Need advice: Opening A Laundry Shop In Pattaya, Preferably In Jomtien

[yong2009]

Hi Everybody,

I want to invest in a Laundry Shop in Pattaya, preferably in Jomtien.
Why?
I have a Thai friend, who likes to do it and has done it before. For personal reasons (failed love), she had to stop.

We want to rent a shop house, where she can live and have the laundry business on the ground floor. (business and living quarters could also be seperate, if that helps to cut the costs) She would run the business, I
would not get involved too much. I will run the numbers, before we start, and follow them up, when the business is running. I would consider my investment successful, if the shop is sustainable, can support her and her children and brings in a modest return (At least enough, to grow the business). I don't plan on living of the proceeds :-)

1. How much rent would I pay in a decent, but definitely not A- location for a shop house?
Is 10 K Baht a month doable?
2. How about Key Money? How much would I have to pay? Can I avoid it altogether for this kind of business? Ideas on how to minimize it?

3. How to best structure the lease and the lease duration, as to avoid sudden surprises in terms of rental hikes, or the owner booting us out, when we are successful?

4. I personally like Jomtien, but am also open to other locations in Pattaya, or even in a completely different place. Any ideas?

Also, if you have other advice, especially related to the laundry business, I would be very grateful to hear it.

As far as I am concerned, yes, I am prepared to lose my investment (and will limit it), but I would like to give it as big of a chance as possible.
Therefore, I would much rather leave as much survival cash for the business as possible, than give it upfront to the land lord.

It certainly will take time to get established and build customer loyalty, but the lady has a few good ideas and a very friendly personality. She has done it before and I have quite a bit of trust in her willingness to work hard to make it work. Now is low season (and a bad one), so it might be a good time to get favorable conditions.

Thank you very much for taking the time.

[Loy Toy]

First of all I would consider some of the upmarket areas around Maprachan or the Dark side where foreigners who live here are in abundance.

The rent for a unit or townhouse should be cheaper but for a little bit more money you could even get yourself a house which would improve your quality of life.

Do that business right, with a reliable quality service and you could become quite successful.

Be very careful about water supply as Jomtien has a bad reputation for the town water supply drying up. For a laundrey business this would be a disaster not to mention good reliable electric connection (3 phase preferably).

Good luck!

[Fuzzy Bob]

I can't believe these posts about opening shops. What's going to be next? a motorcycle taxi firm?

Fuzzy Bob
Now in Leicester Square
London

[Happyman]

Motorbike taxis never caught on in London !

I seem to remember Virgin tried a London Heathrow service with big BMW bikes but it didn't last long !!

[Michael]

Don't do it. Seriously.

[Michael]

Couldn't think of an ironic comment, sorry.

[Loy Toy]

I don't think the OP is going to risk breaking the bank or mortgage his life away and to open up a small laundrey business.

Moreover he is trying to get his Thai partner busy doing something and making a little cash for herself which a lot of other blokes should consider rather than allowing their Thai partners to lay in bed at home all day watching TV.

To the OP you should check the "seconds" prices at Samsung or one of the other major washing machine manufacturers here. They are "as new" but possibly have a bent side panel or other minor visible cosmetic damage. Savings can be up to 50% and when compared to new machine prices.

[friscofrankie]

making a little cash for herself which a lot of other blokes should consider rather than allowing their Thai partners to lay in bed at home all day watching TV.

No kidding. Wouldn't have someone sitting round the house all day. Even if he jsut breaks or even it costs a few baht a month it would be worth it.

[Loy Toy]

^ If my wife didn't work she would drive me fooking crazy.

She's up at 6am, gets the kids to school by 8 and then works until she picks them up at 5pm.

I know blokes who work all day and then have to come home and entertain their wives and after they have been sleeping all day.

[friscofrankie]

I work at home EXCEPT when the old lady is at home and awake. Can't get shit done with her prattling on. Thank god she's got a job and sleeps alot

[yong2009]

[at]Loy Toy: Thank you very much for your advice!
Will do some checking on the areas you mentioned.
I also like the idea of buying "seconds" for the washers.

And thanks everybody for the humerous input. I know, lot's of businesses fail, but we wish to be different :-) I expect it to be rather hard work for her, definintely not easy money, and I think she knows this. And, I won't pump in all my money.

Does anybody have an idea how to avoid this key money, and some tips on how to structure the lease? Tips on how to get the land lord agree to these terms?
I am thinking of a 3 + 3 years lease, that is, 3 years, with an option of another three years and a rental increase limit.

Any other ideas as far as location and rental prices go?

Thank you very much guys!

[dirtydog]

Only way a 3 + 3 year lease can be enforced is if it is registered at the land office, they aint going to do that, also you wont be able to get a shophouse in Jomtien for 10,000baht per month, at least not in a reasonable location anyway.

