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Posts
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As you look back at 2010, how has the year been. Both business and personally.
What are your thoughts about 2011, again both personally and your business.Was it what you thought it would be in January of 10? Have costs, margins, sales etc been as you planned? Do you seen shops closing or new ones opening? Are distributors carring good inventories or have they been shaved?
What was a surprise and what was just as you planned?
Are you investing for 2011 or tightening your belt to hang on?
Also if you don’t mind, let us know what part of the country your located in.
It was not as expected. The expectations of contractors placed on them by the customers is so unreasonable, it makes it difficult to even bid jobs. Cut throat is coming from the customers, not competition.
Guess it’s good for the consumer.
No investing planned. Until the government can stop screwing with the economy, I have no idea what to expect. Stay liquid and keep your head up.
When the commercial project dry up, you better have an alternate plan in mind cause residential is dead, dead, dead.
What I have realized is that homeowners don’t save for home improvement, they spend borrowed money. That doesn’t exist anymore so residential will be dead until jobs come back making lending practical for the banks. Nobody lends to people that could loose their job. I wouldn’t either.
Margins are thin at best. With the Home Centers race to the bottom on both solid surface and granite, quartz is the last product that still has perceived value. You better be selling quartz if you want to make money.
Southern California
Wags,
I don’t quite know what to make of your query. So here it is.
I have purchased a home in China which is paid in full. I also purchased a home in the US last year which is 1/3 paid off now. Every smart wolf has two caves to run too!
I procured a concealed firearms carry permit, a federal firearms license and while I was at it, a Chinese drivers license. I stocked up on eastern com bloc military surplus guns and tens of thousands of rounds of ammo for the coming apocalypse, paid off all credit cards, put in a garden, a stocked fishing pond (aquaculture): a compost pile etc. I bought several vehicles which are paid off, and am considering buying a residence in the Philippines.
On the biz side, 2004-2007 were glory years and I banked a lot, 2008 was brutal, I broke even, 2009 was better, but 2010 has been a turnaround. Not great or stellar, but OK. 2011 outlook is even better.
I slashed expenses both personal and biz related so we are a very lean organization. On the side I have invested in stocks, mostly foreign and they are doing quite well. I had one stock, go up by 499% this month (a Chinese stock) , which put my IRA back way over the top from the 2008 crash!My company has doubled in employees this year although we are still a small company. I restructured the entire biz this year which assisted in profitability.
My home office is in Texas, but I am an old road warrior who generally works overseas!
Hi guys, here in our little cosmic hamlet by the sea we are seeing the housing/construction industry making that deadly arch on the downward slope.
We, having been through this “chicken and feathers” scenario before are prepared. During the hayday of the last few years we conducted our business in a professional manner, not gouging, doing the small jobs, calling back, ect.We had to severe our relationship with a home center so we could make better decisions for our intended direction. Because we live in an environmentally conscious town we have been having good success with the LG recycled line, lots of interest for after the holidays. I know I had mentioned in past posting of “hows Business”…we here in Homer would see a dive off, well, it’s here. The poster I made is doing well for exposer and some donated cutting boards in the coffee shops are all helping.Personally
I can’t wait for Solstice to be over and start bring back the daylight.All things considered, we will follow our plan and do ok. I have a brand new boat interior to do on a 32 ‘ aluminum pleasure boat. Wait till you see this baby! My wife doesn’t know yet it’s going to live in the driveway all winter while we work on it.Been in business 107 years and counting. Same location over 57 years.
Real estate taxes on shop up 42% over last year and doubling every six years.
Next year real estate taxes projected to be up 17%.
Commercial works keeping us going strong.
Located in (Cook County) Chicagoland.
Great to live in Illinois.
Sheesh.
First let me respond to Andy .Andy you would do well working at Fox News. After reading your report I decided to move in with Lenny and attend to all of his survival tools. I’ll make a good lackey Lenny.
I’ve worked for the same firm for 30 years. 2009 was the first time I didn’t get a bonus check. it was also the first time I saw the WH empty of Kitchens. Very scary. The last four months have been great lots of Kitchen sales, Lots of counter sales. And commercial sales off the charts .I hope it keeps up.
