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Date: Mon, 08 Jan 2007 02:47:41 -0500
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Subject: D2A
Thread-Topic: D2A
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From: "Joe Bartels" <JoeB@lancair.com>

This is a multi-part message in MIME format.

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Lancair and Lancair Avionics Customers:
=20
The D2A business failure is one which has touched all of us in one way =
or another.  I see the postings and I am sickened by the finger pointing =
because I know that there must be more to this story than meets the eye. =
 I have never agreed fully with Kirk's business decisions, however, for =
the well being of my customers, I continued purchasing, in good faith, =
because it was Chelton products that I believed I was purchasing, =
through D2A.  I await, perhaps a bit more patiently than most, the full =
story.  I just can't believe Kirk is 100% at fault here.
=20
On several occasions I spoke with customers and explained that I was =
concerned about paying 100% up front for the Chelton package, especially =
when there was such great controversy over which, if any, =
AHARS/ADAHARS/GADAHARS would be appropriate for the IDU-1's.  The truth =
is the customers had already made up their respective minds about =
Chelton having been so indoctrinated by so many D2A advertisements =
alluding to the fact that Chelton would give you "...so much blue for so =
little green."  Our customers were cutthroat in trying to save every =
dollar and would on so many occasions attempt to go outside of Lancair =
Avionics, Inc. to buy direct from D2A.  Last significant fact on this =
part of the subject, there wasn't then and isn't now a product which =
compares to the IDU-1's in price and performance, even if you now have =
to pay a small amount more to get all that you thought you would get.
=20
So what do we now do?  Well, Lancair Avionics, Inc. is reviewing its =
contracts with its customers who are still without an =
AHARS/ADAHARS/GADAHARS.  For those customers whose contract calls for =
Crossbow 425's, they will get 425's.  For those customers whose contract =
calls for Pinpoint, they will get Pinpoint, however, they will have to =
pay the difference between what the 425 costs and what the Pinpoint =
costs.  Contractually Lancair Avionics, Inc. may be responsible to its =
customers fully, even if it was D2A that failed.  I am in no way =
conceding that point at this time, however, for those of you who have =
never filed a lawsuit or have never been sued, let me tell you that it =
is a very expensive, time consuming, and wasteful event, especially when =
the singular loss to any one customer may be no more than $4,000.00.  As =
to Lancair Avionics, Inc., the total amount may be as much as =
$145,000.00. =20
=20
I am suggesting to my Lancair Avionics customers that we share in the =
loss as follows:  1)  Chelton has obviously proposed providing product =
at or near its cost;  2)  Lancair Avionics, Inc. would like to pay =
one-half of the amount required to acquire the items which D2A failed to =
provide;  3)  Lancair Avionics, Inc. proposes that the customers pay the =
other one-half of the amount due necessary to acquire the items D2A =
failed to provide; and, 4)  Those customers who participate as requested =
will receive a special discount on any item that they purchase through =
Lancair which will total at least that amount equal to their =
contribution to this effort.  For instance, if a customer still has an =
engine to purchase, we will discount the engine by the one-half =
mentioned above.  If the customer has already purchased items such as =
engine, prop, panel, etc., Lancair will offer a discount on any other =
airframe kit that we offer or will allow a special discount on parts and =
accessories until such time as the customer's contribution to the =
purchase of the back ordered D2A products is satisfied.
