steffi Posted October 24, 2002 Report Share Posted October 24, 2002 I saw a foreigner working at an Internet Cafe yesterday and it got me interested in the figures. Has anybody done the math before on what it costs to start an internet cafe up in a tourist ie. foreigner user base part of town? If a Thai starts the business is it a loss less hassle than a foreigner even if they employ a foreigner? Link to comment Share on other sites More sharing options...
sanukdee Posted October 24, 2002 Report Share Posted October 24, 2002 As a casual observer I'd say the Internet Cafe market in Thailand is already saturated and way to competetive to make any substantial profits. Link to comment Share on other sites More sharing options...
whosyourdaddy Posted October 24, 2002 Report Share Posted October 24, 2002 There use to be an italian guy who owned an internet cafe just east of Pantip across from watergate.. For the first while he did very well at it but as prices dropped he made less profit and gave it up one year ago.. If you have the space in your house it would be a easy way to set up.. You probably will not make a mint but it could help you pay the morgage. If you have to rent a place I think you would be bankrupt very quickly Link to comment Share on other sites More sharing options...
Goodthaigirl Posted October 24, 2002 Report Share Posted October 24, 2002 The internet cafe near my home just close down after opened for about a year. The price is very competitive and you barely make any profit. Link to comment Share on other sites More sharing options...
steffi Posted October 24, 2002 Author Report Share Posted October 24, 2002 I remember him.. But the last time I saw him he was 2000. He was a nice personable guy and his cafe was pretty neat too. There aren't any decent cafes around there anymore. Anyway, I was wondering how much money had gone into "The Email Place" it's very nice inside and they have a lot of machines but their ADSL connection isn't all that reliable and today it wasn't all that fast. Asianet is a joke right now so I always avoid Time Internet nextdoor but the guy in there seems "reasonably" friendly. Link to comment Share on other sites More sharing options...
steffi Posted October 24, 2002 Author Report Share Posted October 24, 2002 What is the Italian guy doing now? I remember he told me he lived near Pantip and at the time I think he was renting. Link to comment Share on other sites More sharing options...
iuytrede Posted October 24, 2002 Report Share Posted October 24, 2002 As others mentioned, many internet cafes have closed after several months' existence. The fastest internet cafe I have known in Bangkok was in Rachayothin, they were very big and had the speed I am used from rich countries (not like ADSL), 25 B/h, closed after about 3 months. In the area where I am living no new internet cafe has opened for quite a while, but many have closed. The ones still open are all in the owner's house, not in a rented place. Internet cafes are an illegal business in Thailand, because they are not yet regulated (and in the current political climate they are viewed with suspicion). Their profitability mainly depends on the amount that they have to pay to the police. This amount can vary wildly. I know of one place that has gone out of business because they could not afford the money the police wanted. Not sure this line of business is suitable for foreigners (the guy you are talking about seems to operate with his Thai wife, and she doesn't look like a BG). Link to comment Share on other sites More sharing options...
StoneSoup Posted October 25, 2002 Report Share Posted October 25, 2002 If a business is set up correctly, an Internet cafe is not an illegal business - it falls under several of the standard "objectives of company" that are on the list of activities that you may select from in filing a business registration application. If you look at the new anti-smoking law, it specifically addresses as one of the itemized categories of businesses where smoking is disallowed: "air conditioned Internet cafes". What you possibly mean is that a lot of people opened cafes without filing a business registration or tax registration, and operated without paying taxes. The idea that police routinely "shake down" internet cafes in any selective manner is absolutely ludicrous, and untrue. What may be true is that internet cafes were often run as sidelines by folks with other primary businesses (such as massage parlors, or bars), and such internet cafes may have been the designated "transfer point" for contributions to constabulary benevolent funds - but this was not aimed at the internet cafe industry, per se. The theft value of the inventory contents of an internet cafe - closed down overnight - would typically be worth investing some money in - for either private security, or "enhanced" checks by your local police force. Not exactly the same thing as being "shaken down." What is true is that low-level policemen do not earn an official wage that is even remotely liveable (try maintaining a family in Bangkok on 7,000 baht per month), therefore the entire Thai systems is based upon the local people being "served" paying their own "user fees" to keep their local policemen in clover. With all the above said, internet cafes appear to be a very bad investment - just run a spreadsheet analysis - how many hours at 0.75 baht per minute do you need to sell to recoup the costs of rent, utilities, salary, ISP support, software, and hardware? Then look at how many hours per day you can actually keep each computer occupied with a paying customer. Under the right conditions, you can probably achieve break-even - after maybe a couple of years (based upon front-loading of several significant cost factors) - but who wants that kind of payback period? "Break even" still is not earning any return on invested capital for the original investor. "Let the good times roll!" Stone Soup Link to comment Share on other sites More sharing options...
khunmi Posted October 25, 2002 Report Share Posted October 25, 2002 Problem is you would have to have a thai their as well to help translate and write emails. It definately wouldn't support 2 wages cheers khunmi. Link to comment Share on other sites More sharing options...
Guest Posted October 25, 2002 Report Share Posted October 25, 2002 the only internet cafes i know who actually appear to make a healthy profit are the ones near schools and universities. their main business seems to come from gameplaying kids and other services like typing service for students etc. internet seems to be only a sideline there. Link to comment Share on other sites More sharing options...
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