posted
OP's last remark about Glenn being in the minority regarding energy prices, inflation, etc. brings up this question.
Have you found energy prices, whether gas for your vehicle, or heating the home and/or shop, to be having a negative effect on your business and/or lifestyle.
This question is for everyone, not just those of us here in the colonies.
Be honest, now.
bill preston
My answer is "yes, the effects are negative."
-------------------- Bill Preston Fly Creek, N.Y. USA Posts: 943 | From: Fly Creek, N.Y. USA | Registered: Jan 2000
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posted
Energy prices have had no effect on me. I keep my prices high as I have done for many many years. I see my utility bills come in and yes they are higher. I managed to double my gross income for the past three years in a row. I guess I'm just a lucky guy.
-------------------- Bob Stephens Skywatch Signs Zephyrhills, FL
Business wise, I am just ending the best January I've ever had. Figures for 2005 blew me away too, even the last quarter.
The only difference the prices have made is to make me become more efficient. I make sure I plan my errand runs so I'm not going in town today & back in town for something tomorrow because I didn't get it today. I needed to do that, I was wasting a lot of time.
As for utility bills, my gas bill has increased $20/month in last year. Not bad for heating house, shop, water & stove. I don't even miss it.
-------------------- Chris Welker Wildfire Signs Indiana, Pa Posts: 4254 | From: Indiana, PA | Registered: Mar 2001
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posted
It affected my "lifestyle" long before it became a popular concern. Waste not, want not. Pharoah's dream about the 7 fat cattle eaten by 7 lean ones. Got corrupted by MAD magazine back in the '50s and never trusted what's been called "the profession of persuasion" (hustlers is such an ungly word). Later, in '73, I saw people sitting in long lines to buy gasoline -- so they could go to work and buy more gasoline, and... Pavlov's hogs at the trough. Phooey on that. I'd rather be a dog. That attitude comes to us from the Greek as "cynic,"for "a dog's life."
If it's true that demand is growing for non-renewable resources, then the party must end one of these days. If I'm wrong, I'll have to burn my diploma from Father Guido Sarducci's 5-Minute University: Supply & Demand would be irrelevant. We'll see.
-------------------- Bruce Williams Lexington KY Posts: 945 | From: Lexington, KY, USA | Registered: Mar 1999
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posted
The price of oil and gas is about to affect all the Canadian shops in a positive way. Canada (well Alberta) is siting on the largest known oil reserve in the world. It is literally siting on top of the ground in very, very cold Northern Alberta. They believe they have a reserve of 8 times the amount of oil in Saudia Arabia. Syncrude has already built a town for 60,000 to support digging it up and squeezing it out of the sand.
All they need is the right price for oil and another 20,000 workers and we become the blue eyed shieks. 60 Minutes did a piece last Sunday on the oil in the Alberta tar sands (known as Hibernia). By Monday night the stock for Syncrude and some other companies working the sand went up 30%
Also on Monday we elected a new government. Conservatives based in the West with a Prime Minister from Alberta. A sizeable piece of their political war chest comes from the oil and gas companies. I wonder what they are going to do when they take the reins in Ottawa next week!
How does all this affect us little old sign shops? To make the oil flow South is going to take a lot of manufactured products, materials and labour from across Canada. Eastern and Western Canada based businesses will have to bulk up to meet the needs of Hibernia. When they do that guess what? Yes, they will need some signs! Our phones are going to ring and the fax machines will spit out purchase orders.
I think I will go call on the gas refinery at the end of my street to find out if they are getting ready for this.
-------------------- Chuck Churchill, It's A Good Sign Inc. 3245 Harvester Rd, U-12 Burlington, Ont. Phone: 905-681-8775 Fax: 905-681-8945 Posts: 633 | From: Burlington, Ontario, Canada | Registered: Nov 1998
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posted
At our house we live and work in the same place. Our transportation costs aren't that big a number.
When we need to run an errand I simply get in the truck and go. I will try and combine my errands to make things more efficient but not on account of the price of gas. I don't sweat the price of gas.
My concern is not the value of the gas I burn so much as the VALUE of my time when I'm behind the wheel. We live in a very small town. I'd rather shop at our little building supply a few blocks down the road because of the costs involved to go to the bigger center and get the same thing. If I need something from one of my suppliers I'll have THEM deliver. Paying $50 for them to do this work is a bargain! I'll make the order substancial - simply to make it worth the delivery fee. By doing so I get extremely good value for my money.