We got a bonus check last week. Not as big as before but it was a start. We also plan on buying some new machinery this year.
I also plan on being a regular on the Fab Net just in case it becomes a realty TV show I want to be part of it.
First, I have no adgenda, just curious if what I am seeing and feeling is due to where I live rather than what is happening across the board. Being in Arizona, we, the construction industry, was devistated. In good part because it went nuts about 5 – 6 years ago, with over building, wild pricing and housing and commercial property going up almost daily. What goes up must come down. If you even out the ups and down, it would be about “normal”.
The company I was working for, closed… I can’t blame the owner. They were the first company doing Quartz in Arizona 15 years ago, and, did very well with it. As quartz became more of a commodity, their corner of the market became much more crowded. They had made decisions over the years that doomed them when new construction fell.
The market here is still flat, not much commercial, with everyone chasing numbers to the bottom. New construction is about 15% of the peak, again, pricing is bascially at cost. I am fortunate that I am the age I am, and are able to finally find something I’m really good at…. doing nothing
. Jon, your in a very unique postion. Sterling is one of the top solid surface companies in the world. What you do is truely “art”. It is no wonder you stay busy. Most any company that is tops in it’s field will survive. As to your comment about Fox and Andy, I understand how many feel about Fox. That they talk doom and gloom. I don’t agree that they do that, but compared to the lame stream media, I do “get it”. I follow many different sights regarding our economy and the future, from all view points. When I first saw Glenn Beck on CNN I found him interesting but thought to myself, geesh this guy is way out there. I must admit the longer I watch him, the more correct he has become. I keep a “log” for lack of a better name, of where things are at, and what my thoughts are. As I go back, it’s scary to see how right many of these folks have been.
While I don’t think were anywhere near past the worse, I think we are slowly coming to grips to what is the new “normal”. I believe that part of this “new norm” will be quality and longevity. I think the “throw away” society may be coming to an end. As our standard of living falls, which I fully believe is happening, people will put more value on quality products, that last, which is good for Solid Surface.
I do find it interesting what the main stream media does NOT report, sadly we have no real journalists anymore, only propaganda spreaders. Which is why I do my own homework. When gold was $800 the main stream media was making fun of anyone that would waste their money buying gold at such foolish prices…its now $1400. They reported Bernake when he said he would never monitize the debt, but say nothing when he does it. They also say nothing when the Fed discloses that they “loaned out” over 12 TRILLION dollars with no say from any government authorization. ( this is not TARP or any other “authorized” spending). The Fed is a PRIVATE Company, run mostly by foreigners, and they totally control our money with zero oversight. Do you realise they have NEVER been audited in 97 years? Scary stuff.
So when Lenny and I talk about buying precious metals and lead some ( Kowboy
) laugh at us… it’s ok. I hope im 100% wrong… but so far, everything I said a year or two ago has come true or is in the process of coming true. I hope everyone does their own homework and make whatever plans they feel are appropriate for them. While the world is not going to end, it is going to be forever changed. The US will no longer be the economic or military power it has been, that’s not all bad, but certainly is not good.
From what others have said, it appears that most of the shops are experiencing similar tough times. Wayne haveing had several stores and a shop in Cook County I can totally appreciate where your coming from… it’s why I moved to Kane County in the mid 80’s.
Lets all enjoy the Christmas Season, be thankful for what we do have, not what we want to have and pray next year will see an improvement in not only our companies but also in the nation.
I wish everyone a Merry Christmas and a very properious New Years.. I will be leaving this weekend for the holidays so I will not be around much.
Posted By Wags on 10 Dec 2010 05:05 PM
While the world is not going to end, it is going to be forever changed. The US will no longer be the economic or military power it has been, that’s not all bad, but certainly is not good.
Wags:
You are dreaming again. China this and China that, blah, blah, blah…. The entire Chinese economy isn’t as big as the growth in the American economy from 2001 or so.
