Businesses Going Bust

[Triassic]

^{This week I’ve found that our steel fabricator and the second fix carpentry companies have both gone bust. Luckily they didn’t have any of my money, but they leave me in the lurch!}

 

^{is this just a local problem, or are you seeing more businesses going busy? Talking to both owners, they blame material, utility and rent hikes for their problems. Late payment was also mentioned by the fabricator.}

[SteamyTea]

Pay everything with a credit card.

 

I think businesses are going pop all over the place.

[AccidentalSkydiver]

Its probably going to be an upward trend in construction, cost of living, supply chain issues and fuel cost sky rocketing, lots of bigger companies can absorb it because they have massive margins anyway, but the little guy hasn't. My Dad has a small company been around for about 30 years, and they're finding the pinch points, they raised their costs with the clients (they do lots of sub-contracting) and the big guys absorb it. But the direct customers are getting hit with the increase and they've seen about a 35% increase in people who pull out last minute

[nod]

There’s a real cash flow problem out there 

Lots of companies are on the brink 

[Roger440]

2 hours ago, nod said:

There’s a real cash flow problem out there 

Lots of companies are on the brink 

 

Very much so.

 

Cash flow is always a problem, but right now, its about being on the ball enough to know which of your input costs are going up and adjusting what you charge accordingly. If you are too slow, you will get caught out as your margins will erode. Fast.

 

The days of once or twice a year price increase is gone. Stick with that and you will almost certainly be in trouble. 

 

Easy to say, less easy to do. In our case, its a several day excercise to update the various systems and websites with new pricing, advising trade accounts, doing price lists etc. 

[SteamyTea]

1 hour ago, Roger440 said:

The days of once or twice a year price increase is gone. Stick with that and you will almost certainly be in trouble. 

We get tomorrow's delivery prices every evening, and adjust our prices on a daily basis.  Really horrible explaining to regular customers that what they paid last week is not the same as this week.  Our cooking oil has gone through the roof, proteins more than doubled now, energy more than doubled (no price cap on commercial energy).

Judging by the number of restaurants that have burnt out in St. Ives in the last 12 months, I suspect insurance will double.

And the council have decided to charge for parking.

 

Now £8 for a cheese sandwich where I worked last summer.

 

2 of our products are no longer available as well.