Companies feeling the pinch

dimetime · #1 10-09-2008, 05:32 AM

With us all facing an ailing economy, internet businesses are also feeling the pinch. This is due to the people spending less. Ebay is one of these businesses which are feeling it. They are having to lay off around ten percent of their workforce as well as hundrends of their temporary workers. This is in an effort to shore up its businesses. Over one billion dollars will also be spent by the Ebay company to pump up its advertising, as well as to help brace itself against what could be future financial troubles due to the economy.For the first time in five years, shares of Ebay have fallen by around eight percent.Over the last few years business such as Ebay have all seen a decline due to the housing markets being down, price of fuel being high, and this has of course caused consumers to spend alot less.Though Ebay is making attempts against stagnant growth and downed profits to be more competitive. Ebay will be expanding into several new areas in hopes of increasing the buyers as well as revenue other than their traditional auction business. Though sites such as E-bay and others as well, have hopes that consumers will be wanting to search for the best possible bargins during the holiday season and will turn to their sites for their shopping needs. Reguardless of the type of company, they are all feeling the pinch of the economy right now. Consumers are having more and more difficulty in finding the extra cash to purchase items they need let alone items they just want.

moneysense · #2 10-09-2008, 02:49 PM

Yes, most definitely, a lot of companies are feeling the crunch at this time. And its a shame, because a lot of small businesses are closing their doors forever.

But, I have noticed that one business in our area is doing extremely well, and that is the local flea market.

This flea market is run by a very business savvy man who goes around and buys up leftover products from business that have closed, such as the local 84 Lumbers that have shut down.

He also buys up estates and offers the merchandise at great prices. This is a plus for people right now that want to do some home improvements as they can buy doors, windows, etc for a much lower price than they would get anywhere else.

It seems bad that some people make a living at others misfortunes, but so goes the business world and we all have to make a living.

pennypinch · #3 10-10-2008, 03:06 AM

Everyone is feeling the pain these days and if things don't get better fast, they will certainly get much worse.

I work in a store that was newly built a year and a half ago and business is actually better now than it was one year ago. We sell a lot of everyday items though so that is probably what is keeping it afloat!

dimetime · #4 10-10-2008, 06:54 AM

It is sad to see others making a living out of the misfortunes of others, but your right, that is just how business goes. Everyone right now are doing all that they possible can to save just a few extra cents here and there. I think most business who deal in bargin merchandises will still feel the pinch of the economy but they wont be forced to shut down. I always hate to hear of a business going under, because you know that this means there are even more job losses.