Is the Housing Downturn Affecting Your Business?
Monday, November 26, 2007
The slowdown in the housing market is affecting more than home builders and the mortgage industry. Many remodeling and home repair contractors are feeling the pinch. And for some companies, it's business as usual. One contractor told us business is still good but the jobs are not as ambitious. He said it seemed to depend on what business you are in and what part of the country you work.If the phone doesn't ring often where you work, it's going to be a matter of riding out the storm. Many are saying this downturn could last through 2008. Of course, most saying these things have a vested interest in a quick market recovery, so it could mean the housing and renovation industries won't come back around until 2009. For some companies, it's going to mean cutting expenses. For others, it will mean finding more work. More than likely, it will mean a combination of the two.
Monitoring expenses and bringing more jobs is easier said than done. But you should resist the temptation to under bid to get a job. Maintaining cash flow is great in the short term, but cutting into your profit margins could really hurt your business. On the opposite end, pushing up prices to give you a higher margin might be tempting as well. But money is tight with many people and higher costs to them could mean even your most loyal customers will stay away or put off their projects.
Labels: Small Business Advice
