U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Economics > Business
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
Old 03-05-2008, 03:58 PM
Location: Forests of Maine
32,045 posts, read 52,185,279 times
Reputation: 21539


We started collecting apartment buildings in 1985. Small towns, big towns, East coast, West coast, being career military we move around a lot.

Economies change, folks still need housing.

Some folks will sleep in their car before they rent. But we have found that it seems most folks are perfectly willing to rent an apartment. Rarely is there a renter shortage.

I do understand that a depression could become so totally bad that even rentals would become a bad investment. But that would mean 80% unemployment. In that circumstance I do not think that any business would survive well.
Rate this post positively Reply With Quote Quick reply to this message

Old 03-05-2008, 07:59 PM
5,359 posts, read 10,243,563 times
Reputation: 4374
Originally Posted by sunflower101 View Post
Would you need curtains during a recession?
Probably not. In terms of "need" it would doubtful anyone might. You have to keep in mind that fools and money part company early. The folks that would be foolish with their money run out quickly in hard times.

Let's maybe start with some business basics:

1. The customer must have money.
2. The customer must be willing to part with their money for your goods or services.
3. You must be able to produce or provide the goods or services for less than what the customer is paying you.

Applying that:

1. Few(er) customers have money during a recession.
2. Those that do are not the folks who may choose this good or service
3. As you will have fixed expenses with likely few customers the likelihood of profitable operations is slim.

This proposed business does not fit the model of a likely successful business targeted for recessions.

It is that hard to choose a business that is likely to work?
Rate this post positively Reply With Quote Quick reply to this message
Old 03-05-2008, 08:31 PM
Location: NEFL/Chi, IL
833 posts, read 821,560 times
Reputation: 344
You're in an insanely recession sensitive business, no different than an art dealer.

There is absolutely no way to "recession proof" a business that is inextricably tied to disposable income. "Recession" is simply a cost of doing business in that field... When things are fat, you get to make a lot of money by providing a non-essential service of limited "productive" value while others have to work hard in more viable and stable industries, only to earn less. That's the luxury you've enjoyed.

When things are lean, services like yours become expendable. That's the cost you're facing now.

You can either make a dramatic shift upmarket and pray to god you find a benevolent rap star or athlete willing to throw money at you or fold up shop and reopen again when the economy returns to hordes of people are tapping into their home equity to pay for "decor".

I hate to be the lemon here, but honestly, services like yours were peering over the edge of a very, very steep cliff starting in late 06.
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.

Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics > Business
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top