Craig Calfee's side of the story

Yes, it is true that Freddy and I have parted ways. I am saddened by
this turn of events and wish it did not happen. I had high hopes for
our collaboration.

Last year, Freddy came to me with the idea to have Calfee produce a
carbon LWB recumbent based on the Easy Racers Gold Rush design.
Freddy said if I can build it, he can sell it. I said that sounds
like a great idea but I don't have much time to manage the project. I
could do the design work and finance the project, but I would need
someone to do the footwork. Freddy agreed to be that person and would
be compensated on an hourly basis. We both saw Freddy's main value in
the selling of these bikes. The real payback for him would come when
we were in production and he would make a decent commission on every
sale. The amount of that commission would be determined later, when
we had an idea of what it was going to cost to make the bikes. Freddy
had a certain figure in mind at the beginning. I said that I really
hope that the profit margin would allow for such an amount. There was
no agreement about the specific amount, just the idea that he would be
paid on commission basis.

I designed the bike using the Gold Rush seating position to start
with. Freddy's contribution to the Stiletto design was to suggest
Gardner Martin's classic seating position. I designed the new
steering arrangement, the frame construction technique, the fiber
orientation, the passive suspension, the fairing mount method, the
modified aero fork and 80 mm spacing on the Phil hub, the production
tooling and the handlebar arrangements. Freddy test rode the bike and
declared it good.

Just prior to Interbike in October, when we had to determine a price,
Freddy and I sat down to negotiate the commission. We had most of the
costs except labor figured out. It looke like we would have to raise
the price of the bikes substantially if either of us was going to make
any money. Even with a serious price increase, Freddy's commission
was not looking like what he had hoped for at the beginning. He said
he hoped to be able to at least make $X per year, which was a
reasonable number.

We continued to refine the production and supply issues and in
January, shipped the first bikes. We had a good enough estimate as to
the labor costs. In early February, we sat down again to negotiate a
commission arrangement. Freddy insisted on his original amount and I
proposed a lesser amount based on what a top level independant sales
rep would make (but we would still pay his expenses, unlike real
independant reps). That wasn't good enough, so I offered significant
profit sharing of the whole business (not just in recumbents). Based
on Freddy's own estimates of what he believed he could sell, my
proposed deal was well in excess of the $X per year minimum figure he
had in mind just before Interbike. If there was going to be any
growth in sales, Freddy would get even more. He would be the most
highly paid person at Calfee Design. But that wasn't good enough.

Freddy walked out of my office and I assumed he was going to think
about it. But instead, he decided to quit and take the tooling with
him. Under threat of having him arrested, he brought the tooling
back. To me, this demonstrated poor judgement and emotional
instability on Freddy's part and I could not tolerate that in my
business. As had been his pattern at other jobs, Freddy asked to come
back and try to work things out. I decided against it.

In prior times, I might have overlooked this behavior and figured
something out. But I need to lift my business to a more professional
level and not demonstrate to the rest of my employees that a person
can behave like this and still remained employed here.

There is a chance that Freddy and I can come to some agreement on an
endorsement level, but I am not very optimistic about it at this
point.

We will continue with the Stiletto and eventually a SWB bike (which is
why couldn't continue to sell components to Karl Swanson). We will
continue to make the frames at the highest quality and with a full
warranty. I am personally very excited about the Stiletto and it has
replaced my Dragonfly as my favorite bike to ride.

I have no personal animosity towards Freddy and wish him the best in
whatever he strives for. I wish I could have managed his expectations
better or somehow convinced him of the practicalities of this low
profit margin business. This is a lesson I will not forget.

Craig Calfee

"He said he hoped to be able to at least make $X per
year, which was a reasonable number."

"Freddy insisted on his original amount and I
proposed a lesser amount based on what a top level independant sales
rep would make (but we would still pay his expenses, unlike real independant
reps)."

So what started out as a "reasonable number" is now referred to as the
"original amount." Did these figures
change?

What does the income of top level independent sales reps
have to do with this? Have you decided that you should only make what
someone in a position similar to yours should make?

"my proposed deal was well in excess of the $X per year minimum figure he
had in mind just before Interbike."

You told him he was going to make more than the original
agreement and he quit. Did you offer him a reasonable
price on the Golden Gate Bridge too.

There are inconsistencies in "Craig Calfee's side of the story." Your
business is in fabrication and it seems that
your explanation is fabrication as well.






I









"Craig Calfee" wrote in message
om...
Yes, it is true that Freddy and I have parted ways. I am saddened by
this turn of events and wish it did not happen. I had high hopes for
our collaboration.

