Tomorrow is D-Day! Are we Recession proof?

[number1kitty]

All year theres been doom and gloom. The economy is slowing down, people are tightening their belts and not spending. The government tried to deny that there would be a recession even though we all knew this day would come.

Tomorrow morning is the day we have all been waiting for for the past year. The government will officially announce whether or not we are in a recession.

I am glad on one hand as I left my house I owned 3 years ago with £100K profit and now in rented but I am too scared to jump back on the ladder in fear of losing all my money. I can't get a mortgage because the banks want a 20% deposit and I kinda spent my profit in my last house of enjoying myself:irked:!!

Its something I regret, but I have had good times too.

My business that I started at the beginning of the boom basically boomed. I sold my salon for a lot of money (then spent that too lol!!!:lol: well it was too risky sat in the banks!)

So now I work in two areas because I am moving home and I am struggling a little with the travelling (and fuel costs which thank god have come down recently!).

I was going to open another salon but I have to admit I am way too scared to commit to that at the minute. I think the only way to keep my head out of water (and me in shoes) is to have no overheads with my job!

I must admit I am cutting back big time. I did all my xmas shopping four months ago. I have now got my food bill a week down from £130 to £60. And I try not to buy too many shoes.

How is tomorrow going to affect you? Not just in business but your home life too.

Are you also cutting back on the spending even if you could afford it?

Are we now becoming a nation of savers not spenders?

Are you worried how your buisness will survive?

Kate xx

 

[hippy-chick]

I think since Jan/Feb this year I've been conscious of the ever increasing price raises for petrol, gas, leccy, food etc, so Ive been trying to cut down.

I've got my shopping down to £50 for the main but end up spending another £10-15 on topping up.

I now switch every appliance off, and switch the heating on for shorter periods.

I try and cook economically too, if the oven is on EVERYTHING goes in! Even tins!!!

I've noticed a downward slide in appointments so its not just me, I've lost a few, gained a few.

I have noticed a few clients emailing me asking me for stress-relieving treatments as they 'deserve a pamper' so think people are sick to the back teeth of the news bleating on about it.

I was in the Metro Centre (largest shopping centre) on Tuesday and it was packed!

Pubs and restaurants seem busy.

My local co-op is always chokka.

I am going to sit tight, try and think of more lovely treatments to entice my jaggard and stressed clients in.

oh and petrol is down to .99p and vegetables are only 39p in aldi.

 

[number1kitty]

See I always thought supermarkets would never lose money because every one needs to eat. Yet I know so many peeps who have halved their food bills.

I find its the think twice mentality thats now kicked in. Before you would walk into a shop and buy something and not worry. Now you have to think a) can I really afford it and b) do I really need it and can I live with out it. Well thats what my partner tells me in the shoe shops lol!

xx

 

[mannipatch]

I have noticed a downward turn as the past 3 weeks in new business.
I still have my regulars so I am ok at the moment.
I had an article in my local paper on Tuesday and not one phone call has resulted - so in my opinion we are already in a recession.
I am expecting to lose some clients as I have been informed tonight that Easy Jet have let a lot of their cabin crew go and some of them are a major part of my repeat business and also bring with them quite a few referals. I also do some British Airways so I am keeping my fingers crossed that they will be ok but it is not looking good. If not - and the girls take up the offer of working for United Arab Emirates based in Dubai (who have a major recruitment drive at the moment?) I will be getting into their suitcase (need to be a big one).
I have not tightened my belt up to now but looks like I will be. First thing to go will be eating out and next, re-evaluating household bills.
Business cut backs would be advertising and concentrating more on word of mouth and client referal programmes.
I try not to worry about the Economy as I can't change things, what is, is, but with the full on media exposure it has started to get to me. :irked:

 

[Ruth Mills]

As an IT geek, I've still got contract work until the end of Feb, and am hoping for an extension after that for a few more months too (there should be enough work to keep me going for longer with some luck), but have certainly cut back on things in the past year.

I've been crafty though - like switching the dogs' pet insurance from Petplan to Axa (that costs less than half of what Petplan did), switching the mortgage life insurance from HSBC to Axa (saving 15 quid a month), switching the home insurance from Norwich Union to Sheila's Wheels (saving 200 quid per year), and switching the gas and electric from E-on to Scottish Power (costs about the same as it did earlier in the year but we are on a fixed tariff until Feb 2011 now, so no price rises). Have also managed to can a few of the more frivolous direct debits, so no more gym (that I didn't have time to use much anyway), and the stuff we had in "Storage King" after we had Sonia's bathroom done is now in our loft (some of it that we didn't need got given away on Freecycle).

Have found that the MoneySavingExpert web site, Money Saving Expert: Consumer Revenge - Credit Cards, Shopping, Bank Charges, Cheap Flights and more is an absolute godsend; after one of my credit cards put my interest up by 5%, I opened a couple of other cards that have "life of balance" transfer deals, so shifted as much money as possible on to those two cards, so am probably saving about £40 per month in interest now as a result of doing that...

