Jump to content
House Price Crash Forum

Demands To Drop Prices Spark Resentment Among Subcontractors


Recommended Posts

"Taylor Wimpey has good long-term relationships with its supplier base and this is part of the natural process of reducing costs in the supply chain when general market conditions are tighter. "

"We share the benefits when times are good and we want to talk about costs now that conditions are more difficult."

Absolutely SPOT ON!!! Prices are OVER-INFLATED at the moment by the suppliers coz Bricks & Mortar ONLY GO UP. Well now its tough, the EASY MONEY is over... its just going back to what it was.... I think the House Builders are WELL within their right to demand this. BUT... they should take SOME of the hit of dropping prices and not pass it ALL on to the suppliers.

TB

Link to post
Share on other sites

The subcontractors may start walking away if they dont get paid, I remember during/after the last crash friends of mine buying a place in a new build development on an old factory grounds in Chadwell Heath. They got it cheap because it had no kitchen or bathroom fittings. :o ie; it was left unfinished by the builder.

Edited by Loggy
Link to post
Share on other sites

I think its going to be this way across the economy as the slowdown/recession comes in.

There's been a lot of talk about inflation but I think there are many deflationary pressures potentially out there too. Given that prices of so many things have been so high (property and services being obvious examples) then it seems to me there's plenty of fat to be trimmed on prices (in some areas - not all). An example of this so far has been the likes of Tesco's abosrbing some (not all) of the increased costs in foods as a result of greater demand and fuel hikes.

The simple analogy to me is that a plumber should not be earning £70k+pa - there simply should not be that much value in the trade. A policeman's work represents a similar level of training (and more responsibility) but they command only £30kpa - something isn't right (economically) when the plumber can demand much higher fees.

I'd expect a lot of people in various inflated trades and services to find their income being squeezed for the next 4-5 years. The hopes of many that wage inflation will ease their debt may not come to pass.

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    No registered users viewing this page.



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.