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Economic Woes?..Profit Or Loss?

Discussion in 'BlackHat Lounge' started by Uptownbulker, Jan 7, 2009.

  1. Uptownbulker

    Uptownbulker BANNED BANNED

    Oct 21, 2007
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    OK, I don't want this to turn into a political thread, so let's not even mention the names of any politicians!

    What I would like to discuss are the effects of the economic downturn that you guys and gals see in your own areas and I'll start off by telling you what I see nearby my place; in the Greater Kansas City area.

    I see on my street alone a total of seven active foreclosures and these are not on extravagant homes but rather ordinary middle class digs, occupied by ordinary middle-class people.

    In some of the commercial areas nearby, I see a 20-30% vacancy rate with very few new businesses coming in.

    I know of several brick-and-mortar businesses which will shut down immediately as their leases end.

    I see used car lots in big trouble except for those which do their own financing; the "Buy here/Pay here" places which gouge those with poor credit.

    We are seeing new car dealerships closing, some of which have been around for as much as a hundred years.

    On the other had, I see the bar and restaurant biz booming but this is farily typical of hard times.

    Gas prices are down today but all it will take to jack them back up is, for example, one tanker taken by pirates and destroyed or an attack on an offloading station to shoot prices through the roof.

    One worrisome thing I see is that most of the new businesses I see being established are funded by Small Business and Minority Business Administration loans; that is loans guarranteed by the taxpayer.

    Construction; both residential and commercial is at a near standstill in my area, pretty much except for projects which were underway before things started to go downhill.

    As an interesting sidelight, I needed a new motorcycle helmet;I live within in 20 mins of several very large bike shops and I never even thought of going "shopping". I know my head size, I know what I want, so I went straight to the 'net, found a reputable seller and ordered online and at below retail at that!

    Free shipping to my office.

    I guess what I'm interested in discussing is what you people see and how we as IMers can profit......

    If this sounds a bit cold. look at it this way.....

    Great fortunes were made during the Depression of the 1930s and great fortunes will be made in today's recession.

    Someone is going to make money, so it might as well be us!

    Whatcha think?
  2. sf6689

    sf6689 Registered Member

    Dec 2, 2008
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    New Zealand
    Hmm well in New Zealand (I live in a reasonably sized city... a few hundred thousand) there have been a handful of small business owners closing up. But probably the biggest thing on the business side is that new business are not sprouting so all of these new for lease retail spots are just being left blank.

    In the housing department, the prices have gone down quite a bit (but what can I say, NZ had a house boom for over 3 years so it was bound to happen).

    Fuel prices are down quite a lot from what they were 3-6 months ago (around 40cents cheaper if not more) and it doesn't seem like the prices will shoot up that much in the near future.

    And all the other stuff that is happening in the world is slowly happening over here, just not at such a quick rate as some of the news I've been hearing from the US.

    (Really I'm just a bit too lazy at 2:30am to be typing all the stuff thats happening around here).

    From an IM stand point I would say things are pretty much going the same that they always have. But if you are able to find free trials or leads for products that are more essential then frivillous, then you should still be in good shape no matter what happens.

    Also, now would be the time to invest in a bar :) (Always depressed people who will continue to drink their sorrows away even in a money crisis).
  3. Uptownbulker

    Uptownbulker BANNED BANNED

    Oct 21, 2007
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    Went out for breakfast at about 6:30 am my time and noticed that a service station which has been there since I was a little kid, is now closed and there is a bulldozer sitting where the gas pumps once stood.

    The place was open two days ago.
  4. davioli

    davioli Regular Member

    Oct 10, 2008
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    I live in Eastern Africa and the recession hasn't hit us as yet.
    It is partly coz our country is not exposed to the credit crunch...Very little of Africa is ...

    Anyways...It will hit us when the aid from America and other EU countries stop..Though I see this as a blessing in disguise and African countries will finally realize the importance of being self sustained.

    As for IM...i think we are the ones who will profit. As more and more brick and mortar businesses close ..online sales should increase.
    This is basically coz even though demand will fall slightly due to conservative purchasing... more offline businesses which catered to this will have been long gone leading to the consumer getting online for it.

    The online marketing niche is also one that will expand as people become unemployed...and I believe establishing a presence in it ...should get you a good piece of the pie when/if the the woes worsen.

    On an optimistic note...i believe the so called economic crisis will be short lived and will be more of a restructuring process rather than an actual downturn. The very rich will become less rich...and the lower class should be in more of a position to take over the vacuum leading to a large group of middle class people.

    I don't buy the end of the world crap theories ... this has happened before...and will happen again for sure.
  5. StillSmiling

    StillSmiling Jr. VIP Jr. VIP Premium Member

    Mar 8, 2008
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    Profit or Loss? Pure Profit if you have the personality and/or means to cater to today's lazy, needy, ignorant and demanding consumer -- Not every consumer is like this, but there are plenty/enough of them out there to make you some serious money.

    What in the world are you talking about, Smiling? Well, let me give you an example:

    The closest grocery store to me is not the cheapest. It is not the best stocked. It is not the cleanest and the employees are rude. It is almost always packed -- even though there are 3 other BETTER grocery stores within a 4mile radius. About six months ago, I went in there and the cashiered lanes were wrapped around the store. But right next to them were 2 self-service lanes which sat empty except for the employee bagger who leaned against the belt waiting for someone to actually use these lines. When I got my couple of items and whizzed thru the self-serve lane, I asked the bagger if it was always like this. Yep. Nobody wants to do it themselves. (the self-checkout has been there for at least 3yrs, so it's NOT new) Curiosity got the best of me, so I asked the manager if they ever tried having someone teach folks how to use the system. Yep, they tried that when they first got it, but people weren't receptive and still don't want to use it. They'd rather wait in line, as we could plainly see, and so the store will be removing the self-serve lanes once the lease is up in a couple of years.

    Fast forward to last week. I ran in to grab something and guess what? There were two people standing in front of the self-checkout, flagging people in line to come and use it. They were friendly and having fun, and pretty darned convincing. I assumed that they were store employees. They weren't. They had gotten the manager's permission to do their hustle, which consisted of teaching folks to use the self-checkout and handing out business cards for their organization which "really could use a small donation". It worked. They were racking up.

    It always cracks me up how people always bitch and moan about being nickel & dimed for every little thing, and complain about how today's customer service sucks. Yet, these very same people will purchase an item which comes with full easy-to-follow instructions and a 100% satisfaction or your money back guarantee --- Then they'll happily pay EXTRA and wait a whole week to have somebody else install it. Then pay EXTRA more for a warranty that they'll never use.