Last year, Freddy came to me with the idea to have Calfee produce a
carbon LWB recumbent based on the Easy Racers Gold Rush design.
Freddy said if I can build it, he can sell it. I said that sounds
like a great idea but I don't have much time to manage the project. I
could do the design work and finance the project, but I would need
someone to do the footwork. Freddy agreed to be that person and would
be compensated on an hourly basis. We both saw Freddy's main value in
the selling of these bikes. The real payback for him would come when
we were in production and he would make a decent commission on every
sale. The amount of that commission would be determined later, when
we had an idea of what it was going to cost to make the bikes. Freddy
had a certain figure in mind at the beginning. I said that I really
hope that the profit margin would allow for such an amount. There was
no agreement about the specific amount, just the idea that he would be
paid on commission basis.

I designed the bike using the Gold Rush seating position to start
with. Freddy's contribution to the Stiletto design was to suggest
Gardner Martin's classic seating position. I designed the new
steering arrangement, the frame construction technique, the fiber
orientation, the passive suspension, the fairing mount method, the
modified aero fork and 80 mm spacing on the Phil hub, the production
tooling and the handlebar arrangements. Freddy test rode the bike and
declared it good.

Just prior to Interbike in October, when we had to determine a price,
Freddy and I sat down to negotiate the commission. We had most of the
costs except labor figured out. It looke like we would have to raise
the price of the bikes substantially if either of us was going to make
any money. Even with a serious price increase, Freddy's commission
was not looking like what he had hoped for at the beginning. He said
he hoped to be able to at least make $X per year, which was a
reasonable number.

We continued to refine the production and supply issues and in
January, shipped the first bikes. We had a good enough estimate as to
the labor costs. In early February, we sat down again to negotiate a
commission arrangement. Freddy insisted on his original amount and I
proposed a lesser amount based on what a top level independant sales
rep would make (but we would still pay his expenses, unlike real
independant reps). That wasn't good enough, so I offered significant
profit sharing of the whole business (not just in recumbents). Based
on Freddy's own estimates of what he believed he could sell, my
proposed deal was well in excess of the $X per year minimum figure he
had in mind just before Interbike. If there was going to be any
growth in sales, Freddy would get even more. He would be the most
highly paid person at Calfee Design. But that wasn't good enough.

Freddy walked out of my office and I assumed he was going to think
about it. But instead, he decided to quit and take the tooling with
him. Under threat of having him arrested, he brought the tooling
back. To me, this demonstrated poor judgement and emotional
instability on Freddy's part and I could not tolerate that in my
business. As had been his pattern at other jobs, Freddy asked to come
back and try to work things out. I decided against it.

In prior times, I might have overlooked this behavior and figured
something out. But I need to lift my business to a more professional
level and not demonstrate to the rest of my employees that a person
can behave like this and still remained employed here.

There is a chance that Freddy and I can come to some agreement on an
endorsement level, but I am not very optimistic about it at this
point.

We will continue with the Stiletto and eventually a SWB bike (which is
why couldn't continue to sell components to Karl Swanson). We will
continue to make the frames at the highest quality and with a full
warranty. I am personally very excited about the Stiletto and it has
replaced my Dragonfly as my favorite bike to ride.

I have no personal animosity towards Freddy and wish him the best in
whatever he strives for. I wish I could have managed his expectations
better or somehow convinced him of the practicalities of this low
profit margin business. This is a lesson I will not forget.

Craig Calfee

Craig,

I would like to thank you for the well reasoned and well written reply.
I have often wondered about the tendency of people on this news group to
jump to the worst case scenario when situations begin to develop.

Most people don't realize how hard it is to "make a buck" as a small
businessman. They think you open the door and live happily ever after.

I'm sorry the Freddy thing didn't work out. But, "s*** happens". .
Should I get rich in my self employment, I wouldn't hesitate to buy a bike
from you. But for now, I'll continue to build my own.

Tom

Miles of Smiles
"Craig Calfee" wrote in message
om...
Yes, it is true that Freddy and I have parted ways. I am saddened by
this turn of events and wish it did not happen. I had high hopes for
our collaboration.

Last year, Freddy came to me with the idea to have Calfee produce a
carbon LWB recumbent based on the Easy Racers Gold Rush design.
Freddy said if I can build it, he can sell it. I said that sounds
like a great idea but I don't have much time to manage the project. I
could do the design work and finance the project, but I would need
someone to do the footwork. Freddy agreed to be that person and would
be compensated on an hourly basis. We both saw Freddy's main value in
the selling of these bikes. The real payback for him would come when
we were in production and he would make a decent commission on every
sale. The amount of that commission would be determined later, when
we had an idea of what it was going to cost to make the bikes. Freddy
had a certain figure in mind at the beginning. I said that I really
hope that the profit margin would allow for such an amount. There was
no agreement about the specific amount, just the idea that he would be
paid on commission basis.

