Monetary Policy

[Foggy_Goggles]

I had a shit year last year because all the construction pricing was still in gravy train mode. Projects that should have moved forward got paused as clients said fuck no I’m not paying what appears to be a 500% motivator bonus to just show up

Huh? Is this where the contractors bitch that the design professionals cost us jobs because they won't value engineer a projects. I know exactly zero decent generals and subs that are not buried in work.

It's called a labor market for a reason. Its subject to economics just like everything else, theoretically. We have very few trade schools or apprenticeship programs. Nobody wants their kid to be a plumber. Just because labor rates have increased doesn't mean you are being ripped off. That shit is hilarious.

[MagnificentUnicorn]

Huh? Is this where the contractors bitch that the design professionals cost us jobs because they won't value engineer a projects. I know exactly zero decent generals and subs that are not buried in work.

It's called a labor market for a reason. Its subject to economics just like everything else, theoretically. We have very few trade schools or apprenticeship programs. Nobody wants their kid to be a plumber. Just because labor rates have increased doesn't mean you are being ripped off. That shit is hilarious.

I had a surgeon complaining the other day that he couldn’t get more surgeries done because no one wanted to work and they wanted too much money. I told him to fuck off, adjusted for inflation, healthcare wages have been stagnant for 30 years and if he wanted more out of me to show me the money. I’m not getting rich but he is.


Sent from my iPhone using TGR Forums

[::: :::]

Huh? Is this where the contractors bitch that the design professionals cost us jobs because they won't value engineer a projects. I know exactly zero decent generals and subs that are not buried in work.

It's called a labor market for a reason. Its subject to economics just like everything else, theoretically. We have very few trade schools or apprenticeship programs. Nobody wants their kid to be a plumber. Just because labor rates have increased doesn't mean you are being ripped off. That shit is hilarious.

I’m happy to hear you are unaware of these issues, but they exist and the slinky effect makes its way from inception to execution

Nice stretch on the won’t VE a project — that shit is hilarious

You get your rates until you don’t — and that is happening whether you want to puff up about designers or not

[Foggy_Goggles]

Well right, but why is there nobody available at a non over inflated price? Labor is worth what someone will pay for it. I know of zero tradespeople sitting at home making up a number. They are working.

I'm not telling you its fair or sustainable or not a rip off or any of that. I'm just telling you what it is. I have no idea why people don't quit there job as a teller at the bank to chart $75/hr, to be a a cleaner because that's what they charge around here. People pay it.

I pay my architects and engineers what they charge because they are good and I have no choice. It's business. If you have clients that are not willing to pay the market price to complete their projects, find new clients.

I'm not trying to be a dick about it. I'm just always taken aback a bit when people want to arbitrarily but a value on someone else's skill set. Why shouldn't the electrician charge $130/hr. is he can get it?

[::: :::]

That’s not what this is about, so tuck it all back in…

This is about pricing based on my-horizon-is-so-far-out-that-I’m throwing-stupid-numbers-at-stuff-just-cuz…not getting paid what they’re worth but proposing ransom in exchange for services

I’ve talked to good GC’s about it and they aren’t filling their books this year the way they were last year. And that is directly because they scared the shit out of the buyers by just thinking “line goes up” over the last few years. They are warning their subs that the gravy train is slowing down hard and soon

Client’s investments are down AND everything costs more AND borrowed money ain’t free anymore so the door is shutting on just-charge-10%-more-than-last-time

[Foggy_Goggles]

This is about pricing based on my-horizon-is-so-far-out-that-I’m throwing-stupid-numbers-at-stuff-just-cuz…not getting paid what they’re worth but proposing ransom in exchange for services

That's not how I run my business but the next 12months looks booked and the ball park numbers my GCs are giving their customer for 2025ish is to expect 10% increase in labor. That's my market.

They are warning their subs that the gravy train is slowing down hard and soon

The good subs will make that determination for themselves. Find and keep good customers willing to pay a high price is a good rule.

Client’s investments are down AND everything costs more AND borrowed money ain’t free anymore so the door is shutting on just-charge-10%-more-than-last-time

So money cost more and materials cost more so labor should cost less? The cost increases are expenses to my business. But yeah, Econ 101...the solution to high prices is high prices.

I get that there are shit bag contractors that have been charging absurd prices for questionable work. But no one side of market determines price. There is no arbitrated value of ones work. Personally, my customers (both homeowners and builders) tell me they are very happy with the value i provide. I have a pretty established book of business but I leave room for potential new customers. I tell people right from the jump what my schedule is looking like and the applicable hourly or sq. ft. price I'm estimating at. If either of those parameter isn't to their liking I politely end the conversation.

Houses, airline tickets, eggs, motel rooms, car mechanics and so on. If you don't like the price, don't buy.

[::: :::]

[QUOTE=Foggy_Goggles;6804276]

If you don't like the price, don't buy.

I think you’re starting to understand

You seem to be on the right side of the curve — good for you

[byates1]

[J. Barron DeJong]

Durrrr….

Go back and check what Keynesian’s vs Austrian’s predicted during the Great Recession (including conservative Keynesian’s like Greg Mankiw, it’s not all big government….). Austrian predictions were all decimated.

There’s a reason every macro model (both private and government) is based on Keynesian (or ‘New Keynesian’ ) foundations.