=20
This offer, initially, is beneficial to Lancair and that is because we =
would rather not have to suffer this financial loss all at once.  We =
hope that all or at least a majority of you will accept this offer.=20
=20
Now, let me address the comments of a "lister" with whom I take special =
exception.  Lancair obligates itself to pay each engine manufacturer =
every time it places an order with that manufacturer.  We are fully up =
to date with most every vendor, including, but not limited to, =
Continental, Lycoming, Avia and Hartzell.  As a matter of fact our =
efforts to pay in advance have caused each of these manufacturers grief =
as they do not have a procedure by which to assign a pro-forma invoice =
and accept funds before their final invoice is rendered.  Since we wish =
to keep our good credit with them, we demand payment from our customers =
up front so that we may pay as soon as an invoice is rendered by these =
companies.  Further, we demand a 50% deposit on our kits now to assure =
that those customers who order actually purchase the totality of the kit =
they have ordered.  Why?  Because we have to forecast well into the =
future our need for strategic materials, their transport to the =
Philippines where we actually manufacture many of the parts contained in =
our kits and arrange for those parts to be shipped back to the States, =
the parts we keep on the shelf and the parts that go into your kits.  =
Believe me, the TSA/Border Patrol, etc.,  has not made importing of =
these manufactured goods either easy or cheap.  Our vendors require =
significant annual commitments in order to get discounts, not to =
mention, actual product.  Torey, who provides us with the bulk of our =
Carbon Fiber, must know well in advance our needs, otherwise, there just =
won't be any!  Wolstenholme Machine requires significant advanced notice =
of orders just to procure the correct materials.  Duke Fuel Pumps has a =
6 -9 month lead time.  Multiply this by a thousand or so various parts =
and you can see how one slip up can bring us to a grinding halt!  So you =
see, orders beget funds, funds beget parts, parts are manufactured into =
product and the cycle continues.=20
=20
Finally, did I tell you that it costs millions to run Lancair every =
year?  How do you think we get the funds...solely through the sale of =
kits?  NO!  We hope to generate additional revenue by the sale of =
instrument panels, engines and propellers.  Unfortunately we are not =
getting very many of these sales for several reasons:  1)  We perhaps =
are not being as aggressive as may be required to get the sale;  2)  we =
may not be marketing the fact that we now have factory remanufactured =
engines from Continental at significantly lower prices than that of new =
(even though they are not painted red or sport chrome intake tubes and =
rocker covers, but at least much quicker), and 3)  our instrument panels =
may cost a bit more because of the overhead factor associated with the =
business as a whole, up to and including having to absorb a portion of =
the loss associated with D2A, but we do warrant our product and will =
make any necessary repairs to those who take time to call us (or me if =
you are having difficulty 541-350-2901) for assistance.  The distraction =
caused by former Lancair Avionics employees is over.  You can get a =
panel within the 2 - 4 month period promised.
=20
I ask that you support Lancair...not for me, (God knows I'm an attorney =
so I must have been rich at one time, right?)  but for the 55 - 60 =
employees who work in Redmond and the 100 employees that work in the =
Philippines all who bring you the finest home built kits available, bar =
none! =20
=20
Joseph C. Bartels, CEO
Lancair International, Inc.

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<HTML dir=3Dltr><HEAD>=0A=
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<BODY>=0A=
<DIV id=3DidOWAReplyText92500 dir=3Dltr>=0A=
<DIV dir=3Dltr><FONT face=3D"Times New Roman" color=3D#000000 =
size=3D3>Lancair and Lancair Avionics Customers:</FONT></DIV>=0A=
<DIV dir=3Dltr><FONT face=3D"Times New Roman" color=3D#000000 =
size=3D3></FONT>&nbsp;</DIV>=0A=
<DIV dir=3Dltr><FONT face=3D"Times New Roman" color=3D#000000 =