I designed the bike using the Gold Rush seating position to start
with. Freddy's contribution to the Stiletto design was to suggest
Gardner Martin's classic seating position. I designed the new
steering arrangement, the frame construction technique, the fiber
orientation, the passive suspension, the fairing mount method, the
modified aero fork and 80 mm spacing on the Phil hub, the production
tooling and the handlebar arrangements. Freddy test rode the bike and
declared it good.

Just prior to Interbike in October, when we had to determine a price,
Freddy and I sat down to negotiate the commission. We had most of the
costs except labor figured out. It looke like we would have to raise
the price of the bikes substantially if either of us was going to make
any money. Even with a serious price increase, Freddy's commission
was not looking like what he had hoped for at the beginning. He said
he hoped to be able to at least make $X per year, which was a
reasonable number.

We continued to refine the production and supply issues and in
January, shipped the first bikes. We had a good enough estimate as to
the labor costs. In early February, we sat down again to negotiate a
commission arrangement. Freddy insisted on his original amount and I
proposed a lesser amount based on what a top level independant sales
rep would make (but we would still pay his expenses, unlike real
independant reps). That wasn't good enough, so I offered significant
profit sharing of the whole business (not just in recumbents). Based
on Freddy's own estimates of what he believed he could sell, my
proposed deal was well in excess of the $X per year minimum figure he
had in mind just before Interbike. If there was going to be any
growth in sales, Freddy would get even more. He would be the most
highly paid person at Calfee Design. But that wasn't good enough.

Freddy walked out of my office and I assumed he was going to think
about it. But instead, he decided to quit and take the tooling with
him. Under threat of having him arrested, he brought the tooling
back. To me, this demonstrated poor judgement and emotional
instability on Freddy's part and I could not tolerate that in my
business. As had been his pattern at other jobs, Freddy asked to come
back and try to work things out. I decided against it.

In prior times, I might have overlooked this behavior and figured
something out. But I need to lift my business to a more professional
level and not demonstrate to the rest of my employees that a person
can behave like this and still remained employed here.

There is a chance that Freddy and I can come to some agreement on an
endorsement level, but I am not very optimistic about it at this
point.

We will continue with the Stiletto and eventually a SWB bike (which is
why couldn't continue to sell components to Karl Swanson). We will
continue to make the frames at the highest quality and with a full
warranty. I am personally very excited about the Stiletto and it has
replaced my Dragonfly as my favorite bike to ride.

I have no personal animosity towards Freddy and wish him the best in
whatever he strives for. I wish I could have managed his expectations
better or somehow convinced him of the practicalities of this low
profit margin business. This is a lesson I will not forget.

Craig Calfee

On Thu, 12 Feb 2004 22:47:01 -0800, "Matt C"
wrote:

There are inconsistencies in "Craig Calfee's side of the story." Your
business is in fabrication and it seems that
your explanation is fabrication as well.

I see no inconsistencies. There are items you may not agree with, but
that doesn't make it inconsistent and certainly not to the point of
calling a person a liar (the short form of your final comment).

Curtis L. Russell
Odenton, MD (USA)
Just someone on two wheels...

Your business is in fabrication and it seems
that your explanation is fabrication as well.

Unless you have explicit 1st-hand knowledge to the contrary, your
comment 'seems' to be a reckless accusation to me.

Your business is in fabrication and it seems
that your explanation is fabrication as well.

Unless you have explicit 1st-hand knowledge to the contrary, your
comment 'seems' to be a reckless accusation to me.

GeoBs accusations are the stuff of backfence gossip. I don't know if
jealousy or frustration fuel his polemics but to hurl that sort of invective
without even having heard from from Freddie (who he is sure has been
wronged) is the same sort of (lack of) mindset that gives rise to events
like the Salem Witchcraft trials.

A more reasoned approach would be to ask questions of all parties, if this
is really anybody else's business, and then, maybe have an opinion.
"GeoB" wrote in message
om...
Your business is in fabrication and it seems
that your explanation is fabrication as well.

Unless you have explicit 1st-hand knowledge to the contrary, your
comment 'seems' to be a reckless accusation to me.

