Supply shortages leading to higher prices

[MM 6,562]

As you have heard, there have been supply shortages the last few weeks due to the flooding in central Thailand.

 

The main local distributor for bar supplies (beer, water, sodas, spirits) has been unable to fill full orders from the bars, returning with a portion of an order rather than the amount requested, along with a slightly higher price tag on the items. Some items are not available at all through the distributors, and bars have had to go scavenging around town for those places with a supply of needed materials.

 

I was told by a bar manager that, in addition to beer case prices going up, the cost of imported spirits has risen as well. This has me confused, since I didn't know they were stored in the flooded area, but usually come in via Lam Chebang port. Oh well. She gave an example of Hennessy Cognac going from 1570b to 2150b overnight. Maybe the Thais are taxing them more, or somebody is price gouging.

 

Anyway, price gouging is going on at various levels in the supply chain. It seems that everything has gone up a little or a lot over the last weeks.

 

I was surprised to find out that a gogo I know of has already taken the preemptive step of raising all drink prices by 10 baht. That's everything from water to soda to lady drinks to beer...everything.

 

I am not happy with this turn of events, since it is profiteering, pure and simple. I doubt orange juice and coca cola have gone up 10b per can.

 

I have been getting reports of 250b increases per 24 bottle case of beer though, and that equates to a bit more than 10b per bottle, so passing the price increase to the customer is something a bar might consider doing. Others might consider splitting the pain, and raising the price 5b, and some might just consider it a temporary situation (hopefully), and eat the loss.

 

I'm not sure what to do myself, at this point. I've not raised prices for a couple of years, and only by a small amount. That's my problem. I'll need to review recent purchases to know.

 

But, I would try to make an informed decision on what products have gone up in price, and not make an across the board increase covering even things that didn't go up in price.

 

As this first gogo ups their prices, it's probably going to mean others will follow suit.

 

I wonder if they will or can come down again. If the distributors don't lower their prices, then there will be a permanent increase in pricing all over town.

[9cisco999 107]

As you have heard, there have been supply shortages the last few weeks due to the flooding in central Thailand.

 

The main local distributor for bar supplies (beer, water, sodas, spirits) has been unable to fill full orders from the bars, returning with a portion of an order rather than the amount requested, along with a slightly higher price tag on the items. Some items are not available at all through the distributors, and bars have had to go scavenging around town for those places with a supply of needed materials.

 

I was told by a bar manager that, in addition to beer case prices going up, the cost of imported spirits has risen as well. This has me confused, since I didn't know they were stored in the flooded area, but usually come in via Lam Chebang port. Oh well. She gave an example of Hennessy Cognac going from 1570b to 2150b overnight. Maybe the Thais are taxing them more, or somebody is price gouging.

 

Anyway, price gouging is going on at various levels in the supply chain. It seems that everything has gone up a little or a lot over the last weeks.

 

I was surprised to find out that a gogo I know of has already taken the preemptive step of raising all drink prices by 10 baht. That's everything from water to soda to lady drinks to beer...everything.

 

I am not happy with this turn of events, since it is profiteering, pure and simple. I doubt orange juice and coca cola have gone up 10b per can.

 

I have been getting reports of 250b increases per 24 bottle case of beer though, and that equates to a bit more than 10b per bottle, so passing the price increase to the customer is something a bar might consider doing. Others might consider splitting the pain, and raising the price 5b, and some might just consider it a temporary situation (hopefully), and eat the loss.

 

I'm not sure what to do myself, at this point. I've not raised prices for a couple of years, and only by a small amount. That's my problem. I'll need to review recent purchases to know.

 

But, I would try to make an informed decision on what products have gone up in price, and not make an across the board increase covering even things that didn't go up in price.

 

As this first gogo ups their prices, it's probably going to mean others will follow suit.

 

I wonder if they will or can come down again. If the distributors don't lower their prices, then there will be a permanent increase in pricing all over town.

 

 

 

 

 

Thanks for the warning.

