It's the economy dummy!

[Gus_B]

Hey guys many of you are aware I sell cranes and heavy equipment for a living.
During Covid I had never sold as much equipment in such a short period of time, it was absolutely crazy.
There are many reasons for why that happened however this is not what this post is about
Today things are much different and I'm seeing some serious changes in the equipment industry including cancellations of orders and customers walking away from $20,000 deposits. I'm still busy but I'm starting to see a concerning trend.
Are any of you walking away from equipment deals? What are you seeing out there?
Any feedback is greatly appreciated...good or bad.

 

[Brando CalPankian]

I wish I had $20k to walk away from!

 

[cody willard]

I think it’s the fact we have not had a hard definite 2008 style recession yet, so everyone assumes it’s lurking months down the road. On top of that, the multiple wars have been concerning some as well.

 

[Tom Dunlap]

I stop to pick up dimes

Walking away from $20k is a universe I don’t understand

On the drive from MSP to STL today I thought of Econ 101 in college taught by Walter Heller. I wish I could recall more of the formulas

I’m optimistic as long as we don’t have aMAGAesque controlled economy

 

[Mick Dempsey]

I ordered a new chip-truck in April, due to staff issues (he was a dick) and general wobbles I cancelled it.
Was in the Ford dealers recently, buying some filters, the salesman (from who I bought a couple of other trucks so he knows I’m not a time waster) says “it’s still there if you want it”
This set my mind whirring…
Couple of months later new guy working out, plus full diary, I spoke to the salesman, it’s not sold, so I bought it.

Moral of the story, some clients are worth a courtesy call, they may well have a change of heart but are too embarrassed to ask.

I’m only small potatoes but that’s my relevant story.

 

[Mike H]

I bought a new chip truck this spring with 10% down and a significant monthly payment. Problem was that I never got very busy and cash flow has been lower than expected. Maybe your clients are waiting to see changes in the market and sticking with renting cranes for now.
Committing to five years of monthly payments on a truck that costs more than a house could have people concerned

 

[RogerM]

We have trouble with service technicians, maybe its regional? People seem hesitant to buy something no one can fix.
I'm no finance genius, far from it, all I know is my 401k is steadily declining, even though I am contributing as much as I can afford each paycheck. Everything is expensive and my dollar isn't going very far.

 

[Gus_B]

Thanks for the responses. Just a note that all deposits are returned to the customers after their equipment sells to someone else.

 

[27RMT0N]

The weird economic bubbles that formed in so may sectors during covid should be viewed as a (hopefully) once in a lifetime aberration, not the norm. The home building boom in my area spurred on a lot of silly situations and related industries throwing money around, thankfully they have slowed way back down towards normal-ish. Still, it's the most expensive county in WA, even more than Seattle...