Good friend closing business after 28 years.

Discussion in 'Economy' started by iamwhatiseem, Apr 30, 2012.

  1. iamwhatiseem
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    iamwhatiseem Gold Member

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    Hate to see this. A good friend and colleague bought a business in 1984 that had been in existence since 1952. Between 1984 to 2000 he nearly tripled the business. His revenue last year was half what it was pre-recession.
    In February he lost another large account...he can no longer survive.
    I talked to him for a good 45 minutes this morning. His words hit home for me, and I bet a lot of you...

    "I am so very disappointed in the direction this country has been going for the past 10-15years. For 16 years I provided great service and a consistent product that other businesses needed - and the orders just kept coming in. I would say 80% never even asked a price, they knew we took care of them and that my pricing was fair. In the past 12 years or so little by little it reached the point to where it is today - every single order people want the price up front so they can compare your price to someone else. They call back and ask if we can match a price they got from so and so, they call to see if I can do the job faster at the same time can I work with them on the price? There is no such thing as a fair price anymore. There is only the lowest price. I just can't do it anymore. I am sick to death of this "kill or be killed" environment where the only way you get new business is if you undercut someone else while they are trying to undercut you - all to try and satisfy a client base whose only concern is the price."
     
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    Last edited: Apr 30, 2012
  2. Ariux
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    Ariux BANNED

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    Too bad the Tea Party's magic negro, Cain, couldn't make to the Whitehouse. With tax cuts for the rich and tax increases for the middle-class, that should have helped the average Joe. Tea Party idiots.
     
  3. Katzndogz
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    Katzndogz Diamond Member

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    Fair isn't a valuable commodity.
     
  4. syrenn
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    syrenn BANNED

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    just wondering...what was his business?
     
  5. Big Black Dog
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    Big Black Dog Gold Member Supporting Member

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    Sad thing about your friend. I lucked out and sold my small business at just the right time. Unfortunately, the fellow that bought it managed it badly, fired the few employees that were already in place so he could hire his buddies and he ended going belly up. It was sad to see this happen. I'm sure your friend will hate to close his doors but it's pretty brutal out there right now. You described it to a T.
     
  6. Mr. H.
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    Mr. H. Diamond Member

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    Blame the interwebs.
     
  7. iamwhatiseem
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    iamwhatiseem Gold Member

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    His was the same as mine...only smaller.
    We are one of the last remaining manufacturers where to this day most are still single owned businesses. But, at the same time, we could very well be what the grocery business was in the 1990's...by 2000...almost none were single owned: Printing.
    Not the mom and pop copy shop...the multi-full color shops cranking out 100,000's of pcs a day. What we have going for us is paper is very heavy. Therefore costly to transport. So far that has been our saving grace. But at the same time printing grew nearly every year decade after decade. The internet? Fax machines? Cell Phones? These have affected printing very little. Direct mail is the most effective means of advertising by faaaar. But the economy has shredded our industry. Since 2007 the industry has dropped a staggering 27%. Printing is of course a B2B business. And businesses have been forced to cut expenses - advertising is one of the first things businesses cut.
     
    Last edited: Apr 30, 2012
  8. Middleoftheroad
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    Middleoftheroad Active Member

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    If the industry is down 27% and his revenues are down 50%, then he is doing something wrong. Every business I have ever worked in always stressed savings in every possible way.
     
  9. Ariux
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    Ariux BANNED

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    Not necessarily. A smaller shop is not as able to lower prices as much as a larger shop, meaning the smaller shop would be hit harder by pricing pressure. Smaller shops try to compete in ways other than having the lowest price.
     
  10. geauxtohell
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    geauxtohell Choose your weapon.

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    Solution?
     

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