Have a breakfast meeting downtown with the owner of a China factory that we've worked with for years. He's interested in us (under a new company name) being his US sales and new business representative. He has no contacts whatsoever here and would like us to find him new revenue.
This is a great opportunity for us (me, my boss, and his wife) to stay alive moving forward.
In other news: As part of our settlement in the recent lawsuit the two parties agreed to pays us a 2.5% commission on sales of the products they stole from us for 5 years on a quarterly basis. Would work out to about $50K net profit (pure cash) every 3 months.
At the last minute their lawyers changed the terms from "commission based on products ordered from July 1st, 2017" to "commission based on products ordered AND PAID FOR from July 1st, 2017".
Based on pure exhaustion and frustration my boss and our lawyers agreed.
HUGE MISTAKE.
Order placed on July 1st. Production lead time is 10 weeks. Megacorp gets invoiced but they have 90 day terms. So the product isn't PAID FOR until approx. December 10th.
We just got screwed out of about $88K worth of commissions by shooting ourselves in the foot.
$50K per quarter = about $3.8K per week. $3,800 for a 3 person company with virtually no overhead, outside of salaries and insurance, is a boatload of money!!!
TL;DR
Megacorp and China Factory, running out of holes, just boned us in our left ear.
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“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.”
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