Your Business Unit (BU) on-site
Your “Business Unit” (BU) – The cost-effective rout to Thailand
The Business Unit (BU) at Sanet Trade & Service is the straight contractual approach to your customers in Thailand.
It is not for every company to enter into marketing its products in Thailand by establishing an own entity and facing high start-up and administrative costs. The alternative of remaining only indirectly in touch with your customers via intermediaries earning high margins is not appealing either.
This is where the Business Unit (BU) at the Thai trading firm “Sanet Trade & Services Ltd.” in Bangkok provides the solution.
Thailand has legally restricted trading and providing services solely to its domestic Thai-owned companies.
Merely foreigners with at least THB 100 million paid-in in capital are permitted to engage in either wholesale or retail trading. That protects Thai Importers from foreign manufacturers’ trading activities with factory ex-factory prices and on-site service. Many dealers take full advantage from this. Their trade mark-up negatively affects the competitiveness of Western production.
Sanet Trade & Services, however, is dealing very fairly with this legal privilege. It contractually represents foreign clients as sales & service providers in Thailand. With a transparent cost calculation, a fixed price is agreed upon, which covers staff and non-personnel costs, as well as the overhead and an openly communicated profit.
The employee(s) of the “BU” will exclusively be in charge of the marketing and service for your products, and only for you. And all that for a predetermined fixed service fee.
Is there a “downer”? Yes. In general, the BU operates as an agent handling direct sales from your manufacturing facility as well as acts as a technical service unit. The BU is not a “self-dealer “. It does not bear any storage and payment risk. Yet, the BU often not only serves end customers, but also your resellers, who then take
60% cost saving
In particular for SMEs, the Business Unit offers a saving of over 60% when compared to the cost of starting up a company of one’s own.
This does not even consider the one-time investment for the company foundation and the under certain circumstances available exemptions to the ban on trading and services for foreigners.
For instance, accounting, office rent, clerical staff, payroll, tax advice, electricity and IT expenses are not incurred. The associates who will exclusively take care for your products are likewise included in the fixed contractual fee. Of course, you will provide them with the required professional training and full support.
Many times, the team members need to be recruited individually. If so, Sanet Trade & Services is particularly mindful of the fact that these employees are a perfect match with you and your expectations towards Sanet. In general: The relationship with “your” BU is typically much closer than with an often-shifting sales team of a conventional importer.
Travelling expenses and entertainments for the BU are excluded from the fixed fee, as they are hardly calculable. Many business units in Bangkok also take on sales tasks and technical consulting far beyond Thailand and throughout Asia.
Your Business Unit is prestigiously accommodated in a modern furnished office at the Sanet – Group’s own Business Center of almost 800 square meters in office space. And no worries, of course air-conditioning, high-speed internet, electricity and cleaning are part of the deal. Two conference rooms with state-of-the-art conference equipment are available for meetings of up to eight people each.
There is friendly office management to assist with such matters as handling sample shipments or procuring equipment.
Only about 10 minutes from the International Airport and even shorter to the metropolitan rapid transit and highway access to all the industrial areas and to downtown Bangkok ensure perfect transportation links with almost no traffic jams typical for Bangkok.
Not to forget: Being close to about a dozen other Business Units (see our references), the Sanet ASEAN ADVISORS consultancy team as well as the lawyers of Sanet Legal are many times of great benefit for their work.
If you like the model of the Business Unit, we can gladly arrange similar setups with our partners in Vietnam and Indonesia.