An apology and an explanation.

Blank. · 04-28-2017, 08:56 PM

Quote:

Originally Posted by Chula Vista

I'm going to take people's advice and avoid further political discussions for a while. I apologize for being so angry and dickish towards some members.

For anyone interested, here's the full story of what happened to my company. I know, TOO LONG - but trust me it's an absolute wonderful tale of corporate greed. You'll enjoy it.

Over the course of 17 years we designed and developed 18 commercial loudspeakers for MegaCorp (MC). These were all manufactured by China Factory (CF) after we spents months getting them all set up back in 1998.

Commercial loudspeakers have transformers in them and are run by high power amps so that large numbers of them can be hooked up in series. Similar to transformers on telephone and electrical poles. They are installed in malls, airports, convention halls, sports arenas, etc. They also have to be designed to be 100% bullet proof since they double as the fire alarm system if needed. Lots of UL safety certifications required up front.

Late 2014 MC comes to us demanding a 5% price reduction. Then CF notifies us they are raising their prices by 6%. On September 4th, 2017 CF notifies us that are not shipping us any further MC products. Within a week MC says that since we can no longer support them they are going to start buying direct form CF.

Voila! By throwing us to the curb (and eliminating our margin) MC get's their reductions and CF makes more profits. Our business gets gutted by over 85% and eventually 32 of 35 people lose their jobs.

During the course of the lawsuit we found out the following:

- The VP of purchasing for MC got a huge bonus based on the price reductions.
- The owner of the CF and the VP of MC had begun putting the plan in place as early as April 2014.
- In those 17 years we'd placed approx. $50 million dollars in purchase orders with the CF.
- MC grossed over a quarter of a billion dollars in sales of those products.
- The commercial line we designed and developed has one of their highest profit margins and is still considered the industry standards to this day.
- MC was recently purchased by a HUGE South Korean company for a billion dollars more than what they did in sales in 2016.

And because of a miniscule technicality in our contract (that it took CF's lawyers more than two years to discover) they both walk away basically scott free. The 3 of us left from the original 35 employees have been running on fumes ever since.

Note that prior to our contract getting tossed both MC and CF were at the table ready to settle with us for around $16 million. Linda and I would have ended up with about $800 thousand after taxes.

How does MC have any leg to stand on in this case? Doesn't your company own the patent on the speakers?

Chula Vista · 04-28-2017, 09:27 PM

Quote:

Originally Posted by 1blankmind

How does MC have any leg to stand on in this case? Doesn't your company own the patent on the speakers?

Nothing was patented. MC would have never let us patent their products under our name anyway. We own the designs and the trade secrets but that would be a tough fight in court because the details would get lost on a jury.

Raise your hand if you understand how important TSP specs are to a speaker system's performance.

**Exo** · 04-28-2017, 09:37 PM

You'll be alright Chula. You're good people. I'll tell you the same thing I told my dad when my brother was so deep in his heroin addiction...

I don't have faith in religious figures such as a God, but I have faith in people and situations, and I have faith that everything will work out.

Just keep being a good dude Chula and good things will follow even IF things don't work out with your company. There is ALWAYS something else, but I hope for your sanity that things start to pick back up.

OccultHawk · 04-28-2017, 09:39 PM

It astonishes me that anyone on earth would think fairness and legal justice would have any relevance.

They're rich. They win. ****ing Christ did you grow up in Fantasyland?

**Exo** · 04-28-2017, 09:44 PM

Quote:

Originally Posted by OccultHawk

It astonishes me that anyone on earth would think fairness and legal justice would have any relevance.

They're rich. They win. ****ing Christ did you grow up in Fantasyland?

You know, whether you're right or wrong in the arguments you start/butt into, you're still incredibly negative pretty much all of the time. I struggle to see how people would deal with you IRL. I don't mean to come at you like this, but I think I just wanted to clearly state my opinion of you most of the time, which hopefully you don't have a problem with since blunt abrasive opinions have basically been your MO with anything non music related on this forum.

Chula. Do yourself a favor and save your energy, at least for tonight, for yourself and your family, and get off the computer. You've said your peace and the people on here whom you wanted to hear you heard you.