size=3D3>The D2A business failure is one which has touched all of us in =
one way or another.&nbsp; I see the postings and I am sickened by the =
finger pointing because I know that there must be more to this story =
than meets the eye.&nbsp; I have <STRONG><EM><U>never</U></EM></STRONG> =
agreed fully with Kirk's business decisions, however, for the well being =
of my customers, I continued purchasing, in good faith, because it was =
<STRONG><EM><U>Chelton</U></EM></STRONG> products that I believed I was =
purchasing, through D2A.&nbsp; I await, perhaps a bit more patiently =
than most, the full story.&nbsp; I just can't believe Kirk is 100% at =
fault here.</FONT></DIV>=0A=
<DIV dir=3Dltr>&nbsp;</DIV>=0A=
<DIV dir=3Dltr>On several occasions I spoke with customers and explained =
that I was concerned about paying 100% up front for the Chelton package, =
especially when there was such great controversy over which, if any, =
AHARS/ADAHARS/GADAHARS would be appropriate for the IDU-1's.&nbsp; The =
truth is the customers had already made up their respective minds about =
<STRONG><EM><U>Chelton</U></EM></STRONG> having been so indoctrinated by =
so many D2A advertisements alluding to the fact that =
<STRONG><EM><U>Chelton</U></EM></STRONG> would give you "...so much blue =
for so little green."&nbsp; Our customers were cutthroat in trying to =
save every dollar and would on so many occasions attempt to go outside =
of Lancair Avionics, Inc. to buy direct from D2A.&nbsp; Last significant =
fact on this part of the subject, there wasn't then and isn't now a =
product which compares to the IDU-1's in price and performance, even if =
you now have to pay a small amount more to get all that you thought you =
would get.</DIV>=0A=
<DIV dir=3Dltr>&nbsp;</DIV>=0A=
<DIV dir=3Dltr>So what do we now do?&nbsp; Well, Lancair Avionics, Inc. =
is reviewing its contracts with its customers who are still without an =
AHARS/ADAHARS/GADAHARS.&nbsp; For those customers whose contract calls =
for Crossbow 425's, they will get 425's.&nbsp; For those customers whose =
contract calls for Pinpoint, they will get Pinpoint, however, they will =
have to pay the difference between what the 425 costs and what the =
Pinpoint costs.&nbsp; Contractually Lancair Avionics, Inc. may be =
responsible to its customers fully, even if it was D2A that =
failed.&nbsp; I am in no way conceding that point at this time, however, =
for those of you who have never filed a lawsuit or have never been sued, =
let me tell you that it is a very expensive, time consuming, and =
wasteful event, especially when the singular loss to any one customer =
may be no more than $4,000.00.&nbsp; As to Lancair Avionics, Inc., the =
total amount may be as much as $145,000.00.&nbsp; </DIV>=0A=
<DIV dir=3Dltr>&nbsp;</DIV>=0A=
<DIV dir=3Dltr>I am suggesting to my Lancair Avionics customers that we =
share in the loss as follows:&nbsp; 1)&nbsp; Chelton has obviously =
proposed providing product at or near its cost;&nbsp; 2)&nbsp; Lancair =
Avionics, Inc. would like to pay one-half of the amount required to =
acquire the items which D2A failed to provide; &nbsp;3)&nbsp; Lancair =
Avionics, Inc. proposes that the customers pay the other one-half of the =
amount due necessary to acquire the items D2A failed to provide; and, =
4)&nbsp; Those customers who participate as requested will receive a =
special discount on any item that they purchase through Lancair which =
will total at least that amount equal to their contribution to this =
effort.&nbsp; For instance, if a customer still has an engine to =
purchase, we will discount the engine by the one-half mentioned =
above.&nbsp; If the customer has already purchased items such as engine, =
prop, panel, etc., Lancair will offer a discount on any other airframe =
kit that we offer or will allow a special discount on parts and =
accessories until such time as the customer's contribution to the =
purchase of the back ordered D2A products is satisfied.</DIV>=0A=
<DIV dir=3Dltr>&nbsp;</DIV>=0A=
<DIV dir=3Dltr>This offer, initially, is beneficial&nbsp;to Lancair and =
that is because we would rather not have&nbsp;to suffer this financial =
loss all at once.&nbsp; We hope that all or at least a majority of you =
