Quote:
gericurl76 previously said:
Air2air I am new to the whole marketing world, but I'm trying to get a good solid handle on it. (I understand that you know a little about it  ) I realize that not everyone that will possibly buy from Donahoe participates in a forum like this, but are you saying you don't think scandal (true or not) will affect them? Or are you saying that since scandal will affect them somewhat, it will be easier for the fewer people that do buy from them to get product because the demand will be down and they will be able to fill those orders more easily? Or do you refer to some un-cited inside information about the company's direction, unrelated to any internet rumors.
maybe this is too far off-topic, if so let me know & I'll edit it. |
Well, I know zero about the scandal besides this thread. I have only been commenting on the the financial reorg. Rapidly growing product companies this size typically hit these barriers when credit lines among suppliers and customers stretch the company too tight.
Picture your left arm being pulled by your distributors and resellers, who would like to take forever to pay you, and then your right arm being pulled by your suppliers who delay deliveries or screw up in one way or another. You will end up stretched like Gumby. Being a rapidly growing company, the problem is worse because your sales demand (and the amount you have to order from your vendors) is always a larger number than your accounts receivable.
So you end up in a domino effect, where your orders are piling up faster than your receipts from last month. And offroad in particular has horrible problems with ontime payment. Demello is the only guy I know who pays his suppliers immediately. That's unheard of.
This is usually solved by private equity financing and that's probably what they did. It will be a gigantic burden lifted from the company and they can all get back to work now.
Hope that helps with your question, geri - it's all I know about on the DR subject. I've been there a few times and Kreg and Dylan have attempted to give my truck a good beatdown....
