How will a recession effect commercial work?

How will a recession effect commercial work?

  • Business owners will spend more on cleaning to compete more fiercely for customers.

    Votes: 4 6.6%

  • Business owners will spend less on cleaning due to increased overhead and fewer profits.

    Votes: 44 72.1%

  • Little or no change will occur.

    Votes: 13 21.3%
  • Total voters
    61
Actually we have seen a large increase in Garage Cleaning.

EPA is cracking down on pressure washers who do not have their own filter that has been tested by an independent laboratory and submitted for permits. ( Those tests are for heavy metals, Ph balance, chemicals) They run out here for about $1800 per test and that price is going up.

The fine for washing without a permit/ filter is $10,000 first incident PLUS $1,000 per gallon. We are considering building a second ( Third if you count the one we sold) machine which will be more compact with the improved Hydraulic system.

So for us, business is good.
 
Russ Spence said:
we are having our best year ever, (if we can get everyone to pay that owes at this point), seriously it has been a good year and we have been blessed.
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Russ brings up a good point about folks paying.

I did a quick check on our Aged Receivables prior to going to MB.

We have about 14k in accounts that have aged over 90+ days. Are they going to pay? I hope so...they assured us they are. I am seeing more and more customers inquiring about payment plans! Anybody else out there hearing this from their customers?
 
yes it is becoming an issue with us as well we have over 25k out as of yesterday in the 60+ past the net 30 already given ,two are in the 120+ catagory, already written them off too!

I would not be ooposed to a yearly plan on large accts that we service 3 to 4 times a year, we could lessen the blow and spread the terms over 12 months and keep the cash flow more positive as well
 
Russ Spence said:
yes it is becoming an issue with us as well we have over 25k out as of yesterday in the 60+ past the net 30 already given ,two are in the 120+ catagory, already written them off too!

I would not be ooposed to a yearly plan on large accts that we service 3 to 4 times a year, we could lessen the blow and spread the terms over 12 months and keep the cash flow more positive as well
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Exactly. I have put some customers on a payment plan but I have not opt to offer that unless it is a last resort.

If a contractor is in a financial position to allow their customer base to pay monthly payments it does look good on your month-to-month AR report ~ especially for those that have a slow time of the year i.e. winter months. If you have a consistent cash flow in your AR all year round for your business, at lease on paper you are showing "sustained stability" on your balance sheet which is something that accountants/CPA's love to see!

Something to consider for the '09 season!!
 
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dealerships

Are you still doing dealerships in FL? Do you ever run into a company called Eagle Mantenience that services car lots as well


Larry Millette said:
Your lucky Nick. I used to do Durango's steak houses but most all of their locations have closed. The dealerships I do have either cancelled and gone to doing them in-house (One of the lot guys do them now.) or have cut me back on services. Started every month dropped to every other and now is at quarterly. :(
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Newlook said:
Exactly. I have put some customers on a payment plan but I have not opt to offer that unless it is a last resort.

If a contractor is in a financial position to allow their customer base to pay monthly payments it does look good on your month-to-month AR report ~ especially for those that have a slow time of the year i.e. winter months. If you have a consistent cash flow in your AR all year round for your business, at lease on paper you are showing "sustained stability" on your balance sheet which is something that accountants/CPA's love to see!

Something to consider for the '09 season!!
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So you would be worried if you were me?




This is the 90 day only, the 30 and 60 have another 120

We are sending and collecting some in person, its a shame. good folks we have done business with for years.

Thanks God for credit cards and e-pay


I'm with all of you on that, guess i should only target rich folks.


Its truly getting worse with the slow pay, its hiting and we are glad to have electronic pay. We would be hurting worse, people are paying but very slow. And Bk's
 
B.A. said:
I think you should all check out what this guy did....http://dosseycreations.com/
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Not sure why this was posted in this thread but anyways...

Hey Brown's gas, if that is what that site is about, is not new and plenty of sites around dedicated to sharing the info up for DIY folk in a more candid manner.

...I did hear of a technology tonight though that could be a true breakthrough. A caller on Coast to Coast of all places brung it up. Supposedly the process was thought impossable yet is being found comparable to what happens on surface of the sun. Check it out: http://www.blacklightpower.com/
 
Ron Musgraves said:
So you would be worried if you were me?




This is the 90 day only, the 30 and 60 have another 120

We are sending and collecting some in person, its a shame. good folks we have done business with for years.

Thanks God for credit cards and e-pay


I'm with all of you on that, guess i should only target rich folks.


Its truly getting worse with the slow pay, its hiting and we are glad to have electronic pay. We would be hurting worse, people are paying but very slow. And Bk's
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What a turn around in paying after the holidays.

Lets hope things increase. I believe we are slowly moving forward.

We are hearing people with empty stores wanting them clean to look better for tenants.
 
Ron Musgraves said:
What a turn around in paying after the holidays.

Lets hope things increase. I believe we are slowly moving forward.

We are hearing people with empty stores wanting them clean to look better for tenants.
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Ron, mine started paying up in February. I don't know what happened, but it was like a flood all the sudden. I hope it continues like this.
 
One of my best customers just informed me that the cleanings will go from 6 times a year to 2 times a year...........but.........1 aspect of doing business with them will be added to every year instead of every 2 years and another aspect that is once a year will now be 3 times a year and that is both locations so.......I will be making more money overall. Strange but I will believe it when I see it. I hope it happens like they want it. hahaha





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Low Pressure Roof Cleaning Corpus Christi Texas<O:p</O:p
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DynamicDetails said:
I was cleaning 3 local Mcdonalds and they don't want them done anymore because they are so slow.. He said when it picks back up he will call me.
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I have a feeling some companies are cutting back just being precautionary. In this economy I think McD's and Walmart are the only two still doing big business. McDonalds first quarter 09' earnings in fact are expected to top those of the last two years at .83 a share (.62 and .81 in q1-07 and q1-08). Not bad for an economy in the toilet :D
 
Greg Rentschler said:
I have a feeling some companies are cutting back just being precautionary. In this economy I think McD's and Walmart are the only two still doing big business. McDonalds first quarter 09' earnings in fact are expected to top those of the last two years at .83 a share (.62 and .81 in q1-07 and q1-08). Not bad for an economy in the toilet :D
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With that statement how many have found a huge increase in the commercial market despite the down turns in the economy.

We have been slammed with work, its crazy.
 
So 4 years later, did this Hold true?
ckingclean said:
How will a recession in the economy effect commercial work?

1. Business owners will spend more on cleaning up their property to compete more fiercely for customers.

2. Business owners will scale back on cleaning due to increased cost.

3. Little or no change will occur.
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