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   Date    Header Price  
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-- Business-other -- Bangkok and Vicinities -- Bangkok -- --   GE Edit
22/05/2006

Digital photography store

3 000 000
BKK11512G - This beautiful one month old digital photography store, sitting in one of Bangkok’s foremost shopping centres, was intended to be the first of a chain of 70 outlets in high traffic locations. The Board of Directors of the large Fortune 500 Company (present in Thailand for 100 years) that owns the 85 square metre shop were highly excited by the planned operation, but have since decided on a total change of direction, and they will therefore divest themselves of the turnkey enterprise at a highly attractive asking price. Highly detailed plans have been drawn up, desirable locations have been identified and contracts have been secured with suppliers; all these details, that took over seven months to research, will be passed on to the new owner.


The notion is to profit from Thailand’s sudden upswing in digital camera sales and photo processing services, by exploiting a gap in the market and providing both of these services in comfortably sized outlets. In 2003 only 270,000 units were sold throughout the Kingdom, rising to 540,000 units in 2004; the projections for 2005 are for at least 800,000 units, and recent tax changes could see this figure increase (there is now no tax in Thailand on digital cameras). There is consequently a massive potential for growth involved here (in nearby Singapore four out of every five units sold are now digital, compared to one in three in Thailand).


The company outlaid 1,500,000 baht to fit out the store, and 2,600,000 baht was spent on a reconditioned Noritzu QFS 3001 processing machine which would have cost 4,000,000 baht brand new (if the new owner didn’t wish to retain this machine, the previous owner will by it back for 2,000,000 baht). There is huge foot traffic here as the location has been carefully selected to sit near food outlets, cinemas and a bowling alley (they already have a cross marketing operation in place with the bowling centre). The inventory will be acquired at cost, and this figure will change constantly as the company runs down the stock (it currently stands at 6,000,000 baht as of the second week in March).


The famous company executive who is in charge of the project has put a lot of time and energy into putting the plans into the early stages of fruition; he has a wealth of experience in similar chains from his time in England, where he was involved in two of the largest consumer chains in the country. “Profits of 100,000 baht per month are easily attainable from this one store alone, if it is run well”, he says, “and I can see this quickly rising to 350,000 baht per month at least. Unfortunately the company has decided to go in a completely different direction, as they consider 100,000 baht in profit to be a drop in the ocean when they have 100,000,000 baht in cash resources put aside for the expansion. Hence they are looking to acquire a chain of established furniture stores. But for a small investment, this digital camera store offers an excellent opportunity.” The only other requirement is to reimburse the company 610,000 baht that was only recently paid as a deposit on the three year plus three year lease, with monthly rent set at 116,339 baht.


Detailed financial reports have been prepared, and estimated annual results are for profits of 1,200,000 baht to be realised, from receipts of 24,000,000 baht (these figures are based on the first month of trade, when two units per day, on average, were sold, from 20 demonstrations, with around 60 to 80 customers per day entering the store, leading to gross sales of 2,000,000 baht). The trademark will be acquired, and all professionally designed leaflets, logos, posters and other promotional materials have already been implemented.


Your Total Investment to own this business 3,000,000
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