Plans For This Summer And "expected Fuel Costs"

IHI

Well, with the experts forcasting fuel hitting at least $4/gal this summer obviously it's going to change the way most homeowners budget so what are your guys/gals thoughts on this. Already living in a low income type area where squeezing pennies is an understatement for 90% of my customer base so if the fuel prices go to where they predict I'm guessing I will be put in a very tight spot with much lower than expected work being performed in light of the situation, sooo....

for those in a similair situation what kind of plan B have you considered to keep putting food on the table? Wish I could say I had a customer base with open budgets but our new construct market is grinding to a halt, been slowly going down hill since last fall and newer houses going up have been sitting vacant for many months and homes being built are yet to have buyers. Would say updating older homes would be the next big trend but with the weekly energy bills we'll all be facing I think more money will be banked and projects, if one could afford them,will be hitting a huge DIY market or not at all.

Hate to sound grim, just trying to get ducks in a row just in case it gets as bad as they predict.

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Gordo

Most gas stations here in Va. Bch. are out of gas due to the change-over to ethanol. A gallon of regular is $3.00 AND CLIMBING. For some strange reason, I have picked up some big custom home projects as a sub. All this in light of a slowing market. The remodeling side of the business seems to be picking up as well. I can't ever figure this business out. Ten years in business and its all been word of mouth. Just when you think it will slow down it picks up. If it does go dead I am
taking the savings and moving to Mexico.

Is anyone raising their rates to compensate for the fuel increase? We all know the material prices are going to sky rocket also.

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Looks like some pros were here.

maj

Josh, You ever thought about moving north 60 miles????

I keep getting calls for work this summer, but have to turn 'em down.

Matter of fact..... I was visiting with other contractors in the lumberyard this morning, and they're all in the same boat as I am. We have such an overload of work, our heads are spinning. One contractor even asked if I could handle any of HIS work. And he is a DIRECT competiter of mine!!!!!

robwitham

I have been monitoring the news on this with concern. So far people around here seem to still be spending plenty on home improvement. I am raising my rates several dollars per hour next month to help offset fuel costs. I'm still new in business (just wrapping up year one) so my rates are lower than much of the competition anyways. I don't expect any complaints.

IHI

I'm to broke to live up north LOL!! Seems all the big money guys I race with all make the trek from north country So I'm stuck in the vicsious circle of being too poor to move where the money's at LOL!!! IF these coksuckers ever pay me from stuff I've done since last year and first part of this year I'll be doing okay...literally 4 months with no pay so savings is getting tight Had a buddy in the asphalt business tell me if you dont start the year in the hole your doing something wrong??? They start every season $100K in the red and have to work back out with customers slow/non pay from previous year and getting the materials equipment and payroll going for the new season till they start getting paid. Luckily I just sealed 2 jobs tonight that pay okay so gonna jump on them asap, 2nd guy that called and his first thing was "what can we do to cut down this estimate" so I used Grumpy's words of wisdom and started telling him ways to simplfy the design and he finally caved and said just do it like you figured

Was going to focus some marketing on smaller towns around here, but with fuel prices forever rising I dont think based off past customer base/scope of work I could seal the jobs with the must have added fuel surcharge to justify the added drive time. But we'll see, wifes been prayin for a pick up in biz and seems just when it slows back down the calls come back in, now if I could just get paid LOL!!

Worse case scenario I might be giving you a call to see if anybody up there needs some "subbed labor" of some sort or a temporary crew member and live in a motel during the week since job market down in this area is either college degree or $7-8/hr. Load the lil truck up on the trailer and pull it up with "da bus" and leave that up north and come home with the lil gas gett'r. Hoping it never gets that bad, but trying to think 10 steps ahead to keep the kid in school and food on the table. Keep tellin the wife now that it's nice out stand'n on the corner should'nt be as bas as it was this winter

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IHI

I'm also hoping since we'll be accepting CC that this will open up some doors since it seems most people are so damned dependant on them nowadays.

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theworx

IHI, I remember a thread in the past when you said you used to do contracting work for H.D. (I think you basically slammed them). But, if it came down to putting grub on the table, could that be an option for you? Not suggesting anything (and probably blowing air out my girl like bum) just asking ??

Woz the Painter

I"m in the Chicago area, things have been slow to non existent for the last 1- 1/2 years as far as the painting businees. You see all these million dollar homes, huge condo complexes, going up all over, not sure who's getting the work, but it isn't me. Longtime customers, when they call are looking for cheap deals, like never before. I look on Craigslist and see adds like come to my house and mow my lawn, I'll provide mower and pay you $10.00. Another ad read need someone with tall ladder. Clicked on and this person had siding loosened by the wind, and said, [this job should only take a few minutes, email me price]. One ad was for a job in the West Loop area [just west of downtown Chicago] they wanted 250 sheets of drywall hung, taped 3 coats and sanded, and wanted to pay $15.00 bucks a sheet total. Makes me wonder if there is any real future in this businees?

joasis

It sure is about location, location, location. Back when i was getting out of highschool, Jimmy Carter was the pres, inflation was running balistic, and we were sitting in the middle of an oil boom. The rest of the country was nearly in a depression, and we were flying and building on 18 - 21% interest rates and spending like no tomorrow. Then the crash, Reaganomics, and Penn Square brought things back to perspective. Cheap oil and depressed farming kept our economy in the basement for nearly 20 years, and we all look at the demand here with CAUTIOUS OPTIMISM. I think everyday I get up, I am always thinking about plan B if A doesn't work.