We do seem to have cut our expenditure down a fair bit though; we're not eating out as much as we were, and are trying to save money on shopping wherever we can...

 

[Lynne Baker]

I try not to worry about the Economy as I can't change things, what is, is, but with the full on media exposure it has started to get to me. :irked:

I absolutely concur. Can you imagine what it would have been like in WW2 if we had had this lot of doom merchants in the media? We need to be informed about what's going on, but, flippin' heck chaps, how about a bit of positivity?!
We WILL come through this, it will be a bit uncomfortable for a while, but once the market is corrected, once the "greed is good" mentality is realised to be flawed, once people have realistic expectations about what they can afford, it will sort itself out and we'll be fine.
I think the media has a lot to answer for, but then, good news rarely sells papers, does it?

 

[Bev Rose]

I have not, so far, found the current economic climate making any effects on my business or clients - thankfully.

They are all of the mentality that - they'd rather sit in the dark cold & hungry, but at least their nails look fab! That's what one of my clients said to me recently.

Our industry is about giving people something lovely to look at about themselves, making them feel better, more confident etc with their nails, beauty & hair. People need to be able to Feel good about themselves, it makes them feel better. I so far, have found my clients are aware of what all the media is blurting out, but having this or that done makes them feel happy - that's OK by me.

Yes, the supermarkets are still busy, people are still going out socialising. I was at Meadowhall in Sheffield the other week - on a Friday day time and it was very busy.

If any one's to blame for the current financial climate, then I reckon it the media - all talking themselves into a recession.

I have taken on a new retail line, and I did wonder if I was doing the right thing - it's gone off like a dream, 5 out of 6 clients have either bought or ordered stuff from me. Others have said they will deffo be getting this or that - not for Xmas pressies, but for themselves. That's OK with me.

 

[Lynne Baker]

Yep, we really do just have to be sensible and hold our nerve. Shame our politicians and media moguls can't do the same.

 

[essentia]

Hi I do think we should hold our nerve but I do not see how the media is scare mongering when the banks are having to be bailed out for ££££££. We have to be told what is going on. It is serious - you cannot dress it up to be palatable.

It has been too easy to get credit and we are now paying the price. We all knew really something would happen but with prudence we should all be fine - although sadly some people will lose a lot. :|

 

[number1kitty]

I feel for those that can't help their situation I.E unemployment, but those that have lost their houses because they spent their equity on holidays I find comicable.

i dont see this recession as negative (although a certain other thread seems to think that I do!!). I have been looking forward to this for ages. Its about time people realise that good times cant last for ever.

Its changed peoples mentalitys so we will all save more. But people now think twice before being indulgent. In turn a lot of salons will see people leaving longer between appointments or changing treatments or even salons to get the best prices.

I hate Martin Lewis I find him majorly annoying but like Ruth I have also taken head of his advice to save money. I am not the only one that simply wont be ripped off anymore!

xx

 

[divalou]

As for 'saving' not 'spending' and 'thinking twice before I buy', this is nothing new to me!! I have unfortunately been a skint little hairdresser for 4 years now and have had to survive on almost no money the whole time, and Ive been just fine. So yes, people who have been greedy or who just spend £100's on a whim do need to wake up! You cant go through life like that. Well not forever anyway.

And as a skinto'd person, ive learnt cunning ways to gather £££'s together and always find a way of getting those shoes or that holiday or go out that night etc, but ive never given them up! People are the same with whatever little treats they give themselves, be it hair, nails, beauty whatever - they will always find a way to pay for it, even if they have to starve!

Someone is always going to benefit from the recession if you think about it, if more and more businesses close (and i mean this in the best possible way) then the market is less saturated and those businesses that do survive are going to have the monopoly on the market. I dont wish that any other salons close but, if they do and we survive, in theory we will be the only option for clients! And there will be PLENTY of clients for us to survive with

 

[pazzy]

There is no news.

What can they write about? How can they scare?

Here's a good'un - the credit crunch...yeah a story!!!!

I went out for lunch today at a popular pub (nice food) it was packed at 12noon - and they were booked solid and have been for about 3 weeks.
No money about eh?


Yes things are tighter. But I think its for the good. Credit cards are the curse - if you havent' got the means to pay for the items - you shouldn't have one. Simple as that.

October has always been and always will be a quieter month. As is Novemeber for the hair and beauty industry. After everyone has done their shopping for xmas clients want their beauty treatments for xmas.

January has always been a doom & gloom month. All the bills come in and there's nowt to look forward to.

 

[Bebeautiful]

All year theres been doom and gloom. The economy is slowing down, people are tightening their belts and not spending. The government tried to deny that there would be a recession even though we all knew this day would come.

Tomorrow morning is the day we have all been waiting for for the past year. The government will officially announce whether or not we are in a recession.

