ElvisJeep87
New member
Hi Everyone involved and those who are looking to to learn from this thread.
I have been following this thread for a while. I am sorry for all of those on the form the others not on this form who are in this situation.
This may be "A day late and many dollars short" for some people but maby others can learn from it.
Being a old retired businessman, a bit of advice. There is a problem on both ends of this situation (the buyers and builder).
The American market and culture we live in is, we want it now, I do not have time to investigate a company. Yes; I read and you that you knew it was going to take a long time to get it made. The consumer has all of the power, until you give up your money!
When you are required to give up a deposit over 10% of the cost of a item your left yourself open for this type of situation. All businesses should have proper working capital or a line of credit with the suppliers. Dealing with any person (company) where they need to get a large deposit then they do not have capital to weather any bump in the road. Your risk of a situation like what has happened here is very possible.
Dealing with a company that has the waiting list for their product, if they need working capital can get investors or banks to lend them the money to operate the business. If a bank or investor will not lend them the money, why would you risk your money? Granted I read that they said it would be a while before they were able to produce the product. If their demand for their product is as good as they say then if you do not buy it when it is finished they will not have any problem selling it to the next person in line.
I am in no way saying that the person or company was trying to take your money without providing your trailer.
There are some states where you have some laws that will protect you and others that do not. Being that this is a interstate transaction maybe you will have federal laws that can give you some protection?
There are some states where you can not collect more then 10% of the total price or $1,000.oo which ever is less for a contract. I am not in any way giving out legal advice as I am not a lawyer. I am a retired businessman is all.
You can also protect yourself by asking for a “Material and Labor Release”, before you give them the final balance. If you do not know what that is you can do a quick search and find out what the importance of that is.
I know that this makes it very hard for the small guy to get started in a business. If your having a person build a one off product from their garage then I would suggest that buy the materials they need when they need them. They will get their salary and profit when it is competed. Any extra money that you give them has the potential of not getting your finished product
Again I see this is whole situation as a problem on their end and yours.
I am sorry that this had to happen to everyone, but additional research will better prepare you for your next large transaction.
This has just some food for thought. You have gotten my $.02 for free.
Not all of us have a “I want it now” mentality. We wanted a solid product that we were willing to wait for, that product was sold to us by Jeff and Mike. Apparently, two very good salesmen....Also, at the time we researched the company, all the people who had received their product had nothing to say but good things! Yes we should have dug deeper, our bad for sure! With that said, we have filed with our states attorney general and the Federal Trade Commission.