If I need 10 sheets of expanded mesh for the job I'm working on I'll have them deliver 100... maybe 200 so I don't have to worry about it for a long while. I'll have them throw on a pallet or two of cement powder too at the same time. I'll reorder long BEFORE I run out to save having to do an emergency run to town.
Same goes with ALL of our supplies and tools and consumables. I have a number of sales people call weekly to deliver our welding supplies. He knows what I need on a regular basis and stocks it in his truck.
It costs a LOT more than the price of gas to run around. I'm not particularly fond of struggling through traffic either, even in our rural setting. A trip anywhere takes at least an hour out of my day and that is worth a LOT more than the gas I might burn in that time.
Like calculating the cost to run a shop, the obvious costs of doing something (like the price of gas) are often only the tip of the iceburg and in fact the SMALL number in the equation.
-grampa dan
-------------------- Dan Sawatzky Imagination Corporation Yarrow, British Columbia dan@imaginationcorporation.com http://www.imaginationcorporation.com
Being a grampa is one of the the most wonderful things in the world!!! Posts: 8739 | From: Yarrow, B.C. Canada | Registered: Nov 1998
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In fact I think the affect has been more than positive. I'm way more efficient than I've ever been.
Of course, people who live in larger metro areas or have commutes are screwed. It's ironic really. Cheap fuel allowed metro areas to expand and fostered the automotive craze including overweight status seeking gas guzzling SUVs in the first place, and now the same thing that allowed it to happen is bringing it to its knees.
We live in a pretty wasteful society in the US. I mean, cheap fuel fuels urban sprawl which results in yuppies outdoing their neighbors building bigger fancier homes and vehicles. Now there has to be infrastructure built to support that, roads, highways, sewers, water lines, gas lines, power transmission. These larger vehicles require more raw materials to manufacture and more fuel to power them up. Larger homes require more lumber, drywall, tile, synthetic materials just to build them, and then they need more electricity, heating oil/gas, water, cleaning chemicals, TIME and who knows what else just to maintain them! I just can't see why a family of four needs more than 1,000-1,200 sq ft of living space just for a place where they can sleep and eat, especially when everyone is so busy working outside the house just to have POSSESSIONS.
What is it all for??
-------------------- "If I share all my wisdom I won't have any left for myself."
Mike Pipes stickerpimp.com Lake Havasu, AZ mike@stickerpimp.com Posts: 8746 | From: Lake Havasu, AZ USA | Registered: Jun 2000
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For a month or so last fall, when gasoline prices skyrocketed, I got nervous just like everyone else but I just did as many have done. I streamlined my errand running.
An odd side effect of our vacationing for longer periods is that our heating costs have decreased over the last 3 years. On our monthly budget propane bill we are now paying $50 less per month than we were 4 years ago. The thermostat in the house is currently set for 55F the shop is set at 45F and we aren't using the stove or the clothes dryer. I expect that next winter season's budget plan will be even lower than this year's.
-------------------- Dave Grundy retired in Chelem,Yucatan,Mexico/Hensall,Ontario,Canada 1-519-262-3651 Canada 011-52-1-999-102-2923 Mexico cell 1-226-785-8957 Canada/Mexico home
posted
I noticed my electric and natural gas bills are quite a bit higher this year than in previous years. The higher electric bill is due in part to runnin' the electric oven more often, sometimes 3 hours at a time, cookin' every weekend... to serve anywhere from 6 to 10 people most weekends . . . . . . which in turn means I'm spendin' more on grcoeries than in previous years . . .
Gasoline has been goin' up and down radically for the last 3 years . . . noticed it more right at the beginning of the surges . . . but, I've always been one to arrange my driving routes as efficiently as possible anyway . . . so it was not a BIG deal.
'Sides, it don't keep very many people from travelin' wherever they wanna go either by car or plane. It just makes them complain a little.
Sometimes the complainin' is more noticable than the actual fact that they ARE payin' whatever the higher price...
It's common to misunderstand and mistake negative complaining about higher prices and assume they mean actual negative affects of higher prices on the economy, but these are two different things.
All in all, price increases of goods and services only means one thing which is > I raise MY prices too.
So, bottom line??
Nothing negative about booming prices . . . give it a little time to 'start workin'' it's magic.
