This article will take the example of the Chocolate croissant price to demonstrate the way some uneducated managers are thinking about economy and setting the price of goods, not based on market law but based on their greedy thinking.
Typically in Thailand, the offer and supply rules is not something considered. For example, if a shop is not selling enough, typical Thai manager will think like this:
“I want to make 10,000 baht a month, I make only 5000, let’s double the price of everything, so that I make that money.”
Of course, this is not working and usually end up with the shop closure. But uneducated Thais will never think it is because of the hike of price. It is because of the customer. The customer is bad and not want to buy.
So now let’s talking about the ridiculous Chocolate croissant tale, what exactly demonstrate that, but at the highest level of management at the Big C and Tops franchise! You will hallucinate how stupid these people can be!
Once in a time, all Chocolate croissant in Pattaya were worth about 22 baht average which is 0.60 Eur and matches the price in France for the same product. Considering that staff are paid 10x less in Thailand, the price of this croissant with a bit of chocolate inside was already quite expensive. Prices were the same every where from Foodland to Big C.
The problem started with the opening of the new Tops at South Pattaya close to Big C Sukhumvit. I wrote an article at this time about the incredible price of the pastries in this shop. You can click here to see the full article. Tops were pricing their Chocolate croissant like luxury products! 49 baht!
39 baht for a normal croissant and 49 bath for a chocolate croissant? That’s the double of what Big C is selling its croissant in France according to their website! Tops put the bar very high. Market law should make them change their mind do you think? But market law does not apply in Thailand, market greed is the law. Adding French to the name, or “pur pur” to justify the double price, is probably the brilliant idea of some monkey hiding in the Tops hierarchies?
Big C that is located meters away from the new Tops, started to freak out, proposing mini croissants at the price of the big ones… These were not “pur pur” but WTF did happened into the Big C franchise to sell these side to side? I wrote an article about that: https://truepattaya.org/2018/09/25/thai-logic/
Here came the smart move from Big C… changing the regular price of 22 baht to 39 baht. “if Tops is doing it, that mean that there is a lot of money to catch here, we all know that Farangs are stupid buffaloes who can pay 4000+ for an old bar girl, so 39 baht for a chocolate croissant should be fine!”. They didn’t named them “pur pur” but they added some French excuse, and tried to sell unfrozen tarts 89 baht at the same time, even using the French flag and Tour Eiffel. They probably though that French are more stupid than them? they were wrong.
I wrote an article about it: https://truepattaya.org/2018/11/03/big-c-doubled-the-price-of-their-croissants-match-with-tops-now-where-are-the-best-and-cheapest-options-in-pattaya/ and suggested that we should buy our croissant at Friendship where the price was still 23 Baht! as you can see in this picture.
When Terminal 21 opened, more insanity about Chocolate croissant happened: 75 baht for 1 chocolate croissant! World record in my book! It must be one of the most expensive in the world!
Tom Tom Coffee in Terminal 21 definitively decided to break any market law, selling a piece of croissant with some chocolate inside at the price of a Thai meal with seafood!
That’s when the shit hit the fan… 7/11 opened a new boat shaped shop at Pattaya Klang, it is their flagship shop in all Thailand having even TV coverage nationwide, and it is just a hundred meters from Tops and Big C who were still trying to sell their 40 baht chocolate croissant. No doubt that the guys who decided the prices from these 2 franchises visited the place and saw these amazing Chocolate croissant with almonds: 26 baht only!
Just one month after the opening of 7/11 who are selling a bunch of chocolate croissants every day and is having a great success, (including myself buying there now) something terrible happened!
No more chocolate croissant sold at Tops!
…and no more chocolate croissants sold at Big C extra sukhumvit…
Did the 2 franchises committed an economic suicide? I could find the regular chocolate croissant only available at Big C extra Pattaya Klang, that is historically the “French” exception, because it was originally a Carrefour, then a Big C and they kept the French staff there to do the bread stuff. But the croissant with chocolate inside was now 21 baht only!
So… what can we learn about this story? Big C were selling well their chocolate croissant at the price of about 22 baht, when they decided to double the price because of Tops pricing their chocolate croissant the double.
Now that they have stop selling them, I went asking to the guys “why have you stop selling the chocolate croissant?”.
Their answer is amazing: “because people do not buy!”
As I said, it is always the customer that is at fault. Thais are always right. Double pricing killed the product at these place, and market law rules the world.