credit crunch

[jefoss]

is anyone feeling the pinch yet?

a few local tilers have talked about not half as busy as usual, myself included, one guy is giving up, was going to retire in 2 years time anyway but thought **** it and giving up after all the work he has outstanding and not taking anymore, im sure its not just us tilers tho.

 

[WoodYouLike]

I'm blaming the media for 'soaping' the credit crunch - specially Robert Preston on BBC news.
But it depends IMHO in what type of business you are, we - middle to high end of the market - haven't noticed a crunch that much. (And because of the 'soap' our marketing is now focused on the theme: Don't move - improve!)

 

[namsag]

If anything we are getting busier for this time of year it certainly looks like instead of moving people are improving

 

[noseall]

i currently build nothing but extensions, and all that goes with them.

it costs a lot more to move to a four-bed than it does to add a bed to an existing three-bed. plus all that dead money paying for solicitors, stamp duty, removal firms etc.

i,m booked into January '09. people ARE staying put.

 

[Thermo]

had a very busy start to the year with enquiries etc, but it has died down a little over the last month. I put that down to a crap easter and continued crap weather. People are still spending money, mainly to improve and stay where they are, but we are still getting stuff from people moving as well

 

[gregers]

well i was talking last night with a financial adviser and he said he noticed the slow down about 18mths ago,he said there was about 4000 deals out there now less then half,and some of the builders ive been talking too over the last few months are now beginning to worry a bit,there busy now but the enquirers are starting to slow down.

 

[holmslaw]

Two weeks ago had 3 contracts that would last till end of 2009 - they have all been indefinitely postponed.

 

[WoodYouLike]

Well, to be honest, the 'bubble' was about to burst - nothing could have sustained the crazy increase of house-prices. The 'credit-crunch' is IMHO the 'excuse' most are using now to temper the unhealthy rise.
Banks too are in fault: in order to keep up with the 'band-wagon' lenders they gave almost everyone a mortgage (hence the over 4000 different types of mortgages!) and kept pushing credit cards to everyone. Money isn't for free, it never was and never will.

Long-term investors last week have had a top-week, euro-bonds have seen a hefty increase in popularity again (article in Saturday Times, business news), it's the short-term investors - looking for a quick buck - who are feeling the pinch and increase the 'soap-panic'.

If you bought a house say 10 years ago its value has gone up tremendously over the last years - now everyone is 'crying' over the 'loss' in value of 3% (compared with the value of last year). Still more value than when you bought it!

Just my 2p

 

[Whitespirit66]

I read something interesting the other day about recessions etc. They said that of all the big financial storms that have hit economies over the last century (1930s, WW2, 1970s), it took about a year for problems in the financial/stock markets to work their way out into the wider economy.
So, after Northern Rock, credit crunch etc, etc it might take until late 2008 or early 2009 before the excrement really hits the extractor for everyone.

One thing's for sure, I wouldn't like to have a telephone number sized mortgage and a wife with a fist full of credit cards up to their limits right now. I'm glad that I'm sensible enough to only buy things thay I can afford.

 

[JohnD]

from Dec 1999 it took three years

 

[WoodYouLike]

7 years of prosperity followed by 7 meagre years - biblical or economical fact?
As small businesses the biggest threat now is cash-flow, found this article on the very subject, wise words.

 

[The_Scotty]

Definately.

This is the quietest spell I've known in 5 years trading.

 

[Paul Barker]

I just don't know what the answer is myself.

From my perspective overheads are an insurmountable mountain at £50 a day, but you can't stop overheads, having incurred them as a necessary part of being in business you have to pay for them out of borrowing if there is insufficient turnover. Then next year you have to make tough decisions. Do I carry on or do I find something else to do instead?

I am in the Valey of Decision, but have made valient efforts to fix the problem though not solved anything to date and this week just dug myself in deeper..

At the moment it would be better to cancel insurances and memberships, hand van back, list tools on ebay and everything else which is spare, and go labouring.

 

[namsag]

Why does it cost you 50 quid a day to work , having a brand new expensive van and having every bit of kit going and doing every course and joining every trade body etc etc are not a necassary business expense. It can be done far cheaper with no cut in income