Are we heading for a recession?

Discussion in 'Lawn Mowing' started by Ocutter, Dec 7, 2000.

  1. Ocutter

    Ocutter LawnSite Senior Member
    Posts: 314

    Watching CNN the other night I heard an analyst say that there might be a recession. Problem is if there is one then that might affect my price raises strategy next season. I might be thinking too much about this. I realize people will drop off anyhow (that Im not worried about) I just dont want to lose too much because of it. For those who went through the last one (late 80s i think) what will you do to prepare for it? Thanks.
     
  2. 65hoss

    65hoss LawnSite Fanatic
    Posts: 6,360

    Whether or not we go into some sort of a recession is not completely detrimental. The truth is, most of the workers in this country have not seen their true net worth or net income go up. In most cases, their pay will remain the same.
     
  3. BUSHMASTER

    BUSHMASTER LawnSite Senior Member
    Posts: 519

    it seems to me that most of my customers will still not be able to find the time to maintain their yards....As their used to having it keep.....i may be wrong?
     
  4. awm

    awm LawnSite Gold Member
    Posts: 3,354

    Thats why i try not to allow to much
    overhead to build up .I keep my total
    personal bills below a thousand.
    My wife matches that but she pays for
    things we could do with out.TVservices etc.
    We could hold out for a while before i
    had to get out the rabbit gun.TM
     
  5. cantoo

    cantoo LawnSite Silver Member
    Posts: 2,910

    I would think that if there was a recession your customers would be too busy trying to make money to even consider cutting their own lawn. In my opinion when things get tough people work more hours to try to make the same money or to save their jobs, the last thing they want to do when they get home from work is to do lawn work. Besides that they would have to lay out more cash to buy the equipment to do the work. They might want you to cut it every two weeks instead. The other thing is they don't want the neighbours to know they are having money trouble so the lawnguy would be the last to go.
     
  6. chrisbolte

    chrisbolte LawnSite Member
    Posts: 135

    we are heading toward a resession or at least a slow down. There are many factors pointing to that. The key to a ressession is how it will effect you.
     
  7. dmk395

    dmk395 LawnSite Bronze Member
    from Ma
    Posts: 1,003

    Everyone listen up, we arent heading for a recession its just propaganda the Bush administration is laying out because if we do finally hit a recession they dont want theiradministration to be blamed for it. All this is propaganda, however stay tuned as Greenspan may make a move soon, and buy the way he is the most powerful man in the country, not the president!
     
  8. SKDCO

    SKDCO LawnSite Member
    Posts: 88

    dmk395;
    You are correct by saying that we are NOT heading for a reccesion,BUT it isn't neccesarily the GOP party or the Demo party either. The fact is that the "slow down" is being caused by the fact that we still do not have a president. It doesn't matter which one is crying but that someone is. When it all said and done and everyone is settling in to their positions, everything will even out and continue as it has.
     
  9. Keith

    Keith LawnSite Gold Member
    Posts: 3,977

    Slow downs are caused by people not spending money, no matter what the trigger. Then the chain reaction starts. That's where the recession starts. How far it goes, before corrected depends on the method used to deal with it. In other words, it is easier to stay out of a recession than it is to get out of one.

    If you have doubts about buying things, feel guilty about eating at Carabba's every two weeks when you used to eat there every week. If you put off that truck purchase because you want to see what happens to the economy. You are helping the slow down

    [Edited by Keith on 12-08-2000 at 03:04 AM]
     
  10. We just ordered a new tractor today. We did that, because we need to replace it, because we will need it in another two months. We don't know who's going to be president, but we do know we need the tractor, we know we have the work for it, so thats that. We also are ordering the new pickup for next year. I signed several landscape construction jobs this week to start 3 to 4 months from now. Even got a couple of down payments on those.

    It would take a major or serious adverse economic event to change the economy much.

    65hoss touched on an important point, most wage earners have not seen their incomes keep pace with inflation.Most incomes are not keeping pace with inflation, even with 3% annual inflation.

    Does anybody remember:

    18% prime interest rates??
    25% inflation rates ??
    energy price increases of over 50% in 6 months??
    The SL fiascio??
    I was mowing lawns for a living as a two man show in those days. Started on my own at the height of the reccession in 1981 with a newly purchased house and and expecting a baby.

    That was about 20 years ago.

    Does anybody remember the last real slow down?? 1991...
    The Gulf war.

    Look at the yo-yo stock market, everythign is going to be fine, just the normal hiccups and corections of an economy. King and President Greenspan has his hand firmly on the interest rate button and that is what controls the economy, well that and the high tech companies.

    Things that are out of control are like new vehicle prices..., $ 45,000 for a full size SUV.. please.. how many families can afford $ 450 car payments???.. thats insane.
     

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