recession

Discussion in 'Landscape Lighting' started by JackTorsed, Aug 24, 2007.

  1. JackTorsed

    JackTorsed LawnSite Member
    from Utah
    Posts: 57

    The largest home loan company in the US is on the verge of bankruptcy. Increased Foreclosures are iminent. How do you think the state of the economy will affect the luxury business of lighting. Aren't you guys who are lighting only worried about collapse? I'm digging in deep with my landscape maintenance work. At least that's steady even in times of recession. What do y'all think?
     
  2. Chris J

    Chris J LawnSite Silver Member
    Posts: 2,830

    Things were a bit slower, but the times are-a-changin as we speak. As usual, things are hopping once again and I don't expect it to slack up again until after Christmas.
    Collapse? As long as there are people who enjoy the finer things in life, there will always be plenty of clients. Increased foreclosures could be a result of people not living within their means and making poor decisions with their money. I would say a lot of my clients don't even have a mortgage payment.
     
  3. JackTorsed

    JackTorsed LawnSite Member
    from Utah
    Posts: 57

    I would say a lot of my clients don't even have a mortgage payment
    lucky you
     
  4. NightScenes

    NightScenes LawnSite Silver Member
    Posts: 2,207

    I would agree with Chris. My clients don't ask about payments. They don't ask about financing. They just write a check. My average project is now about 10K and if they can write a check for that, they are not the ones that are worried about foreclosure.
     
  5. JackTorsed

    JackTorsed LawnSite Member
    from Utah
    Posts: 57

    You must be making bank then.
     
  6. David Gretzmier

    David Gretzmier LawnSite Gold Member
    Posts: 3,645

    I will have to say time will tell. my landscape light biz is stuggling to become even part time, and my Christmas light season starts in 3 weeks. I have turned away excess Christmas light work for the past 3 years, so if it slacks a little this year maybe I will just do all I can. we'll see.
     
  7. maintenanceguy

    maintenanceguy LawnSite Member
    from NJ
    Posts: 156

    They may not be worried about forclosure of their own homes but as the loss trickles through the economy it will effect their investments and probably their own businesses.

    Whether you are directly invested in morgages or not, there will be less available money floating around. For most of us it may only be a 1 or 2% loss or even less, but it's that last 1 or 2% that's spent on luxury services.

    I think we're going to see a tightening of the belt at every income level.
     
  8. JackTorsed

    JackTorsed LawnSite Member
    from Utah
    Posts: 57

    that's what I'm concerned with too.
     
  9. Eden Lights

    Eden Lights LawnSite Senior Member
    Posts: 805

    Historically high end clients turn to real estate when things are bad. One of my clients has been scooping up homes @ over a million each and plans to make upgrades to them and just sit on them if needed. Any body and everybody has been building 7 figures homes over the past couple of years and the market is getting a much needed correction. Some poor builders are making 5k payments, I wouldn't be able to sleep at night. I like risk with the money that I have, but I couldn't risk money that I had to borrow.
     
  10. Eden Lights

    Eden Lights LawnSite Senior Member
    Posts: 805

    I would agree.
     

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