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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Amelia Carhartt who wrote (178016)	1/19/2009 3:26:00 PM
From: GraceZ	Respond to of 306849

Still, my point was, people want to get paid $85/hr. to stand around with their hands in their pockets. Exactly! You really have to fight the urge to raise your prices (or even keep them the same) to make up for falling revs when your biz falls off the cliff. What you need to do is drop prices to increase share but so many small business owners can't reduce their overhead fast enough, or they don't have enough cash reserves to be able to pull off operating at a loss for any length of time. This is why larger better capitalized competitors are able to increase their share significantly in a recession. I always think the best time to debut a new biz is during a recession, you can get breaks from vendors and suppliers. People who wouldn't give you the time of day in a boom are eager to do business with you in a recession. There is lots of evidence that companies started during economic pull backs survive longer than those started in a boom. In tough times you are forced to make good decisions or die trying.