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In Reply to: RE: April 1st Update. . . posted by greenthumb1 on April 02, 2015 at 08:18:04
Did the whole debt crisis just pass you by? Maybe it's different in your time, but here in 2015 the banks aren't loaning to small businesses. And they definitely aren't loaning to businesses in this sector, irrespective of the financial solidity of the company, or the length of time the company has been around.
But I like this concept all the same, because I'm financially sound and there are a lot of gaslight designs that are out of patent. I could clean up and take over the whole gas lighting market.
You're right that a company should give realistic delivery timelines. But this cuts both ways; if a company said "sorry domestic buyers, we have to satisfy the two-thirds of our market that now represents our export market first... please hang fire for six months or so" would you wait?
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Editor, Hi-Fi Plus magazine, Lun-duhnn, Ingerland, innit
Follow Ups:
I don't think we're talking about long term loans here; more like a 90-120 day line of credit. The kind of money we're talking about, you could put on a credit card (I throw away offers for $25-50K preapproved CCs almost every month). VPI also doesn't seem to be hurting for cash as HW just spent 2 weeks in the Caribbean and they just refinished a house and filled it with high end audio equipment. Are VPI's production problems related to working capital, or did they just plan poorly?
What difference does it make where the demand is coming from? It should be filled on a first come first served basis, and (again) they took pre-orders for 3 months. I think the O/P would have been satisfied if he received an answer that outlined realistic timelines and then VPI stuck to it.
Why are you making excuses for VPI?
I'm not making excuses for VPI. More importantly, if someone has a complaint with the company, especially one that they feel they has not been sufficiently explained in private conversation, then they should take it public.I have absolutely no problem with that. And there's no way I would attempt to defend the action of a manufacturer under those circumstances..
However, someone with a posting history of precisely four posts, all on the topic of VPI, and some containing some relatively detailed information about the company (such as serial numbers, HW's holiday plans)... well, forgive me, but my Spidey Sense is tingling here. I would defend a manufacturer against such activity, if I smelt a rat.
Of course I might be wrong here, but who are you? Rival manufacturer? Disgruntled ex-distributor? Stalker?
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Editor, Hi-Fi Plus magazine, Lun-duhnn, Ingerland, innit
Edits: 04/02/15 04/02/15
New to this blog, not VPI's forum, if you follow them at all you would know all of this is common knowledge.
I also used to work in finance, so I understand loan criteria. Your gas light example was so naive and simplistic I wasn't going to respond to it, but it occurred to me that since you write about audio equipment for a living, maybe you do not understand finance or mfg.
If you did a start up company to make gaslights, you WOULD have trouble securing a loan; not because you mfr gaslights, but because you are a start up with no assets, sales history, cash flow or collateral. It wouldn't make any difference if you mfrd gaslights, solar panels or wind turbines. However, if you were an established company that made gaslights for 35 years and your numbers were in line, then you should have no problem getting a line of credit to expand production. Banks aren't run by the little guy on the Monopoly game board, they are run by people who work for a living and follow rules established by their governing boards and the regulatory agencies.
If you are a follower of VPI's forum, fare enough. And if so, I apologise for barking at you, but this is one of my hot buttons from personal experience. Having been on the wrong side of a FUD campaign from a perfidious rival in a past business, my take on those who use the anonymity of a forum to undermine a rival is pretty harsh.
As to the financial issues, maybe this is the difference between UK and US finance. It has been all but impossible for manufacturers in this sector to extend their credit in the UK, irrespective of the health of the company or how long they have been in business. It's possibly why so many of our companies are now in with private equity companies. And they generally won't look at a brand the size of VPI.
I also know people in the magazine business, working in controlled-circulation B2B companies with good track records in growth markets, and they can't get a red cent out of their banks because 'media is dying'. Nor can they invest in migrating to web without venture capital.
So maybe things are different now, or maybe they are different here.
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Editor, Hi-Fi Plus magazine, Lun-duhnn, Ingerland, innit
I have no axe to grind with VPI. I thought I could shine a little light on the subject by asking what I thought were relevant questions. Didn't mean to step on anyone's toes.
No toes trodden on, and I don't disagree about asking questions in this matter.
Have a great Easter
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Editor, Hi-Fi Plus magazine, Lun-duhnn, Ingerland, innit
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