 

 

 

[Fondles 94]

Yeah my local "mom and pop" wholesaler was well stocked 2 days ago with I estimate 800 boxes of SML, huge stack of Chang as well, today they had less than 30 boxes of SML and would only sell me 2 boxes (same price as normal). they had no other beer than about 3 boxes of Big Changs.

 

Completely out of cigarettes as well, not looking good and make it worse when they tell me will be weeks to buy new stock.

Edited November 7, 2011 by Fondles

[MM 6,562]

Yeah my local "mom and pop" wholesaler was well stocked 2 days ago with I estimate 800 boxes of SML, huge stack of Chang as well, today they had less than 30 boxes of SML and would only sell me 2 boxes (same price as normal). they had no other beer than about 3 boxes of Big Changs.

 

Completely out of cigarettes as well, not looking good and make it worse when they tell me will be weeks to buy new stock.

 

Oh, cigarettes. Yeah, I'd forgotten that. My girl went to 4 7-11 and Family Marts looking for Marlboro Lights soft pack. She gave up and brought home a box style pack. And, yet, the day before, we were at Friendship and they had lots of cigarettes, but I forgot to buy them then.

 

All those boxes of SML probably are sitting in bar storerooms right now, or on tier way to Bangkok.

[joekicker 53]

Anyway, price gouging is going on at various levels in the supply chain. It seems that everything has gone up a little or a lot over the last weeks.

 

Bummer, because most of it won't go down. There's certainly profiteering, but there's also real inflation, more than 4 per cent last year WITHOUT food and drinks and gasoline. So there's also what you now have to do - a review of what prices to set after a while at the same prices. And they won't be lower.

 

.

[JohnnyK 28]

I suspect Joe is right. Wholesale prices will return to normal levels but the bars will keep the extra 10 baht or so per drink. Hordes of new punters won't know.

[short 215]

What is the procedure for LEGALLY bringing in large amounts of cigarettes?

Edited November 7, 2011 by short

[MM 6,562]

What is the procedure for LEGALLY bringing in large amounts of cigarettes?

 

No procedure. Just follow the law.

 

200 cigarettes per person allowd LEGALLY.

 

 

 

[bigdelta 46]

Supply and demand and as mentioned,gouging when possible.I doubt the increases will prevent anyone from visiting but like you mentioned,it's a cost of doing business and moving that cost along to customers is normal IMO.If your cost to do business increases by all rights you should pass those costs along to your customers.If people have an issue with that they can stay home.

Edited November 7, 2011 by bigdelta

[BigusDicus 9,829]

I suspect Joe is right. Wholesale prices will return to normal levels but the bars will keep the extra 10 baht or so per drink. Hordes of new punters won't know.

 

And that is where you just have to hope that good ole 'free trade & competition' will eventually kick in.

 

There are only so many asses's for all those seats out there......

[joekicker 53]

What is the procedure for LEGALLY bringing in large amounts of cigarettes?

 

First, start an import company. That will keep you quite busy. But once you get it going, maybe next year, come on back for the next step - applying for import licences for tobacco products. You'll have enough staff to handle that paperwork, of course.

 

.

[jacko 8,766]

Oh, cigarettes. Yeah, I'd forgotten that. My girl went to 4 7-11 and Family Marts looking for Marlboro Lights soft pack. She gave up and brought home a box style pack. And, yet, the day before, we were at Friendship and they had lots of cigarettes, but I forgot to buy them then.

 

All those boxes of SML probably are sitting in bar storerooms right now, or on tier way to Bangkok.

I drove past a beer distributor on Sunday (near the Tesco convenience store, behind Suk Numchai), and saw great stacks of SML and Chang cases and thought happily to myself, good, it appears the supply chains are sorting themselves out.

Now you have corrected me..... a tower of beer ain't so much I suppose.

[Kev 173]

Sounds like you had better get the home brew kits out of the cupboards gents

[Fondles 94]

Sounds like you had better get the home brew kits out of the cupboards gents

 

Back home in OZ I was a hobby brewer, only time I bought beer was if I was out on the town, if it was not illegal here I would already be doing it.

