Money is seriously tightening up

[midwayer]

I live in what is considered an "insulated" economical community whereas property prices are at lofty levels and holding, I think an average of 19% property appreciation has been the norm., tourism and retirement is the foundation of our local economy. They have been building like crazy for the last ten years and we are considered the sencond fastest growing community next to Las Vegas.

BUT, I am seeing, first hand, the separation of wealth and the trickle down effect spigot being shut down in my industry which is high end cabinet and finish carpentry. Whereas my business used to thrive on high end condo work and the "just do it" customers were in vogue, these same customers are not starting projects or are non-existent. The ones who are established are holding tight to thier money. In the last three months I have priced at least 15 projects in which this type of clientele has postponed, decided not to do the project at all, or recieved a substantially lower price from another contractor who I am perceiving as an idiot for entering into the risk factor of doing that project for that price. I.E. my pricing power is dwindling quickly. On top of this, of the hit and miss(a problem in itself) projects I have going, it is taking much longer to get paid then ever before and you have to be extremely careful just who you are working for when it comes to sub-contracting to other contractors.

In attempting to diverify my business into lower priced production projects you have to work the immigrants in order to compete. This forces into the business factor all kinds new issues, as I work in a highly regulated state for businesses. The pricing power for a micro-enterprise is just not there and it's getting worse. What I'm finding in the low end market is the ones who are already locked into this market are holding it hostage to any new contractors wanting to enter. And I'm not new to the community just have been focused on a different niche in the same industry.

We have immigrants living two families per 3 bedroom 1200 sq ft homes.

Money is seriously tightening right here, if it gets any worse, I'm not sure I'm going to make it as a micro-enterprise. I'm pushing the envelope right now.

[seabeyond]

1. i ma being tight fisted that is for sure

husband business going a little here lately, computers. but there was a couple years of tightening, i think now just has been so long, eventually they have to start doing some things. but i feel it too

[sadiesworld]

2. A friend has a finish carpentry business and says the same things.

Actually, he is starting to see the Mexican/low-wage encroachment in the high end work as well (in addition to the drop-off in demand).

The long term picture doesn't look too rosy for any of us, does it?

Good luck to you and yours. :hug:

[midwayer]

9. This really is

killing my business for sure.

[JanMichael]

3. Are you in SW Florida? Sure sounds like it.

I just moved away last March and the appreciation was still there but the new permits pulled had dropped significantly. There's a drag created by the length of time (12-24 months or so) it takes to contract for a high value home, build it, then move in. The process is finally slowing down it seems. I could be wrong though, perhaps the Boomers getting all of their parents money is offsetting the effect?

Anyway Sub-Contractors will be the first to feel the crunch.

[midwayer]

17. Yes

JanMichael,

see post #5

[bahrbearian]

4. Our Cabinet shop has cut its force a little

but we have hired installers,our commercial fixtures are made in Toronto now. The projects have gotten smaller too.

[grasswire]

6. yep

I sell vintage and collectible items in a retail shop and on eBay, and am barely making any money at all in an area that used to be lucrative. Today I have 50 good items on eBay and not one bid. Not ONE bid. Four years ago the sky was the limit on eBay -- it was like found money.

[slor]

11. Provide a link...

I'll take a look.

[midwayer]

12. Siematic

I'm competing on a project against another contractor who is pricing Seimatic (Canada) right now. I'm pricing custom as opposed to their product and still should be able to compete, I hope, and actually give the customer better quality and white glove service. I should have answer, yea or nea by Monday.

[eaprez]

5. I have received 24% in pay raises in 3 yrs.....

...which by most standards is significant. Yet I am not doing any better than I was three years ago. Actually I am feeling the 'pinch' more. Even after I have refinanced my home, knocking $200 per month off my mortgage payment -- I still am not any more ahead than I was three years ago.

[midwayer]

7. Good responses

Thanks,

yes I am in SW Florida, and, unfortunately for all of us I have to say I'm glad I'm not alone, helps to reinforce that what I am seeing is really economy related.

I heard of a few 400 home tracks going as we really do have a lot of land yet to be developed. Amazingly they keep getting sold but at some time, I would assume it has too overtake itself and slow even further.

