How Bad

[gonfishn]

I know many here own their own business and wonder how it has affected you. I opened my mattress factory in October to go with with my furniture store. Selling to myself and whole selling to the other retail stores has cut my cost of goods about 15 percent. That sounds good but the mattress industry was down 40%. Supposedy there are Goverment grants out there to help us. Right..

In my area alone there are four empty retail stores with more to come. This is not going to be a quick fix and the world as we use to know it will never be the same again. Like most i am cutting down by cutting the jobs i created. It pretty bad when the boss is making bedding now to. Not afraid to get my hands dirty. I feel for those thousands that had secure jobs and now are searching for any job that is available and can find none

 

[Haut Medoc]

Re: How Bad

It has affected me quite a bit.....
It was hard to compete with contractors who hire illegal immigrants even before the economic crash......
We need to send the illegals packing & take care of our own....
That's all I got to say about that.....

 

[Bob_VT]

Re: How Bad

That cloud is covering most of the US..... not that is has not been that cloudy before but I keep a positive attitude and we will all make it.

 

[eaglejim]

Re: How Bad

Well I am with Bob I too go around with a positive attitude we are getting by but barely I have not seen it this bad since the Jimmy Carter era.We turn nothing down during the regular times but now we chase down every lead like nobody's business,I guess the strong will survive and I plan on surviving.As far as the illegals go most of the ones I had to bid against in my field have left down to a couple of Mexican crews out there they have no roots in the community so when it gets tough they get going

 

[Shizzy]

Re: How Bad

I do the Estimating and customer service for a die shop. Im finding many many Vultures in the industry. I have some great customers who call me when something goes down. they call and tell me about salesman calling them offering them pricing I know is way too low. Prices I cant (and wont) beat. the industry is down, and Im stuck between pricing it to make a dollar or two and risk loosing the customer, pricing it at cost to keep them happy and keep my employees busy or price it at a loss and loose money on the job all while there are shops out there giving product away.

It sucks. All I can do is give it my all and focus on making a quality product and ride it out. I am luck enough to work in an industry of enough "old school" types who base their choice of supplier on service and not so much on the price of one or two dies. They know that when they call Sean he is going to recognize their voice, ask how the family is and deliver what he promises.

 

[chiefalen]

Re: How Bad

And if you keep doing that you will stay in business. Mine is flat but it's always the same don't go up down go down.

Guys that are gonna ride this out are the same guys that do thru the downturns.

They cut costs any way they can, work more hours, tighten your belt and make sure your customers are happy.

Call them once in a while. Check in with them, and talk them up, and if they can they will throw more your way. Ask them how they think your product can be made better, build their ego and keep strokin em.

 

[SS MAYFLOAT]

Re: How Bad

Got an idea for ya Doc,,,,,why can't you offer a hidden pocket that is sewn into the mattress. A place to stash cash. Who knows,,,,,you might be able to make something off this after all. Best wishes to you big guy .....SS

 

[jonesg]

Re: How Bad

How bad?
I haven't paid January rent yet.
Got no heat in the apt, don't really care about that.
I own a catering biz, just booked a wedding tonite.!
Too bad its not until july.

as far as gvmnt programs, I don't need no stinkin handouts.
"with the Kings shillings come the King's shackles".

I'll work my way out as usual, those who take the gvmnt bailout are gonna get hooked on socialist solutions. This isn't 1935.
Back then a ntl hiway system was badly needed, today its nothing more than busy work.

 

[ziggy]

Re: How Bad

it's as bad as i've had it. been self emplyeed since 95. since this carp started, i've been slowly going backwards. i've never gone backwards before. i got a little saved up, but hope biz picks up as what's saved won't last long.
i've got the price cutters in my field too. i've lost much biz to them too. so far i've not caved in though. i offer a professional service and am not a cut rate biz. least that's the way i feel about it now. i'll see how hungry i get...

i'm also having issue with keeping up with technology. some of the biz i could get requires high tech (expensive) tools to accomplish the task. no tools, no job... this is effecting me too i believe..

it's becoming hard to be a one man show, that's for sure...

"with the Kings shillings come the King's shackles"

ya man, i here ya, that's why i work for myself. no shackles. i intend to pick myself up by the bootstraps and succeed at all possible costs.. i sure don't want no one looking over my sholder... society is already spying on me enough as is w/o the govt. having a extra reason to look too..

bad engough that boating will be hard to do this summer if something don't change, i don't want to effect that, but i'd say, it'll be something that's effected for sure. at least the boat's payed for and not costing much sitting... the worst thing ya can do to a boat..

 

[CheapboatKev]

Re: How Bad

And if you keep doing that you will stay in business. Mine is flat but it's always the same don't go up down go down.

Guys that are gonna ride this out are the same guys that do thru the downturns.

They cut costs any way they can, work more hours, tighten your belt and make sure your customers are happy.

Call them once in a while. Check in with them, and talk them up, and if they can they will throw more your way. Ask them how they think your product can be made better, build their ego and keep strokin em.

Exactly Chief..In an industry inundated with Chinese imports that are at times way below my company's cost to manufacture, CUSTOMER CONTACT and relationship building is the key..I use a customer contact database known as ACT!...Keeps track of the last time I followed up with customer "X" , and oh yeah, he mentioned it was his wedding anniversary..How did that go? little things that personalize the businesss you do day to day...
Some will always go cheap, sometimes they get burned and come back..Sometimes not. Chances are they were not on my 80/20 mix..(80% of sales come from my top 20 accounts)..
Because of these relationships, I have ben able to ask "Aren't I worth 50 cents more? Most often the answer is yes!

