Tuesday, August 4, 2015

Change of Business Model eh?...

While driving to Bangkok, I had an interesting discussion with Abang Nuar on potential business that we can do. Unlike the typical orchid nursery, growing seedlings to mature plants would take a long time. What if we can shorten the time (holding plants) and sell them during the flowering stage? That would be better, definitely less costs and with continuous supply of plants from Thailand, this type of model is sustainable..

In a nutshell...

>>Siam nurseries will supply seedlings/plants (MS/BS/FS)  to our company>>
>>New company can hold the plants before sale [transit stage];
i.e MS - BS min 6~12 months 
     NFS/BS min 1-2 months
     seedlings - NFS (ongoing for certain species only) 
>>Sell the orchids to local retailers or import to ASEAN countries>>

Advantage;
1-Do not hold seedlings plants (reduce chances of plant death/diseases etc.)
2-Less costs (time shorten)
 Costs save from seedlings to MS (~1-1.5 years) - utilities/salary/fertilizer etc
 Cost saves from MS to FS would be 6-12 months!

In between, potential seedlings can still be harvested in flasks. The cost of flasking in Thailand is cheaper at an average ~RM15-20 per flask with a minimum order of 50 flask per species.

What is the difference between the current model?

>>Sibling/selfing crossing stage (3-10 months to harvest matures seedpods)
>>Sowing seedpods into flask (~ 1-2 years until deflasking stage)>>
>>Deflasking to thumb pot until MS (~1-2 years)>>
>>MS to FS will take another 6-12 months>>

Advantage;
1-Pool of protocorm/flask and ensure continuity of plants

Disadvantage
1-Laborious work in the lab (sowing - reflasking (2-3times) before deflask
2-Many stages before FS (lab - nursery - sale)       
3-Cost incurred is higher than the 1st model

It is worth to try this new model and thus, let see what I can do!