and fold, was far better than anything I have got here in Australia.

What did amaze and this was in Koh Samui as well as HH, most places seemed to charge the same price all over (dependant on the town). If that was in Australia or the UK, there would be someone always ready to undercut the price, which is no good as know one makes anything out of it then.

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Post by Big Boy »

Jankou wrote:
I like to read posts from this forum, but there are one thing that I can't understand. If someone ask something about business at a Thailand, a normal answer is allmost everytime negative. Why?
I can assure you that any advice I posted on this subject was genuine concern that Simon might be considering an investment, without having given the matter adequate thought. Simon asked the board for advice, and I simply passed on my views. Simon is obviously a person with qualifications well above my meagre station - he will know how best to use any advice (positive or negative) passed on to him.

If you do not appreciate negative answers Jankou, can I suggest that the next time you post a question, you also post the ideal answer to avoid any negative feedback
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Post by DawnHRD »

Simon,
I think you've had some very good answers here, but I think your idea of catering to tourists may have something going for it.

From personal experience, I haven't wanted to pay hotel laundry prices (the same as I don't like mini bar prices when there's a 7-11 round the corner! I know, cheeeep charl-eee! :oops: ), but, as a tourist, you don't know the back street places. So, just maybe, as long as your premises are prominent, you may have found your niche. As others have suggested, you'll need to do a lot more market research (& research into what you're allowed to do, by law), as projects do have a habit of going south.

Good luck, anyway :cheers:
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Post by simonrogers1975 »

Expats
If the wife or live-in doesn't do it, they hire some lady for the going rate of around 500 baht for the month. Not much of a margin there.

Hotels
Many farm it out to the shacks across the street and make 3-500 percent on the deal. Tourists just don't want to deal with the hassle. Throw it in a bag and give it ot the maid. Who really cares about the shop front?

Thais
Can't see them wanting a premium service or in a position to pay for it.

So that leaves you with who?
I must say that I agree there are no negative comments here. I appreciate that they may be bleak from an out sider but as pointed out above there are considerations to be had and I take them very seriously.

I will say that staying in a hotel, as a tourist, you do get ripped off. That is the initial market that I am aiming for. It os correct that the Hotels are charging far too much for a basic service.

Thanks for the comments, more are welcome regardless of content.

cheers

Simon
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Post by simonrogers1975 »

Simon, I think that if you were looking at the dry cleaning (on site) side of things rather than wash and iron, there would be a huge market in the way of staff uniforms, hotel curtains and the more upmarket beadspreads etc.
I had not thought about the dry cleaning aspect and I am sure this is worth looking into. Not sure where to buy the dry cleaning units, any suggestions?

This would be a good foot in the door way of the hotels, if anyone does own any hotels here please let me know and I will gladly provide a service second to none at a discount of 10% compared to what you are currently paying.

I have run many businesses in the past. One thing I have leant is that you always listen to other peoples ideas. Rome, Amercian economy was not built on just one persons ideas, nor was it built with a dreamers viewpoint that everything is easy

again thanks to all.

Again this is a great site and I am glad to provide this web address to all of my friends in Hua Hin (threre are a few)

Simon
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STEVE G
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Post by STEVE G »

Hi Simon, I would think seriously about dry cleaning; don’t forget about all the wealthy Thais that spend time in Hua Hin.
These are some of the same people that visit all those expensive boutiques in Bangkok (the one’s we go into to laugh at the prices!) Surely they don’t put expensive, designer clothing into street corner laundries!
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Post by caller »

Well, here's my tuppence worth. The last two hotels/resorts I have stayed at in HH didn't even bother providing a laundry service. One said whats the point and quite right to, we found a place a little over 50 yards away where the front sold clothes and the back washed them. That was in town.

3 months ago, 4k south of town at a resort type place, the same thing happened, but this time, all I had to do was drop the stuff off at reception, they had an arrangement with a local cleaners, when it was returned, it was delivered to our bungalow. We paid shack, not hotel prices - great!

However, I would welcome an ironing service - as a holiday maker. Living there, I can manage that on my own!

Even if I stayed at the Sofitel or Hilton, I would use local cleaners!
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Post by Jockey »

Simon,
Good luck with your venture - if you take the plunge, but please remember that a foreigner is not allowed to own a service business in Thailand, so I think owning a laundry business would not be allowed. Having lived here a while, IMO this would probably be over looked by the authorities, unless you were too successful, (ironically), in which case they (the authorities), would find an obvious way to muscle in.
If you are American it could be a different story as America and Thailand have a special agreement.
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Post by simonrogers1975 »

It may make it a little easier as my girlfriend is Thai. It would be the usual 49/51 split. So this would not cause too much trouble in this instance.

Cheers

Simon
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Post by JimmyGreaves »

STEVE G wrote:
Incidentally, my parents live in Nottingham and when the washing machine conks out, they can’t find a laundry for miles!
They need to go to the rough areas like the meadows, st anns or hyson green they will find plenty of laundries there :-)
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Post by packie »

there would be certain demand from a sections of the non thai comunity, especially if you have an english speaking telephone operator, I considered a laundry myself as a business for similar reasons, although i am well eneough adjusted to thailand now to be happy to give my clothes to someone i dont know who just says a time and disappears , then later (not same time as promised) reappears with my perfectly clean clothes.

Presentation and marketing would be the big factors. The other comments are very true but if you are opening something of a decent scale it may not be relevent. Its a bit like the competition between bars selling beer then a few new businesses set up charging almost same prices as UK yet get loads of business.

pay rates start about 3500 / month for unskilled labour, more for english speakers to answer your phone ( good english from 7/8000, Im told to pay "manager" at least 10 ,000.) My friends speaks good english, college degree , earns 20 k in bangkok italian restaurant.
Pineapple factories pay 160-170 baht a day basic.

just some thoughts, but it would be hard work to set up unless you had a very business orientated thai friend, partner, etc.

I dont think the protected trades/ business lists will effect you as long as you intend to just own it, I made a lot of enquiries and was told it was ok as long as i am creating employment for thais.
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