I feel like it's already affected the overall economy for the better, as well as locally. . . . people are buyin' and sellin', new construction is happening, as well as in, and besides weather-devastated locations.
This is a good thing.
My Dad used to tell me something that I also keep in mind . . . "The economy is better during a war" . . . this seems to be the case.
posted
Now I know I don't live in the "Real World", but these oil prices are the best thing that's happened around here in a long time. Oil Companies are drilling again, they buy new trucks, somebody gets to letter them! (and they pay great)
-------------------- David Cooper, The Sign Shack Enid, OK. Posts: 658 | From: Enid,Oklahoma, USA | Registered: Dec 1998
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posted
Yep, we are seeing a boom here in Oklahoma due to oilfield companies, but not just that. They are building like crazy around here and that means work from developers, new businesses, site signs and trucks.
posted
Hiya Bill, I just saw on the news today that people aren't saving right now. And this hasn't happened in a very long time! Because of the increased bills we're all receiving, we (Americans) are actually having to dip into our savings accounts just to make ends meet. Even though I am laid off at the moment, my wife and I made some good decisions a while ago to make sure that we aren't slaves to our lifestyle. We live relatively debt free. The only things we have financed at the moment are our home and her car. On shorter term purchases, we look for 0% or deferred payment financing. If that's not an option, we pay by credit that gets us cash back. We don't make any purchases on the credit cards if we can't pay it off at the end of the month. We added extra insulation to the home last spring and, as necessary, we've upgraded our utilities to high efficiency equipment. What a difference it has made! 6 months from now I may be singing a different tune, but right now we're not sweating it.
Havin' fun,
Checkers
-------------------- a.k.a. Brian Born www.CheckersCustom.com Harrisburg, Pa Work Smart, Play Hard Posts: 3775 | From: Harrisburg, Pa. U.S.A. | Registered: Nov 1998
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posted
I just wanted to add that our conservation efforts have just paid off. We've been on the budget plan with our gas utility and we just got our bill for this month. Well, I'm happy to say that our balance due is "NONE". That's right, we don't have to pay anything this month. Also, after comparing our usage to this time last year, our consumption is down well over 50%. So, even though the cost of natural gas has gone up over 20% in the last few months, out total heating bill has gone down by 30%
Havin' fun,
Checkers
-------------------- a.k.a. Brian Born www.CheckersCustom.com Harrisburg, Pa Work Smart, Play Hard Posts: 3775 | From: Harrisburg, Pa. U.S.A. | Registered: Nov 1998
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posted
Gee Brian, according to many here you aren't doing it the American way. Screw conservation and just keep passing it on to your customers or failing that, borrow on the equity in your home.
You are too old fashioned.
-------------------- Wright Signs Wyandotte, Michigan Posts: 2785 | From: Wyandotte, MI USA | Registered: Jan 1999
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Well, I've not said anything on this thread because I wanted to see how the responses would go.
In answer to the question posed, all I can say is that I just had my biggest January in 27 years and we did it with 1/3 the number of employees compared to our previous biggest january (which had half as many competitors at the time).
February looks like its going to be above average. March is already 80% scheduled out and may break our March record if things continue as they are.
The economy is soooooooo bad, unemployment has dropped to 4.7%. Also, wages are rising. So much so that the Fed is considering another hike in the short term interest rate so as to help keep inflation low (3.42% as of December).
Yep. Things are terrible.
.
[ February 03, 2006, 12:04 PM: Message edited by: Glenn Taylor ]
posted
Quote Glenn: ================== Well, I've not said anything on this thread because I wanted to see how the responses would go. ================== why does reading this not make me feel safe, like in "Father knows best"........
Because, Glenn, he does not always know best.
The sheer number of mattresses, washers, dryers, dishwashers, casualties of flooding which have been, and still are, at the side of the roads in a number of states and the Keys from Katrina, Rita and Wilma have most assuredly raised the durable goods orders. I'm shocked that it's not more.
Other than than: (according to the National Journal - which is non-partisan - something that can't be said about you or me)
Since the State of the Union in 2001
the median income in the country has decreased. the jobless rate was then 3.9 and is now (including the .2 reduction you mentioned) at 4.7 %
number of families in poverty up from 8.7 to 10.2 %
Trade deficit has doubled
Inflation is up
Consumer debt has gone up and personal savings are negative
Bankruptcies are up
Tuition and gasoline are up
and we turned a 128 billion surplus into a 319 billion deficit.
