Mostly For Us Canadians! But All Are Welcome!

Ashcon

Jarvis, this year we have been busy,60-80 hrs per week this has been primarily install type work! Next year it is going to be an extra 8% on 90% of my business! That is going to have a substantial impact on our sales. Yes there may only be an increase of approx. 4% on most of the renovation work but the examples that I have heard all deal with a 50% material and 50% labour? When was the last time you priced a job that was 50/50? The only thing that will be easier is all my totals will have both taxes added at the end instead of breaking it down when Im doing my quotes. Just going to have to hit it hard and market the january to july 10th as cheaper than after july sales.

skipdow

Most of the work I do is financed so cash is not an option for our customers.However there has always been and always will be hacks who will do the job for cash. My response is always "yeah I love when people do cash jobs, it keeps me in business fixing their shortcuts" Guys that cheat on taxes, permits, materials also make shortcuts in their work. Ask the customer if they want it done right, now, or done right later when someone is called in to repair the first guys cheap work

Inner10

I'm not happy about the idea of HST.

But this is the bottom line: if the government wants more money they will find a way to get it one was or another so deal with it.

Mrmac204

We here in British Columbia are facing the same thing- HST. by some amazing turn of events, just before our last provincial election our sitting government said "no way, not even considered, not gonna happen" (last spring) so they get elected. Shortly thereafter "tada! you got the new HST tax! and it will be good for you!!!" and we had NO idea that the Fed's would offer this to us. oh yea, everyone believe's that.

They get 1.6 billion from the feds to do this as incentive. The gov't also knows that if they do it now, they've got four years for folks to forget about it, (next provincial election is 4 years away) and maybe the economy will be better. fr shr.

Even scarier is the opposition party, all they gotta do is shut up and they might form the next gov't. They can't even organize a protest!!!

All that said, I will not do cash jobs- I've done them in the past but I am very careful to deposit that exact amount into my business account.

I mean, I'm gonna risk my business over a couple hundred bucks???????? to do a customer a favour who will deny knowing me when I get the crap audited outa me??? not.

I've heard that the last time this happened (GST) there were tax guys all over the place offering cash to contractors.

Not this dude. The first obvious impact to me? no new truck - was gonna buy one in the spring, but if my business dries up? no work=no money=no payments. not worth the risk.


Laurie

www.lauriescustomfinishing.ca

reveivl

I bet your work doesn't dry up. I think people like working for honest contractors for the most part. I have no love of this tax, but I will just pass it on like I do the GST, and like you I don't do under the table stuff. I have never seen the advantage to me. As you say it might save me a few dollars but then cost me thousands in fines, plus I would get audited every year until I retire after that.

I don't think this tax is well thought out and have mentioned my displeasure to those in power who will ignore me, but I have no issue with paying taxes in general and will pay this one too. ( Or actually my clients will pay it, I will simply collect it and pass it on).

__________________
From where does knowledge come? If you need to know what is in a box, you could ask someone (not reliable), you could pray, (not useful), you can consult with the scripture (not helpful) or you could open the box (science)

Rcon

Hi guys,

I'm new around here, and came across this thread. I'm in BC, and we're affected by this new HST as well. I *think* i'm against it, because it will force me to raise the final price I deliver to my customers - however, after watching this little video on how the HST is supposed to work, i'm not so certain. gov.bc.ca/hst/

If this means that I will no longer have to pay taxes on the materials I purchase, then OK. As long as it reduces my material costs, I can also reduce the amount I have to charge for them. I simply have to add the tax to my final bill. However, if it turns out I still pay taxes on the materials at the counter, then it saves me nothing and raises prices all around.

I'm curious to find out how exactly this is supposed to work. And I hope this isn't just another cash grab by our already greedy gov't.

jarvis design

I have been talking to a lot of customers and suppliers about the impending HST.

Customers of course hate the idea of more tax (I think that's a no-brainer!)

The more interesting conversations were with suppliers. My custom cabinet guy and I discussed it just the other day. He says the same thing that happened when the GST came in is going to happen next July. The price you pay now for stuff is going to be the new price - PLUS HST.

This happened when the GST came in. The 12.5-13% hidden manufacturing tax was eliminated - which should have meant that prices dropped the same amount. Out of all the vendors I dealt with at the time, only 1 ( out of about 30) actually dropped their prices.
Everyone else - kept the old prices - PLUS GST

This amounted to a 13% price increase -and the suppliers didn't even have to make up new price sheets!!

All I can say is it is going to be interesting!!

__________________
Bathrooms Built for Life.
www.JarvisDesignBuild.com
519-495-4062

coveinspiration

I think this is going to have a minimal impact on the renovation industry. I can't count how many times a customer has said to me "what, no pst" when I hand them the invoice. A lot of people don't know that PST is not applicable to renovations. I think the impact will show when it is implemented, but with time people get use to the idea. And, yes there's gonna be a lot of cash jobs floating around.

My advise is to get your marketing game on if you are worried about it. There's a lot of great contractors that can't market themselves. Get a nice website together and what ever else will help!

Colin
www.covefinishings.com

Winchester

Unfortunately, that is all too common an attitude in the "True North, Strong and [not so] Free"

__________________
Ryan