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  • More HSS hire company Bad News

    https://www.telegraph.co.uk/business...-restructures/

    "Having initially floated at 210p per share, the company is now trading at around 49p" Well that ain't too good

    Ive run a hire company for 28 years now, and the constant race to the bottom is a theme Ive seen time and time again, and I have a constant fight to justify my prices in the face of others discounting their products and services, just so they can stay alive.

    When will they ever realise that it is exactly this that is killing them and everyone else ? In fairness HSS are not the cheapest by a long shot, that accolade seems to be going to the builders merchants, who now hire small plant, or should I say, give small plant to their customers then run a mile from it ! cos they provide no service what so ever, because they aren't plant hirers no shit you might say ? ... but try telling that to the punter who can get a digger for £100 less .. ofcourse they make their money from the slabs, concrete, decking, and all the other stuff they sell.

    Fortunately Ive engineered myself to a position, where what I owe is at its lowest for years, conscious of the economic climate around us ... but plant companies need to reinvest in their gear so its not an easy balance. So often Ive seen these new companies emerge with all the latest kit, proclaim to be the best, giving the impression they have found some new magic formula that makes their business work .. only to fall flat on their faces after spending several years utterly shafting the market with low prices in a bid to survive .. making it a difficult task for the rest of us to survive due to their profligacy.

    Might sound harsh, but perhaps HSS should fold now, instead of prolonging it .. and then some idiot bankers will hopefully not lend to others in the same boat. This of course is a dangerous strategy / statement for the bank minions, because what they tend to do is put everyone in the same sector and tar them all with the same brush, dont ask me how I know ?

    Ive not had too much trouble from my bank, but you try getting a decent interest rate on short term finance, when you are surrounded by similar businesses who cant make it work ? It aint gonna happen !

    Any way I feel better after that rant
    Please don't PM me for plant advice.. thanks .. Post in the forum where I will gladly help, as will many of our contributors.. as the info and responses will help everyone else, which is why we exist

  • #2
    Originally posted by Muz View Post
    https://www.telegraph.co.uk/business...-restructures/

    "Having initially floated at 210p per share, the company is now trading at around 49p" Well that ain't too good

    Ive run a hire company for 28 years now, and the constant race to the bottom is a theme Ive seen time and time again, and I have a constant fight to justify my prices in the face of others discounting their products and services, just so they can stay alive.

    When will they ever realise that it is exactly this that is killing them and everyone else ? In fairness HSS are not the cheapest by a long shot, that accolade seems to be going to the builders merchants, who now hire small plant, or should I say, give small plant to their customers then run a mile from it ! cos they provide no service what so ever, because they aren't plant hirers no shit you might say ? ... but try telling that to the punter who can get a digger for £100 less .. ofcourse they make their money from the slabs, concrete, decking, and all the other stuff they sell.

    Fortunately Ive engineered myself to a position, where what I owe is at its lowest for years, conscious of the economic climate around us ... but plant companies need to reinvest in their gear so its not an easy balance. So often Ive seen these new companies emerge with all the latest kit, proclaim to be the best, giving the impression they have found some new magic formula that makes their business work .. only to fall flat on their faces after spending several years utterly shafting the market with low prices in a bid to survive .. making it a difficult task for the rest of us to survive due to their profligacy.

    Might sound harsh, but perhaps HSS should fold now, instead of prolonging it .. and then some idiot bankers will hopefully not lend to others in the same boat. This of course is a dangerous strategy / statement for the bank minions, because what they tend to do is put everyone in the same sector and tar them all with the same brush, dont ask me how I know ?

    Ive not had too much trouble from my bank, but you try getting a decent interest rate on short term finance, when you are surrounded by similar businesses who cant make it work ? It aint gonna happen !

    Any way I feel better after that rant
    was just reading this yesterday Muz

    https://www.theconstructionindex.co....-up-85m-losses

    The £85.2m pre-tax loss for 2017 followed a £17.4m loss in 2016.

    as you rightly say, sink the bar stewards now, along with yet another national that has been bankrupt for years, propped up by banks frightened of losing too much and content with what they get, from the service on the debts ...... which grow year on year.

    I believe I've said before; this outfits local depot was cash only in my workshop ... no wonga - bye bye .... come back when you have the necessary to pay.---- I gave up chasing a 500 quid debt going back years ..... and the manager was my next door neighbour - she couldn't get them to pay it either

    About time some of these banks took some hits and closed down some of these race to the bottom muppets .... always regret not being owed enough to put that lot through ... would've done the country a favour
    If it's got tracks, wheels, t*ts, or an engine, at some point it's gonna give you trouble!!

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    • #3
      Originally posted by v8druid View Post

      I believe I've said before; this outfits local depot was cash only in my workshop ... no wonga - bye bye .... come back when you have the necessary to pay.
      Yes .. the correct solution for many businesses in a 'dodgy' sector is to reduce the credit they give to vague and dodgy punters , and there is no doubt .. there are plenty of them in the small builders sector....

      The dodgy punters cannot afford to lose their accounts with the merchants, however, unless they are very stupid .. so it keeps an angle open for them for hire kit also, whereas normally a 'hirer only' type account will get left by the builder till the end of their job..and never get paid... a problem I have long championed against !

      As a rule we dont give credit anymore .. that is one of the only solutions , just like booking a hotel ... you pay up front .. end of.

      Cash flow is king and sadly, the customers good word is no longer good anymore in many cases and there's a whole set of reasons for that .. but that's another thread but any hire business worth their salt these days should demand payment before the kit leaves the yard ... not so easy when you are desperate for cash ... and if you are in that position.. the writing is already on the wall .. and good luck to ye

      Luckily I have a good band of customers who I dont need to worry about .. but it makes it harder for new clients to come on board
      Please don't PM me for plant advice.. thanks .. Post in the forum where I will gladly help, as will many of our contributors.. as the info and responses will help everyone else, which is why we exist

      Comment

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