Craig Calfee wrote:
Yes, it is true that Freddy and I have parted ways. I am saddened by
this turn of events and wish it did not happen. I had high hopes for our
collaboration. . .snip


I echo Tom's sentiment of thanks for the explanation too often we as
curious species take threads of truth and yards of rumors to make a lop
sided conclusion

I appreciate your candidness


-

I am of course very sorry to see this come to pass, I had hoped for an
amicable solution. I do hope that this doesn't diminish your new found
enthusiasm for 'bents as you definately have the ability to produce some
incredible bikes. I also wish Freddy the best, it is a sad day in recumbency


Gabe


"Craig Calfee" wrote in message
om...
Yes, it is true that Freddy and I have parted ways. I am saddened by
this turn of events and wish it did not happen. I had high hopes for
our collaboration.

Last year, Freddy came to me with the idea to have Calfee produce a
carbon LWB recumbent based on the Easy Racers Gold Rush design.
Freddy said if I can build it, he can sell it. I said that sounds
like a great idea but I don't have much time to manage the project. I
could do the design work and finance the project, but I would need
someone to do the footwork. Freddy agreed to be that person and would
be compensated on an hourly basis. We both saw Freddy's main value in
the selling of these bikes. The real payback for him would come when
we were in production and he would make a decent commission on every
sale. The amount of that commission would be determined later, when
we had an idea of what it was going to cost to make the bikes. Freddy
had a certain figure in mind at the beginning. I said that I really
hope that the profit margin would allow for such an amount. There was
no agreement about the specific amount, just the idea that he would be
paid on commission basis.

I designed the bike using the Gold Rush seating position to start
with. Freddy's contribution to the Stiletto design was to suggest
Gardner Martin's classic seating position. I designed the new
steering arrangement, the frame construction technique, the fiber
orientation, the passive suspension, the fairing mount method, the
modified aero fork and 80 mm spacing on the Phil hub, the production
tooling and the handlebar arrangements. Freddy test rode the bike and
declared it good.

Just prior to Interbike in October, when we had to determine a price,
Freddy and I sat down to negotiate the commission. We had most of the
costs except labor figured out. It looke like we would have to raise
the price of the bikes substantially if either of us was going to make
any money. Even with a serious price increase, Freddy's commission
was not looking like what he had hoped for at the beginning. He said
he hoped to be able to at least make $X per year, which was a
reasonable number.

We continued to refine the production and supply issues and in
January, shipped the first bikes. We had a good enough estimate as to
the labor costs. In early February, we sat down again to negotiate a
commission arrangement. Freddy insisted on his original amount and I
proposed a lesser amount based on what a top level independant sales
rep would make (but we would still pay his expenses, unlike real
independant reps). That wasn't good enough, so I offered significant
profit sharing of the whole business (not just in recumbents). Based
on Freddy's own estimates of what he believed he could sell, my
proposed deal was well in excess of the $X per year minimum figure he
had in mind just before Interbike. If there was going to be any
growth in sales, Freddy would get even more. He would be the most
highly paid person at Calfee Design. But that wasn't good enough.

Freddy walked out of my office and I assumed he was going to think
about it. But instead, he decided to quit and take the tooling with
him. Under threat of having him arrested, he brought the tooling
back. To me, this demonstrated poor judgement and emotional
instability on Freddy's part and I could not tolerate that in my
business. As had been his pattern at other jobs, Freddy asked to come
back and try to work things out. I decided against it.

In prior times, I might have overlooked this behavior and figured
something out. But I need to lift my business to a more professional
level and not demonstrate to the rest of my employees that a person
can behave like this and still remained employed here.

There is a chance that Freddy and I can come to some agreement on an
endorsement level, but I am not very optimistic about it at this
point.

We will continue with the Stiletto and eventually a SWB bike (which is
why couldn't continue to sell components to Karl Swanson). We will
continue to make the frames at the highest quality and with a full
warranty. I am personally very excited about the Stiletto and it has
replaced my Dragonfly as my favorite bike to ride.

I have no personal animosity towards Freddy and wish him the best in
whatever he strives for. I wish I could have managed his expectations
better or somehow convinced him of the practicalities of this low
profit margin business. This is a lesson I will not forget.

Craig Calfee

It sounds like Craig went beyond reasonable to accommodate Freddy, but
it just didn't work out. As far as bikes, it doesn't seem that Freddy
would have a major impact on the design and finished bikes' quality;
because Calfee's composite upright frames have great following and
stellar reputation. So I wouldn't hesitate to buy a recumbent from
him.

Good luck,
Victor, Houston, Texas.