# Are you surviving the down turn?



## Thewoodman (Aug 30, 2006)

Here are the questions

1. Do you still have work coming in?
2. The people that do call you are they more serious about doing work?
3. Are they having alot more people bidding?
4. Do the customers still complain of nobody returning calls or showing up?
5. Are you getting more call from others in the construction field looking for work?
6. Do you feel that you will survive the downturn?
7. What kind off things are you trying to keep work coming in?
8. Are you lowering your prices?
9. What is your opinoin of the Near future, Will it improve in the next year, next two years?
10. Are you wishing that you had never got into construction?
11. If you are still doing ok, What is your secret, What advice would you give?


We are in a very interesting time what with the fuel costs and the mortgage crisis. I am sure that all of use are being affected in one way or another. I know that some of you have been in this business long enough to have goon through a few of the downturns.Your input on this topic would probably be helpful.

I am constantly asking people in all business feilds how the downturn is affecting them in hopes of painting myself a good picture of what I need to do, or change to keep working.

Mark


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## NICKPAUS (May 11, 2008)

My biggest problem lately is hack jobs coming by jobsites offering to do the work for below my costs. With the construction slow down I am seeing guys show up to my sites from up to 2 1/2 hours away willing to work for half the price. They are all unlicensed hacks who managed to setup crews during construction boom and now are trying to keep there guys busy. The quality of there work is a joke and they dont know our local building codes. I am hoping these are the guys that are weeded out during the slow timee and us legit Contractors can pull through. There is a guy going around my area installing Paver driveways for $3.50 a foot I lowered my price from $10 to $7 and still cant get any work. With insurance truck payments business license fees fuel surcharge fees it cost me $4-5 a foot to install.


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## KYRemodeler (Jul 23, 2008)

1. Yes, I actually have more jobs than ever coming in, however I am in remodeling and have been for the past 4 years. Previously I was in new construction before I went out on my own, and I have had exactly zero jobs come from my new construction contacts this year, everything has been existing homes. 
2/3. Customers are are very serious about the work I bid for them. My clientele has moved towards the high end, and people seem to be better informed, and yes they do usually get more bids, but many times do not go with the lowest.
4. Very surprisingly yes, I have has 3 jobs in the past month where the previous contractor left with money, stopped showing up, or did shotty work which I had to repair because they wouldn't come back or return calls. I don't know who these guys are but I'd like to buy them lunch because they are helping to pay my bills.
5. I get calls all the time of people looking for work, most of them are from the new construction side.
6. I certainly hope to survive the downturn, doing good work, having repeat business, and quality referrals is getting me through right now. We are still a young company so if we can't keep this up who knows, but right now things are promising. Just have to work a little harder and don't forget to network at every opportunity, and always be selling customers on the next job.
7. As stated above, network, SELL everyday, many people forget that one, just because you have work now doesn't mean you do next month, talk to previous clients, call them, send emails, by this I don't mean be pushy or act like a door to door salesman, but make relationships and stay in contact. Angieslist has been very good to me also, I know some people don't like it and I have had some terrible leads from there (which I didn't do work for just bid jobs that I knew they weren't serious about) but all in all it generates a couple jobs a month.
8. NO, I can't afford to. I sell people on the reasons why we cost more and if they don't understand that then I probably don't want their business, everything costs more now. No reason to lower prices it just hurts all of us in the end.
10. No I do this by choice, it is tough right now, but it's what I want to do. Construction is rough but a lot of others are hurting too. 
11. I think I already pretty much gave it, but moving to remodels and away from new construction has worked for me. Also moving towards the higher end jobs as well. Even in bad times wealthy people still have money to spend.


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## Grumpyplumber (May 6, 2007)

*The percentage on new work per incoming call has decreased dramatically, it's even scary.*

*I'm getting inundated with bargain hunters and non-serious inquiries.*

*Whats keeping me afloat are my regular customers, this is probably trade-relative though.*


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## rbsremodeling (Nov 12, 2007)

Thewoodman said:


> Here are the questions
> 
> 1. Do you still have work coming in?
> 
> ...



