Money VS Economy

What is your perspective in todays market with the number of jobs compared to the profit/loss businesses take in?  Has 2007 jobs compared to 2014 jobs equal in profit?  Has the economy affected business overall?

10 thoughts on “Money VS Economy”

  1. With everyone being on the internet nowadays, people are being convinced they can get lower and lower pricing. It is driving total margins down. In turn I am receiving less acceptable contracts.

  2. I would say it has to do with the quantity of work compared to the available contractors. In our market there are several contractors buying work which doesn’t help anyone in the long haul. Appreciate others comments though!

  3. There is a lot of work out there for the taking. But it is at a lower profit margin now. I think a lot of the smaller companies get caught up with their gross earnings and forget to look at the net profit. I believe the consumers would pay a little more if the industry was upping their prices, but a lot of people in the industry are too scared to up their price.

  4. I agree there is a lot of work out there. I also believe that there is no reason to lower your prices.As a business owner my sole obligation to my company is to make a profit.
    When we as contractors compete on price we become a commodity and when you compete on price you actually get the customer you deserve. You attracted the customer who only thinks about price. Why not go after the customer you want. but in order to do that you have to know who that is specifically.Not just any old customer will do.
    We are in a market that has declining over all the amount of people coming into the trades.

    For smart business owners that means supply and demand raise your prices.For those who only sell on price shame on you for not looking in to the future and seeing what it has to offer. .

  5. “2006 jobs cost profits were high compared to 2014″

    When you look at the 2004-2006/7 market compared to 2014, there is no comparison regardless of the amount of work. Reflect on the residential housing market and mortgages, totally unrealistic to expect those individuals who “qualified” for loans were going to pay the last mortgage payment. Totally unrealistic expectations of long term economic growth which we all recall. The financial collapse in 2007/8 slowed all residential and commercial construction worldwide. Companys learned how to do more with less. GREED is not good and there was a lot of that back in the last large new construction boom after 9/11.

  6. I only been in business since 2010, things started falling off for me right after Thanksgiving 2014. I am going to start doing more aggressive advertising this year. And start targeting credit card paying customers. I ‘m going to start focusing more on making repairs and on smaller projects in order to keep up a positive cash flow. I don’t think people have the money larger projects today as they used to in the earlier years. So I got to do something to get customers.

  7. I don’t have the answer to “trend’ or “consumers”, but I have noticed a change in the amount of accounts receivable we carry compared to the past as well as the number of “no pay” jobs that are on the books today. One of the problems we have run into in the past couple years is large companies holding onto their money a lot longer than before and pushing off paying us for services until it is almost a legal. We have had to switch to payment prior to or at the time of service for private and small projects and down payments prior to larger projects. Even with this policy I have several completed projects with the second half payments out there 90 days or more.

  8. I don’t think you can compare 2006 to 2014 , You have more competition and more suppliers.If you believe you have a better product or a product better made by you
    sell for whatever you can. as long as you stand behind what you are selling. I wish i can sell our products same price as in 1977 when you had 1 supplier ,you were given a retail price list and you you could not sell below the price list or you will not be supplied,Then in 1985 we had a company bringing in products from Korea ,which bastardised the market,Sales went down profit margins slumped as everyone was trying to undercut each other and it is still happening today. Now we have products made in China for a 60% less than what we can make them in Australia,But is it a better product:No

  9. Doors, windows and facade elements are at least 25% of the facade. Next to the esthetics it is also from an energy point of view wise to choose for the best products. Forced entry resistance by using the best hardware and layered glass does cost money but the feeling you and your inventory are safe, is priceless.
    So sure you can compete on price but it’s better to sell performance, energy costs, safety and quality at your price and with your margin

  10. I believe it’s both. Since the crash, more builders are tighter with their money and more competition has driven margin Dow while the cost from the supplier rises every year. Windows are no longer sold by the builder. Instead, they turn their attention to more visual items such as cabinets. People look at a window and see just that….a window. They fail to realize that you have a window in every room of the house. It not only frames the room but also sets the exterior of the house. They can also improve or harm the thermal efficiency of the house.

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