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I built my house 2 years ago near Ubon Ratchathani. My girlfriend finds it difficult to find work, so I want to build a small shop at the front of my house. A local builder has quoted me 200,000 for a building 8mx7m,(65,000 for labour and the rest materials) that includes painting and tiling water and electric. I was expecting alot less but I know he is good as he built my house. any board members done the same? Photos would be great as I just need some ideas. Thanks.
Hard to say if the price is fair without more details. Will it be finished to match the house, what kind of roof, will it be just one room, will it have a water closet, etc.? Good luck!
^ Absolutely. Regardless of whether the price is competitive or not, whether it justifies the investment depends upon the potential market size you are addressing. Village shops tend to provide a modest but fairly reliable cash flow, with revenue & hence profitability fluctuating according to season (harvest), festivals, paydays etc.
Be wary of 'Sen'- ie credit. You will almost certainly have to give some- and my experience has been that the debtor always pays up, cheerfully and promptly. But ours is a tiny shopette (a hobby really) and we know all of our customers. In larger villages, more of an issue and a potential revenue trap.
For sure. OP is not going to get much for 3,500 baht per square meter.Quote:
Originally Posted by sabang
I agree with Sabang. How long is it going to take to get a return on your 200,000 ? Taking into consideration that you'll give credit and some won't pay back. I know a farang that is tied to his shop but wants rid of it. Him and his wife work from 7am to 9pm, 7 days a week. They can't get anyone to assist as it would cost them money. Give the shop a miss in my opinion.
I have a photo to post but no way of doing it. It will be a large room, with small room at the back for stock, no toilet maybe a tap and sink at the back, I want to build as cheap as possible. My girl gets depressed when she has nothing to do. I am not looking to get a quick return on my money,its just for an income. I stay in my house for 4 months per year so it will be down to my girl who she gives credit too, she knows all of the village I can't see many problems.
My girl said if she makes 300 baht per day that would be plenty to live on and save some too!
I also paid for a shop for my wife and family, They do a good job and keep the stock up and is making enough money to keep them happy as well pay all the bills for the house/workshop/shop out in the village.
You need family that are willing to work there and people with half a brain so as they dont sell all and stick their hands out for more money.
Also good as you alway have cold beer in the fridge.
to answer ur question op, yes very cheap. the cheapest ive heard of. u say u know the builder so whats the prob.
A small shop well located can work satisfacorily, right locaton being key, In the small village near us right now has 6 shops, at one end of the village one did great business, giving a 20 K a month GM and at the other end zilch.Quote:
Originally Posted by superman
When the one that was turning GM 20 K there were 3 shops, then with more competition that dropped by half I guess.
Sadly when they were doing well, they invested in a top of the line VIGO, business trended down soon after, then a couple of months ago the Vigo got repossessed. AS they had traded their old pick up in on the new vigo they had no way of picking up stock, which has gradually wound down, losing them more business, now the shops up for sale.
costing - all I can compare to is a friend has recently moved into single-level building she had built - approx 15m x 3m.
Front half is open, plumbed with basins etc for 2 hairdressers, back half has separate single bedroom, shower/toilet bathroom and kitchen.
Tiled, painted, electrical and the basins/fittings etc, paved and semi-covered area at roadside. It ran over budget from 300 to 330k.
Still a nice little building for the price.
Going to start building in July so I will keep everyone posted.
Good luck with the project, we shall be looking forward to progress reports, with photos please :)