StevePIraq wrote:My two bobs worth.
Income 40k per month out of that you have to pay salaries, rent, electric, water, laundry ( every massage= at least one towel plus sheet) yearly business license, tax, phone, consumables, meals for staff, fuel possible motorbike or car costs and so on, my guess you would be lucky to come away with 15k per month. maybe wrong I hope so. However have you ever wondered why these places change hands so often and if it is such a good deal why would anyone sell up.
I once did a small business course and learned a lot about small shop turnover. In the UK it was approx every 3 years. The money eventually runs out and disillusion sets in. There are many massage shops suffering right now. This low season seems particularly quiet and there are just too many of them. They can make money in high season but don't put any aside for low. I wouldn't expect Calvin's to be any different but hopefully we'll get a report soon.
As to small businesses in general. I run two small kiosks which are doing well and will be opening a third before the start of high season. Startup and running costs are low and margins high. As others have pointed out, poor cash management and unplanned overheads can quickly gobble up profits. I don't see that Thais have the necessary discipline and I'd advise the OP to be active in oversight.
A golfing buddy is married to a massage shop owner and he informs me there are ways for massage shops to increase revenue. There are no salaries. The ladies make money from 'extras'. Some shops keep part of the 'extras' money, say 100 thb. If a girl is taken out by a customer, the shop charges 300 thb. If a shop sells alcohol, they can buy from 7-11 then charge the typical bar rate. I watched one man, pocket full of oil rig money, spend 6,000+ baht on the ladies with drinks, all night. That made 2000 thb for the shop. They can also sell massage products, such as oils.
If the shop is clean, the girls attractive and some can actually massage, then you aren't limited to single males. With foot massage, body scrubs and facials, families and couples will come.
I have had many Thai massages and would have one every day if my body could tolerate it. The stronger the better. The best massages come from the experienced older ladies. No risk of temptation and nothing better than a savage beating to get the HHAD grime out of one's pores. I don't do oil since the oils are cheap chemicals... you can smell the paraffin.
There are some do's and don'ts that spoil the experience.
Some DONT'S.
1. Don't put a TV in the shop. The girls will be glued to the soaps instead of out in front bringing in customers. They will also be reluctant to turn it off and play relaxing music.
2. Don't have children running around.
3. Don't have any Thai men on the premises, unless they are massage staff.
4. Don't employ a ladyboy. More are put off by them than are attracted.
5. Don't let the girls use their mobiles when with a customer.
6. Don't let a girl chatter if there are other customers.
7. Don't use the cheap paraffin oil! You come out smelling like a garage mechanic.
DO's
1. The shop should be spotless
2. The ladies should be pleasant and attractive. Too many look like they've worked a hard shift on Soi Bintabaht
3. Create a nice ambience with soft music and nice smells.
4. Pamper the customer and make them feel like they are the most important customer ever. They will appreciate it and come back.
5. Watch out for conflict between the girls. I don't know what it is with women but there always seem to be tensions. Jealousy, competition and gossip, the principal causes.
6. Have a hot shower and soap available.
7. Ensure the ladies are discreet. An irate wife in the shop is bad for business.
8. Look after your best girls. They start to make you money then they are gone. Whisked away by a smitten 'farang'.
I might be tempted to run a massage shop myself but there is too much competition and risk and IMO there are better ways to make money.
If not as entertaining.
If your friend is giving away 'full staff' freebies, he aint going to make a lot of profit.
