<p>Maybe I’m just tired and down lately but it sure seems like in the past six plus months the business climate has gotten nasty. We are self employed and our business (thankfully) still has a lot of work. But it has gotten tougher and tougher to get other companies to pay their bills. Some of our colleagues are slower now and it seems that they are making our jobs more difficult.
We are not enjoying the business climate but cannot walk away from existing work that will take us through the next 9-12 months. (Again, I understand there are a lot of people with no work).
Anyone else dealing with this?</p>
<p>I had an interesting experience happen that, I’m sure is reflection of the economy. Last April, I opened a Reward Zone MasterCard account through Best Buy, when we made a very large purchase (a couple of months later I ‘achieved’ Reward Zone Premiere Silver status). Of course, I immediately paid the bill off when the first bill came, and have not used it since. Last week I got a notice from HSBC saying they were canceling my card due to non-use. They are correct in that I haven’t used it since paying it off early summer, but usually credit card companies will wait longer than eight months of non-use before canceling it. </p>
<p>So this Saturday, we were back in Best Buy again to make another large purchase (not nearly as large as the one last spring/summer), and I had apply to for a new account. The credit line they offered was much less than the one last spring. </p>
<p>Again, I don’t intend to use this MasterCard for anything other than purchases at Best Buy (and we’re done with large purchases for now), but when I use it, I get a nice rebate. As a Premiere Silver member, I also get occasional invitations to special events; the only one I went to so far was very successful on my end. I won a Nano IPod. So the Premiere status has definitely paid off. </p>
<p>I was just so shocked that they canceled the card so quickly.</p>
<p><a href=“http://www.nytimes.com/2009/01/31/your-money/credit-and-debit-cards/31money.html[/url]”>http://www.nytimes.com/2009/01/31/your-money/credit-and-debit-cards/31money.html</a></p>
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<p>The funny thing is, our credit score is way, way up there. No late payments, ever. And we pay everything off, pretty much every month. Nothing has really changed in our spending habits.</p>
<p>We own a business. The business in the building to the left of ours, closed. The business to the right of us, closed. We’re holding our own but it’s rough out there. Also, a gas station up the road was held up by gunpoint a week ago. The car dealership only sold 7 cars last month. The economic downfall has definitely had an impact on even the more wealthy areas in the country.</p>
<p>Our business has been struggling, but still managing to stay afloat…our suppliers have changed their policies a lot though…I guess they cannot extend credit and terms like they have in previous years…On the other hand, some are loosening their policies to get any business at all.
Our sales reps share a lot of info about our industry regionally as well as nationally. I have to hand it to my husband and his ability to keep one step ahead of the competiton and be proactive and address potential problems with sales before they come up.
Other similar businesses report significant drops, while we have still seen very slight increases.</p>
<p>My dentist called last week looking for business. It was a “reminder call” that I am due for a cleaning. I am sure that a lot of patients have put off routine cleanings from 6 mos. to 12-15 months. </p>
<p>For the last year the beauty salon that I go to has been pretty empty. When times were good they had a full house. This is not an upscale, expensive salon btw.</p>
<p>I found pricing last October in department stores that I would expect to only see after Christmas.</p>
<p>Last time I had my oil changed there was only one other customer. In the past I have had to wait for my turn.</p>
<p>I have a friend who is a CPA and he is not collecting from his business accounts.</p>
<p>I went to the movies on a Saturday night recently. It was pretty empty for a very nice theatre within a mall (newish, nice screen, nice seats) on a Saturday night. Found out that they now charge $11 per ticket at the door (very pricey in this economy).</p>
<p>Many banks are closing inactive credit cards or reducing lines of credit (e.g., if you have a $5000 line and usually only use $3000, expect your line to be cut to $3000).</p>
<p>The reason for this has NOTHING to do with your individual credit. It has to do with reducing the potential exposure on the bank’s books. Banks have to have assets “just in case” the credit gets used and for this they count all potential (not outstanding) credit. So, they reduce potential exposure when they credit lines are cut or closed and this means they have to have less “just in case”. This is happening now because banks are being asked more pointed questions about “potential” risk. So the easiest thing to do is it clean house.</p>
<p>It’s not personal. It really is them, not you.</p>
<p>I have noted other firms we compete with are doing more negative selling versus competing firms by spreading unfounded rumors and such.</p>
<p>barrons, yup. While I appreciate the comments re: credit cards and consumer credit my original post was more focused on the business world as a small business owner.
Competition is tougher, it is harder to get paid, etc. I know we should be glad to still have a business and have our jobs but it certainly is emotionally discouraging.</p>