I think 2009 will be trying again like 2008 and by 2010 things will be back to normal


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## Tiger (Nov 21, 2007)

I'm in electrical residential service & not in new construction at all, so I've seen little difference from last year. I have a contingency fund so I could survive a few months with no calls. I've raised my prices because of the increased fuel costs. I charge a service charge so most of the work I see isn't competitively bid. I get an occasional call from someone looking for work. I have pretty good marketing in place & have been in business for a long time. I don't usually have much to do with shoppers & focus on the buyers with a high closing rate. 

Dave


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## hbelectric (Oct 8, 2007)

Very slow....combined with bad luck and under bidders. Not worried yet.


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## Carport King (Jan 7, 2008)

*From Wholesale To Retail In Record Time!*

Our company was a big time builder contractor. But as everyone knows this changed overnight. We had always done some retail but not alot.

So we had to transform our company fast. We were able to do that but at a high cost. Now that it is done we plan to stay that way even if it does come back around on the builder side.

We are still chasing about $925,000 in builder recieveables and the time and energy we spend is unblieveable. I will be so happy when this is over.

Our retail company is slammed with work and the margins are much better and the cash flow is fantastic. So with a ton of hard work and keeping your team focused was the key here.


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## DavidC (Feb 16, 2008)

Thewoodman said:


> Here are the questions
> 
> 1. Do you still have work coming in?
> 
> ...


Good Luck
Dave


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## dayspring (Mar 4, 2006)

Job sizes are down here. Not nearly the calls I am used to. I ran an ad for help a couple weeks ago and got over 100 calls, it's pretty slow, I'd say. Down right scary. We depend mostly on 2nd homeowners from Florida mostly for work here both new construction and remodeling (which is what I do). Many of the builders here are going under fast. They can't sell the homes they have their money tied up in. Looks bad.


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## SelfContract (Dec 6, 2007)

2010.


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## SelfContract (Dec 6, 2007)

2010


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## Grumpy (Oct 8, 2003)

We'll be ok although it is a hard year for sure. To add insult to injury my best salesman died which caused a severe crash in the company, but we've nearly recovered. 

It seems customers are getting more bids than just the usual 3 this year. It seems my competitors have lowered their prices while I have raised mine. There are alot of procrastinating customers this year who have done anything and are just waiting, more so than usual (but no hard facts). 

My secrete? I am spending alot more ona dvertising to keep the leads coming in since the salesmen need more leads to achieve the same number of sales this year. We're spending more to make the same. An accountant may say that's nuts, but I think we'll have a leg up on the compitition when this lull breaks.


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## Mike Finley (Apr 28, 2004)

Grumpy said:


> My secrete? I am spending alot more ona dvertising to keep the leads coming in since the salesmen need more leads to achieve the same number of sales this year. We're spending more to make the same. An accountant may say that's nuts, but I think we'll have a leg up on the compitition when this lull breaks.


I suspect you are onto something.


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## antnepi (Aug 26, 2008)

Forget about the builders especially the nationals. They will put a sub out of business by chopping their prices and pay 6 months after the job is done and not loose a bit of sleep over it. Retail is the way to go. Overall the money is much better and at the end of the job they actually pay you.


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## Fence & Deck (Jan 23, 2006)

I really can't complain. We are making money. Our profit is substantially up, we have enough business, and we're getting paid by everyone.
I upped my prices, and I have refused to match low bids. I've lost some jobs, but I have plenty of work.
My biggest problem has been getting enough crews.

I will say that the customers have changed. They are picky-er, have less patience, and have a strong sense of entitlement, which leads to some odd demands. 

Older people want quality, younger ones want price, while expecting top quality. They haven't learned yet that the two don't mix.


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## Stevelsc8721 (Feb 21, 2008)

Gun ownership is increasing


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## CrazyTaper (Oct 9, 2007)

We have made a major shift from residential to almost 90% commercial in the last 6 mo. It has paid off. Yes-the jobs are FAST TRACK-but show me the money! Almost DOUBLE residential.:thumbup:


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## excellencee (Feb 1, 2007)

I'm up 55% over last years sales to date. A month ago I was up almost 80% but August has been a little slow. Next week we start 2 large projects back-to-back with most weeks booked night and day. I'll survive for sure but I am in the process of restructuring from residential new construction to residential service. Get my check when I leave not in 6 months after you sell the house.


