I went driving by Chia Chet a few days ago and decided to count how many bars are actually there now. When I first got to the island there were about 4 now there are 31! I wonder if anyone has figured out why it seems rather quiet there most days.
In Kai Bae I have sat back and watched the people walking by and it goes something like this. Family, family, family, couple, couple, couple, family, single guy, family, couple… and so it seems the bestest idea has been to put up as many beer bars into the area as possible… I am just going to take a wild guess that not many families actually go a beer bar, nor do couples… but the advent of beer bar after beer bar has proceeded along quite well. And none are busy…
I drive down the road and see T-shirt shop after T-shirt shop, two laundries just about next door to each other, another massage place just yards down from a massage centre etc… I would swear that some days it seems like the business here is actually about cloning. Or maybe late at night the businesses are mating and giving birth to twin shops the next day. I don’t know…
Thailand is famous for copies, just head into any market and you will quickly know what I am talking about. My favourite is the phone shops at any large market. 300 booths of cell phones – all selling essentially the same thing – amazing that anyone makes any money at all. Personally I always make a bee line to the worst looking shop and buy there. I think it makes for a lot of confusion for the competition as to why I went directly there… but that is another story.
I know people look over at their neighbour and see they are doing a good business in whatever and the immediate idea is to copy exactly the same thing with the thought that since they are doing so well, so will they with the new exact business.
There is a term from back home called Market Saturation. What it means is that there are only so many people that are going to be buying one thing at any one time. So if you have a 100 customers and an exact copy opens next door now each will have 50, then another copy opens, now each gets 33 (and 1 confused customer who has no idea where to go) then another copy opens and now each has 25, then 12… and now nobody has any customers and the landlord has problems as the rents cannot even be paid. Then everyone can live in abject poverty and say “business here no good!” for so many. The fact that everyone decided to clone everyone else is the reason that business is so bad… Trust me the “build it they will come” only works in movies starring Kevin Costner.
Then of course the sales start. Whatever product you have is now on sale in a desperate attempt to bring customers in and the copiers follow suit. You then add a few bonus features that you think will bring customers. Bars are good for this.. you add a pool table, then next week all your competition has one, then big screen TVs… and suddenly the place is all TVs and pool tables and everything is on sale! It must be maddening for most owners I would think… and yet another laundry opens, another book shop is put up, another T-shirt shop, another bamboo beer bar goes in and the march proceeds…
How about trying something different? Its’ just a random thought. But what if instead of copying your neighbour you tried something… different?
We have some good examples on the island of something different like Mojitos Lounge (no bar girls, just a funky club), Mak Mak Restaurant put in some kid swings and ice cream – and they have all those families coming in, Nang Nual has the Cabaret, and the Wine Gallery has a great deck where you can relax and actually try different wines without even a “hello! Welcome!” bothering you at all… Sabay Bar expanded, there is even a Brazilian BBQ coming here soon… some people get the concept. So just in case anyone is thinking about another T-shirt shop or beer bar here are some new ideas instead… feel free to take them and run.
Ideas for Koh Chang Business:
Day Care Centre: so Mom and Dad can have some time off
Nanny service: kind of like above but you go with the family around the island…
Scooter Training Centre: Badly needed!
A real Thai antique store: there is a market for this!
Upper end Souvenir shop: Think expensive wood carvings and real silks…
Muay Thai Training Centre: So many people would come here once a week at least. Who does not like to see a good beating or get beaten… people travel from all over the world just to see this here.
Thai Massage Classes: Anyone?
Traditional Thai Photo Shop: get all dressed up in Thai classical clothing and take a picture
Garbage collection team: They come to your home and clean up around the place. Who knows maybe it might work!
Driving School: granted just for some of the locals, but still needed, offer a discount for anyone with a white or silver truck.
Late Night Restaurant: there are so few! So many drunks stumbling into 7-11 at 2am.. so many potential customers…
One Day Local Tour Guide: shows people how to get to the beach, where everything is etc… They have the car, you have the knowledge!
Kids Thai Traditional Dancing School: Families are coming – this might just work!
Kids Painting Classes: Actually just about anything with kids would work really. Mom and Dad would love to have a few hours for themselves while on holidays… I bet almost anything would work. Like Kids Mahout Classes remember some parents are so desperate to have a bit of a holiday on their family holiday you could probably have a Play With Cobras Class and get customers…
Thai Food Tasting Classes: Any idea how many people have no idea of Thai food?
Key Cutter: So hard to find. The only one I know of is a moving target that is one of the mobile markets that roam the island… and I never remember the schedule…
Scooter Tours: Take 5+ people around the island to the waterfalls etc for a one day trip….
Next editorial might be dealing with the ever popular concept of buying a business for 1.5 million that includes rent you pay, 5 tables and chairs, and also a rice cooker – is it worth it many ask? We will go in depth into concepts of capital outlay and return on investment…