OccultHawk · 04-28-2017, 09:50 PM

Quote:

Originally Posted by Exo

You'll be alright Chula. You're good people. I'll tell you the same thing I told my dad when my brother was so deep in his heroin addiction...

I don't have faith in religious figures such as a God, but I have faith in people and situations, and I have faith that everything will work out.

Just keep being a good dude Chula and good things will follow even IF things don't work out with your company. There is ALWAYS something else, but I hope for your sanity that things start to pick back up.

Yeah keep being a good person.

Seriously?

How many decades long "good people" employees have had their pensions stolen by CEOs who were rewarded with tens of millions of dollars to steal it?

How many good people work hard as **** their whole lives to die broke from rotten health care in their 60's?

****? How many good people starved in east Africa today?

What the **** does being good have to do with anything?

Chula Vista · 04-28-2017, 09:52 PM

Sincere thanks Exo.

Occult, I undertsand your cynicism too. "Life sucks and then you die" for lots of good people.

OccultHawk · 04-28-2017, 09:59 PM

Quote:

Originally Posted by Chula Vista

Sincere thanks Exo.

Occult, I undertsand your cynicism too. "Life sucks and then you die" for lots of people.

That's why we get high.

Chula Vista · 04-28-2017, 10:00 PM

Quote:

Originally Posted by OccultHawk

That's why we get high.

Rum and diet coke for the win buddy.

**Exo** · 04-28-2017, 10:03 PM

Quote:

Originally Posted by OccultHawk

Yeah keep being a good person.

Seriously?

How many decades long "good people" employees have had their pensions stolen by CEOs who were rewarded with tens of millions of dollars to steal it?

How many good people work hard as **** their whole lives to die broke from rotten health care in their 60's?

****? How many good people starved in east Africa today?

What the **** does being good have to do with anything?

Because no matter what logic and reality screams into your face, trying to be and do some good is what separate us from scraping, chaotic, backstabbing, emotionless beasts. If having a general optimistic approach to the only life you're every going to have is wrong, and being an observant reality seeking pessimist is right, then I honestly would rather be wrong.

Funny thing is, I don't disagree with you. The world can suck a lot sometimes with greedy assh*les in charge over everything in sight, but in end, all you're going to be left with if everything is taken from you, is people. People near you or even on a f*cking computer. You just seem to sh*t on people at every chance you get which to me is just kind of sad.

To each his own I guess. I'd suggest picking your threads better though. Because to me at least, coming in with all this bullsh*t you throw in a thread like this just comes off petty and kind of disgusting.

EDIT: I get high too by the way. I guess we're just different people.

04-28-2017, 09:37 PM	#23 (permalink)
Exo All day jazz and biscuits Join Date: Feb 2010 Location: NJ Posts: 7,359	You'll be alright Chula. You're good people. I'll tell you the same thing I told my dad when my brother was so deep in his heroin addiction... I don't have faith in religious figures such as a God, but I have faith in people and situations, and I have faith that everything will work out. Just keep being a good dude Chula and good things will follow even IF things don't work out with your company. There is ALWAYS something else, but I hope for your sanity that things start to pick back up. __________________ LastFM SUPREME POO BAH MODERATOR EXTRAORDINAIRE

04-28-2017, 09:52 PM	#27 (permalink)
Chula Vista Toasted Poster Join Date: Oct 2014 Location: SoCal by way of Boston Posts: 11,332	Sincere thanks Exo. Occult, I undertsand your cynicism too. "Life sucks and then you die" for lots of good people. __________________ “The fact that we live at the bottom of a deep gravity well, on the surface of a gas covered planet going around a nuclear fireball 90 million miles away and think this to be normal is obviously some indication of how skewed our perspective tends to be.” Last edited by Chula Vista; 04-28-2017 at 09:59 PM.

04-28-2017, 09:39 PM	#24 (permalink)
OccultHawk one-balled nipple jockey Join Date: Dec 2010 Location: Dirty Souf Biatch Posts: 22,033	It astonishes me that anyone on earth would think fairness and legal justice would have any relevance. They're rich. They win. ****ing Christ did you grow up in Fantasyland?