Recession...all in your head?

Discussion in 'General Industry Discussions' started by WJW Lawn, Feb 2, 2008.

  1. WJW Lawn

    WJW Lawn LawnSite Bronze Member
    Messages: 1,330

    So Im shooting the breeze with a couple LCO's the other day at my dealers shop, and the "R" word came up. Obviously, after the state of the union address people have been talking about it. I brought up the fact that a recession concerns me alot! Thats when a fellow LCO chimes in and says "A recession will only affect your business if you let it." Understand that I know this guys has only been in business for a few years, so it's not as if he would even know what its like, and nor would I. But I thought that comment was interesting, and rather careless! Because, unless you live in Willy Wonkaville the recession will affect you one way or another, and I guess I was taken aback by the care-free attitude. Im not one that walks around all the time like its the end of the world, but the housing market is in a state of collapse, we have rising energy costs and have you checked how much a gallon of milk costs these days?? Are cows on strike!? The bottom line is....consumption is down, and if you think thats all in your head then ya might be living in LA LA land. People are starting to nickle and dime because they are nervous, and that DOES affect business. I guess what my point careful...spend WISELY, and while a positive attitude is great....don't try and fool yourself like that guy in the shop!
  2. NC Greenscaper

    NC Greenscaper LawnSite Senior Member
    Messages: 447

    What the guy have meant is, "Sure there is plenty of bad indicators around, maybe more than usual. But if you load up with this info and carry it around all the time, before long you caused you own little recession. It think it's good to know what the indicators say and do some planning, but really what you should do is look at your current situation and plan accordingly. Is YOUR business down? If so what can you do to get more customers. We have the normal winter slowdown. The last two weeks we have recieved alot of new calls, proposals are going out. This may be a temporary spike, I don't know. Sure housing starts and sales are way down in my area. So this has affected landscaping and irrigation in this area. But the grass is still going to grow and need cutting.
  3. jeffex

    jeffex LawnSite Bronze Member
    Messages: 1,933

    Look at the source of income for your customes and prospects and gear a plan in 08 for that. Here in Md we have all taken a hit in taxes, electric bills, gasoline, and price increases in goods and services. Fixed income retirees and paycheck to paycheck people are effected the most. The retirees still need mowing but may skip add on services. Paycheck to paycheck customer is the most likely to cancel service IMO. The higher end income earners are less effected by a recession unless it brings a job loss. The income tax return drives my pressure washing business. My lawn mowing part will take a wait and see start to the season. Large landscaping jobs and big ticket projects may see a slow down but lawn mowing service is the last thing many people will give up on in a belt tightening IMO. When I hit the streets this spring the last words out of my mouth will be the "R" word. I will act like business as usual and SELL SELL SELL..
  4. AL Inc

    AL Inc LawnSite Bronze Member
    Messages: 1,209

    I don't think anyone can deny that the economy is slowing right now, but the media has really perpetuated the whole thing. I'm old enought to remember the last recession here, in the late 80's early 90's and I think things were worse then. So I definitely beleive things will improve. I do think we are in for a tough couple of years though.
    I think what NC said is true, you ( by you I mean people in general) hear the word "recession" and you start holding back on spending, creating your own little recession. But looking back on how my wife and I have cut back and saved money this past year, it is what we SHOULD have been doing all along. I'll admit that I was foolish spending money the last 5-6 years, business was great and I let my ego take over a bit. But right now, I'm running with the least amount of debt I have had business wise since I started in 1995. And putting more money away than ever. So for the foreseeable future, I'm sitting tight and well see what plays out.
  5. Roger

    Roger LawnSite Fanatic
    Messages: 5,943

    What recession?

    People are expected to spent close to $10B (yes, as in billion) in televisions and furniture, just for the Super Bowl. This is ALL discretionary money to be spent.

    Our country has little understanding of what it means to be tight on money.
  6. NC Greenscaper

    NC Greenscaper LawnSite Senior Member
    Messages: 447

    That's what I'm talking about. Concentrate on where the money is. The media is going wild with this thing. It's because of an election year and it's a bunch of demogrogery. I heard this morning that the nation had lost 17, 000 jobs last month. That sounds bad. If you spread that loss nationwide, my area lost a tenth of a job. That could be a problem if that tenth of a job was one of my customers. Put everything in proper perspective and keep on keeping on.
  7. mattfromNY

    mattfromNY LawnSite Bronze Member
    Male, from Central NY
    Messages: 1,582

    On a positive note: My IRA is accumulating stocks I couldn't afford last year and the interest rate on my mortgage dropped another .25% !!
    Interest rates are dropping at the local bank, but not on credit cards, It might be a good time to look into consolidating some debt.
  8. WJW Lawn

    WJW Lawn LawnSite Bronze Member
    Messages: 1,330

    Just consolidated with my local bank....and you're right the rates are dropping.

    I thought this would be a good topic of discussion no matter what your thoughts. I know the media builds this crap up...thats why I was only using what I heard in the State of the Union address. Of course what Bush says doesnt hold much credibility with me, but its worth discussion none the less. :usflag:
  9. KeystoneLawn&Landscaping

    KeystoneLawn&Landscaping LawnSite Senior Member
    Messages: 774

    The tighter the economy, the harder we all need to work to maintain or increase sales. That being said, this is just my third full time year. I've done everything so far without any debt. A mild recession may be good for those who are running their business correctly and know what their cost of business is. In that I mean for those who have too many payments, don't know what there costs are, etc. may not survive a recession of any kind. For every company that does not survive opens the door for those who do. Do I want to see companies go out of business? Absolutely not! However there will be some that do if a recession kicks in. If the media keeps beating the recession drum, we will experience some sort of recession.
  10. AI Inc

    AI Inc LawnSite Fanatic
    Messages: 27,060

    Ive lived thru 3 recessions. The worst part is the media because they scare the people who have a steady income from spending money.
    Watch your expenses, work hard, spend smart.

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