[Simon43]

Rather than offer your laundry service to the 'public', I would say that you are better off running it as a small contract laundry for hotels and guesthouses. You collect the dirty bedsheets/towels each day, wash and iron and then return them to the guesthouse.

There are a few plus points with this type of operation:

- Your shophouse can be in any cheap location because you collect and deliver from your customers
- You go out and find your customers, rather than relying on passing trade
- There are more than a few hotels/guesthouses in Jomtien/Pattaya.

I knew someone who did this in Phuket, with a shophouse location in the middle of fcuking nowhere. They had a great business, could hardly keep up with the demand by the hotels for a quick turnaround of laundry.

Simon

[Thetyim]

^
Good idea.

That would also mean that you don't have to worry about lease terms because you can move anytime with no loss of business

[baldrick]

You collect the dirty bedsheets/towels each day, wash and iron and then return them to the guesthouse.

that adds the cost of a pickup to the operation though and the downturn in the hotel occupancy will not help.

starting small as he is thinking might be the best option.

the repeating monthly overheads are the business killers , so finding the shophouse at the right price is essential - and probably better if the falang is nowhere in sight when those negotiations are made.

a couple of big machines to wash bedspreads/quilts is probably necessary as I see people in my moobarn taking theirs to a place that has them so they can be washed.

[forreachingme]

Electricity is cheaper by 3 phase supply.

Electricity can be cheaper if your part of a big building and you split the bill by each his own consumption, this compared to individual town house separately connected...

[Panda]

Dont want to sound like a wet blanket, but I have always found plenty of laundry services around the tourist areas. This particular business niche is probably fully occupied already. It may be very difficult to turn a profit with all the competition around.

[Wayne Kerr]

Always reckon these small businesses are great for a girlfriend/wife ... aint gunna break the bank and you'll probably learn a few things along the way

Whaddaya got to lose ... nuffing will come from nuffing as they say

[DaffyDuck]

Couldn't think of an ironic comment, sorry.

"Sounds to me like someone is yearning to be taken to the cleaners..."

[DaffyDuck]

Only way a 3 + 3 year lease can be enforced is if it is registered at the land office, they aint going to do that, also you wont be able to get a shophouse in Jomtien for 10,000baht per month, at least not in a reasonable location anyway.

There are many for sale on Baht and Sold and some going very cheap, here is a little bargain:
With its location just 30m off the beach in the heart of Jomtien, the 40sqm, a/c shop would be suitable for any kind of tourism, water sports related or retail business. Currently used as a Beauty Salon, it is also spacious enough for additional massage treatments (or a laundry perhaps?). Rent is 11.000 Baht/month. Looking for a business on the beach? Here you go...

380,000 Baht

BahtSOLD.com | Thailand Classified Ads | Business on Jomtien Beach

Yeah, key money, but 11,000 Baht

[DaffyDuck]

That would also mean that you don't have to worry about lease terms because you can move anytime with no loss of business

...or work out of your home, if you live in a house, for example.

[Thetyim]

This particular business niche is probably fully occupied already.

Go do some market research first before spending the cash.

Go to some local hotels and ask how much they pay and would they use you if they can save 10%
Then work out the figures

[yong2009]

Thank you very much for your input guys.
My reasoning is, yes, it will take time to build a clientele. I myself however remain a loyal customer of a laundry shop, as long as the price is in line, the service is good and the clothes are clean. And here is where I see an opening. I also see the rental costs as crucial. A place that can easily be made into a bar will certainly be too expensive to make it sustainable.

In any case, I hope, by doing a good job - customer loyalty can be build. This is different from an internet shop for example.
More input, also critical input, is very much appreciated!
Thanks

[yong2009]

Only way a 3 + 3 year lease can be enforced is if it is registered at the land office, they aint going to do that, also you wont be able to get a shophouse in Jomtien for 10,000baht per month, at least not in a reasonable location anyway.

There are many for sale on Baht and Sold and some going very cheap, here is a little bargain:
With its location just 30m off the beach in the heart of Jomtien, the 40sqm, a/c shop would be suitable for any kind of tourism, water sports related or retail business. Currently used as a Beauty Salon, it is also spacious enough for additional massage treatments (or a laundry perhaps?). Rent is 11.000 Baht/month. Looking for a business on the beach? Here you go...

380,000 Baht

BahtSOLD.com | Thailand Classified Ads | Business on Jomtien Beach

Yeah, key money, but 11,000 Baht

So including the key money, considering 3 years, the price works out at more than 21000 Baht. Ups
Thank you very much for the website though.
Edit: Oh, I have just seen, the ad is from 07 / 2007. If it has not yet been sold, maybe they don't want the 380000 anymore.

[dirtydog]

Single story units near me are 18,000baht per month, about 12 meters by 3.5 meters, 2 storey but in the back roads about the same, then prices go up for bigger buildings, renting in Pattaya is cheaper plus there are actually some tourists there unlike here in Jomtien.