Recession- Will this provide better services!!

  spuds 12:33 29 Nov 2008
Locked

With the possible tightening of finance and perhaps spending habits, do you think that companies and their employees will become more customer or supplier friendly, because they might or will need your business to survive?.

  Cymro. 12:44 29 Nov 2008

Just for a little while perhaps, but I recon that they will soon return to their old greedy ways. It will take some sort of very strict government legislation before these people start to act more responsibly and even then they will soon try to find ways around any new rules and regulations.

  Forum Editor 12:58 29 Nov 2008

We'll all find out soon enough.

  Forum Editor 13:01 29 Nov 2008

It's always good to see a refreshingly optimistic approach.

Few companies are greedy, irresponsible, and prone to finding ways around rules and regulations. I certainly don't find that attitude is prevalent in the companies I visit. There are bad apples in the barrel, but they are far from being the norm, in my experience, and it certainly isn't the impression I've gained over eight years in this forum.

  spuds 13:13 29 Nov 2008

Over the past two days, we have been on a little spending spree (when you die, you cannot take it with you, after undertakers expenses!) ;o))

It become very noticable how some well known high street names wanted your custom, and were prepared to offer that little bit extra in closing a deal. A bit of sophicated haggling also brought results and further dividends.

But of course, there are some company's and stores employee's who still haven't got the idea that their job and survival could be based on results, as the pinch gets tighter.

  DippyGirl 13:30 29 Nov 2008

... or another view - closing the deal provides cash-flow but long term businesses must cover their costs if income < expenditure - they are bust!
Short term the sales and bargains are good for consumers, medium/long term I think many wont survive. It is very difficult to maintain a positive customer-focused outlook when you are likely to be out of a job

  Forum Editor 14:16 29 Nov 2008

What a sensible post - one that perfectly illustrates the problems no facing the retail industry.

Lots of people make the mistake of thinking that busy shops mean profits in the bank, and of course that isn't necessarily true at all. Retail businesses are finding themselves facing a shrinking market, and they have to find ways to attract a share of it. One way is to cut prices, and therefore gross margins, but it's a big gamble. In a highly-competitive industry margins are already dangerously low in some areas (consumer electronics being one), and it doesn't take a lot to bring a business to the tipping point - the stage at which fixed overheads exceed gross profit. Once that point is reached the business needs to borrow to survive, and it steps onto the slippery slope.

Good customer service is fine, but it isn't going to help a business that doesn't have enough turnover to finance its overheads.

Big price cuts in the shops may seem wonderful to consumers, but in the long run it's the road to ruin for many businesses, and in the end it's bad for consumers - it leads to market domination by the survivors, and that's not good at all.

  ol blueeyes 15:32 29 Nov 2008

What it means is the BIG will get BIGGER and the small will get smaller. In the end the BIG Super Markets will have it all.
Just have a long memory and look after those when things are better who look after you now.

  Cymro. 15:47 29 Nov 2008

Yes indeed FE I must admit I am something of a pessimist in such things. I think in the end it all comes down to human nature be it big business or it`s customers they are all just as greedy as each other.

The greed of big business for ever increasing profit and the greed of the customer for always wanting a bigger bargain. Then there are some workers always wanting bigger commission and bonuses.

I do prefer your optimism and hope that you are right. The chances are that there is something in what we both say.

  Forum Editor 16:22 29 Nov 2008

it's good to remember that big businesses are invariably owned by their shareholders, and I don't often read of them sending back their dividend cheques.

  ronalddonald 21:32 29 Nov 2008

Don't forget that the shareholders only get dividend not Huge chunk unless the shareholders have many shares in the company.

When there's a recession all the companies will argue they didn't make enough, when there isn't a recession the companies argue they didn't make enough at christmas or on bank holidays.

Its only business to report profit or loss.

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