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Phuket Governor Nisit Jansomwong makes a point at the meeting

Market Certainty is No Longer Guaranteed, Phuket Businesses Should be Told

Thursday, June 4, 2015
PHUKET: Phuket's Governor today set up a committee to investigate whether standardising prices for products from latex shops will end a battle for customers on the holiday island.

Governor Nisit Jansomwong was attempting to address the issue raised by about 60 people who attended a meeting following the loss of business at latex outlets in Phuket's Kata-Karon district.

It appears that operators of tours from China who once brought tourists to the west coast destination have opted to try other destinations, leaving the once-popular spot facing a lower than normal low season.

Whether any kind of imposition of standard prices across Phuket would be an answer to Kata-Karon's problems could be resolved in the next week, based on the committee's investigation.

Latex mattresses and pillows have become a purchase many Chinese tourists make while they are on Phuket. Because Phuket is the hub of a rubber planting region, the items are considered to be a practical memento.

Shops all over the island are geared to post the products back to China swiftly.

However, the real issue is whether Phuket businesses can expect to have market certainty in an era when consumers rule.

Destinations that fail to compete on price are bound to lose out to competitors.

Standardising prices is a measure that can be imposed to ensure the cost of Phuket latex products remains the same at all island outlets.

The question is, can the price of latex products be controlled in the neighboring provinces of Phang Nga and Krabi, or in other countries in the region where rubber is produced?

We venture to suggest that the answer is No.

The alternative is to tell the outlets seeking a sure fire income the unpalatable truth - that the only option is to become more competitive on price and quality.

The same could be said for all of Phuket.

Kata-Karon is one place on Phuket where price control is a philosophy. Tuk-tuks and taxis have maintained non-negotiable fares here for years, despite false impressions created by officials that specified fares are the beginning of a process that travellers can then negotiate.

Haggling is what Phuket vendors have always done well.

It may be time, if Kata-Karon businesses are to once again find a ready market for latex outlets, tuk-tuks and taxis and other local businesses, to once again embrace the haggling tradition.

Comments

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Unless they can guarantee price for whole country (including commission to tour operators) forget it. Not going to work

Posted by Lashay on June 5, 2015 04:00

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Can't believe they would look to move so quickly to standardise something as the price is too low given all the discussion here about high prices no one wants to do anything about. Strange.

Posted by Davemc60 on June 5, 2015 04:34

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People , who are losing to the forces of market completion, are rolling their eyes big and as large as trays, as in disbelief asking themselves:

Is this sXit happening to ME?
How it dare to happen to ME?
NO-NO-NO

It just can't be that way bad because I feel I'm entitled to the good business

Posted by Sue on June 5, 2015 04:44

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I thought the explosion in latex outlets was driven by Russian not Chinese tourism? Russians down - latex business down - simple equation. Have the Chinese developed a liking for latex products too?

Posted by Logic on June 5, 2015 06:18

Editor Comment:

The stores we've been in have been packet with Chinese, not Russians.

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Let the market forces work.... Standardizing those price will be just another another nail in Phuket's coffin. Every person who understand just a little about business will know this.
Phuket is coming to its knee's and most people don't see it or refuse to admit it. Sooner or later (i believe soon) the current cartel-type business model will break down. Business People who understand, accept and appreciate competition will survive.

Posted by Mr. K on June 5, 2015 07:45

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There is a unique phenomenon on Phuket - when business is bad, instead of looking at their own business practices, business operators run to the local authorities to cry for help.

Here's a novel thought for you - maybe tourists just got fed up with being ripped off ?

Posted by Herbert on June 5, 2015 08:23

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Logic,
An article a few months ago suggested many Chinese were fond of their latex mistresses. I assume a similar mattress and pillow provides some comfort when your loved one is absent, in for repairs or while waiting for the upgrade to arrive.

Posted by MoW on June 5, 2015 09:03

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Herbert,

Spot on! Always running to the authorities when things don't go their way. Just another manifestation of "someone else is to blame, not me".

Posted by Sir Burr on June 5, 2015 09:26

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@Herbert is quite correct

In any other country this would be called a Cartel and likely illegal. It's a terrible business practice

Seems to be the only way Thais know how to run business (taxis, recent suggestion for hotel rooms etc)

Carry on killing Phuket

Posted by Discover Thainess on June 5, 2015 09:37

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Easy: Chinese tour operators bring all the bus where tehy received higher commission. So hig that sometimes for you remain a risible income. Moreover All the place where Chines bus stop are hiding, fat fro the nomral commercial destinatios, like for the place where they go eating and for the hotels where they normally sleep. Far from the competitors, in the hand of who can drive them everywhere for an high kickback..

Posted by dave on June 5, 2015 10:17

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The party's over, Phuket. And you'd better get used to it. No good going bleating to the Governor.
You killed the golden goose, now live with the consequences.

Posted by jimbo34 on June 5, 2015 10:23

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Phuket world-wide now has a reputation as a rip off place full of scammers. Expensive taxi and tuk tuk prices, jet ski scams, corrupt police and officials, expensive to drink or eat out compared to other locations etc etc etc. People are voting with their feet and going elsewhere in Thailand. Many Phuket businesses have only themselves to blame due to their own practices. Hopefully it will get worse and these people will go broke as they don't deserve to have a profitable business. The honest and well run places are still going well with regulars supporting them. My friends art studio and restaurant/bar in Kata is thriving with regulars she has taken care of in past years.

Posted by Arun Muruga on June 5, 2015 10:40

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The bus tour Chinese are moved around on buses, in groups, and are taken to where they buy products. They don't actually choose, these shops are part of a tour, therefore standardising prices will make no difference as the buyers are not making choice based on price. If the authorities wished to put the customer first (and not the groaning vendors, as is the tradition), then getting rid of the money paid "under the table" by the vendors to the Chinese tour companies to get their buses to frequent their premises would be a good move.

Posted by Duncan on June 5, 2015 10:42

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I have seldom seen so very good comments here on PW as now and here. I wish some Thai authority in leading positions are listening and act so I can go back to the Phuket I once really loved. I am still in Thailand at a very friendly place (the best of Thais) but miss Phuket when it was really good. Ok, I know I speak selfish but it really was a paradise.
Ps. I know the leaders do not listening but you can still dream on.... and on.

Posted by A Joe on June 5, 2015 14:06

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The thai price or the farang price which demonstrates theres no standard pricing whatsoever just the biggest grab they can get at the time, high price fixing is all they know tuk tuk fare style.

Posted by slickmelb on June 5, 2015 14:29

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Perhaps 'standard pricing' has no place within a society based on 12 core values.

Posted by gee on June 5, 2015 17:14

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I just want to add to those who do not know about the rubber plantations In Thailand.6 Years ago the farmers had 130 baht a kilo. Today 19 baht and the farmers are selling out. In the crazy Phuket the latex sellers still want the same money from tourists as they had 6 years ago. STUPID

Posted by A Joe on June 5, 2015 18:56

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A.Joe is correct. The rubber price is at an all-time low. (My B&B is on leased, rubber-tree land and the owner is quite happy for me to lease as much rubber tree land as I want - the price for latex is too low to justify him collecting it each night).

So if the latex price has gone through the floor, how come the end products are still being sold at hugely-inflated prices?

Someone needs to tell the tourists that they are being 'shafted' big time :)

Posted by Simon Luttrell on June 5, 2015 20:51

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Chinese people have complained about the condom prices which may be too expensive!!!!!

Posted by Whistle-Blower on June 6, 2015 11:32

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WB,
Would that mainly be Chinese Able Seamen ?

Posted by Manowar on June 6, 2015 16:23


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