Yeah, we face some huuuuge challenges, but then that is just the kind of thing that fires up Americans historically. I see no reason why that has or will change.
To answer your question, I’m not only back in school for my mid-life crisis, it’s because there is nothing else going on in Michigan. I had no work all summer. November was good and I’ve gotten some good calls just as Fall semester is ending, but 2010 will be a third of 2009 for me.
Joe
Gee Joe, reading something into what I said ? Did I mention China…or any other country? Just said we will not be the powerhouse we were… which were not. The world has changed..but…perhaps you missed that in the news. Really need to watch something other than Oberman and Maddow….get all sides. Also helps if you pay attention to what is going on in the world. Do you really think what is happening in Europe is not coming here ? Do you not listen to the Unions, and the left? They are advocating violence… perhaps you never heard of top down, bottom up, inside out ? May need to do some research on who is saying what..and what is actually happening.
I’m glad school is going well and Im happy that your getting some jobs. Hopefully Michigan can reinvent it self somehow so it can regrow it’s economy, it’s a beautiful state.
Perhaps America has changed, because we have little mfg anymore in this country. We have driven good jobs to other countries, and you can’t build a strong middle class on the service industry.
By the way Joe, China has overtaken Japan as the worlds second largest economy, and, within the next 20 years will be larger than the US. Also remember the US is a debtor nation while China is a creditor nation..huge advantage. The top 10% of their students are more than 100% of our students…not hard to see the advantage that gives them.
I believe you were the one that said, this is just a recession. This is much more than a “typical” recession. The fed loaned out 12 TRILLION of your dollars to industry and banks AROUND the WORLD, and no one knew, but the few people in the fed… If you really belive that printing, or creating didgital dollars from nothing will not cause problems down the road, well… your a group of two.. you and Bernake…the rest of the world knows it has never worked in history and it won’t work this time. Hyper Inflation will arrive at some point down the road…I’ll keep my gold ( up 50%, silver up 100% ) for now.
You can keep your head in the sand or, you can do research as to what is actually happening and prepare yourself for the world as it will be…not as it was.
For me, 2010 has been a fantastic year, I saw things coming, yes Joe the sky is falling.
I have been blessed to have worked on some of my most expensive kitchens to date this year, I upsold more countertop replacements than ever before, I have done more vanities this year than in the last 4 combined, plus have partnered up with a great Stone fabricator and starting to move some quartz.
When i was in the lighting fixture business back in the early 80’s interest rates were 18%, no construction at all was going on, however the Oak 3,4, and 5 light oak bathbars were selling by the 10’s of thousands! Why… because people still wanted nice things, and even though they couldn’t buy a house, they remodeled what they had and what room was first… yep the bathroom.
It’s all in the people with money’s mindset. Do they want a new countertop… nope… but do they want new cabinets at a huge discount. I will re-face what they have,add new doors, add sevral rev-a-shelf products, new dovetail drawers, soft close slides… the countertop then sells itself.The only problems was a shortage of ammo, a severe shortage of primers for us reloaders.
Wags, we talked about silver a year ago…
Giddyup!!2010 for me was been a rough, but yet good year. Here in farmers country in western nebraske we have never had a huge buiild boom with grossly overpriced homes or excess on the market. The people tend to not overextend and save for the projects. However we choose to open up a showroom in our downtown area which increase our overhead, but i had a market area that I had not touched before and these people shop the dollar General, which we are next door to, so I thought great that will get us exposure easier than advertisement. Well that started to work, but then our largest employer announced they were shutting down the factory in town and the other manufacture in town also started to need to cut back. Well everyone started to hold a little tighter to their money so the last 3 months 09 and first 9 to 10 months of 10 have been just keep the bills paid. However now in the last of this year we are picking up and I am thinking i will need to add an employee so we can keep pace with what we have coming in. I have changed things a lot to do complete kitchen and bath remodel work and we are seeing a lot of bathrrom work and countertop replacements (unlike Kelsey around here they seem happy with the cabinets enough to just want a new countertop). We have seen some strong harvest numbers and grain prices are good so I am hoping that will help rev up our economy out here a little and a hear a few of the farmers saying it is their turn to get something new other than a combine. SO i am feeling better about outlook for 2011, but will reamin cautious as we increase the area we are going to serve and get beyound the reach of our lost jobs here locally.
