Status of Everything Attachments

[two_bit_score]

But I'm sure that's not the case.

I'm not so sure.

 

[CliffordK]

That’s kind my point though. I don’t think prepayment was a ‘policy’ as much as the means to keep the business running that perpetuated for far too long.

For small purchases, payments are usually in advance. Especially if it is a rather custom build.

Larger purchases may have an up front deposit. But as the EV manufacturers are learning, they got many more deposits than actual purchases. At the same time, buyers are finding the price for the reserved vehicle was just a fantasy.

I have no problem with the concept of an up front price for an item entering the stream of custom builds.

What I'm reading is the problem that buyers paid for the attachments, and never received the product. A quite a different issue.

 

[tommott77]

For small purchases, payments are usually in advance. Especially if it is a rather custom build.

Larger purchases may have an up front deposit. But as the EV manufacturers are learning, they got many more deposits than actual purchases. At the same time, buyers are finding the price for the reserved vehicle was just a fantasy.

I have no problem with the concept of an up front price for an item entering the stream of custom builds.

What I'm reading is the problem that buyers paid for the attachments, and never received the product. A quite a different issue.

There was nothing ‘custom’ about EA products and they had been doing it as far as I can remember which is going in more than a decade. Sure, running into production delays and having some back orders from tome to time is part of running a successful business but to have your business model perpetually utilizing funds for your new order to fulfill half year old orders 100s ahead in the queue , and then hoping to have still have your funds at a later date to produce the product you paid for is nothing more than a quasi pyramid scheme whether intentional or not.

Any ethical business owner knows that’s not the way to do business. Sure, backlogs can happen upon start up for great products, but it’s the due diligence of the business owner to do everything in their power surpass that hurdle in a reasonable amount of time and at the very least have very dime of that prepaid customers’ $ accounted for. If you can’t you need to look in the mirror as to whether you have a viable business model or not because you know that running your business perpetually that way inevitably some customers will be left holding an empty bag of EA crap at the end of the day.

Ted doubled down on this business model and built a 5.5M lake front home instead of investing that towards ramping up production. Tells me everything I need to know as to what type of ‘businessman’ Ted is.

Glass-and-Steel Lakehouse in North Carolina Lists for Nearly $5.5 Million

The home has 153 panes of glass, plus an enclosed boathouse and a roof deck with a hot tub

www.mansionglobal.com

 

[ruffdog]

It sounds like Ted took his eye off the ball. Instead of the business being priority one, he was distracted. Also, the lack of sound business advice may have been absent during the latest growth of the company. I hope either he, or someone else, is able to continue with this product line. It would be a real shame if all this work would go down the drain.

 

[D&D]

My recollection of the story was the county/city building dept. failed their inspection and would not issue a CO due to building code violations. Then the finger pointing started between the company and contractor eventually ending up where it still is today. I may have some of those detail wrong and if I do I'm sure someone will correct me. There is no doubt both EA and the contractor have huge amounts of money tied up in all this.

A minor correction may be in order here.

There is no doubt both the lenders and the contractor have huge amounts of money tied up in all this.

 

[ultrarunner]

A minor correction may be in order here.

Maybe Ted’s estimate of value of his business and real estate fraudulently induced lenders to grant loans that might have otherwise gone to competitors?

 

[CloverKnollFarms]

Isn't a lender, lending such large sums, really responsible for ensuring the correct valuation is given? I mean, I can't walk into a bank asking for a loan, based on a $500k income, without them making me prove it

 

[airbiscuit]

They could probably show the income easily enough. The question is, did they properly book and disclose the future liabilities?

 

[CloverKnollFarms]

They could probably show the income easily enough. The question is, did they properly book and disclose the future liabilities?

Like, if you were holding $300k in payments, but had not paid (anccounted for) the expense of buying the materials or paying for labor to build the product in 5 months?

 

[airbiscuit]

Like, if you already spent $300k in payments for products you haven't shipped, but have not accounted for the expense of buying the materials or paying for labor to build the product in 5 months or paying property taxes?

BTW, might 5 months of sales not shipped be even more than $300k?