I am glad on one hand as I left my house I owned 3 years ago with £100K profit and now in rented but I am too scared to jump back on the ladder in fear of losing all my money. I can't get a mortgage because the banks want a 20% deposit and I kinda spent my profit in my last house of enjoying myself:irked:!!

Its something I regret, but I have had good times too.

My business that I started at the beginning of the boom basically boomed. I sold my salon for a lot of money (then spent that too lol!!!:lol: well it was too risky sat in the banks!)

So now I work in two areas because I am moving home and I am struggling a little with the travelling (and fuel costs which thank god have come down recently!).

I was going to open another salon but I have to admit I am way too scared to commit to that at the minute. I think the only way to keep my head out of water (and me in shoes) is to have no overheads with my job!

I must admit I am cutting back big time. I did all my xmas shopping four months ago. I have now got my food bill a week down from £130 to £60. And I try not to buy too many shoes.

How is tomorrow going to affect you? Not just in business but your home life too.

Are you also cutting back on the spending even if you could afford it?

Are we now becoming a nation of savers not spenders?

Are you worried how your buisness will survive?

Kate xx

Hi number1kitty, you are a brilliant person because, you are my kind of

person. You have been there, worn the T shirt etc. You are the type of

person that says "you only live once, I may as well make the most of it

whilst it's there" I think you deserve a round of applause and a big hug

:hug::hug::hug:. This is exactly the same thing that I would do because

no matter what happens you still have to live, there is no need to pannic;

and I think your information is brilliant.

 

[redsadie]

As for 'saving' not 'spending' and 'thinking twice before I buy', this is nothing new to me!! I have unfortunately been a skint little hairdresser for 4 years now and have had to survive on almost no money the whole time, and Ive been just fine. So yes, people who have been greedy or who just spend £100's on a whim do need to wake up! You cant go through life like that. Well not forever anyway.

And as a skinto'd person, ive learnt cunning ways to gather £££'s together and always find a way of getting those shoes or that holiday or go out that night etc, but ive never given them up! People are the same with whatever little treats they give themselves, be it hair, nails, beauty whatever - they will always find a way to pay for it, even if they have to starve!

Someone is always going to benefit from the recession if you think about it, if more and more businesses close (and i mean this in the best possible way) then the market is less saturated and those businesses that do survive are going to have the monopoly on the market. I dont wish that any other salons close but, if they do and we survive, in theory we will be the only option for clients! And there will be PLENTY of clients for us to survive with

I'm the same as Divalou!

And there are always businesses that benefit from recession, just as there are businesses going bust when the economy is good.

My hairdresser is the same as me and Divlou too.

Just a small tale. The hair salon in which I work from is expanding. She is renting another salon a few miles down the road. It was a carpet shop and so had to make it into a salon. She went to REM for a quote, they came up with some fab stuff, cad drawings and all, but they wanted almost 10k for it all (new stuff).

1/4 a mile down the same road our salon is in is another hair salon. Today was the last day she would be trading. She has been open about 3 months longer than my hairdresser. My hairdresser went to see the other salon owner today, they had never met. The other salon owner offered mine all of her equpment, from the computer booking system down to the combs for 3k! My hairdresser said the other lady was almost in tears, bless her, because obviously closing any business is sad and my hairdresser said she felt really sorry for her.

The reason why this other salon is closing? Not because of a 'recession' but because she charged too much for haircuts for the area she was in, and the money she did make didn't go back into the business, she took her staff to concerts, went on holidays, etc.

Of course, this is fantastic for my hairdresser, cheap (almost new) fitting and fixtures and less 'competition', but someone almost always has to suffer misfortune for someone else to profit.

So really, if you are careful what you do with the money you make and reinvest into your business, you are more likely to prosper, recession or not.

xx

 

[Bebeautiful]

Hi all

did anyone apply for their interest credit when there was controversy over banks charging their clients and they were not supposed to?

 

[number1kitty]

I never recalled my charges from the bank cause I cant face my statements and see just how much I actually have spent in the past 5 years lol! I saw one that showed I spend £10,000 in one month so I dont dare look at the rest lol!!! I think I get charged £400 a month though in charges. The buggers, I wouldnt mind they can see I have money in my business and savings account!!!

I like the fact we own the banks now. I bank with barclays though but have shares woth lloyds TSB from the last time they needed a hand out! I used to tell them when I had problems not to get nasty because I owned them lol! So it was only 1000 shares out of the billions sold BUT ITS A START!!! lol!!!!

I think its a disgrace though that the banks are not helping people out more, especially those of us that work hard to make ends meet and didnt remortgate and remortgage every time we got equity in our homes just to buy shoes and go on holiday!

I have never got married cause I would be devastated spending £10K in one day with nothing to show for it haha!! Plus he can take me for half and at least if we split up he would never want half my shoe collection lol!!! Unless theres something he isnt telling me lol (well he wears my skirts and make up already aarrggghhhh!!)

Well we will be sharing bath water soon i'm sure and I'm all for the 3 day week again lol!! Woohoo! See the recessions not all that bad.

Kate x