Originally Posted by
crepitas
Not wishing to gainsay our resident guru Jim but suspect that a factory with 20,000+ baht a day strikes me as a poor business model if one considers the the fixed and variable costs.
Employee costs with maybe 15-20 employees at maybe 200bt a day plus the bosses(s) at maybe 20 k a month, plant maintenance, utilities/diesel/propane maybe some taxes..would reduce to maybe 10-15k per day....?
Think I would be a middle man or open a 7 or two ....
Think if I had my druthers would/should have bought a small farm/land and a couple of 10 wheels..
Mis understanding, not a factory, just a middle man buyer.
He phones a factory to get a next day delivery price, he then sets his buy price and phones his collectors, not employees, but sub contractors with a pick up truck.
They set their price, say a Baht less than the buyer, drive round buying. Fill the truck, 1,000 kilos say and deliver to the buyer. !,000 Baht a trip, get in a few trips in a day, minus fuel, truck cost etc you can make a bit of money.
Main buyer trucks the rubber to the factory, selling for say 2 Baht more than he paid, deduct costs, fuel, truck, driver. If he trucks 20,000 kilos knock of 1 Baht costs, he makes 20,000 Baht a trip.
Sounds easy, but it's very competitive, buyers go broke all the time, as I did when we were buying, but in our case it was the GFC not the competition.
Jim