Unfortunately, the economy has taken a recent slide and this has had an impact on businesses everywhere. Businesses both small and large are laying people off to try to save money, and they are cutting costs wherever they can so that they can survive. Unfortunately, many of them are also closing down altogether. This meltdown has had a significant trickle-down effect that affects everyone, from individuals to business owners of every type and size, small or large.
When someone loses a job, takes a cut in pay, does not get a normally anticipated bonus, or has another unexpected income cut, it makes sense, of course, that expenses must be cut, too. Many people have incomes that are no longer sufficient to cover everyday expenses, much less extra expenses. Many homeowners, for example, may have planned to paint their houses, fix woodwork, build a new deck, or any other number of home improvement projects. Of course, homeowners value these things, and they can often add value to the home as well. However, that does not much matter when the money is not there to do these types of things, and the projects themselves have to be put on hold.
What that means is that contractors, too, are being affected by the financial crisis in our country. Normally, contractors depend on the type of business as discussed above and that, while in demand during flush times in the economy, experience a dry up in business and income flow, as these types of extras are no longer afforded. When people are short on cash, they are going to pay the basics first -- food, mortgage, etc. They are going to wait on putting in a deck, to have the roof repaired, or to have the interior of their house painted unless damage is such that repairs cannot be put off.
What that means is that these types of contractors are often the first to feel a tightening economy's impact, no matter what caused it to do so. And of course, contractors can continue trying to find business as they normally would, such as through networking, advertising, and so on. However, they will likely find that while they might have had an immediate response at first, now they only have silence. Customers become ever harder to drum up.
Even if someone has not been affected directly by a bad economy, he or she may cut back as well. It is a natural tendency to cut back during times when things are in short supply. These people, too, consciously or unconsciously prepare themselves for a time when they may not be able to have every option available to them. Because they want to be "safe," they hang onto their money and bank it for a rainy day.
Simply put, this is happening in every sector of our economy, all across our country. Spending is down everywhere, and people are cutting back even on basic necessities like household needs, food and clothing. And with these types of budget tightening going on, "extra" expenditures like painting the house or adding an addition certainly are put on the back burner at least for the present time.
As more customers put off shopping for a contractor, competition between contractors for customers becomes even fiercer. At one point, a contractor could very well have gotten his asking price, but now must lower it to be competitive with other contractors offering the same services.
Consumers who are feeling a financial pinch become more cautious and more selective when they are shopping for a contractor. Where they once got one or two bids on a project, they are now getting three and four. They are doing a lot more comparison-shopping in an effort to find the best deal.
All of this and more can make it very difficult for contractors to find and keep a good solid customer base. They may be frustrated in their attempts to keep their businesses afloat, much less growing. As their income decreases, so, too, does their ability to pay for expenses like advertising, which only makes things harder. Unfortunately, being a contractor is one of the most difficult things to do during a difficult financial spell for the country.
When someone loses a job, takes a cut in pay, does not get a normally anticipated bonus, or has another unexpected income cut, it makes sense, of course, that expenses must be cut, too. Many people have incomes that are no longer sufficient to cover everyday expenses, much less extra expenses. Many homeowners, for example, may have planned to paint their houses, fix woodwork, build a new deck, or any other number of home improvement projects. Of course, homeowners value these things, and they can often add value to the home as well. However, that does not much matter when the money is not there to do these types of things, and the projects themselves have to be put on hold.
What that means is that contractors, too, are being affected by the financial crisis in our country. Normally, contractors depend on the type of business as discussed above and that, while in demand during flush times in the economy, experience a dry up in business and income flow, as these types of extras are no longer afforded. When people are short on cash, they are going to pay the basics first -- food, mortgage, etc. They are going to wait on putting in a deck, to have the roof repaired, or to have the interior of their house painted unless damage is such that repairs cannot be put off.
What that means is that these types of contractors are often the first to feel a tightening economy's impact, no matter what caused it to do so. And of course, contractors can continue trying to find business as they normally would, such as through networking, advertising, and so on. However, they will likely find that while they might have had an immediate response at first, now they only have silence. Customers become ever harder to drum up.
Even if someone has not been affected directly by a bad economy, he or she may cut back as well. It is a natural tendency to cut back during times when things are in short supply. These people, too, consciously or unconsciously prepare themselves for a time when they may not be able to have every option available to them. Because they want to be "safe," they hang onto their money and bank it for a rainy day.
Simply put, this is happening in every sector of our economy, all across our country. Spending is down everywhere, and people are cutting back even on basic necessities like household needs, food and clothing. And with these types of budget tightening going on, "extra" expenditures like painting the house or adding an addition certainly are put on the back burner at least for the present time.
As more customers put off shopping for a contractor, competition between contractors for customers becomes even fiercer. At one point, a contractor could very well have gotten his asking price, but now must lower it to be competitive with other contractors offering the same services.
Consumers who are feeling a financial pinch become more cautious and more selective when they are shopping for a contractor. Where they once got one or two bids on a project, they are now getting three and four. They are doing a lot more comparison-shopping in an effort to find the best deal.
All of this and more can make it very difficult for contractors to find and keep a good solid customer base. They may be frustrated in their attempts to keep their businesses afloat, much less growing. As their income decreases, so, too, does their ability to pay for expenses like advertising, which only makes things harder. Unfortunately, being a contractor is one of the most difficult things to do during a difficult financial spell for the country.
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