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24.118.119.182
Just received a letter that, effective the end of the year, my number two customer is closing shop. No big deal- they were responsible for "only" 37% of my income during the 2008 calendar year....
Jim
Year to date, as a company, we have lost that much or more. There is no construction in the US. What few jobs are coming up will have every Tom, Dick, and Harry bidding on them and 90 % of these are really not qualified. "Quote cost and we will work it out." That never ever works out. :( Will
I spoke with my contractor/customer this morning, and he said the home office shut them down based on their profitability, amongst other, smaller, things. To almost directly quote him, "How the hell am I supposed to be more profitable when I'm already quoting at cost and hoping to make money on change orders?" Apparently the home office is located in a part of the country where the competition isn't as fierce (yet), and they are still able to get (demand?) around 20-25% profit.....
And the "Tom, Dick, & Harry's" of the world are starting to drive me crazy! I've got Residential contractors bidding large Commercial projects, and multiple instances where layed-off fitters or tinners have purchased a van and decided to "make a go of it" on their own. Every time I see a job awarded to one of these "yahoos" I think to myself, "Well, there goes your profit, Jimothy. Let the hand-holding begin".
And it does. And I do, because that's my job.
Hang in there, bro! That light at the end of the tunnel isn't always going to be a train....
Jim
Several of our largest apartment owner/developers have awarded framing contracts to the residential Tom, Dick, and, Harry's and now they are bitching that they are getting "change ordered" to death and have even had a couple walk off the job due to incompetence. "Due to the economy, we have to take the lowest number," with no regard for its consequences. We have witnessed several large lumber wholesalers, who know better, walk on orders which they took too cheaply and next thing you know someone else awards them another job... No accountability at all. If we walked on a job, we would be banned to the Arctic. No pride and no shame. It is too bad. Will
Haha! Hadn't heard that one. But one I have heard is, "If everything's coming your way, you're in the wrong lane." :o)
Brian Walsh
Were there going to be some other accounts split up to help make up some of the slack?
I met with one of the Principals last week on a different issue, and while he told me they were working on some "long term changes" (which I assume would kick-in at the end of the year), he did not go into specifics.
However, the rumor mill has been running "big-time" around here recently regarding account/territory restructuring, so who knows?
Jim
NT.
Understanding that there are no guarantees in life, a "hunkering down" mentality may be in order for the immediate and foreseeable future.
Jim
That reaction may indeed be the most practically positive approach to challenging circumstances... As you have previously suggested, there will be many instances with very acceptable longer-term prospects that could have to weather sometimes disturbingly significant short-term setbacks...
In the meantime, in the choppy waters of industrial recession folk simply "have to do the best we can" to keep themselves afloat...
As suggested elsewhere, you'll probably have to wait till next year to purchase that On-Gaku amplifier... :o)
That said, do try to retain whatever emotionally rewarding low-cost opportunities you have available (fishing, listening to your vinyl records, etc.?) to keep tension and stress at bay during "the rough times"...
Bill.
Does that mean you won't be buying that $30k analog rig this year? Oh well, be glad you didn't bid on that motorized La-Z-Boy I posted about yesterday.
Ouch. That's gotta hurt. SVL sure sounds and looks like a good company to work for.
Chin up, fella.
Brian Walsh
Yup, this is a great place to work, and I'm really happy to be here, but if the economy keeps on "tanking".....
Jim
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