----- Forwarded Message ----
From: Todd Staples <[email protected]>
To: Todd Staples <[email protected]>
Sent: Monday, February 2, 2009 11:55:42 AM
Subject: STEALTH AUTO - Black Series Pedal update.
Dear Patient Black Series Pedal Customers-
I'd first like to apologize for our lack of communication on this project. I have been trying my best to resolve the issues we have had and feel that part of the problem is that I keep seeing a solution "right around the corner". Because of this, I keep putting off getting back to all you great customers who have been patiently waiting because I am holding off for good news.
Here is the current situation. I'll try to do my best to explain this and give you an idea of why this has been such a challenge.
When we made our first set of Black Series Pedals, just the coating process for ONE SET cost us almost $500. Of course, this was artificially high due to testing, setup etc, but that is what it cost. The coating we use is the same coating used on high end Titanium Golf Drivers to withstand the abuse your feet are going to give them.
Our coating specialists informed us that this was just because it was a sample run and they expected to get the cost down to about $30/set, IF we could get our numbers up. We delightfully agreed and decided to release the Black Series Pedals to the public for a pre-sale.
Now this next part is honestly where we ran into trouble....
When we released the new pedals and even advertised selling a certain amount BELOW cost (thinking at least this would help get them made), we got FAR less orders than we expected. And I don't mean a few less or a 10 less, but we got about 1/5th the MINIMUM amount of orders we expected to be able to make this a worthwhile project for us (only about 1 dozen sets were ordered).
With determination to hold up our end of the bargain, we pressed forward. We then ran into some issues with the coating and it proved to be very hard to get our cost down.
So now, here we were. STUCK. We met with our coating specialist and decided to
once again try to get the cost down to what we needed at lower volumes than we had originally committed to, without sacrificing quality.
Unfortunately it did not work out the way we had planned.
Here are the numbers we came up with for the coating only, THIS DOES NOT INCLUDE THE COST OF THE PEDALS, nor any of the costs we have accrued testing over the past few months:
10 - 19 sets @ $ 150.00 per set
20 - 50 sets @ $ 90.00 per set
51-100 sets @ $ 70.00 per set
101-200 sets @ $ 60.00 per set
200+ sets @ $ 40.00 per set
****
As you can see, we are in a tough spot. We imagined that we would get 50-100 orders for these pedals and that would allow us to set the price point at $150-$200, like it says on our site, but this was not the case.
You have all been MORE THAN patient, and I cannot express my gratitude enough for this. Unfortunately, the economy is tough right now and I am not going to lie and say I have an extra $10K laying around of my own to put into this. Stealth Auto is made up of a group of dedicated enthusiasts that love providing the parts for people to make their cars truly unique. We are not some mega sized manufacturing company with millions in the bank and this project has already been a huge strain on us.
Here is what I am asking you all to do for me.
Give me one more week to figure this out. I have some ideas up my sleeve and a few people who have expressed interest putting up some money for a LARGE order of these pedals (whom I will be rewarding handsomely). This will help complete the project we have started and most importantly, GET YOU YOUR PEDALS!!!
I hope this works with you and you can all find the strength to hold off for another week, I PROMISE i will update you no later than monday February 9th, 2009.
All the best,
If you have any thoughts on this, please feel free to let me know.
- Todd
Todd Staples
[email protected]
Stealth Auto
P: 877-349-4777
F: 310-312-5553