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We deal with John York and he is a great guy. He currently is not a dealer for us but I am going to try and get him signed up. What I'm trying to avoid is what CR of old did. Their dealer program was to sell you 3 cars and you were automatically a dealer. They gave no territory so you could have 20 dealers in the same area. Their ultimate goal was to sell cars. I refuse to do business that way. My dealers will have a store front, they will have territories, they will know my product, they will be inspected for build quality, I will support them with national advertising, tech support, and parts. All dealers will be required to perform and purchase a set amount of kits per year (currently 4). They are required to advertise locally and attend local car shows. I want potential customers to be able to test drive our product at a place that doesn't require a long drive. This is going to take time. I am in the process of signing several dealers. I currently have dealers in Brainerd, MN, Detroit Mi., Seattle Wa. I am looking at signing a dealer in Chicago, LA, Florida, and Denver. I am working on a deal for a Canadian Distributor.
As many of you know this is not an easy business especially when working through dealers. Many times it's hard to have enough cash to build and maintain the business. That's where you can get into trouble because you are robbing Peter to pay Paul. Eventually this will catch up to you. I'm trying to avoid this problem by signing dealers that already have a good business and can start slow without worrying about cash flow.
I may be wrong in my approach but I will not take advantage of my customers for personal gain. I've always been honest and I will continue to run my business with honesty and integrity.
I will address the issue with Classics by Elite. This is not to defame Jay or his company. I am not trying to cause Jay any harm and badmouth his business. I have to do what is right with my business. I have a lot of money invested in this company and I won't let anyone jeopardize what I am trying to do.
Classics by Elite dealership was cancelled because of lack of performance, accounts receivable issues, questionable building procedures, and giving customers false information about deliveries. I stock at a minimum, 5 kits of each product. I have all parts in stock for customer purchase. At times I do have small backorders but they are rare and are generally filled within 2 or 3 weeks. I will tell you I have a problem with upholstery and I have for awhile. I can't control my outside vendors if they are out of metal or certain parts I purchase from them. I can control what I make in-house.
Our business ideals are different and in my best interest I don't want my customers to think I run my business in any manner other than what I have stated. There are several customers that used Classic by Elite that are not satisfied and I am trying to work with those customers to rectify each situation. If you have had a problem please call me so I know what is going on.
Again, I wish Jay no ill will but I must do what is right for me and my company. I have been working with Jay since I purchased CR and I have let this matter go on too long and Jay knows what I am talking about. Jay worked very hard initially to promote CR products. It did not work for him and I don't know why.
This decision was no surprise to Jay. I hope everyone understands my position and my decision. Thanks
Don
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