I am very concerned with fuel prices and what if the two specs I am building with my money don't sell? I worry lots of times for nothing, but our local economy has been shattered before, and I do not want to make another career change.

I posted in another thread, that if work tanked here, I would look elsewhere. I know that isn't easy for lots to do, and I would hate to move, but given the alternative of going broke or feeding the kids, I will go where I have to.

N.E.Bldg&Rest.LLC

LMFAO

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Tscarborough

Do the only sensible thing: when fuel costs rise, cut your usage. It isn't hard, I have cut mine over 50% from 2003 to now for a net savings.

Floorwizard

No real concern up here. the more oil costs, the more the money flows.
I wish it was the same for all areas of the U.S.
But then again, you dont have 7 months of Winter.

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Tscarborough

We also don't get kickbacks from the government in lieu of taxes (but that is a good thing for ya'll, wish all 50 states would operate like that).

BTW, I lived in Anchorage as a kid, 1964-67, sure would like to go back.

Eric K

Regular gas jumped to 2.95/gallon here today. Thats about a 15-20 cent raise since this weekend! Luckly I have a diesel and theres a station about 20mins away that sells it for 2.70

Eric K

Come to think of it, thats really sucks to be excited about getting fuel for 2.70. Like its a good deal.

IHI

We've been doing work for them for the past 2yrs again, I did the first stint and the middle company was full of idiots so I walked, but since this other entity took over it's been working pretty good, just wish turn around on pay was quicker-used to be 2 weeks, then middle company informed me it was going to be 3 wks and that 3wks in actuality is 4wks so initally I'm stuck eating all the labor, building permits, fuel costs until it comes back around-but it's no different than working for any customer/business with a 30 day billing cycle. It was extremely dead even for them from Dec until last part of March and is now finally starting to take back off again (measured 30 jobs in the past 3 weeks easily) and have installed probably 28 and have gotten a few good paying jobs from doing great work on the jobs we were sent out on initally I've made more these past 2 weeks than I've made in the past 3 months (once I get paid) so hopefully the digging out will go quickly Almost feeling like a lawyer for what my hrly break down has been

Been a strange year with personal customers too, been doing a ton of estimates and instead of folks calling back within a few days I'm just now getting green lights for stuff I bid at the end of March first part of April-tax returns coming in I guess Hoping this momentum keeps up, but in light of our today $2.89/gallon diesel and $2.78 regular fuel prices and wages staying the same...I dont know?? Been workin like a dog to stay ahead of schedule so we can jump on anything that moves and try to stock pile funds just in case.

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theworx

IHI, our fuel jumped last night to $1.10 a litre. With the conversion to gallons and knocking off 20 % for our currency difference, we are paying $3.40 /gallon for regular. Yikes !!! Don't know if it will affect the building going on here right now (It's crazy busy).

Glad to hear you've got some stuff lined up and hope you get your $$ coming in real soon !!

IHI

My personal theory is that follks make more money the further north of the equator they are, least that's the way it is with the racers I compete against from MN. and northern IA LOL.

I sold a brand new fuel pump to a guy from canada for $60 MORE than is costs from a speed catalog PLUS $40-50 shipping on top of the sale price and he was telling me what a great deal that was for him???

Shipped out 2 sets of slicks to your country and once it was all said and done with final sale price and shipping my used set got me 1/2 of what I buy them new for. Something funny is going on up thar if ya'll can afford to pay those prices LOL!! (what's the secret, I promise I wont tell

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theworx

Don't know any secret??? I think from what you said about selling stuff to us canucks for crazy amounts, and the fact they were happy to pay it just shows how expensive things are up here.. I bought a six pack of "Blue" last night and it cost me $12.85 !!! What do you pay for a six pack ???

I guess another difference is the fact that you guys pay your own health insurance (our health system is supplied for the most part by our Govt.). And our health system sucks!!! I lose 1/3 of every paycheck to tax (and that's a 80 hour/2 week period). I've had stints when I put in upwards of 140 -150 hours in two weeks and got less than if I had worked 80 hours (The buggers took half of my check away). How does that work down there???

IHI

Barely pop prices depend on which poisen you enjoy, but overall a typical 6 pack is around the $4-6 mark to get you feeln niice

Most health care coverages in my area for a family run between $260-350/month for family plan through an employeer or $600-1500 if self employeed from all the guys I talk to about this issue, we're lucky since my wife works at the hospital so we get our insurance through her but we're still paying $130/wk for daycare and $68/wk for insurance. She makes $12.31/hr and once it's all said and done with taxes her a net bring home per 2 weeks is only $490. The most she ever made annually was last yr at $21,250....and she spent a little over $9K to get a 2 yr degree and is pigeon holed in a low paying position (sore topic between us

Taxes are roughly 30-35% of your gross if you dont want to pay in at tax time if your self employeed, if you work for somebody else 25% seems to be pretty universal for what the government gets.

I remember almost 17 yrs ago we were up in Canada fishing and I felt like a pimp (even thought I was only 14yrs old) when we'd stop at stores or trading posts since back then the change over rate was in our favor....then I think i had to pay money out of my pocket to convert back to us money LOL!! Oh well, that is one trip I will never forget, absolutely beautiful country compared to the cornfeilds I've grown up with

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