This Crazy Business Climate! - Machine Underground -Tractor & Commercial Equipment Discussion Forum

Dougster · 04-18-2008, 09:53 AM

Now that 2007 taxes are done and we're already into a very late start to spring here in Eastern Massachusetts, this week's sunny, warm weather had been a clear sign from God that the old Dougster had to get up off his butt and crank up to full speed in regard to digging season prep. Both Wednesday and Thursday were spent on the phone and on the road visiting about a dozen or so part, tool, paint, trailer and equipment suppliers. Learned a lot, spent a small fortune (to me) on parts, got a ton of prices on assorted tools & equipment, investigated trailer upgrades, found out that Lowes cannot match paint worth a damn and generally talked business with everyone I met and his brother.

Throughout all that, the thing that impressed me the most about the last two days was the overwhelming, crushing, mind-blowing, impossible-to-ignore negative sentiment over this year's business climate. Listened to at least 20 or so stories about layoffs, closings, bankruptcies, individuals & businesses on the edge, lowered inventories, equipment sell-offs and liquidations, insane steel prices, insane fuel prices, recession, depression, crime, starvation, pestilence... and just about every other negative opinion or outlook that could be imagined.

Not one person had a story about business being "okay" or actually thriving.

Personally, I have mixed feelings about just how bad things really are... and when a turn-around might begin. Oil prices are certainly hurting us bad and it's only gonna get worse... but I already see the first small evidence of the stock market starting to build in a future recovery.

Future recovery or not, I need business right now to pay right now's bills. And the mood out there is scary. Despite what should be far more effective marketing (albeit in a late-started digging season), the phone is not ringing like it was last year.

Is my timing great or what? After last year's stumbles and business newbie mistakes, I swallowed hard, dug even deeper and "bet the farm" that I could turn things around in 2008.

And now look at this unprecedentedly bad business environment.

Is God trying to tell me something? Does the Good Lord want me back in a jail cell-sized office again? Shuffling paper and typing away on a computer keyboard under artificial light instead of working outdoors in the fresh air and sun?

If so, I apologize for inadvertently involving the rest of you in my punishment for what I must have done in some prior life.

Dougster

**LoneCowboy** · 04-18-2008, 11:43 AM

The housing market is definately dead (unless maybe you make for sale signs). I was in the sprinkler supply place yesterday to get some stuff and it was slow and this is prime season. I talked to my counter guy and he said they are down to only 4 employees there (from 6 last year). I think everyone is cutting costs and trying not to raise prices (except the .gov of course who wants to raise taxes "for our benefit")

March was very busy for me, but the last 2 weeks or so it's dropped off. Of course, while I was writing this I just landed a bid I did the other day, so I'll survive another week.

the work still has to be done, there are still customers out there, just keep plugging. It'll come.

and +1000 on big chain stores matching paint. Always buy paint at a paint store. same basic price, way better quality and service.

Dougster · 04-18-2008, 12:10 PM

Quote:

Originally Posted by LoneCowboy

The housing market is definitely dead (unless maybe you make for sale signs). I was in the sprinkler supply place yesterday to get some stuff and it was slow and this is prime season. I talked to my counter guy and he said they are down to only 4 employees there (from 6 last year). I think everyone is cutting costs and trying not to raise prices (except the .gov of course who wants to raise taxes "for our benefit")

March was very busy for me, but the last 2 weeks or so it's dropped off. Of course, while I was writing this I just landed a bid I did the other day, so I'll survive another week.

the work still has to be done, there are still customers out there, just keep plugging. It'll come.

and +1000 on big chain stores matching paint. Always buy paint at a paint store. same basic price, way better quality and service.

You have a big advantage over me LC: Your grass never stops growing!!!

Unfortunately, home projects and land improvement projects can always be put off.

If there is work to be had despite the panic, I keep wondering if: a) The big boys (think: yellow machines, gold chains) will grab it out of desperation below their cost, or b) The illegals will get it 'cause everybody knows they have no overhead and work cheap... or c) Somehow Dougster Industries will benefit from lower cost than the big boys but still legal and insured?

Only time will tell.

Watching the poor Lowes kid try to match the paint color on my mini-ex's boom (I brought in a guard cover) was too funny for words.

Usually, I go to my local paint store where they are absolute geniuses when it comes to matching paint colors... but they are also very expensive. On a whim, I thought I'd give Lowes a try because I know they had a good industrial-grade base paint. Needless to say, it was a total disaster... worse than the Hindenburg!

I left the store laughing so hard that I almost pee'd my pants... with the spoiled gallon of paint marked down to $5 for clearance. It's still good industrial, rust-inhibiting paint and for $5 I figured I'd use it somewhere.

