Net profit margins

[Robert_S]

No one knows for sure what "rock bottom prices are" as everyone will have different overheads, the guys quoting £200 less than tom could still be making a good net profit.

[Rob D]

I am EXACTLY the same mate!!!

 

But are these other firms already at the stage where if they don't win THIS JOB they have NO work??????????

 

After reading many of the posts on here, regarding lads being laid off, etc, I think some are

 

As above they must be in their dying throes right now.... it's not sustainable and the end will always be the same.

 

The diary farmer example is an odd one in that he must have had a solid financial base to run at a loss through that time. The majority as you said went under.

 

I would never run my business at a loss just to keep it going... Best IMO to diversify and then come back to it should things change in the future.

[skyhuck]

The diary farmer example is an odd one in that he must have had a solid financial base to run at a loss through that time. The majority as you said went under.

 

I would never run my business at a loss just to keep it going... Best IMO to diversify and then come back to it should things change in the future.

 

The other farmers did not go bust, they just moved out of milk.

 

Over the years, beef, lamb and milk, have all had good times and bad.

 

He has alway stuck with them all.

[woodplans]

There are some good points and opinions being but forward here. I feel it is especially relevant at the moment to know what your overheads are, as mentioned earlier some income is better than none when work is lean. And yes firms will work at zero profit to get through the worst. But it amazes me how many small firms/ self employed do not know what they need to break even each year. Lets face it if you are working for the sake of just turning money over without actually ending up with any, you may as well sit at home and wait for times to improve or try something more lucrative. All it takes is a breakdown on a job with no margin to go backwards. Then the next job has to make money just to be back at zero.

[Mesterh]

Lets face it if you are working for the sake of just turning money over without actually ending up with any, you may as well sit at home and wait for times to improve or try something more lucrative..

 

And how would you pay all the bills that a business has regardless if they are working day to day or not?ie, rent on yard, water,electricity,gas rates, council rates, insurances(too many of) any finance you have on machinery, YOUR wages, employees wages et etc.

 

It is sometimes best to earn a little rather than nothing.Well I think so anyway.

 

If I stuck to the prices I wanted on tree work I woulda gone out of business 13 years ago:001_smile:

[skyhuck]

And how would you pay all the bills that a business has regardless if they are working day to day or not?ie, rent on yard, water,electricity,gas rates, council rates, insurances(too many of) any finance you have on machinery, YOUR wages, employees wages et etc.

 

It is sometimes best to earn a little rather than nothing.Well I think so anyway.

 

If I stuck to the prices I wanted on tree work I woulda gone out of business 13 years ago:001_smile:

 

I was thinking of you when I made some of my posts.

 

You seem to have had it REALLY TOUGH of late.

[Mr Ed]

 

It is sometimes best to earn a little rather than nothing.Well I think so anyway.

 

 

Ditto. I made next to nothing out of the big skyline job I did this summer. But it kept lads in work and kit just about paid for over 4 months. And when decent profitable work comes back in (as its starting to) then I'm still here with all my kit.

 

Difficult times need weathering through.

[skyhuck]

 

Difficult times need weathering through.

 

Thats the one!!!!!!!!!!!!!!

 

And when times are good "get some wool on your back" to see you through the hard times !!!!!!!

[Mesterh]

I was thinking of you when I made some of my posts.

 

You seem to have had it REALLY TOUGH of late.

 

Its probably because I just winge alot and make mountains out of molehills:001_tongue:

 

No seriously though, last 18 months have not been good around here, not just myself but nearly all of the other firms who I have good relations with are finding it tough.Some obviously struggling more than others, the odd one or 2 lads have decided to pack it in and go on the taxi's! Others are just looking for work outside of the area and have to do a lot of travelling.

 

I get quite a lot of letters,calls and emails from climbers looking for work, although not had any for the last month or so.

 

Just a case of too many tight customers(we are known to be tight buggers though ) too little work and way too many firms, partly due to the fact nearly every young lad on the dole had been sent to the local arb college (bleedin Mysercough's fault) to get themselves trained up and certified.

 

So its just that when the credit crunch hit it was already hitting a business that had been struggling for quite a few years already.

 

Looking on the brightside though, work is picking up a little and it cant get any worse!

[penfold]

saw something in hort weekly from the Arb Association about how all these youngsters are coming into arb and going to college and being trained is good for the industry blah blah blah; but what happens to the majority of these lads when they leave college? straight back on the dole because there's no jobs for them. Talk about catch 22.