As often happens, some of us get regular e-mails asking specifics about business ideas. While I would never reveal the author, or the detailed information they may share, I always think of my response as "open" and without curtains.
Here is a very recent one, that even "out of context" or the initial e-mail I thinks still makes some sense. Well...you decide!
Dear Friend,
Thanks for your e-mail and I am glad to help as much as I can, even though we could end up as competitors since my family business is high end art and authentic antiques.
I had to laugh with your description of so many of the shops…and I agree they often “miss the boat” as even for a professional shopper, it’s almost impossible to “see” anything! Moreover, as you point out, they are often staffed with people that cannot speak English. Worse of all though is the commissions they have to pay to drivers who bring guests to their shops…even if you direct a driver to drive you to a specific shop. So, this brings me to tip number one:
In contracting with a driver for his services, make it clear to that driver that NO commissions will be paid to him by ANY shop he drives you to…and this point is to be made VERY clear to the shop keepers when negotiating for the best price.
Regarding the use of the internet to expedite marketing, you might be surprised at the level the internet has been embraced by Balinese businesses and artists over the past five or so years. This includes web sites, as well as internet auction houses, in particular, eBay. One organization, called NOVICA has been successfully selling Balinese made arts and crafts on eBay now for at least five years…and they have no open retail shop.
As, with what you seem to have in mind, they represent a host of artists in all media, and either purchase out-right, or take on consignment large numbers of goods and offer them on eBay in vast numbers. You write in your e-mail that your marketing idea “would, hopefully, not cost the artists anything.” This brings me to point number two:
The Balinese will not pay ANYTHING to have their pieces marketed. They will accept that a commission is payable for items sold, but they will not accept paying a single rupiah for any exposure or attempts to sell their work unless the marketing activity results in a sale.
You need not worry that the Balinese have literacy in Bahasa Indonesia. Only the very old, or very poor and uneducated Balinese is lacking in their ability to read, write, and speak Bahasa Indonesia.
Regarding shipping, we use two businesses. If the piece is large, and heavy, thus to be sea-freight, we use CAS Cargo. They are excellent, and they are willing to negotiate contracts depending on the volume of material to be shipped over a certain period. For air freight, we use DHL exclusively. We’ve used TNT and Fed Ex in the past, but for various reasons, leaned the hard way…we only use DHL. They are the only air express shipper in Bali that ships directly out of Denpasar to Singapore. All the others ship through Jakarta…and that alone can be problematical. Either way, shipping charges are expensive…which brings me to point three:
Never charge for shipping. Factor in the shipping charge in your over-all price of the object.
Cell phone reception throughout Ubud itself is excellent, but this is not always the case in villages just outside of Ubud. As you mention, hard line phones are often very difficult to obtain in this area, right now. I know some expats who have paid as much as 10 million rupiah to buy a line from their neighbor. I’ve heard that the so called “flexi-phone” is pretty good for communication, but not for internet access. This is all changing rather quickly, and in time, I have no doubt that most all of Bali will be well connected. This, in a circuitous way, brings me to point four:
NOTHING in Bali happens quickly. There is time, and then there is “Bali time.” That’s just the way it is, and getting frustrated over this fact will only cause one more anxiety.
As for the balance of your e-mail, my best advice would be to spend a whole lot more time here in Bali BEFORE you make the investment commitment. Networking with other expats is essential, and getting to really know the people you plan to be in business with is vital. Truth to be told, the brutal fact is, only about one in ten expats that give Bali a go with their business plan ever make it. The rest go home with lighter wallets. As I am often quoted…”Expats in Bali? They ebb and flow like the tide.”
Good luck with your plans, and sure, it would great to hook up some time in Ubud. I hardly ever get “down South” so it would have to be in the Ubud area. Cheers!…Roy Thompson