Reuben I’m happy that things are picking up for you. As Kelsey said, the mindset of the public makes all the difference. With the stock market up ( tho not based on anything real) people feel they are more secure. In your area the commodities are up which should help you Reuben. I would bet that your customers are very conservative with their spending, but farm prices have been rising, which also should help.
I think a showroom, if you can afford it is a great addition. You typically sell a higher ticket at a larger margin with a showroom. It also gives customers more confidence that your stable and will be around down the road if there is a problem.
This is not a typical reccession were in. This IS a world wide monitary crisis. The Euro is toast, just a matter of time before it fails. The dollar is up a little right now, based on the Euro problems. Currently were a little safer than the Euro, but, were next. We have a number of States (mostly large union states run by Dems) that are in big trouble. California, Illinois, New York come to mind. IF the Fed Gov decided to bail them out that will be the beginning of even more tax revolts. Those people in states that didn’t overspend are not going to want to pay for those irresponsible states. Pensions are another huge problem…there is no way over the long term, pensions can be honored. And our huge federal debt, which is growing monthly, is unsustainable. When interest ticks up, interest will be the largest portion of our budget, larger than the military.
Mullins the joint cheif of staff has recently stated that our debt is the largest problem to our security. For the last several years the Military has been training and working on plans for an economic collapse, which is totally possible.
If you want to get into metals in a small way, save Nickels, currently the metal is worth about 6.4 cents each. The composition is to be changed next year, much as they changed most other coins. I would also keep an eye on your bank, there are now about 900 on the watch list, more than double from about a year ago. The FDIC is already in the red, and any uptick in interest rates, or additional drop in housing/commercial pricing will send many of these over the cliff. Are you aware the FDIC has years to pay you back what you have in the banks? On that note, banks can limit how much you can withdraw, and can limit you access to your money for months. I would suggest keeping some cash on hand, “Just in case”.
Pay attention to the news, and read and watch non traditional new sources. Much of our “news” is propaganda and you need to weed through it to find the truth. And pay attention to your gut, most Americans know in their gut, something is not right, it just doesn’t feel right, they know something is going on. I would also suggest stocking a little extra food, our system only has a day and a half of food on the shelves. Any interruption could cause shortages. Food costs are going to rise, as will fuels… be prepared and you will sleep well at night.
Rueben… When I get in front of someone, the first thing I will tell them is, “let me show you the kind of work I do”.
I will put in their hands a couple of brand new sample doors. I want them to look and touch a new slick door. I will show them a sample drawer, tell them we can make them custom fit for their kitchen, and you can just see their eyes widen when the drawer closes itself.Then I will show them photo’s of jobs I have done and then mention the peoples names I have worked for. Remember on here how many times I have stressed always ask for referrals from people. In doing so, those customers will always say it’s ok for someone to come and look at their kitchen or call them.
I will stress, and if you don’t want to do this upgrade now, we can do it anytime, however, it would be less expensive to do it as a package now while your old countertop was off, than come back later.
I will upsale those people about 30% of the time with new doors. However, the upsale climbs to about 50-60% for just new drawer boxes, and about 90% for new hardware. If you are in the door, there are many kitchen items they will spend a little more on, and many times those carry a higher % of profit.
Remember Rueben, you don’t get what you don’t ask for…
and as far as farmers…. great HUGE market! remember referrals! Once you gain the trust of one, they all talk!
I find BBC news America to be the best for down the middle news. They also give you that world prospective that helps to reminds us there’s allot going on out there. As Wags said this crisis is world wide .
Posted By Jon Olson on 11 Dec 2010 09:14 AM
I find BBC news America to be the best for down the middle news. They also give you that world prospective that helps to reminds us there’s allot going on out there. As Wags said this crisis is world wide .I agree, if you compair local news to the world news you will soon find you can learn alot more by watching the world.
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