Best Business in the DR

JD Jones

Moderator - Covid 19 in DR & North Coast
Jan 7, 2016
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OP, many companies that rely entirely or mostly on Dominican customers have a decent to great revenue flow.

For example, El Encanto which is a department store chain with all its stores in Santiago brings in around US$40 million a year. Sure, that's not enough from which it would make anyone one of the richest people on the planet, but US$40 million is US$40 million. Caribe Tours around US$23 million. Ikea has a revenue of about US$13 million per year and technically that's a new business. Ilumel is shy of US$3 million. El Catador which is a wine store with all its stores in Santo Domingo is around US$9 million. Helados Bon over US$6 million. The movie theater at Galería 360 about US$1.3 million. Jardín Constanza (mostly flowers) about US$10 million. RH Mejía (owned by Hipolito's son and deals with the importation from the USA, distribution and even direct customer sales of several fruits such as apples; until his incursion into the sector apples was a luxury in the DR where most peple would eat one only in the Christmas season and it was a fruit mostly purchased by the rich since it was expensive) a little over US$3 million. Baldom (mostly condiments, their products are in just about every supermarket in the country) around US$50 million. La Fabril (mostly vegetables cooking oils, one of their products is La Joya) about US$37 million. So on and so forth.

On the other hand are larger companies that depend mostly or entirely on Dominican costumers. For example, Grupo Ramos (parent company of La Sirena, Aprezio, Super Pola, Sirena Market, etc) has revenues of around US$760 million. Centro Cuesta Nacional (parent company of Supermercado Nacional, Jumbo, Casa Cuesta, Librería Cuesta, etc) is around US$580 million. SID (Next gas stations and many eatable products like La Manicera, they also own the African palm plantations seen on the highway to Samaná harvested for the oil in its nuts) has revenue of over US$1 billion and yes, it starts with a b. Cervecería Nacional Dominicana (Presidente, Malta Morena, etc) is above the US$380 million range. Banco Popular has revenues of around UD$737 million. Etc...
You didn't even mention the Corripios, the Vicinis, Cesar Englesia, Molinos Modernos, etc.
 

PICHARDO

One Dominican at a time, please!
May 15, 2003
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Santiago de Los 30 Caballeros
Best advice ever!!! Secure the country wide distribution rights for ANY PRODUCT. Be the manufacturer's representative. No out of pocket expense. Commission based plus salary if possible. No losses and only gains. Putting any money into a 3rd world country is gambling. There are too many variables to accurately assess and quantify where and when your losses will be.

Factor in the intangibles and you have the perfect storm for disaster. The DR is highly disorganized, highly inefficient and corrupt to the extreme. Why operate in such a toxic environment? Add to the equation, crime. The theft, the robberies, the shakedowns makes for a nerve wracking experience. And all of this to earn fractions on investments that require wholes.


What a party pooper...

This is true even in highly developed economies. Take London’s empirical financial juggernaut for instance. For every ten successful financial schemes, there are no less than one thousand failed ones. Many scams and ponzi schemes.

What limits your earnings in the DR is the market you tap and target. If you target the local market, you’d already limited yourself to a 10 mil potential. If you target the export market you have few limitations. If you target both, you would cement your biz and have no limitations on growth potential.

Take Bon as an example. They are a conformist type of biz. Their potential lies externally. A vast untapped market, only halted by greed within its own ranks.

Look at NEDOCA, once a market leader nationally turned a substituted appliance brand with low quality wares from abroad.

Yet, look at Cristal! A once diminished national retailer, turned exports oriented and still expanding.

The local market is for a biz that you’ll make use of to live a very comfortable life with. That’s the truth for 80% of biz here.

The other 10% is for exports and the extra 10% is for the large scale biz, with national coverage, therefore national sized income.

You returns are dependent on your investments.
Invest little, see little returns.

One way to mitigate and manage risks, is to spread your investments in the DR.
A jack of trades, king of none.
 

JD Jones

Moderator - Covid 19 in DR & North Coast
Jan 7, 2016
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I made really good money with a unregistered taxi van. I still maintain you can can pull down some decent change doing that as long as you stay away from airports.
 
Jan 3, 2003
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I did partnerships in all of the ones so far. Some people in my circles are better connected to some areas of interest than me alone.