will accept this offer.&nbsp;</DIV>=0A=
<DIV dir=3Dltr>&nbsp;</DIV>=0A=
<DIV dir=3Dltr>Now, let me address the comments of a "lister" with whom =
I take special exception.&nbsp; Lancair obligates itself to pay each =
engine manufacturer every time it places an order with that =
manufacturer.&nbsp; We are fully up to date with most every vendor, =
including, but not limited to, Continental, Lycoming, Avia&nbsp;and =
Hartzell.&nbsp; As a matter of fact our efforts to pay in advance have =
caused each of these manufacturers grief as they do not have a procedure =
by which to assign a pro-forma invoice and accept funds before their =
final invoice is rendered.&nbsp; Since we wish to keep our good credit =
with them, we demand payment from our customers up front so that we may =
pay as soon as an invoice is rendered by these companies.&nbsp; Further, =
we demand a 50% deposit on our kits now to assure that those customers =
who order actually purchase the totality of the kit they have =
ordered.&nbsp; Why?&nbsp; Because we have to forecast well into the =
future our need for strategic materials, their transport to the =
Philippines where we actually manufacture many of the parts contained in =
our kits and arrange for those parts to be shipped back to the States, =
the parts we keep on the shelf and the parts that go into your =
kits.&nbsp; Believe me, the TSA/Border Patrol, etc.,&nbsp; has not made =
importing of these manufactured goods either easy or cheap.&nbsp; Our =
vendors require significant annual commitments in order to get =
discounts, not to mention, actual product.&nbsp; Torey, who provides us =
with the bulk of our Carbon Fiber, must know well in advance our needs, =
otherwise, there just won't be any!&nbsp; Wolstenholme =
Machine&nbsp;requires significant advanced notice of orders just to =
procure the correct materials.&nbsp; Duke Fuel Pumps has a 6 -9 month =
lead time.&nbsp; Multiply this by a thousand or so various parts and you =
can see how one slip up&nbsp;can bring us to a grinding halt!&nbsp; So =
you see, orders beget funds, funds beget parts, parts are manufactured =
into product and the cycle continues.&nbsp;</DIV>=0A=
<DIV dir=3Dltr>&nbsp;</DIV>=0A=
<DIV dir=3Dltr>Finally, did I tell you that it costs millions to run =
Lancair every year?&nbsp; How do you think we get the funds...solely =
through the sale of kits?&nbsp;&nbsp;NO!&nbsp; We hope to generate =
additional revenue by the sale of instrument panels, engines and =
propellers.&nbsp; Unfortunately we are not getting very many of these =
sales for several reasons:&nbsp; 1)&nbsp; We perhaps are not being as =
aggressive as may be required to get the sale;&nbsp; 2)&nbsp; we may not =
be marketing the fact that we now have factory remanufactured engines =
from Continental at significantly lower prices than that of new (even =
though they are not painted red or sport chrome intake tubes and rocker =
covers, but at least much quicker), and 3)&nbsp; our instrument panels =
may cost a bit more because of the overhead factor associated with the =
business as a whole, up to and including having to absorb a portion of =
the loss associated with D2A, but we do warrant our product and will =
make any necessary repairs to those who take time to call us (or me if =
you are having difficulty 541-350-2901) for assistance.&nbsp; The =
distraction caused by former Lancair Avionics employees is over.&nbsp; =
You can get a panel within the 2 - 4 month period promised.</DIV>=0A=
<DIV dir=3Dltr>&nbsp;</DIV>=0A=
<DIV dir=3Dltr>I ask that you support Lancair...not for me, (God knows =
I'm an attorney so I must have been rich at one time, right?)&nbsp; but =
for the 55 - 60 employees who work in Redmond and the 100 employees that =
work in the Philippines all who bring you the finest home built kits =
available, bar none!&nbsp; <FONT face=3DArial =
color=3D#000000></FONT></DIV></DIV>=0A=
<DIV id=3DidSignature84259 dir=3Dltr>=0A=
<DIV><FONT face=3DArial color=3D#000000></FONT>&nbsp;</DIV>=0A=
<DIV><FONT face=3DArial color=3D#000000>Joseph C. Bartels, =
CEO</FONT></DIV>=0A=
<DIV><FONT face=3DArial color=3D#000000>Lancair International, =
Inc.</FONT></DIV></DIV></BODY></HTML>
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