Been receiving a couple of emails lately (mostly from OFWs but there’s one from a Chinese/Taiwanese company) asking if there’s still some good business to be made with internet cafes in the Philippines. From accounts of friends and people who’ve been into the net cafe business as well as what we’re seeing in every mall and street alley, there’s some mixed reaction.
Five years ago, the prospects were better; way better. I myself was thinking of opening up one back then. My excitement was immediately doused after doing the math.
Just like any other brick and mortar businesses, there are so many extraneous factors that’ll affect your likelihood of success in the internet cafe industry:
- Location. Pick a good spot and you’ll hit a gold mine. Pick the wrong one and kiss your money goodbye.
- Competition. Most business-minded people think of competition as a race to charge the lowest prices in order to win customers. While it’s good for the customers, exceeding the lower boundaries can drive you and your competitors to bankruptcy. One cannot expect to recover a Php500,000 investment if hourly rentals go down to as low as Php10. It goes without saying that in this industry, there are no customer loyalty; just cheaper rentals.
- Quality/Consistency of Broadband Connectivity. For places that don’t have many options for bandwidth providers, this could spell trouble if your only source of connectivity conks out more frequently than you get brown-outs in your area. A backup DSL might be a good solution but many consider the extra cost to be not worth it.
- Software Licensing. Many people who go into the net cafe business don’t factor in the cost of software licensing in their capital. Either they think they can get away with a few pirated copies or go open-source full-time. Still, there’s the class of ever-popular network games like Starcraft, WoW and CS which cost an arm and a leg to get a per-PC license. Maybe that’s why MMPORG pay-to-play model is more popular in this side of the globe.
- Expected ROI. While previous half-decade old records saw a return-of-investment in just over a year, lower rentals due to fierce competition and over-saturation of net cafes have driven the ROI further back to as long as 3 years (that’s if you’re lucky enough). To sustain a business that long and derive your income from that sole business could easily drain you of energy and personal savings.
There’s also the question of how many PC units should a net cafe operate in order to realize profit. A friend, who runs a net cafe for about 3 years now, says you need at least 15 units to survive and get decent income. Does that mean others operating below that number are doomed to fail in the long run?
However, the growth and expansion of Netopia’s franchise around the country says there’s still good money to be made from the internet cafe business. Does that mean people wanting to venture into that industry should look into franchising? What do you think — given the opportunity and capital, do you feel a net cafe business in the Philippines is still a lucrative one?
@Kaloy
Honest naman po pala yung technician nyo. he he he…So mga gamers po ang target niyo. Tama lang po yan pero magcanvass pa din po kayo sa ibang supplier baka may makita pa po kayong mas mura.
Ito po ang modification na gagawin ko pero base lang po sa preference ko at hindi dahil ayaw ko yung spec na ibinigay sa inyo. Discuss nyo din po sa technician nyo kc sa tingin ko ok naman siya.
Processor – tataasan ko ng konti, base sa budget.
Memory – downgrade to 1g. d na po mapapasin and difference except sa loading. tapos upgrade to 2g kapag may budget na.
VCard – Downgrade to 512mb. hindi po yan mapansin ang difference.
Mothierboard – meron akong m2n pero d ko gusto ang performance d ko lang sure kung dahil sa memory, d ko pa kc natry i-upgrade. discuss nyo po sa technician nyo baka meron po siyang alternative. pero baka po i-suggest sa inyo ang asrock. wag po kc natry ko na po yan.
AVR – Hindi na po ako gumagamit nito mula noong 2008. bawas init po sa shop kc mainit po ito.
Monitor – change brand to aoc. downgrade to 17″. hindi na po masyadong pinapansin yan ng gamers kung 19″ o 17″.
Sana po makatulong ito sa inyo.
P.S. saan nga po pala ang location nyo? baka naman sa tabi ng shop ko kayo magtatayo. sabihin ko na sa inyo ngayon, mali po lahat ang mga sinabi ko pati yung technician nyo manloloko yan. he he he……….
@Jun0865
Sir, hindi naman po dahil tumakbo yung game pwede na, kahit naman po sa pentium 4 with 512mb na memory tatakbo ang call of duty. Marami na po kasi akong nakitang gumawa nito. oo nagtagal din sila kaso dindi dahil kumikita sila kundi dahil nandun na sila. Parang internet connection din po yan may mabilis at may mabagal pero parehas pong nakakapag-browse. pero, disregarding other factors, sa tingin nyo po saan pupunta ang mga customers.