6 more million do not have health insurance - now 45.5 million or 15 % of the population.
Still proud, Glenn, or are you digging to refute what I'm saying?
Just for once, consider to just let it stand. You had your say, and your links, already.
=========================== To answer Bill's original question: The effect on me personally is that my bills to run my life are higher, so I get to revert to being more careful in my discretionary spending. Something I learned well at an early age. My customers are more careful as well, and have still not learned that excessive shopping around costs money, too.
posted
Thanks Myra, he's going to go nuts cutting and pasting now. Should I post how well the Michigan economy is doing as well as the auto companies? I'm sure you don't care as long as you and your's are ok.
Doesn't everyone know by now real wages have been dropping for over 20 years? You may not notice with the wife now helping with her job, equity borrowed off your home, credit cards to make up the difference(all time high now).
It's no sin to admit all is not well. Bush will still love you. Look at how he and all the politicians handle the nation's budget.
-------------------- Wright Signs Wyandotte, Michigan Posts: 2785 | From: Wyandotte, MI USA | Registered: Jan 1999
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There's one little hunchbacked old guy sitting in an office somewhere and with one phone call, he can declare a poor economy and suddenly all the sheeple will tighten their belts and make it come true.
On the flipside the same guy has the power to declare a good economy, people will breathe a sigh of relief and suddenly they start throwing money around like everything is OK, thus actually making everything OK.
Kinda like how the media tells everyone to fill up their gas tanks before a hurricane hits, so they can get gas before prices skyrocket or stations run out of gas, which ironically only ensures that those things actually happen.
The Panic Factor.
-------------------- "If I share all my wisdom I won't have any left for myself."
Mike Pipes stickerpimp.com Lake Havasu, AZ mike@stickerpimp.com Posts: 8746 | From: Lake Havasu, AZ USA | Registered: Jun 2000
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posted
I've been very careful about spending since my business dried up last September. Signs are gradually trickling in, and I have cut back on the moonlighting I was forced to do. My gas bill for January was $300, that was keeping the thermostat no higher than 63. The food costs are about killing me. I but way less snacks and goodies, which is probably better. I only drive when I have to. I have been very careful, and I feel the pinch, but I'm still treading water. Love.....Jill
Posts: 8834 | From: Butler, PA, USA | Registered: Jan 2001
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posted
Boy, If I knew my comments were going to make such a stir, I would have posted them sooner Seriously though, The increased costs of energy and goods really hasn't affected my lifestyle much at all - even with a 50% pay cut. But, I will admit that am not saving as much as I did or should be. Some of my expenses have gone up, but but I managed to reduce them in other areas by buying smarter or planning better. In some circumstances, just asking for a discount has saved me money too. The lack of saving as much as I should now will affect how I live in the future. But, I'm planning now to tak care of that problem too.
Havin' fun,
Checkers
-------------------- a.k.a. Brian Born www.CheckersCustom.com Harrisburg, Pa Work Smart, Play Hard Posts: 3775 | From: Harrisburg, Pa. U.S.A. | Registered: Nov 1998
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posted
Going nuts, David? No. Laughing would be the correct word to use.
I'm not interested in getting into a ****ing constest with you. I realize that for some, perception is reality and that their eyes tend to glaze over when confronted with quantifiable facts and figures. It still doesn't make things less true.
And, if you will note, I've made no mention about political affiliations as I have been trying to keep may answers nonpolitical and based on factual evidence so as not to violate the rule here about arguing politics. Its a shame you and others are not able to do the same.
********
Myra,
You know, I really should take Ken's advice on this. But, you and I are friends and you deserve a reasonable response. But, I'm going to do so in a nonpolical way. I'd appreciate it if you would do the same. If not, I'd like to offer you the opportunity for the two of us to take the discussion to a more appropriate bulletin board. I'm sure everyone here would prefer that.
So out of respect.....
The sheer number of mattresses, washers, dryers, dishwashers, casualties of flooding which have been, and still are, at the side of the roads in a number of states and the Keys from Katrina, Rita and Wilma have most assuredly raised the durable goods orders. I'm shocked that it's not more.
Actually, the percentage of durable goods related to Katrina is negligible compared to the over all increase. The increase in durable goods during 2005 actually happened during 7 consecutive months. If you'll do the research and the math, Katrina had little to do with it.
