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profitofdoom

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I took a decision to scale down drastically in January.With 55-60 stock units I was turning over about 5 cars a month for the first half of the year.So I let the stock dwindle to the point where I now have 15.Reduced staff from 2 full time to 1 part time.Cut advertising in half and renegotiated my rent from £500 per month to £50 per unit.

It seems to have worked.With my monthly overheads reduced from £4500 to around £1000 I still did 5 units for July and August and have just done 5 for the first few days of September.

The downsides seem to have been for the staff (1 redundant,1 to part time) but mostly the VAT man whose monthly take has fallen from over £1000 last year to around £200 this,despite a hike in the rate.Maybe small is beautiful!

I understand from talking to bigger franchised dealers that things are desperate.Carrying expensive staff and premises they are doing money hand over fist.Looks like 2012 might be the time to pick up the pieces.

Edited by profitofdoom

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The bloke I bought my last car from did just the same. Now works from home without the expense of premises. I think it's a wise move.

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My brother in law runs a car salvage company. He has reduced his unit in half to allow the landlord to split it into two to allow him to half his rent from £1500 to £750 per month. He is selling hardly anything lately, in fact he has been struggling for the last couple of years. On the up side what has probably kept him going is that he has had an increase in buyers who would normally have bought a new or nearly new car now choosing to buy salvage and get it repaired instead.

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Looks like 2012 might be the time to pick up the pieces.

Or 2032.

This is probably just the beginning of a very long process of adjustement. All that funny GDP is not coming back until we find new sources of growth and I've yet to hear anything at all to suggest we are close to finding something, anything.

Until then it's all down, nominal growth maybe achieved with miscounted inflation but any non essential or luxury business will contract for a long time.

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Only to add that I seem to be seeing an increase in private sales by the road side. One small time dealer near me always gets a fixed penalty parking notice on the various sub £1000 "bangers" he has out for sale, but I guess thats cheaper than advertising.

I'm just amazed there is still so much traffic on the road, given the cost of fuel.

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I took a decision to scale down drastically in January.With 55-60 stock units I was turning over about 5 cars a month for the first half of the year.So I let the stock dwindle to the point where I now have 15.Reduced staff from 2 full time to 1 part time.Cut advertising in half and renegotiated my rent from £500 per month to £50 per unit.

It seems to have worked.With my monthly overheads reduced from £4500 to around £1000 I still did 5 units for July and August and have just done 5 for the first few days of September.

The downsides seem to have been for the staff (1 redundant,1 to part time) but mostly the VAT man whose monthly take has fallen from over £1000 last year to around £200 this,despite a hike in the rate.Maybe small is beautiful!

I understand from talking to bigger franchised dealers that things are desperate.Carrying expensive staff and premises they are doing money hand over fist.Looks like 2012 might be the time to pick up the pieces.

Is it per unit sold?

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I took a decision to scale down drastically in January.With 55-60 stock units I was turning over about 5 cars a month for the first half of the year.So I let the stock dwindle to the point where I now have 15.Reduced staff from 2 full time to 1 part time.Cut advertising in half and renegotiated my rent from £500 per month to £50 per unit.

It seems to have worked.With my monthly overheads reduced from £4500 to around £1000 I still did 5 units for July and August and have just done 5 for the first few days of September.

The downsides seem to have been for the staff (1 redundant,1 to part time) but mostly the VAT man whose monthly take has fallen from over £1000 last year to around £200 this,despite a hike in the rate.Maybe small is beautiful!

I understand from talking to bigger franchised dealers that things are desperate.Carrying expensive staff and premises they are doing money hand over fist.Looks like 2012 might be the time to pick up the pieces.

i would recommend actually increasing advertising, to increase sales. obvious it may sound, but the advertising is vital, the key is it has to be targetted and measurable.

increased advertising is really the only way you can increase sales above and beyond the natural level of sales you will normally get.

to a certain extent all businesses are to do with percentages. x number of people see your business, y number actually enquire/browse, z number actually buy.

the only way for you to break that steady stream of 5 sales a month is to increase exposure because x filters down to y which filters down to z.

if youre not sure if advertising is working or not, do split tests. run some advertising and count how many people come in and how many more conversions you get for a month or so to see if y is increasing.

no effect? scrap that advertising, and target a different market/form of advertising, until you get the right combination.

the fact you cut advertsing and it had no impact tells you your current advertising wasnt working.

Edited by mfp123

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I took a decision to scale down drastically in January.With 55-60 stock units I was turning over about 5 cars a month for the first half of the year.So I let the stock dwindle to the point where I now have 15.Reduced staff from 2 full time to 1 part time.Cut advertising in half and renegotiated my rent from £500 per month to £50 per unit.

It seems to have worked.With my monthly overheads reduced from £4500 to around £1000 I still did 5 units for July and August and have just done 5 for the first few days of September.

The downsides seem to have been for the staff (1 redundant,1 to part time) but mostly the VAT man whose monthly take has fallen from over £1000 last year to around £200 this,despite a hike in the rate.Maybe small is beautiful!

I understand from talking to bigger franchised dealers that things are desperate.Carrying expensive staff and premises they are doing money hand over fist.Looks like 2012 might be the time to pick up the pieces.

Less is more. ;)

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Or 2032.

This is probably just the beginning of a very long process of adjustement. All that funny GDP is not coming back until we find new sources of growth and I've yet to hear anything at all to suggest we are close to finding something, anything.