@kaloy
-i cut mo yung VC mo. di naman kelangan kagad ng 1GB na VC lalo nat nka 9500 ka. Suggestion: kuha ka khit 512 lang muna. wag kang gagamit ng Inno3d. Nvidia card ang bilhin mo. mas preferred sila ng nakararami kung performance ang pag uusapan.
-LCD monitor- Kuha ka khit yung 16′ or 17 ‘ lang. ung Focus na LCD monitor 4k lang un.
@marc
Ang perception mo kasi, eh yung specs na sinasabi ko eh, yung mga pc na “pwede na”. Nagkakamali ka. Pwede kang magkaron ng pc na average specs pero dika mag sa suffer sa budget. Tandaan mo: hindi lahat ng customer eh nag la-LAN games. karamihan sa kanila kundi online gamer, oh gusto lang mag browse sa net. And besides, ang isang bangong lan game ngaun eh umaabot ng 3k. sa tingin mo ba, praktikal ang bumili ng isang game lalo nat 1:1 ang ratio ng license nito? isama mo pa ang starter na operating system. Ang poin ko wag kang mag po focus sa isang bagay. Balansehin mo din kung saan ka makakatipid ng hindi nag sa suffer ang service at rate of income. Hindi, puro gaming experience ang pinag uusapan dito. kundi pano ka makakapaghandle ng negosyo effectively.
Mga sir..can I have advice kase i’m planning to open up a computer shop here in rizal…mejo ok naman ang target market kase meron dito 2 school, tabi lang dn po na daanan and currently meron ako sari sari store naka bukas, sayang kase ung space sa likod why not put up a Net cafe..What do you think guys.?In terms of computer I know how to set up the internet cafe so means less expense pa to…
kung small BPO or blogger kaya mga sir..?what do we need..?thank you..
saan ba pwde na maganda na bumili ng mga computer parts sa manila? balak ko kasi ng 10 units na workstation and 1 server, advice po ng specs para sa mga in ngayon na online games..
sa mga humihingi ng advice, try to send me an email kung kelangan nyo ng tulong. tutulong ako sa abot ng makakaya ko. wrmbloodazn@yahoo.com
hi everyone..im planning to put up a ic too.here in our place(bahay) about 4 to 5 pc..how much will be the budget..and i have seen ah brand new computer package. i don’t know if the specs are good for internet and games..heres the specs:AMD Athlon II X2 240 2.8 GhzB, MSI K9N6PGM2-V2, 1GB memory, 320 GB Hardisk, 256 Integrated Video, Dvd combo, Integrated sound & Lan, ATX Casing, 15″ LCD/TV monitor, keyboard, mouse and AVR…please help me..tnx..
plan ko rin mg-open ng comp shop mga 5 pc lng kaya ko…pde b to??? and second teach me how to blog….
Twitter: razorous
says:
Quick question lang po.. I’m about to purchase 10 avrs.. I’m not sure what specs for it should be considered… Ilang watts po ba dapat to for a regular flat panel monitor and cpu? Will it matter kung more than 500w?
Yes please teach us how to blog..Thank you..
email me so i can answer all your questions wrmbloodazn@yahoo.com
hi there.. i owned an internet cafe just beside our house.. I only have 4 Computer.. My business is running for 4 months now. I think it will be better to start with a small units just to try it out.. @aisha. I have that kind of specs. That specs will be fine for gaming and internet. My internet connection is Smart Bro. plan 999. Smart bro in our area is good, but ive seen a lot of bad coments about the speed or connection of smartbro plan 999. I do have stable conection and 1.72mbps speed.. I also offer printing, typing job and photo printing.
yan e. napadaan lang.. well, setting up an internet shop is no walk in the park. Im 25 yrs old nung ng put up ako ng internet cafe sa barangay namin.. sinabayan ko habang may work ako sa isang call center.. ang masasabi ko lang sa business na to is kelangan masaya ka sa ginagwa mo.. kung hilig mo kasi hndi mo mararamdaman ang pagod mo.. my shop has been running for more than a year now. initial gastos ko is 80K, sa ngaun bawi ko naman na ung puhunan ko.. hndi rin biro ang pinagdaanan ng shop ko.. since may work ako, pag merong nasira, it will have to wait until my dayoff. pero pag dayoff ko naman full time ako sa probs ng pc ko.. mga usually na issues ko is: hardware (memory)…tinamaan ng kidlat(patay lahat ng ups ko, buti nalang hndi ung cpu)… virus(tagal mag reformat)…games (ang daming error na lumalabas, kelangan mag research kung pano ayusin)…. sa provider naman, tingin ko swertehan din e.. may mga lugar kasi na di maganda talaga bato ng bandwidth, may mga lugar super stable naman kahit malayo.. pero again, bottom line… if you want to be in this kind of business, you must learn how to love it.. wag isip sa kita.. tingin ko susunod nalang yan..
