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San Jose bakery loses thousands of dollars after Tesla reportedly cancels large order
(www.nbcbayarea.com)
this post was submitted on 23 Feb 2024
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This sucks but it is a hard lesson about dealing with large companies. If any company wants anything that doesn't comes off the shelf of the store, they have to pay upfront. Pay has to be by a certain amount of days in advance of delivery date or the date is not guaranteed and will be late. Work doesn't start until payment is done. If they want to pay after delivery, sign a contract, require an advance of at least half of the bill or materials cost (whichever is highest), non-refundable, include a cancellation fee. Put this shit up as terms of service on a website and direct everyone to that page whenever you are contacted by a new client. The larger the client company, the more important it is to be this strict. For you it might be a bankruptcy inducing amount, but to them it will be immaterial pocket change, so you have to hold your ground.
I was a small business owner in this same situation. I got a contract, I got partial payment up front, then they reneged upon my finishing the job and asking for the rest of the payment. They said they'd pay me 10% of what they owe, AND demanded additional services for free. I took my contract to a bunch of lawyers, all who said the same thing "They're too rich to sue. They will delay, stall, and after years, even if you won, they still probably won't pay." What they owed me, they bragged about paying every time they flew their private jet. They could easily have paid, but instead they decided to destroy me and my company.
This isn't something the small business owner can protect against. To the rich, none of us or our laws matter.
This is why small claims exists. $7500 and THEY have to prove they DON'T owe it. If they don't show up, you win summary judgement. That should cover most things and even if it doesn't, it will all least soothe the wound.
They wracked up a bill of over $100k, and then forced me to take $11k after demanding more free services. The service they demanded I wasn't able to do and told them this. They didn't care, so I did what they told me to do, which ended up damaging the product (because I couldn't fucking do it and told them this). I gave them their product, they gave me the $11k blood money, then they turned around and sued me for $75k for damaging the product (in the fashion they demanded) of which I was forced to pay $25k. This took all my funds, and I had to sell everything.
Oh yeah, and the only lawyer that would represent me, ended up being best friends with the billionaire who was suing me. He didn't tell me this until after I payed him his $10k lawyer fee, and after he got me a "great deal" of only having to pay $25k to this bloodsucking POS trumper billionaire.
When I say you don't matter to a rich person, know it's literally the truth.
Name and shame my dude
The rich no longer fear the guillotine.
I assume you went on some John Wick style rampage killing them and their families?
*Reneged :)
The partial payment wasn't large enough if it left you wrecked at the end. Generally the partial payment should pre-pay to cover all of your expenses and labor. The final payment is the profit margin. That way you are never on the hook for a potential loss and will always break even.
So for the bakery, they should have had a full prepay policy on all special orders. Even if "customers" walked away because of the policy.
I don't know what you think profit margin is but it's not much. At the point of getting full expenses you might as well ask for full payment.
Then the business doesn't deserve to be around according to capitalism. Stick to smaller customers. Don't take such big risks.
So you're saying capitalism is awful? No disagreement from me.
That's not how business works at all.
Then the business straight up deserves to fail. Sucks to suck.
Yeah then at least everyone gets paid, and the workers walk away with a shitload of free pies!!
Can you tell us who? Maybe someone will “run into” them.