Until then it's all down, nominal growth maybe achieved with miscounted inflation but any non essential or luxury business will contract for a long time.

my feelings exactly, as you call it funny GDP (borrow and spend) is the best we're managed to come up with over the last decade or 2 now any slight gains from real growth will go to pay debt interest. We're going down for a long time. I can't imagine where the up will come from if it even does in my lifetime.

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Like your style op flexibility and adaptation to the Market conditions ensures survival. You can pop your head back above the parapet at a moments notice. I'm the same if I want to I can close out the unit on a 4 week timescale and if things look good I can double the space similarly. Biz looks good at the moment, but I could flip to something else in an instant using the same technology if I needed to

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I'm lucky to be busier than ever - but as always I keep a ruthless control over costs.

Businesses fritter money away on the most ludicrous crap, then fret over the bottom line.

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I see garages doing this:

*Only selling second hand german cars (BMW/VW/MERC) - T**ton flyover garage.

*Have one part of the garage providing hand car washes - P****ington garage.

*Stock fewer cars, the cars are visibly more spaced out - E****on garage.

*Downsize, stocking lower priced cars - Garage next to Shell garage L*****ton.

*Close and restock specialist vehicles - C***stchurch garage.

*Go bust altogether - Garage next to the one above.

---

My 10 year old car is going OK at 100K+ miles , I won't be replacing it yet until I have to. Perhaps next year, depending on how harsh this winter is on it.

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my feelings exactly, as you call it funny GDP (borrow and spend) is the best we're managed to come up with over the last decade or 2 now any slight gains from real growth will go to pay debt interest. We're going down for a long time. I can't imagine where the up will come from if it even does in my lifetime.

It's not just borrow and spend though. It's all the GDP created by people not doing things themselves: parents not cutting their kids' hair but going to the expensive kids hairdresser, washing the poodle at the local poodle parlour, not cooking but buying ready meals, not doing picnics in the park but paying to take the kids to a party organiser, not getting the kids to wash the cars but having the car cleaned at the local valet service, etc.

A lot of our service industry was based on people's feeling wealthy and not bothering to do anything themselves. The retrenchment should be quite painful.

Edited by _w_

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I've also seen a garage have a burger van on it (rent out the plot?) to get some cash coming in. I can't remember where I saw this. It might have been M***brook.

I think if you own a garage then thinking up unusal ways to get the cash flow up might be a good idea. Car valeting, etc.

Edited by Money Spinner

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How about stocking shovels, rocksalt, crampons, fuel cans? Stick a sign outside. That reminds me to pick up som rocksalt tomorrow! They ran out everywhere last winter!

Edited by Money Spinner

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You've been on HPC a couple of years, you must've seen it coming.

Your industry has borrowed its own future. Not entirely your choice of course: providing finance deals to buyers is your leverage against the future and on its own would tend to amplify boom/bust cycles, but shouldn't be catastrophic. But the government's so-called scrappage scheme created a one-off binge that led directly to very lean times in its wake - far more so than just the vagaries of economic cycles.

You can blame ex-chancellor Darling. But also if you didn't make provision for lean times while you had that scrappage scheme generating artificial extra business, you can blame yourself.

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I'm lucky to be busier than ever - but as always I keep a ruthless control over costs.

Businesses fritter money away on the most ludicrous crap, then fret over the bottom line.

Glad to hear someone is ok! What type of business are you in?

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It's not just borrow and spend though. It's all the GDP created by people not doing things themselves: parents not cutting their kids' hair but going to the expensive kids hairdresser, washing the poodle at the local poodle parlour, not cooking but buying ready meals, not doing picnics in the park but paying to take the kids to a party organiser, not getting the kids to wash the cars but having the car cleaned at the local valet service, etc.

A lot of our service industry was based on people's feeling wealthy and not bothering to do anything themselves. The retrenchment should be quite painful.

Cutting your kids hair is a luxury?

To be honest I could cut my sons hair and I have done a few times in the past but it's nothing complex just running the clippers over his head.

However I wouldn't fancy cutting my girls hair.

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but as always I keep a ruthless control over costs.

Businesses fritter money away on the most ludicrous crap, then fret over the bottom line.

I try to for my boss, but the resistance is diabolical - my word is mud at the moment in our warehouse, but they don't see it that I've taken away a third party service (saving thousands) so they don't get reduced hours by taking on that work.

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I took a decision to scale down drastically in January...

I understand from talking to bigger franchised dealers that things are desperate.Carrying expensive staff and premises they are doing money hand over fist.Looks like 2012 might be the time to pick up the pieces.

I'm sure you'll punch through the lean times and come out stronger for it. Good luck.

I am ashamed to admit that I bought a new car yesterday (Renault Clio 'i-Music' :rolleyes:) with a low initial payment and low rental... Mrs Posh asked the salesman how busy they were, he just shook his head and said business had been 'awful' and not best pleased that I declined GAP insurance/scratchguard. I guess that's where the lions share of the commission is made.

Edited by tomposh101

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Cutting your kids hair is a luxury?

You can take, say, three cheap haircuts a year.

Some people take thirty expensive ones. That's a luxury, at least in the sense of being a self-indulgence.

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I could buy a car right now from a neighbour.

I could buy one from a dealership.

I could buy one from the manufacturer.

.

Petrol isn't a problem.

But I can't afford to insure a car.

So I don't drive, I can't commute for work.

I'm at a disadvantage in the labour market.

Less incentive to work.

Less likely to participate in the economy.

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I try to for my boss, but the resistance is diabolical - my word is mud at the moment in our warehouse, but they don't see it that I've taken away a third party service (saving thousands) so they don't get reduced hours by taking on that work.

Do you mean your name is Mudd?

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  • 333 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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