I was inspired by your post. But I don’t know if can still go on with my plan to open a net cafe which i have partners. Do you think that partnership is okay a business. We plan to start not less than 100,000.00. Can give me an advice in your free time? Thanks a Lot.
Have this specs for gaming and browsing.
Using Windows 7:
Dual core processor, Intel or AMD(don’t use celeron)
2 Gbyte of memory ( RAM )
Geforce 9500GT video card for Nvidia or Radeon 3650 or higher for ATI. any amount of memory( memory is not the basis for Video card speed so don’t be fooled with 1 gig or 512 or 256, with the same chipset, they perform just equallly)
Not less than 160 Gbyte of Harddisk
Using Windows XP:
Dual core processor ( or any new single core processor, avoid celeron or sempron)
1 Gbyte or higher of System RAM
Nvidia geforce 9500GT or higher video card or Radeon 3650 or higher for ATI ( use any brand, Inno3d,Palit,Asus,Galaxy,MSI etc.)
Not less than 160Gbyte of Harddisk (SATA or PATA)
Using the cheapest available motherboard may be a smart idea, avoid PCChips brand. ECS,Asrock,Asus,Emaxx or Gigabyte is a better choice.
Select the fastest available internet connection in your place, believe me this has benefits.
You may not use voltage regulator if you used branded Power supply like Coolermaster, Enermaxx, gigabyte,HEC etc.
Genius brand of Keyboard is a good one with a cheap price as well as the mouse.
Use any PC Case but better select those with bundled fan, and the power supply bundled with the case may be use or replace with a branded one for more reliability.
To reduce power consumption, LCD monitor is a better choice, as well as space saving. 19-inch is ideal.
Hi John,
do you know of shop that i can buy this items at low price? I plan to put up 15 units in Manila. Thanks
Twitter: Illya
says:
My friend spends money in Internet cafe every day. Once I asked him “Save some money, then buy PC and connect it to Internet”. He answers “I don’t want PC at home – PC is big problem for me, if I’ll buy it, you will see me outside 1hour a month”
Yes thery are good for poor students
san ako makakuha ng murang units? im planning to buy 10 PCs
ako eto after umalis sa trbaho kasi ngbawas ng tao ang company ko dati.sad to say nakasama ako sa mga natanggal.ang problema ko nsa i’m 39 going 40 hirap nku maghanap ng work sa edad ko na eto.dahil sa hilig ko sa computer and gusto ko tlaga matutunan,nagaral ako ng basic computer application like ms office at hardware and software troubleshooting kaya pagkatapos ay nagput up ako ng internet cafe na ang capital ko ay ang perang nakuha ko sa company ko dati.dahil sa kagustuhan ko talga magtayo dahil ala na kasi akong work at eto nalang ang inaashan ko hanapbuhay.more than 1yr.naku at ang dami ko ng problemang naransan at ngayon for sale na nag internet cafe ko.lagi kasi abuno..luge na..
PANu poh magreformat ng computer pentium 2?
internet cafe business
ok yan, kung!
kung sarili mo ung pwesto.
kung marunong ka mag repair ng PC and Format
kung matao sa lugar mo
kung walang gagaya sa iyo at mag tatayo sa tabi mo at kung san san pa.
kung di EPAL ang mga magulang at irereklamo ka sa baranggay dahil bumagsak daw ang anak nya dahil sa net cafe mo,
kung kumpleto ang permit mo ,, at di kana haharassin ng walanghiya at makakapal ang pagmumukha ng empleyado ng city hall, SSS, BIR , at kung ano ano pa. isama mo na microsoft phils.
