Filling the tank

[TanMan]

Well, with the price of gasoline going up worldwide, I thought I would do a little microeconomic analysis here on Phuket... or Patong anyways.

Normally, I stop at the fake "Shell" stations to fill up the 125 Honda Wave that I rent. It costs 160 baht for a bone dry tank. A few days ago, I filled up at the Caltex and it cost 100 baht. That's a 60 baht difference (gross profit), or translates into a 60% markup. That's pretty big.

So, I did a little math. OK, not everyone fills up from bone dry, so let's suppose a 40 baht gross profit from each customer looking for the convenience of these little stands just to top off their tanks. 10 customers per hour (conservative from what I saw) translates into 400 baht per hour, and on a 10 hour day (also conservative), that is 4,000 baht per day, or 120,000 baht per month gross. Let's say minimal charges for storage, transport, lease, insurance, license, disposal costs and I am gonna guess that a little stand makes 100,000 baht per month in LOW season. Just one.

I read about a lot of guys that want to set up their GF's in a nice business (a beauty shop or rental business of some kind), but what is wrong with this one? Just managing a little stand on a small piece of land off a main road in Patong or on the way to somewhere else seems to be a meal ticket.

Or, maybe I am missing something here. Are these "Shell" places a Caltex front? Thai mafia controlled? What are the barriers to entry here?

I must be missing something...

[JayBee]

Originally Posted by TanMan

Well, with the price of gasoline going up worldwide, I thought I would do a little microeconomic analysis here on Phuket... or Patong anyways.

Normally, I stop at the fake "Shell" stations to fill up the 125 Honda Wave that I rent. It costs 160 baht for a bone dry tank. A few days ago, I filled up at the Caltex and it cost 100 baht. That's a 60 baht difference (gross profit), or translates into a 60% markup. That's pretty big.

So, I did a little math. OK, not everyone fills up from bone dry, so let's suppose a 40 baht gross profit from each customer looking for the convenience of these little stands just to top off their tanks. 10 customers per hour (conservative from what I saw) translates into 400 baht per hour, and on a 10 hour day (also conservative), that is 4,000 baht per day, or 120,000 baht per month gross. Let's say minimal charges for storage, transport, lease, insurance, license, disposal costs and I am gonna guess that a little stand makes 100,000 baht per month in LOW season. Just one.

I read about a lot of guys that want to set up their GF's in a nice business (a beauty shop or rental business of some kind), but what is wrong with this one? Just managing a little stand on a small piece of land off a main road in Patong or on the way to somewhere else seems to be a meal ticket.

Or, maybe I am missing something here. Are these "Shell" places a Caltex front? Thai mafia controlled? What are the barriers to entry here?

I must be missing something...

Obviously, the stand you go to is a very busy one. And if there aren't many stands around Phuket, then that is a good idea, if you don't mond standing in the hot sun all day, and breathing gas fumes. In Pattaya, the stands I see don't look like they are very busy. I feel sorry for the poor gals sitting there all day with nothing to do and little business. Also, I wonder if they all get such a good mark-up. 60% is a bit high for a little convenience. Wouldn't take much competition to half that margin.

[Nicke]

I think everyone knows those little stands is a lot more expensive, but sometimes its easier to use them than drive around half the town for a proper fill up at lowest price.

I use the small stands when I really is in need of gas, otherwise I head to the major big stattions when I need gas. (in daytime)

[LivinLOS]

Also some of those stands are brutal for half fills and sneaky tourist rips..

The one by the Ubol market always fills the header tank to 20 baht down and then claims it was topped..

[ATMwalking]

I guess you don't have them in Patong yet but in other parts we have these new gas machines. They are these big yellow boxes scattered all over. You pay in advance and then it release the gas for pumping. You can even work the car up close enough if you are desperate. Still a steep mark-up (maybe an extra 30%) but no games. Since they've opened all the small time gas in bottles dudes have closed up shop.