[Kev 173]

Shite didn't know it was illegal to make home brew in LOS. Does that include beer or just for spirits?

 

Back home in OZ I was a hobby brewer, only time I bought beer was if I was out on the town, if it was not illegal here I would already be doing it.

[papillon 695]

My girl went to 4 7-11 and Family Marts looking for Marlboro Lights soft pack. She gave up and brought home a box style pack.

 

Just curious, is the tobacco different or just the pack?

[MM 6,562]

Just curious, is the tobacco different or just the pack?

 

You already know the answer to that.

 

 

I asked for a particular packaging type, and she did her best to find it.

 

 

 

[papillon 695]

You already know the answer to that.

 

 

I asked for a particular packaging type, and she did her best to find it.

LOL

 

Good Girl

 

And touche

Edited November 8, 2011 by papillon

[joekicker 53]

Shite didn't know it was illegal to make home brew in LOS. Does that include beer or just for spirits?

 

Both are illegal but very common to say the least. You won't get hurt doing it for yourself, particularly beer.

 

.

[short 215]

No procedure. Just follow the law.

 

200 cigarettes per person allowd LEGALLY.

 

 

Lets say that for some reason you wanted to bring in 1000 cigarettes, not for resale.

 

Can you not declare them at customs and simply pay an import tax on them?

[Gabor 296]

Went to buy my usual Sang Som dose to the Macro... ( local wholesale store, you can use only if you have a membership card ... for the business owners... I used my mate's card... ) Sam Song still 2340 baht for 12 bottles, no one satang increased prices... soda pops, water, beer... no one satang increased... I bought wild boar meat to make goulash for my mates for 165 baht / kilo... A huge turkey ( 7-8kg ) cost around 900 baht... Chicken legs costs 62 baht / kilo.... Rock lobsters costs 200 baht / kilo.... Mackerels costs 60 baht / kilo...

 

L&M slim, menthol costs the same 460 baht / stripe in my local store...

[MM 6,562]

Lets say that for some reason you wanted to bring in 1000 cigarettes, not for resale.

 

Can you not declare them at customs and simply pay an import tax on them?

 

No idea, short. All the people I know try to sneak them in.

 

Went to buy my usual Sang Som dose to the Macro... ( local wholesale store, you can use only if you have a membership card ... for the business owners... I used my mate's card... ) Sam Song still 2340 baht for 12 bottles, no one satang increased prices... soda pops, water, beer... no one satang increased... I bought wild boar meat to make goulash for my mates for 165 baht / kilo... A huge turkey ( 7-8kg ) cost around 900 baht... Chicken legs costs 62 baht / kilo.... Rock lobsters costs 200 baht / kilo.... Mackerels costs 60 baht / kilo...

 

L&M slim, menthol costs the same 460 baht / stripe in my local store...

 

That's great. What's the price for a box of Heineken and a box of Singha...small bottles? Our price has gone up 18% in the last 2 weeks.

 

 

 

[CheshireTom 1,377]

Lets say that for some reason you wanted to bring in 1000 cigarettes, not for resale.

 

Can you not declare them at customs and simply pay an import tax on them?

 

No problem. Just present your ciggies together with your import permit from the Excise Department to the Customs guy. If the paperwork isn't in order - again, no problem. Just pay the 4675 Baht fine per slab of 200 and be prepared to leave the airport without your cigarettes.

 

 

 

[Gabor 296]

No idea, short. All the people I know try to sneak them in.

 

 

 

That's great. What's the price for a box of Heineken and a box of Singha...small bottles? Our price has gone up 18% in the last 2 weeks.

 

 

 

 

A block of ( 12 bottle ) 0.6 littres Leo beer under 500 baht... ( I'm not a beer drinker at home, so I can refer only what my mate bought )

[nkped 1,208]

Just came by road from Udon to Nakhon Phanom and saw lots of rice ready for harvest. Wonder if the floods will result in a better selling price for the folks who do have rice to sell. Sorry, but when you grow up on a farm, you think of things like that.