Koh Phangan bars - any advice please

[dj dave]

I bumped a bloke today who has a bar in Phangnan he wants to get out of. He can't committ enough time to looking after it as his business in Australia is more lucrative and taking too much time. He knows his Thai manager is fleecing him also so he naturally wants out. He does seem like a genuine bloke though.

The purchase price is cheap enough, for good reason I suspect. Rent is 15,000 baht a month. There are 8 years left on the lease possibly renewable back to full 10 years he originally had.

It has a $5,000 AUS sound system and some new furniture. I can't comment on the condition of the bar or other fixtures until I see it later in December.

I realise that Phangnan only really kicks for a week or so each month, but to me it's more just a lifestyle thing. Just to earn enough to tick over really and pay my way in LOS.

If after I see it and there is potential, I'd be looking to do something with accomodation (which I understand gets scarce around FMP time), and food, neither of which he has worried about doing although he told me that was his original plan. I'd also look at doing some internet marketing and try to build loyalty much as Nicke has done with the MTB.

Could any BMs with experience in the bar game, (and particularly if you've had a bar in Phangnan) let me know what questions I should ask or what the pitfalls are before I go into it any further?

Cheers
Dave

PS. I have a Thai friend who I might include in the deal.

[wakeboycam]

Hi , i know not much about bars but from my experience in Koh Pagnan (only had rin) i know that the only place that rocks all month is the cactus bar on the beach. If your bar is not on the beach and more inland then it can be hard to make some profit because you will probably only get it full around the full moon party. I think its even better to have some small restaurant there then a bar because all the ones that do make a profit are on the beach and not for sale.

Good luck.

[LivinLOS]

I dont dissagree with Cams assertions.. I have no idea of relative rents but 15k for an isolated island (180k per year) would need to be somewhere with foot traffic.. Islands like Phangan are a lot cheaper to be in and around (and may attract a less free spending demographic and age group) than Phuket.. Groups sitting sharing a 180 baht bucket of thai whisky and coke is the norm..

Of course if your picking the place up for (a few even) 100k or so for 8 years and its in Haad Rin you dont have much to loose..

[dj dave]

Thanks guys, I'm getting the idea. I'll definitely have to check out the location.