Ok so let me chime in here. Since I know more of the back end inner workings than most and the deals that have transpired from the GTM to Gamma transition. Like many of you I have outstanding items that are owed. I will not go into my personal details because I do not feel the need to vent them here.
SAM:
- Sam sold the intellectual rights to a foreign group that has taken over the product line.
- GTM is no more and Sam was hired by the new company...
- Sam is no longer making decisions financially for the company. So asking him will get you "nowhere" trust me on this...
- Sam on all the documentation/licensing is on purpose and I will go into that in a second.
- Sam's role has been strictly limited to R&D and the Tech side of the house.
The New Guys:
- The new guys are not US based and when they bought the intellectual property of GTM. They hired Sam to keep developing products.
- Because the new guys are not stateside they needed help in getting the new business up and running ASAP. In this they needed to retain the licenses, permits within rancho Cucamunga, CA. This is why you see Sam's name on the documents. Sam had to retain and procure these as part of the buy out.
- The new guys legally did not obtain the debt that GTM or Sam owed. In that right they dont have to do squat for us that are still owed. This is a reality and one that I wish wasnt so.
Buying stuff from Gamma:
- Im not going to tell you to buy or not to buy from the new guys what I am going to say is that the new operation is slow going and they are being strategic on who they offer compensation to.
-The new guys have an uphill battle to fight due to the actions of the predecessor. In that regard they have been offering deals for existing customers with items still owed like the OP.
- To the extent of who for and how long this will last I haven't the faintest clue and like many of you I am trying to be made whole as well.
^^^^ The above are facts... not my opinion but of what is truly transpiring behind the scenes. I wish I could give more but until I vet out the information I have I wont post hearsay.
MY OPINION:
If Gamma wants to make an impact with the community they should target the existing customers and make things "right" as they can. By doing so it will cost them heavily financially but it can be written off in the tax burden and in the same time help build the name for the new company Gamma Motors. As far as pricing they will need to remain competitive as they bought late into the game. Raising the prices without investing into higher quality and more performance is going to get them less of the market share. I have stated to Sam to pass along to the new owners the idea to purchase an Orbital welder. This investment alone would save them time and money while also providing them perfect welds on every pipe that leaves their manufacturing line. The QA issues of GTM would effectively been eliminated in regards to previous piping. At the same time they should focus on innovative designs and not just high profit margins at the onslaught. The way the perception the company is getting is that they took over and raised the prices without addressing the issues GTM had in the past... To the new owners "Perception is reality" in the eyes of the customer. Until you can break through the barriers of: Debt to customers, Supply Chain Issues, Quality control issues, and customer communication problems to name a few you will not gain the market share you were hoping to buy into.
I have run several businesses and I run an international program for a fortune 100 company. I know what it takes to be successful and I am probably one of the few here who can see past the emotions and see what needs to be done to make sure that Gamma is successful but MORE importantly you are a good steward to the market place and you repair the damage to the customer base...
My Recommendations to the new owners:
-Whether you like my opinion or advice here is a list of some simple steps to fix the problems you are facing and will face in this uphill battle to gain market share:
Step 1: Work with Sam to consolidate the list of Debts owed to customers. Offer a product for forgiveness of debt. Current Retail value of product to cover debt owed (and in the case like the OP cover the kit as your costs are not that high for the kits being made). This will gain you a forward step in the community and probably get your ban lifted.
Step 2: Keep your product offerings limited while you are in this start up phase. One of the problems GTM had was a wide and deep product line but only being able to deliver on a narrow and shallow product depth.
Step 3: bring your work in house! Bring your casting Stateside! If Other companies can do it at a lower price point so can you! This means you will have to invest into your market and not be a fly by night operation... Lower profits but more kits sold. The way this market works is by quantity and quality of kits.
Step 4: Invest into targeted technologies that are relatively low cost but reduce your overall production costs. The orbital welder is a perfect example! Instead of outsourcing your welding and paying a premium spend the $20-$50k and be able to have perfect pipes that a customer is willing to pay a premium for! I know I for one would have paid an additional $500 for orbital welds on all my piping! Even at that pricing you break even within your first 100 kits sold!
Step 5: Offer an upgrade path on the current designs! V3 Manifold upgrades for all those with the current V2 manifolds. for those with warranty issues offer a low cost solution to upgrade. Make sure to cover your costs but at the same time not break the customers bank!
Step 6: Hire a marketing manager that can present your company! A face of the business that people can trust! Keep clear and open communication and always always tell the truth! If something is going to be late or their is a complication the customer wants to know about it! You would be surprised how flexible most customers are given clear and proper communication.
Step 7: Choose 1 of the 2 -
Choice 1 - Be a performance shop and take in builds
or
Choice 2 - Be a manufacturer and utilize your own cars for test beds... nobody wants to give up their car for years to be a test dummy!
Now I can go on and on how you should do business. Being a business owner myself I always relied on my reputation to gain new work. In the car scene in America you will need the same! I say you honor the OP and send him the kit he already paid for. At this point in time you need all the positive publicity you can get! as the nissan community is not going to let this blow over in the next several years... If you want to make money make things right first and you will have a much larger loyal customer base!
-Mike
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Shop Cars: 2013 318whp Nismo VspecII 370z *SOLD*, 2009 1000hp+ 93oct 4.0L TT 370z Fast Intentions STAGE 4 #054
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