Recession. What recession?

[DRTDVL 0]

I'm busy, but the type of work coming in has changed and I'm down to a 2 month backlog from around 6 months.

Our competitors (most of whom specialise in one or two fields where as we are much broader) are really feeling it - 4 day weeks, lay offs, etc.

The problem is they are now undercutting me. I priced a small job the other day for $800. That was what I thought was a competitive price but with a small margin aswell in case the job turned out more difficult than it appeared (as they always do). Competition quoted $250. I wouldn't even be able to cover wages and vehicle expenses for that.

Its shocking when so-called professionals are willing to do work at below cost just so they keep themselves out there and visible. Hopefully it hits them in the pocket enough so they can't keep it up.

There are people in our industry working on a 0 profit margin just to scrap by... it's in turn forced many other in the industry to cut profit margins in some cases drastically...

[Guest FrantiC]

Maybe Pizza Hut just sucks then

[bravo 35]

It just devalues the industry or profession. It's stupid. They'll drop their price to get work, but ultimately they'll either go broke or everyone will match their price. So then they'll have to drop it again.

If their price is the same as everyone elses, and they put effort into doing a good job - the work will come by itself.

[mr E34 11]

When turnovers drop it is the overheads that kill you, have a look at rents/RATES on commercial buildings.

That's why i recommend buying your own premises if it's a long term venture, pay the bank your 'Rent' & when you leave you own the building.

edit.. over time as your Rent to the bank reduces your debt obviously your Rent (repayments) will decrease, can't get out of the rates though.

Edited July 30, 2009 by mr E34

[brockie123 31]

hire me!

[*Glenn* 854]

When turnovers drop it is the overheads that kill you, have a look at rents/RATES on commercial buildings.

That's why i recommend buying your own premises if it's a long term venture, pay the bank your 'Rent' & when you leave you own the building.

edit.. over time as your Rent to the bank reduces your debt obviously your Rent (repayments) will decrease, can't get out of the rates though.

Never decrease your rent.... you end up devaluing your building because its not showing a financial return. Gear the rent to match an 8% return on investment and that will give you a better return further down the track. I own my building and the business pays rent @ 8% and all outgoings are paid by the business

[318isCoupe 0]

the hospo industry in the b.o.p is pretty much dead, half the bars and clubs in tauranga (all 4 clubs..) have been either up for sale or close to it in the last 6 months or so. the bonus of this as a dj is more private party work = more money!

[kingkarl 136]

It's only a recession for those who are highly geared or leveraged

That's a pretty ignorant thing to say man.

[Jeddy 0]

it's killing me.. i can't find a job as an apprentice mechanic anywhere looks like i'ma have to hold out for a while.

Build a race car!

[mr E34 11]

Never decrease your rent.... you end up devaluing your building because its not showing a financial return. Gear the rent to match an 8% return on investment and that will give you a better return further down the track. I own my building and the business pays rent @ 8% and all outgoings are paid by the business

That's obvious Glenn, the point i was making was when you buy the building the repayments will start high (rent to the bank in repayments) but in time as the principle is reduced your payments will reduce.

The rent you pay yourself as the owner is another matter.

[M3_Power 636]

That's a pretty ignorant thing to say man.

Not really if you understood the economics behind it.

It's an overly simplified generalisation and I am obviously not talking about the eventual trickle down as a result of it.

[Guest Ari Gold]

Hospitality seems to be decreasing in numbers. Simply the lesser well off people don't want to spend their money on dinners out.

Negative. We're almost fully booked till the end of the year.

I've been so busy I haven't even had time to post on here, and we've just scored the wallabies post match functions for every time they come to Auckland.

We're posting record numbers every week of the year that goes by.

You've just got to be on the top of your game. No doubt that the operators that sit on their hands will get creamed.