Internet Café Tips for Investors in the Philippines – Part II (Location)

Posted: September 25, 2006 in Business

If you play chess you will understand that no matter how powerful your piece is (ex. Queen), it is useless when placed in a position where its mobility is hindered. With that said, even if you have the best services (high-end computers, skilled people, quality services etc.) but if you are not accessible or visible to customers, you will not survive in the business.

In choosing a location for your business you should determine first who your customers are. For me, I would go with the following ratio:

10% High school students
60% College students
30% others (Working people, Relatives of OFW, etc.)

With that ratio, I would choose a location near Universities/Colleges but it is also near residential areas and businesses. As you can see, this is where major internet café are positioned like Netopia (inside shopping Malls that are near colleges). Although this would mean going head to head with the big players, there are other features that you could employ that they can not. I’m not talking about lowering your price; I’m talking about having your business outside the mall and opening your business early and closing late. This is because shopping malls usually opens at 10a.m. and closes at 9pm. I’ll discuss other setup that you can use in another post.

Well, that is my ideal setup… You may have your own… it depends on your risk tolerance. I’ll discuss the advantages and disadvantages of each location in consideration with your target customers.

Near High Schools
Advantages:
• Rest assured that you have customers whether or not they have school assignments or projects. It is because high school students mainly play games.
Disadvantages:
• Usually putting up an internet café with “gaming” services near schools are prohibited. You should check existing local ordinances. But even if there are no existing local ordinances that prohibits you to offer gaming services near schools… there is always a possibility that they will make one (especially if the parents of addicted students will complain to schools and ask help to your local government).
• Low sales during Saturday and Sundays. But the most dreaded season is when students are taking their long long long vacation!!! Aw! You should have enough savings to pay your bills during those months.

Near Colleges

Advantages:

  1. Compared to high school students, it is obvious that this market has greater resources to accommodate their gaming and internet needs and desires J
  2. It is more unlikely that there would be any “strict” implementation of any rule/ordinance that prohibits internet café near colleges. Why? Because internet café is more of a need than a want when it comes to college students. They are doing more research and project compared to high school students.
  3. Your “other” services will be availed more frequently by college students like printing services, research, encoding, webcams, card, tutorials etc. Unlike highschool setup, hindi na gaming and internet ang bread and butter mo! You earn a lot with these extra services.

Disadvantages:

  1. Again, when sem break comes expect a slight decreased in sales. But unlike highschool, you can still survive during vacation as there are summer classes in colleges.

Working People:

I just found a perfect place if you really want to target working people especially people who belongs to the upper mid class of society. You just need to compete with Netopia. The place is at Ayala, behind Glorieta. Their current price is 50 pesos an hour!!! Last time I went there, I was on the waiting line! I guess they have around 30 – 40 computers. Imagine that.

Part I

 

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Comments
  1. nards says:

    HI, can you send me Feasibility Study for an internet cafe business. heres my e-mail. : bigote_777@yahoo.com
    thank you very much.

    Reply

  2. emptybutfull says:

    Hi there, thanks for your advices Mr. Chazper.^^
    This will be a help to depend my feasibility study this Thursday (March 10, 2010). I also have the same idea of quality services than very low prices(Price<20).

    My advice to the readers of this blog, with due respect, kindly made your own FEASIBILITY STUDY. Don't ask for a copy of FS created by Mr. Chazper. You'll never learn if you don't do your FS on your own. If you find it difficult, do a research, ask someone who has knowledge of it.

    You can do it, just trust yourself.
    God bless all of us.

    Much thanks,

    Rogemar Bravo
    Future CPA

  3. asis says:

    sir chazper.. pls give me some advice if tama po ba na mag post sa labas ng mga posters of comapanys of games..would that be advicable malapit po sa residents ung shop namin..will that be affect for the students and some advices do’s and dont’s para di bumagsak ung i cafe ko thanks..

  4. Johann Calaqui says:

    Hi Sir

    your post is very interesting, ive been thinking of this business since 1 year ago, its just that i dont have enough information, It is exactly true that location really matters, and lowering price juz to get more customer, a wise business man should think about the profit and fair competition, and just to add on that is you have enough capital to sustain the business for at least 6 months this just my opinion but would really help you to see if your business is profitable, ( juz correct me if im wrong sir). Now ill be needing your opinion regarding location i still cant find nice location with lesser competitor thats what i need now for my own research about this business, i would really hope that you could help,

    Johann an OFW
    thanks!

    • chazper says:

      If you can’t find a good location then don’t start your business just anywhere there is space. You should inform your friends that you are looking for a place to put up your business, involve your social network. Give them your criteria of a good location.

  5. Andrew L. says:

    Part 2: Kung bakit Cancer/Salot tawag ko sa mga LEVELUP GAMES & EGAMES & other companies alike… is that…

    SUBSTANDARD MGA GAMES… nawawala TRUE SPIRIT NG GAMERS… WHERE ARE THE QUALITY GAMES…. and too much promotion of this just helps cycle of these Companies of Delivering Crap GAMES.

    Well… you might disagree na Mali ako dahil isa sya sa tumutulong mag bigay ng income with low investment….

    Well TRY TO LOOK at the BIGGER PICTURE… isn’t that the other reason why MOST PEOPLE JOINED THE BANDWAGON of starting UP an I-CAFE… now most operators even are using pirated OS and GAMES para tipid…. just to compliment those games … like Warcraft for DOTA and Counterstrike… LOL PIRATED pero saan na mga modern games ngayon na astigin….

    THANK GOD WALA NANG LAN SA STARCRAFT 2 and DIABLO 3… yan sure bol mababawasan na mga PIRATED COPIES…. THANK GOD FOR BLIZZARD and sakto mga ibang gaming companies / distributors gagayahin method nila to stop Piracy… sana L4D 2 ganun rin :))

    Now Deal With it kung maniniwala kau sa sinabi ko … oh well just my piece of my mind.

    OO nga pala Sir chazper pa send po ng sample feasibility Study mo THX THX THX IN ADVANCE

  6. Andrew L. says:

    Basta plano ko… NO LEVELUP GAMES.. E-GAMES… yun mga games na PANGET… yun pang MASA na games… then are the ones that ruins the industry/competition.

    This site is really gives a great overview. Thank you

    ——————————————————
    Well I’m not afraid of spammers naman 🙂 Basta mahalaga naman msg 🙂 if mga advertisment agad mass deletion.

    Pede po pa send ng sample feasibility study sa grayback_316@yahoo.com
    So when I conduct some surveying and making decisions may guide po ako.

  7. Marvz18 says:

    Hello guys… can I also have a copy of the feasibility study… by the way… this is informative… Please send it on my email marvz18@gmail.com. Thanks… 😀

  8. cire says:

    i need also a feasibilty study of int.cafe..can any1 send me ASAP??
    tnx..

  9. patrick says:

    yes, place should be taken into consideration really specially now the competition is very stiff.

  10. jessie says:

    i also need a feasibility study regarding internet cafes. pls send it to jvaliola@yahoo.com. thnx…

    • chazper says:

      Please don’t put your email address anywhere in a comment. It will just be picked up by spammers. I think, the information here are sufficient to start a feasibility study on your own. Anyway, I’m planning next week to leave my contact details for anyone who are really planning to put up an internet cafe (not for college students for their feasibility study). And maybe we can plan to meet in person.

  11. andrew Sagubo Jr. says:

    HI, can you send me F.S. heres my e-mail. : jhunzki23@yahoo.com
    thank you very much.

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