ngayong kung sa mga nasabi na dahilan ay gusto mo pa mag business ng internet cafe. “bahala ka sa buhay mo”
ung mga nagsasabi na malakas daw sila at malapit daw kasi sila sa school at narami player na “BATA” .. antayin nyo isang araw may bibisita sa inyo na taga cityhall at mememohan kayo ,, at kung malas malasin pa kayo ipasasarado shop nyo,,
internet cafe business sa ngayon ay wala na pabagsak na for so many reasons, isama m na yung pag mura ng PC at pababaan ng singil ng internet connection,
may net cafe ako 7 yrs na ,, and im planning to shut it down dahil sa mga nabanggit ko na kadahilanan,,
dati oo ,, mga 5 to 7 yrs earlier ok pa ang business na ito pero ngayon ? think twice ,
GODBLESS US , “,)
pahabol :
isama nyo nga pala ang walang hiyang MERALCO sa walsng tigil na pag taas ng kuryente nila,, sa pag bagsak ng mga net cafe ngayon. ang taas ng kuryente tapos kabilaan ang promo ng net cafe “HATAKAN” pababa ang presyo. which is mali
kita nyo ung mga net cafe owner na naka “JUMPER” todo ngiti ang mga yan , kasi kumikita sila ng malaki dahil sa pag nanakaw nila ng Kuryente.. MASUNOG SANA BAHAY NYO ! mga buseett ! mga anay ng lipunan ung mga legal ang nag susuffer sa pag nanakaw nyo,
“,)
sa mga mag tatayo ng net cafe business u can email me for more info bout sa net cafe business, neoh_77@yahoo.com
tama ka! ako nga sinumbong sa brgy ng kapitbahay na bobo, bumagsak sa skwela yung anak nya at ako sinisi, eh hindi naman madalas anak nya sa cafe ko, cafe ko lng mas malapit sa bahay nya, hindi nya inisip bobo din anak nya katulad sa nya. Kahit walang batas sa city namin na bawal ang bata sa cafe, pinagbabawalan pa ako ng kapitan. tuloy humina kita ko. tapos pag may mawawalang gamit sa customer mo kaw sisisihin ng mga taga barangay, mga bobo talaga at mapaaway kapa sa mga bobong magulang na reklamo ng reklamo. Nagiging bad influence pa tayong mga operator sa mata nila.
I been operating for 4 years na, may buwan na maganda ang kita meron din lugi, & im planning to find another kind of business kasi puro na rin upgrade problema ko, bilis magtaas ng system requirements yung mga games at mauubos lang pundo mo sa kakaupgrade, tapos dumadami pa kakumpitisya mo. kelangan talaga kaibiganin mo mga customer mo para babalik pa sayo. Kung gusto nyo magtayo dapat wala pang nauna sa nyo at click yung lugar nyo o kaya matao at walang masyadong may computer. maganda din if residential area, matago ang lugar at hindi sa gilid ng daan para hindi masingil ng business rate kuryente mo, at hindi na kelangan kumuha ng BIR/DTI – brgy at mayor’s permit lang pwede na.
paano ba mag laro
The problem is getting a reliable and consitent internet service in Manila. Most connections I’ve seen don’t exceed 2MB. Infact 2MB is almost non-existant. Online games these days are FPS based games (frames per sec). In layman’s term, who ever can click first wins. So for people who are aspiring to build gaming stations, come on, 1GB? 2GB? It is a thing of the past. Average PC’s now adays come with 4GB of RAM with 64bit OS on to take advantage of the whole 4GB.
sir: do u cater services outside luzon? like a place for example in surigao norte? I like your packages better than here….
[...] think we are more than 10 internet cafe establishments operating here in our place. It seems like this kind of business is very in-demand [...]
Hey guys,
Advice lang po sa specs ko:
CPU: Intel i3 540
Mobo:Asus P7h55-m-le(LGA 1156)
Ram: 4G(2x 2G kingston DDR3 1333MHZ)
Vga: Msi R4670-MD1G
Psu: Coolmaster 460W
HDD:WD 500G SATA II
LCD:Asus 19″
or
CPU: Intel i3 2100
Mobo:Asus P8h61-m-le(LGA 1155)
Ram: 4G(2x 2G kingston DDR3 1333MHZ)
Vga: Msi R4670-MD1G
Psu: Coolmaster 460W
HDD:WD 500G SATA III
LCD:Asus 19″
Salamat sa mag-advice!
hi guys…sa mga may problema about setup of time manager sa cafe..network installation,all internet cafe services. matotolongan ko kayo…with in mindanao area lang..
albert pesisano
09496864781