Is it ME????

[inspiredandy]

Is it me or are there any others who are absolutly dead at the mo? My prices have always been competitive, but recently I have lost the majority of estimates that I have put out there even after reducing my day rate charges. Do you think that being VAT registerd could be having an effect?

I cant afford to drop prices any lower and I wont cut corners.

Any responses appreciated by one seriously cheesed off tiler.

[garythetiler]

where are you based ?

[inspiredandy]

Hi Gary

Based in Puriton, Somerset

[NETT Darren]

Its going to be difficult to compete in the domestic world if you are vat registered and adding the vat onto the job as you are competing with people who are not, its a bit unfare really, you may have to reduce your prices back in line with those who aint until you can get back to the commercial sector

[brian c]

I beleive thoings are getting a heluve lot tighter at the moment...so you are not alone m8.

[Colour Republic]

Its going to be difficult to compete in the domestic world if you are vat registered and adding the vat onto the job as you are competing with people who are not, its a bit unfare really, you may have to reduce your prices back in line with those who aint until you can get back to the commercial sector

He may or may not be in the commercial sector, It doesn't take much to be required to have vat registration even more so when you supply materials

Who else is up for trades having VAT lowered to 5% to get things moving again?

[NETT Darren]

Count me in, youve got my vote, Colour Republic for Prime Minister

[Frosty]

Personally I don't think there should be vat on any labour, that puts all trades on an even basis straight away.

It downright annoys me effectively being an unpaid tax collector ontop of running my own business.

And moving the rate again won't make any difference, other than scrapping it on all renovation/remedial works. It cost me enough time and money when they changed it in December

[davy_G]

If you are not supplying materials on a regular basis and things are tight then, without knowing your particular situation, you you could de register by argueing you dont have the turnover and are not likely to in the future.

You could still supply mats, just get the shop to keep the money in your account with them.

VAT is a killer for a tradesman pricing domestic work against the average tiler who is not VAT registered.

[mike walker]

Hi mate im in the south and it pretty grim down here, I have lost quite a few jobs maybe there are just too many of us out there it seems to me every Tom Dick or Harry thinks its an easy way to earn good money and these 2 week tiling corses dont help you just cant learn a trade in that time Ive been doing it 15 years and I still come across things Ive not seen before.

[inspiredandy]

Thanks for all your comments guys. Davy, have been considering de registering but I do want to grow my business and I feel that this would be a backward step. I do agree with frosty about the no vat on labour thing, it sickens me that the government can earn money just cause I decide to work for myself and get my hands dirty.

[mikethetile]

I also believe that adding value added tax to building refurbishment is wrong

if they are going to tax the added value of the building once the work is done they should tax it when the additional profit is realised not as the work is being done

the effect of people dropping their rates earlier this year is now having an effect on the market, we all have to face the fact that we are in a deflatory market and price accordingly

the advantage the small business has is that it can change prices at the drop of a hat and stay in work while the bigger boys go under

and also be the first to increase prices as demand goes up and more money is available

the trick is not to decrease your profit or your earnings but to take a long hard look at your costs and cut them in every way you can

i got rid of my isusu pickup in jan and now have a £400 bought for cash transit

no advertising or marketing budget

cut my day rate

i simply dont spend money if i dont have too

i shopped around for cheaper insurance etc, anything i could shave a few quid off

the result of my cuts and less work coming in is that i enjoy each job more and im still making money

lose that vat registration and work lean, that way ,if you cant do that job properly and earn a living wage then others cant, so let them undercut and work for nothing, they wont be around when things pick up

believe me its hard to cut your rate by 30% when you know what your worth but youve got to do it to survive and you do it by cutting costs not profit

its dangerous to compete on price alone so you compete on service and workmanship and charge accordingly and if people are not prepared to pay for your skill, judgement and expertise then so be it, they get what they paid for and only have themselves to blame when it all goes wrong

good luck andy and take a long hard look at your costs before cutting your wage

[inspiredandy]

Thanks Mike, I have trimmed my costs as much as poss. I feel that I do push the service aspect to the clients and try to differenciate myself from fly by nights but it seems to me that everyone wants things done for **** all. Maybe I am being a little defeatist at the mo.

[Jtsd02]

im also finding it a bit tough too.im based in glasgow and compared to this time last year,my bookings are way down.ive tried leaflet dropping,advertising,even phoning one or two of my previous employers just to get a wee bit of work to get by.they too say its quiet.its just going to be a tough year.havent yet dropped my prices,but think thats gonna have to be next move