When I said that "I'm pushing the envelope" I really mean I am VERY close to going out of business right here if something doesn't break within the next few days even, I'm sunk. The time I have spent in the last couple of months attempting to land projects have really put a huge hit on the kitty money and I have spent way too much time chasing too little money as well.

[midwayer]

10. let me rephrase that

sorry..."glad is definately the wrong word to use

"it would appear that I'm not alone"

[tlcandie]

19. You need to get to Hernando County, Florida! Homes are buildling

and going faster than hotcakes at a Kiwanis Club pancake dinner...all you can eat!

There are HUGE developments being built..HUGE...on Elgin Road. I believe one is called Sterling Hill. Everywhere you look along the Suncoast Parkway...HOMES and more homes!

In the Trinity area of New Port Richey, no homes less than $250k! Maybe you need to expand your target audience?

[RodneyCK2]

8. My clients dried up...

I have been a freelance graphic designer for several years now and all of my clients have cut their design budgets. Things are bad for me at the moment. I recently decided to switch careers as a result and will start Massage Therapy School in August. I hope this is a good move. Hope is all I have.

[midwayer]

15. I found a business

that a guy here locally locked onto that I think might do well.

He refills printer ink cartridges at about half the price Walmart sells them for. He seems busy, I thought that was a great idea.

I just found out about him the other day

[Geo55]

13. Got a friend in the same region and situation....

sorry to hear of yours.
discretionary spending is always the first to take a hit.

Hey ! we can all "flip burgers" ...right Georgie ?

[midwayer]

14. Taco Bell & Saks Fifth are doing great right now...

Seriously Saks sales are actually UP, Lynn Cheney has been busy

Dollar General is up

Sears and the middle of the road sales are not so hot right now


Shows you the separation

[midwayer]

16. Yes

There are two facets to carpentry

One is Luxury...the profit

One is Necessity...the one that keeps the lights on only

[cliss]

18. Yep, I'm seeing it too. Reporting from Oregon,

and our state got hit really hard starting in 2001. Our unemployment was the highest in the nation (?) and we had a big exodus out for greener pastures elsewhere. So we've seen the worst of it here.

The frustrating part is that there really has not been any recovery. It's more like a car that died, and now it's sputtering along, just barely moving.

It's important to look at the decade we came out of: the Gay 1990's. That was a decade of unbelievable wealth, phony wealth, and paper wealth. The contraction was inevitable. The analysts warned that it was coming. It was just a question of when.

Our growth simply could not sustain itself at that level. It was really TOO much unhealthy growth, driven mainly by trillions being invested in the stock market.

They say that it's always harder to move down from a certain lifestyle, as opposed to moving up in spending habits. We've all had to do it, and it's no fun.

I see a lot of sweaty people at the office lately. I just heard that several of them have gotten home re-finance loans to bail themselves out of credit card debt.

I just don't see us moving out of this soon. I think the shitty economy is going to be with us for a long time to come. For us, it's been a time of cutting back, re-evaluating our priorities. I've started taking the bus to work. We eat only home-cooked meals from scratch. In the meantime, 25% of our income is put into savings and/or is used to pay off debt.

Sorry George: I just don't have any faith in your plans.

[Unperson 309]

20. I'm making exactly the same wages now

as when I started this line of work in 1989. No raises, no benefits, no overtime, no fringes, and I work from around 9:00 AM untill 11:30 AM (14 hours) daily with half a day off each week.

I make around $800/month before taxes.

The good part is that I can take time off whenever I want (I seldom do) and I can sit here and bang away on the computer! :) So I'm not really complaining... but it sure would be nice to make maybe another $10 to $20 a month for unexpected expenses.

309

[KittyWampus]

21. Other Cabinet Makers Are In The Same Boat-

can you reach out to others and think about forming a partnership?

Here in the Hamptons, some Real Estate guys I know just did this.

They were having a hard time competing against the big agents (many based in Manhattan).

By pooling resources, you could not only spend on some ads... you could bid on larger (corporate) jobs... have more control in the market.

Good Luck.