I have to lay off all my employees

Originally posted by downtown436
My business is getting hammered. It is a small one, but I currently employ 7 employees. In 2 weeks I will reduce my workforce to 1, me. It is a 24/7 carwash business with 3 locations.

I feel really crappy right now. It totally sucks my employees rely on their jobs to put themselves through college. Now they will be flipping burgers for minimum wage if they are lucky enough to find jobs.

I hope I can stay in business through the "global meltdown". Maybe someday I will be able to hire some more people.

America is totally screwed.

I have 3 jobs at this moment.

I run the carwashes.

I have a delivery business.

I do random landscaping and other random stuff on the side.

My income has been drastically reduced in the last six months.

My wife is pregnant with our first child.

I'm not worried about my future because I am smart enough to make money no matter what happens, but there are a lot of people that are only capable of certain jobs, and those people will be hit hard by this economic situation.

You have 7 employees working a 24/7 car wash?

What are their hours like? Why is it 24/7, how much buisness do you get at 2am? What are you paying them by the hour?

Why don't you fire 2 employees, cut your buisness hours to something like 9 to 5(just an example) and close shop on Mondays and Tuesdays, seeing as how buisnesses like that are usually pretty busy during the weekends. Cut their pay to slightly above minimum wage, I'm sure tips will make up the differance, after all they are car washers, not mechanics.

Not coming down on you just trying to get a grasp on your situation and at the same time throwing out some alternatives.

reply to post by downtown436


Is there any way that you can make them part of the solution? For example, tell them that you will have to lay them off (I assume because of the cost of the locations). Ask them to help drum up customers and/or think outside of the box.

It is their livelihood, too. Maybe one of them will have a good solution that you didn't think of?

What if they brought in additional business, and/or took a pay cut rather than be laid off?

Dunno...it's worth a shot.

I started a post on this same idea on the days of small buisness going by the wayside,I've noticed the car wash I use also has cut back employees to the bare minimum,as well as other small buisness,I was thinking of opening up a nightclub with my oldest boy in Az,but looks like the handwriting is on the wall,will soon be the socialist country government will own everything,so much for dreams

Originally posted by Skyfloating
Firing all of them equals succumbing to the artificial panic/hysteria hype that will pass by in a month or two.

How do you expect to run an entire car-wash alone, especially if you have other jobs as well?

Do you seriously think customers will drop by 80%? I think a 10% drop is more realistic.

I dont get it.

You are 100% absolutely correct.....You don't get it.

reply to post by jjkenobi


My theory is that people have charged their credit cards to the max buy gas over the summer, and people just aren't getting carwashes anymore. It's kind of a luxury item.

reply to post by Skyfloating


Ok man here it is. I can run all 3 locations because they are fully automatic. Our business has lost 75% of our customers from the spring of this year. In six months we went from kicking butt, to losing a lot of money every month. The employees have to go.

reply to post by RRconservative


Yep. When is the last time a poor man hired you?


Never.

reply to post by Kingfanpaul


Yea man it sucks, CA is a lot worse off than we are. You guys are in for some real hard times.

reply to post by jd140


All three locations are fully automatic. 2 are at gas stations. They have to be cleaned once a day, and usually require some type of attention throughout the day. The other one is manned 9-5 7 days a week, but open 24/7.

I will be doing all of the above now. Guess I don't get no days off.

Skyfloating, hunny....I can't believe you said what you said...like he's gonna lay off all these guys before he's thought about it? It's the LAST thing we choose to do.

And I completely understand why his business would drop so much. It has nothing to do with his ability as a businessman. It's a great thing to have done, but if you're watching the cash, guess what? No more car wash, cos it's not that important. That's what happened to my business too....in the space of a few months it went from just fine, to losing money ALL the time and there was absolutely nothing I could do. I was at the luxury end of the market, and it's one of the first things to go when money is tight.

Sometimes it's so much harder to make the right long term decision.

Cait

reply to post by Oldtimer2


Yep. They are chopping the head off of the middle class right now. Within 2 years we will resemble Mexico. 0 middle class. There will be slaves, and a very few people that own everything.

Reply to FX/caitlin/downtown

Sorry folks. A 75% decrease in business for a car wash cant be entirely blamed on our economic situation. That wont work. There must be other factors involved.

And another thing: If the car wash is fully automatic, what did you need 7 employees for?

[edit on 2-12-2008 by Skyfloating]

Skyfloating, it can and does happen...I've been there. What do you think the other factors can be then, if not economic? Aren't you struggling? Most people I know are. How can things go wrong with an automatic car wash that would lose him that much business? It's not his opening hours, or his locations....maybe people don't like the smell of the bubbles or something.

Cait

reply to post by caitlinfae


Struggling? No. On the contrary.

Other factors in loosing money quickly? Panic.

I appreciate the OPs struggle and wish him all the best.

But I wont participate in the mass-movement to place all the blame soley on the government.

Originally posted by Skyfloating
Firing all the artificial panic/hysteria hype that will pass by in a month or two.

I'm referring to that absurd statement.

[edit on 2-12-2008 by FX44rice]

reply to post by FX44rice


You're right...it wont pass in a month or two. I take it back.

[edit on 2-12-2008 by Skyfloating]

reply to post by Skyfloating

I will agree with you on that. However, I am assuming the OP understands his business better than I do, and he has been losing money consistently in this economy. I do know that many car washes our failing in my area and across the country. People will wash them once a month vs twice a week now. Although I buy an annual pass at my wash, but I notice zero lines when pulling in and the winter here is the busy season.

reply to post by Skyfloating


I can almost completely guarantee that this guy is not panicking...no one who runs a business, or employs others would make a panicky decsion about their future like that. How does panic make his takings drop by 75% over months? Are 75% of his former customers just getting themselves all worked up for nothing? I doubt it.

I'm glad you're not struggling, I really am...I wouldn't wish it on anyone, but most of the western world is noticing huge increases in just how much it costs to live....food, fuel, electricity...it all has to count. Maybe the Government is not completely to blame....but let's face it...they have a LOT to do with it.

And you guys dont think letting them all go is just a little drastic at all? Alright then. I rest my case.

I wanted to start a thread about this last week, but you know how it goes, so to the OP, you'll be in fine company. I can only pray you give them severance, its winter and Christmas too, Karma you know...

Here is a partial list of some of the favorites we have learned to enjoy which have found themselves in the same position as you.

jonathanklunk.com...

Blessings to all the families who will be breaking records with unemployment, it has taken me years to get to the level I am now, but it is a hard fall from the top when it happens suddenly. My heart breaks for the elderly and the children, the pets and struggling couples, my Grandma reminds me to tie another knot in the rope and hang on.

Edit to say, if you are planing on buying gift cards for your loved ones this year, think again it is not going to be very special when they go to use the gift card from one of the companies that filed chapter 11 and have no legal obligation to respect your gift card or to refund your money...

[edit on 2-12-2008 by antar]