 

[chiefalen]

Re: How Bad

Oh guys i feel your pain i cant tell you how many people are calling me for ideas on how to keep going. I should charge them for the advice i'm giving.

Just came in from the cold, i was shooting the breeze with my friend, layed off plumber from Hovanian.

Hes finding side jobs so far he's lucky and keeping busy one or 2 jobs a week and he able to keep treading water.

Guys if you make a certain product such as a shaft, and all you do is shafts lets say, start making the product the shaft connects to. Maybe gears this is a example.

When your old time customer, calls for a order tell him you will give him a discount for every gear he buys with the shaft.

You will cut into the gear guys business but what the heck it's business nothing personal.

Guy who is making mattress, start making pillow's, or something else such as couch's expand your product line, you will be surprised, maybe pillow's might make you more money.

Every single item you sell try to sell something else with it, kapiche. Don't hurt to ask and if you phrase it right with discount, and lower then the other guy, made better, whatever there's the till getting a little extra in it.

 

[tashasdaddy]

Re: How Bad

it has hurt me, in my restoration, i have lost my market. lower to mid income just wanting a safe boat to fish or cruise. they are buying bread and milk now, not boats. i have not bought another project in 6 months, have a completed one in the back i can't sell. as i am not going to give it away. too nice.

 

[CheapboatKev]

Re: How Bad

Got an idea for ya Doc,,,,,why can't you offer a hidden pocket that is sewn into the mattress. A place to stash cash. Who knows,,,,,you might be able to make something off this after all. Best wishes to you big guy .....SS

Built in sherpa lined gun case, heavily padded of course!
EXCELLENT IDEA..

 

[oddjob]

Re: How Bad

Vote out the socialists in 2010 and 2012. All we can do now is ride it out. Did someone mention Jimmy Carter?....yep!

 

[Plainsman]

Re: How Bad

It has affected me quite a bit.....
It was hard to compete with contractors who hire illegal immigrants even before the economic crash......
We need to send the illegals packing & take care of our own....
That's all I got to say about that.....

Smite the Sacrines (sp)

 

[eaglejim]

Re: How Bad

Well I did get a call today from one of my customers he has a porch floor that needs to be striped,well I am pumped about that at least it puts me out there,oh did I mention he is on a budget

 

[Shizzy]

Re: How Bad

As a side note, I have noticed a large increase in quote requests from customers I havent heard from in years as well as people who just found our name in the yellow pages or on the web. Im not much of a salesman, but I do my best to let them know what Im here for and what I can do.

I guess in this economy everyone needs to be a salesman.

 

[Kiwi Phil]

Re: How Bad

I have been affected.
Have dropped my wholesale price by 15% so my customer can make a better margin.
Not as stupid as it sounds, as they are now reviewing the lines they carry, so my thinking is pretty much "make sure there is plenty in it for them".
Hopefully it will be a winner. They certainly know who we are now (as opposed to just a number).
That big new shed I built....well 1 yr back they were going to double their purchases from me.....that has been cancelled. Fortunately I didn't borrow anything for it. Am sure in the long run, it will be a real smart move....just dosn't seem that way at the moment. It has made out life easier tho.

My boat importing business from your country has stopped completely.
I was bringing in 1 MacGregor X or M every month.
Number 10 is sitting in my yard....I would like to keep it but the wife reckons get the bucks in the bank.
Problem is 2 fold......when your Govt decided to bail out your banks, and guarantee deposits, your $ shot up in value, leaving ours 30c in the $ down, which makes buying "American made" completely out of the question.

I know it is killing American Industry.
The trucker I used has 3 trucks that worked full time moving boats from the warf to mainly dealers.
I spoke to him a month back, and he only has 2 boats booked.
The dealers have cancelled all forward orders from Brunswick and he reckoned he was hauling between 20-30 per week, and this is only one small corner of the recreational industry.

I have a nasty feeling about this one.
If you have a job and little debt, I think you are going to do very well, as I wonder if we may not experience deflation, which will be compounded downwards once unemployment goes over 10%.....more people desperate....work for less, or longer for same....costs and prices become lower etc.
Just my view tho.

Cheers
Phillip

 

[projecthog]

Re: How Bad

I read all of this and remember my slow descent into bankruptcy only a few years back.

I just couldn't read this and not want to say something toward encouragement,....

I feel for those of you who can't see anything positive happening right now, and I surely do understand what it can do to a man. It was a scary thing to go through for myself when it happened in an economy that was ok.
When things start to feel desperate it is a gut wrenching and hard thing just to have to wait and see, especially for those who are so dedicated to their product and their customers.

I wish you all God speed, and hope you will slip through this global darkening of the economy, to come out full sail, stable and on course when the wind dies down and the skies open up again.

God bless you and keep you and your families, and all who are under your care.
PH.

 

[Shizzy]

Re: How Bad

I have a nasty feeling about this one.
If you have a job and little debt, I think you are going to do very well, as I wonder if we may not experience deflation, which will be compounded downwards once unemployment goes over 10%.....more people desperate....work for less, or longer for same....costs and prices become lower etc.
Just my view tho.

Cheers
Phillip

you are quite correct on that. I have no plans to use any type of large credit and My Lady and I sit down once a week and go over all our upcoming bills and plan of attack for the next few months. I think more people need to be and should have been doing this.