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## dirtdiggler pt2 (Aug 22, 2008)

Thewoodman said:


> Here are the questions
> 
> 1. Do you still have work coming in?
> 
> ...


 ....


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## SethHoldren (Feb 13, 2008)

> 1. Do you still have work coming in?
> 
> It is just pick up to a good flow after 8 months of hell


That is encouraging. :thumbup:

I truly admire the guy who can weather the storm.

One of the best things you can do, when times get tough, is to reevaluate how you spend your time. Especially with your marketing activities.

I'm very glad it's picking up for you!


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## asnider (Jul 10, 2008)

When the construction market gets slow, our business gets slow and this month has been incredibly slow for us.....just hoping it turns around sooner than later!


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## stone21 (Jul 10, 2008)

All are still good although it is in the downturn , we think we will survive the downturn . And everything will be better and better in coming of 2009 .


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## jazzbone (Sep 3, 2008)

Things have slowed alot in Virginia have downsized to just me while things are tight, some co's are cutting price a little, have a builder wants me to cut about 10% I really don't know if I will been working with him for years but like I told him when things were booming the trades were still competing with few increases, personally I can weather for a while but I'm uncertain how long this downturn is going to last, comments ?


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## Leo G (May 12, 2005)

Never been busier. Phone is not ringing off the hook, but I am getting larger jobs. Doesn't take a whole hell of a lot of work to keep a one man woodshop busy.


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## asnider (Jul 10, 2008)

Lucky Leo....glad someone is busy


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## Mellison (Aug 3, 2008)

Slow winter (slower than usual) but a busy spring and summer.
Knock on wood, I hope in lasts.


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## BKFranks (Feb 19, 2008)

People can't get loans. Home values are down and no equity. No loans = no remodel, no additions, no anything. 
Median home price here has dropped $200k in one year.
http://lansner.freedomblogging.com/2008/09/05/oc-homes-now-200000-below-peak/
http://mortgage.freedomblogging.com/2008/09/04/oc-7th-riskiest-place-to-make-home-loan/


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## rsss396375 (Aug 11, 2008)

*Being a GC*

Being a GC and a Tile & Stone Contractor has its advantages. We often go from doing a tile job, to a Trex deck or room addition for the same client. Diversity in times like this are a big advantage. I wish everyone was 8 weeks out and secure, but this business is known for ups and downs. Hang in there and it will turn around.:thumbup: soon.....


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## Mellison (Aug 3, 2008)

rsss396375 said:


> Being a GC and a Tile & Stone Contractor has its advantages. We often go from doing a tile job, to a Trex deck or room addition for the same client. Diversity in times like this are a big advantage. I wish everyone was 8 weeks out and secure, but this business is known for ups and downs. Hang in there and it will turn around.:thumbup: soon.....


Absolutely True.
Being well faceted is huge part in keeping busy.


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## Fence & Deck (Jan 23, 2006)

Just came off a really solid August. Not the best I've ever had, but better than at least the last 5 years. So far, we haven't even had to start discounting.

On Thursday I got go-aheads for 3 decks, and my salespeople 2 more, so even September is (hopefully) shaping up!
Not quite sure why, but all of my lumber suppliers are telling me that everyone is slow. The owner of the largest one called on Friday; he told us that some of his regular customers haven't ordered for weeks. Another called, literally, to ask "do we need anything?" . 
Must be my smiling face.


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## Brock (Dec 16, 2007)

Started on my own in '86. 

2007 was best year yet except for '92 when we had softball hailstorm destroyed over 100,000 roofs in my city. '08 is on track to beat '07 by about 30%. Praise the lord. We tripled our advertising budget in '06, and have stuck with it, out of fear of the media induced recession. So you have to factor that in to our succes.


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## Mellison (Aug 3, 2008)

Keep those chins up.
Things do and will get better.


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## y0manda (Jan 31, 2007)

bull****ters. I'm out. I wasted 5 minutes of my time just now.


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## Sportioli (Dec 18, 2007)

I talked to our areas Porter Sales Rep today. He told me in the 9 years he's been in outside sales to contractors that he's never seen it this bad. Our Sherwin Williams sales rep told me the same thing a couple months back.

But it will get better.


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