The recycling biz has been above projections. We are only pausing due to the time it takes to have the equipment manufactured and shipped to the DR. It's not so easy to expand on demand with it. More like expanding when your capacity is tolled beyond catching up. Also we needed to secure some transfer of technology rights in order to fit our needs. Easier said than done...

The thing is others might have more experience and knowledge than you in some fields, worth investing on. So sharing the cost of investment and funds to keep the biz going until it clicks on all 8 cylinders, is easier than going at it alone. Less risk as well.

The returns are proportional to the initial and projected investments made. Invest little, see little returns.

For the DR market, the need to be "Compact" can't be reiterated any lesser. This ain't Kansas!

Three keys to keep your brain on: Energy/utilities, logistics, supplies...

Logistics can break havoc in your biz here in the DR with relative constancy. You have to make your logistics from the ground up! What works say for SD, will not necessarily work for the south or the north of the DR...

Transportation is an ever changing Tango. It can literally bring your biz to a halt.

Energy/utilities are something you must consider with big numbers long term. Backup is the regular services, so to speak. Your matrix needs to be considerably cheaper than the supply and redundant.

We learned to hedge natural gas contracts for the long run here.

There are many instances where you can make money by investing in the DR. After all, it's barely getting into medium manufacturing as of the date, by volume of industrial output.
You proved my point so don't backpedal on this one. Only with your "special contacts" and mysterious "partnerships" can anyone make any money in that country. By your own words, you have made business success in the DR a mystical experience. Logistically speaking, the DR is a complete disaster. The chain of products from first producer to end user requires Houdini to make it work.

Foreigners, spare yourself unnecessary anguish and torment. DO NOT invest in this or any 3rd world non-English speaking country. You're out of your waters in a sea of sharks. How many more must fail and lose everything before Pichardo's post gets through your thick skulls?? He has his arcane knowledge of alleged business survival techniques within the DR of which he claims he has profited nicely from.

If his claims are valid they are sure as hell not reliable. There is NO WAY you could replicate his alleged results (no evidence at all) even if he sat next to you and offered a cookie cutter plan towards financial independence in the DR.

Those who are successful in the DR began in the DR with pesos. For the rest of you pikers, the moment you exchange a hard currency for a worthless one (the DR peso) you have already begun the descent towards financial catastrophe. The decline in the peso over time will outstrip any gains you will more than likely never see.

As for the large MNC who set-up shop in the DR, let them to their game. They hedge losses in ways that are not accessible to the hoi polloi. So, please just save yourselves and us the anguish and despair which will most certainly accompany the pikers who think they have a sure bet when it comes to gambling, oops investing, in the DR!!!
 

JD Jones

Moderator - Covid 19 in DR & North Coast
Jan 7, 2016
3,259
1,257
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How do you explain my successful business then? I didn't have any special contacts or mysterious partnerships.

I'm in the Logistics business, BTW.
 
Jan 3, 2003
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How do you explain my successful business then? I didn't have any special contacts or mysterious partnerships.

I'm in the Logistics business, BTW.
For every success, I'll bring you a 100 dead bodies, economically speaking. Every single Dominican and Foreign Piker and Peddler who saved up dollars in the US and Europe to exchange them for worthless pesos to build their villa or shopping center or purchase an apt. has immediately seen a loss just from the exchange.

Add to that the expenses of maintenance and materials which are always dollarized, you can not win in that game in the long run. The peso just declines at a rate by which losses will always outstrip gains. I've spoken to hundreds of New York Dominicans who once I sat down with them and explained the math have realized the folly of their decisions. Others have come to that conclusion the hard way. They invested and come appraisal time they saw their losses. A sale becomes a fire sale unbeknownst to them!!

Logistically speaking, there are few who can survive in such an unruly and Wild West environment as the DR. Your success will be mirrored in the sampling of companies that more or less dominate the DR market. I am not speaking on that. I am referencing most US based Pikers and Peddlers who have saved up a couple hundred of thousands to fully invest in the DR only to become materially poorer.

I am speaking about the low income and middle income wage earners who through blood, sweat and tears have saved their money only to throw it away in the DR. Once again, the loss immediately begins once you trade in a hard currency for a worthless one and expect to come up ahead. Some will come ahead but so few as to not be of merit when heralding the virtues of DR investing.
 
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