what is stopping you?

[VVC-Geeza]

Originally Posted by rich17865

By not spending you must realise that impacts your own job security? If I have less business I spend less with my suppliers, I buy less commodities, as a result those people do the same.

TBH I don't think the majority of customers care about the bigger picture,all most see is a very large gas bill,a £300 car repair and a child who wants to go on a school trip.They then they decide their gas boiler can miss its annual service this year,and the painting of the house will have to wait.

[rich17865]

Originally Posted by VVC-Geeza

TBH I don't think the majority of customers care about the bigger picture,all most see is a very large gas bill,a £300 car repair and a child who wants to go on a school trip.They then they decide their gas boiler can miss its annual service this year,and the painting of the house will have to wait.

I suppose that is essentially what a recession is.

[Alan_G]

I just find the price of everything is getting too much, I am spending far too much on petrol every week and need to cut out all the rubbish i have been buyign with my disposable income. I have cut down my hobbies that cost money and stick to the cheaper ones, sad as it seems. I also have my wedding and honeymoon next month so that has stopped me spending too.

[Holy Count]

I dug out some old pay slips t'other day and was surprised to see that I am now earning the princely sum of £400 (FOUR HUNDRED) per annum more than I was earning 13 years ago!

I have a rather simplistic theory to get some movement in the economy ... at the moment the Bank of England is pumping Monopoly money into the banking system to get the banks to lend to small businesses and the like. Which is great if a) the banks wouldn't just hold on to it and refuse to lend, and b) the small businesses customers could afford to spend more anyway, so that they could get the income to pay back the bank.

Why not give US a share, each, of the, what is it so far .... nigh on £400 BILLION rather than give it to the banks. Then, each of us would be able to repay our meagre debts (compared to the banks) and would then have more disposable income to spend into the economy as a whole. The banks would also benefit from the debt repayments (but we can't have everything!).

Simplistic and flawed, I know .........

[derekosb]

The sad thing for you Rich is that your business is linked to property and construction, one the worst affected parts of the economy and one of the most difficult to get re-started due to the built in lag factor in property.

As businesses have gone bust more property becomes available for lease, increasing competition and driving down commercial rents (for new leases or renewals and I am talking commercial rent levels, not domestic).

The removal of empty property relief (in England & Wales, but coming to Scotland next year) has massively increased the holding costs of commercial property making it a less attractive investment. The banks are still very reluctant to lend against property and there is virtually no speculative development.

All of which means landlords and tenants are holding off on routine and preventative maintenance. Repairs are generally now "as required".

Once confidence returns take up of property will improve and refurbishment will be required (especially if maintenance has not been kept up and with an increased use of 2nd hand property) so business will return, simply not in the short term.

Best of luck from a Commercial Property Manager.

Derek

[Greeners]

Originally Posted by Holy Count

I Why not give US a share, each, of the, what is it so far .... nigh on £400 BILLION rather than give it to the banks. Then, each of us would be able to repay our meagre debts (compared to the banks) and would then have more disposable income to spend into the economy as a whole. The banks would also benefit from the debt repayments (but we can't have everything!).

Simplistic and flawed, I know .........

I said the same thing at the first bailout.....Instead of the banks hoarding our money, it should be given to people in lieu of debt, on the basis they then can't get credit for a period of time, so have to live within their means.

[Gate Keeper]

Everyone is feeling the pinch world wide what with rising prices, resources being stretched, wages and pensions being capped. Not a lot to go round. There are those who have to seize any opportunity going to make ends meet and even a profit. Nothing wrong in that.

We have just spent just over a year in SA rebuilding a house - a family home after it burnt down in a wild fire. We met some crooked contractors/cowboys wanting to make a fast buck and rip us off who could only live for the day and not take the long view. We learned through experience which contractor provided value for money and could be trusted not to rip us off. We have now built up a list of professionals we can trust and who we have a good relationship with - we will use again for another building project next year. Winning customer confidence and loyalty counts. Going the extra mile also helps even though it can sometimes feel thankless it can work wonders.

[greendriver]

Originally Posted by suffolk boy

its even cheaper to cook it yourself

The resulting funeral would cost more, though....

[wraymond]

Out of all the millions of people who may be considered 'customers' of one sort or another, there is also a huge proportion of them that habitually live on credit. Many of them have mortgages and have never gone through a similar lenghty period of very low interest rates on those mortgages.
Unfortunately, for both themselves and the 'economy', they have not used that advantage to pay down their indebtedness to their lenders.

Many have also increased their debt via credit cards and other loans and favour the Mr. Mikawber philosophy. Now, with interest-free balance transfers and banks begging people to take additional cards, personal credit has never been higher. People are now being forced to face these problems and that means any spare funds have to be spent on debt reduction. Or trying to maintain interest repayments.

Rather than what debtors might call life style purchases, to the small businesses on which the economy depends so much they are survival sales and the businesses are suffering through no fault of their own. The owners of these businesses are then faced with the decision they must dread. Do I close and take my chances on the job market (not the best of times for that)? Or do I get a loan to tide me over until things get better? Will they get better?

So, the economy suffers because people are not spending enough, many businesses close with the effect of increasing the numbers of benefit claimants, tax receipts fall off a cliff and growth stagnates. That has a bad effect on the larger businesses. They become much weaker and vulnerable to hostile takeover, and are snapped up by overseas predators.

It's not all bad news though. The banks are doing quite well.

[Parker]

Money is tight for people, they are not spending now because they spent out over the last ten years and are struggling to pay off the debts they couldn't really afford and relied on overtime, with jobs gone and pay rises frozen the debt repayments remain the same and so with the high costs of living there is no spare cash

When I started work my dad said, you may have money in your pocket but if there isn't enough in there to buy that "luxury" then you can't afford it. Credit is an easy option and can put a smile on your face the day you make that purchase, but the demon sits on you shoulder for many years after.

Wise old man my dad.


Take it home today a year interest free and four years to pay - really

However, I can understand the situation I run a SME in the electronics industry. The responsibility to your staff is always on your mind. There are opportunities though even in these difficult times, so keep in there.