Dougster

**LoneCowboy** · 04-18-2008, 03:13 PM

Trust me, by July, the grass is done. stops raining by then and that's it.

You know, on an unrelated note, we have these habitat for humanity stores (Restore, I think they are called). You never know what's going to be in there, but we always get smoking deals on stuff. great for project stuff. one off paints, leftover stuff, donated stuff, etc. hinges, latches, etc, maybe 10 cents? it's sweet for projects (or chicken coops or hog pens or whatever)

I think the big boys will lay people off. If the machine is paid for, it really doesn't cost anything to sit. (well stupid taxes, but not really much). You see a lot of those machines just sitting even in good times. people can come and go. The illegals are already going home (somewhat), the economy is slowing for that kind of work.

I guess you just keep advertising. that's all you can do. people still need septic work, pipes dug out, basements dug out, etc.

Dougster · 04-18-2008, 05:19 PM

Quote:

Originally Posted by LoneCowboy

I think the big boys will lay people off. If the machine is paid for, it really doesn't cost anything to sit. (well stupid taxes, but not really much). You see a lot of those machines just sitting even in good times. people can come and go.

Sad, but true... although a lot of the guys I've talked to are still paying through the nose for their near-new excavators. I can't believe the monthly payments some have quoted to me.

I wouldn't be able to sleep at night... and yes, excavators can often sit for a very long time between paying jobs.

Quote:

Originally Posted by LoneCowboy

The illegals are already going home (somewhat), the economy is slowing for that kind of work.

They ain't going home LC... They've just left for the liberal wonderland utopia known as Ted Kennedy's Taxachusetts and its sanctuary cities.

Dougster

**Kennyd** · 04-18-2008, 08:47 PM

Quote:

They've just left for the liberal wonderland utopia known as Ted Kennedy's Taxachusetts and its sanctuary cities.

Yeah, like Maryland who willingly gives drivers licenses to illegals

Thanks Governor Martin Owe' Malley

SkunkWerX · 04-18-2008, 09:04 PM

Quote:

Originally Posted by Kennyd

Yeah, like Maryland who willingly gives drivers licenses to illegals

Thanks Governor Martin Owe' Malley

And wait for tax hikes coming! Property taxes, and even Sales tax is gonna go up. Once my daughter is out of high school, I'm looking to pack it up and leave Maryland for good. My family has been here for many generations, but the writing is on the wall.

O'Malley did such a great job as Mayor in Baltimore we made him Governor!
Whatta dork.

The only answer I have is heavy drinking.

**Ducati996** · 04-18-2008, 09:08 PM

Well there is business to be had, regardless of the economy. Yes folks will cut back, so expect that, its part of business. Dont spend more than you take in, and you will be fine. Cutting back expenses is also wise, until the backlog is solid. Get pro-active in selling, learn how to close a deal (many books out), or have me come visit, all you need to do is feed me

KennyD
we almost had the same disaster when my former governor presented his hair brained concept. I thought of him as an tool after that debacle. And soon after he was caught with his hands on some overpriced arse. Thank God for scandals. Half the DWI's these days are the "iilegals" driving around with fake PA credentials.

Dougster · 04-18-2008, 10:06 PM

Quote:

Originally Posted by Ducati996

Well there is business to be had, regardless of the economy. Yes folks will cut back, so expect that, its part of business. Dont spend more than you take in, and you will be fine. Cutting back expenses is also wise, until the backlog is solid. Get pro-active in selling, learn how to close a deal (many books out), or have me come visit, all you need to do is feed me

Not sure if I mentioned it already, but it looks like I blew a potential job the other day when I got a cell phone call while on the highway. This guy called claiming he had talked to me before and mentioned the town where he wanted some stump removal work done.

Well, I hate cell phones and I hate Massachusetts highways. Put the two together and I will not talk for very long. I thought the guy was a guy I had talked to last year about another job... the only job I had talked to anybody about in that particular town... and I had decided that I didn't want that job. The guy on the phone had probably just mixed me up with some other contractor... just as I had mixed him up with another potential client.

To make a long story short, the caller was not the guy from last year. After a very bizarre & confused call, I asked him to please call me that night. Needless to say, he figured I was drunk or on drugs and never called back.

Tough to lose any potential client in this down market. Even worse to lose a job just because I answered my cell phone at a very bad time.

Dougster

**LoneCowboy** · 04-18-2008, 11:37 PM

Ok, I realize it's yet more money
But (and this from a confirmed luddite), the bluetooth headsets are AMAZING. I can talk in the tractor with the tractor running.
Much much easier to work while driving. For $100, pretty amazing.

And since your cell phone is your business lifeline, gotta talk all the time and answer every call.