Other than than : (according to the National Journal - which is non-partisan - something that can't be said about you or me)
Since the State of the Union in 2001
the median income in the country has decreased.
Wrong. Nationally, the median income for a family of four in 2001 was $63,278. In 2005, it was $65,093.
the jobless rate was then 3.9 and is now (including the .2 reduction you mentioned) at 4.7 %
That is correct. However, you fail to factor in the fact that the unemployment rate had already begun to climb prior to January 2001. That said, the spike in the unemployment increase did not occur until shortly after 9/11 which also removed $1 trillion from the economy. But, I'm sure none of that matters to you. And, if you check with the BLS, you'll also note that unemployment has been decreasing steadily since November of 2003 and is expected to continue.
Just a note, the current unemployment rate is exactly the same as it was during the 1998 boom.
number of families in poverty up from 8.7 to 10.2 %
Yes, it has been on a steady increase since 2000, but it still lower than the 1960 and 1994 highs.
Trade deficit has doubled
Nope. Sorry. It hasn't. Close though. Something you failed to mention is that the rate of trade deficit increase has been going up steadily for several decades. In fact, if you want to pick snits, the trade deficit tripled between 1992 and 1998. So, based on your own comments, the rate of trade deficit growth as slowed to less than double.
Here's a hint. If you want to know where you're going, you need to know where you've been.
I'm sorry to tell you, given history I'd be more worried about having a trade surplus. The idea of having less domestic demand would worry me a great deal more.
Inflation is up
Uh....no. The inflation rate average for the past 5 years is lower than during the previous 5 years. The annual inflation rate for 2005 is nearly identical to the year 2000.
Consumer debt has gone up and personal savings are negative
And yet, disposable income was up by over 9%. Perhaps you'd like to attempt to square that up for me. So, who exactly is responsible for how you spend or save your money?
Tuition and gasoline are up
Tuition prices are controlled by state run college/universities and private and private colleges/universities. You'll have to take that up with them. Meanwhile, enrollments continue to rise nationally.
As for gasoline, yep, its up. Its been going up since I was born. I'm told the same thing happened before I was born. But, when you adjust for the rate of inflation, its pretty much where it has always been give or take a few pennies. In fact, its pretty much on average for what it was during the 1990's (adjusting for inflation).
BTW, did you know that North Carolina made more profit on a gallon of gasoline than Exxon/Shell/Chevron this past year?
and we turned a 128 billion surplus into a 319 billion deficit.
Well, besides the fact that the surplus never existed except on a 10 year projection that has never been accurate, and besides the fact that the economy lost $1 trillion in 2001 due to the 9/11 attack, and due to the fact that fighting wars does cost money, I'm not surprised.
What is interesting is that the current budget deficit today as a percentage of GDP is lower than it was 10 years ago. Myra, its all relative.
6 more million do not have health insurance - now 45.5 million or 15 % of the population.
And, of that 45.5 million, how many chose not to buy insurance even though they could afford it? Would you care to explain why the number of uninsured rose dramatically during the the 1990's even though the economy was booming? Would you care to explain why the number of people earning $80,000 a year or more but don't buy insurance has gone up as well?
.
edited for spelling (dang typos)
[ February 03, 2006, 05:35 PM: Message edited by: Glenn Taylor ]
I wanted you to have the last word. But as I got to the end of your itemization I was reminded of a cartoon and want to share it.
Ed Meese, Attorney General of the Reagan era, was drawn standing with his rotund belly hiding a number of homeless huddled under it. His mouth balloon said something about being homeless, as a general rule, was a choice they make.
I've been around a long time, and I have a pretty good idea of where we've been, and the more things change the more they stay the same. (while I'm into cliches already).
=============== Don: yes, it's a website, and you pay to access the information on it, which is released weekly.
You very much impress me, Don, with your immediacy and vigilance on this board. If I had 10 bucks for every time you came in right behind me with comments on my post I swear I would share it with you, and we both would be quite ahead.
-------------------- Myra A. Grozinger Signs Limited Winston-Salem, NC
signslimited@triad.rr.com Posts: 1244 | From: Winston-Salem, NC USA | Registered: Nov 1998
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. . . which in turn means I'm spendin' more on grcoeries than in previous years . . . ![[Big Grin]](biggrin.gif)
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