Business Overhead

[baileyuph]

A comment:


Ironic but true, in spite of the recession, utilities and trash pickup cost have increased.   

Plus, any one faced with this one:  A new one has been added this year, the local municipality charges a water run off fee based on the amount of surfaced parking you have, plus roof coverage.  Their justification is black top and concrete won't absorb, hence the charge. 

What can I do but pass on the cost?

Doyle

[Mojo]

There is very little you can do.

As the recession continues many municipalities will find new ways to bring in revenue. They have cut services while increasing fees. Most States are running a large deficit as well.

You can trim your margins a bit but there comes a time when you still need to increase your prices in order to maintain a healthy margin which will keep you in business.

The vast majority of companies, both large and small are feeling the same thing as all of us here. They are cutting costs, trimming staff levels and holding off on price increases. Some are actually cutting their prices to maintain market share.

These economic  downturns really wreck havoc with everyone. From the cities and States right down to the average citizen. It is like a big boulder rolling down a hill. It runs over everything in its path.

Chris

[scottymc]

Bring back gravel driveways

[SHHR]

They just did that in our town. It doesn't affect me since I work out of my home shop and I live in the county and not the town, but the city commisioners have been going around for over a year now about storm water run-off fees. I forget what their rates are but residents will be charged one rate and buisness a higher rate.  Also all buisness in the city limits both current and new will have to provide some sort of landscaping as well (that's approved by the board) instead of all concrete or blacktop. The reasoning for that is an "asthetic draw" for visitors to town and an area for run-off to drain into naturally. Many small buisness owners have complained due to the expense of landscaping plus maintenance of it too.

The "little" guy will never win in these situations. It's just a way for the local governments to collect more revenue with so much been lost in the last few years. The only thing that can be done is to absorb as much cost as you can then when theres no other option pass it on in your charges.
Kyle

[byhammerandhand]

The run-off fee sounds pretty incredible unless the municipality has to provide storm sewer to handle it.

Around here all the office parks and big box stores have either retention ponds or detention ponds.   One of the results of that is that we are overrun with Canada Goose.   There must have been 200 of them in the quarter-acre pond in front of the new Wal*mart.   Some people slow down for them when they saunter across the street.   I usually slow down, too, to about 30 mph.  One local company has trained dogs to deter them.  They call them "Goose-Busters."

But to your original question:
- Increase your prices.
- Increase your productivity
- Increase your work hours
- Vote the bums out.

[Ihavenoname]

It's a moving target, but when you are down to the wire to begin with it makes it harder.  That is why having a business based on price and being the lowest priced competitor will eventually put you out of business.  You do have to add new costs to your prices or make cuts in quality or service.  For me, I seem to never stop figuring how to raise prices or increase profits. It's a never ending process when things just keep going up. Foam is more, fabric is more, taxes are higher, insurance is crazy, fuel is up, a new truck or van is $32,000 for a standard base model.  Yet my customers can afford these niceties.