GTM Performance Engineering: MHI Twin Turbo Official Release

Alkatraz

Hang on guys! (Why do I always seem to be defending the company that has my money and doesn't tell me whats going on?!? Lol!)

'Restocking Fee' is probably not the most perfect name for it, but GTM definitely incur a cost for everyone who changes their mind and pulls out. They have used their own and everyone else's money to purchase large quantities of parts in development of these kits. If people pull out then GTM need to return money that has already been invested in parts and development. You all seem to think that GTM have no costs to produce these kits until the very last day that they are ready to be shipped! Everyone here must have at least some basic comprehension of how business works, right?

If GTM has stated an exact delivery date on contract, then they are liable to deliver by that date. As far as I am aware, no exact shipping date was ever provided to me and I was aware that there may be (would probably be) delays.

Edit: Signed contract stating "25% restocking fee". In the end only charged less than 10% of the total purchase price. Even given the option of crediting the restocking fee towards other parts. Not sure why he didn't just get $500 worth of parts and be happy with it but I don't just jump to conclusions and thats his business.

Again, I'm not trying to defend GTM but this all seems above board to me. Apart from the massive, crazy, over the top delays that is!

Chuck33079

I completely understand where you're coming from on this. I think this is why people are having issues getting their refunds. I absolutely think GTM is having liquidity issues due to people backing out, sunk costs for R&D and equipment.

However, I completely disagree that charging a customer a fee to exit the group buy is in any shape, way or form acceptable. They made numerous references to being ready to ship in August or so. It's almost 2014. There's got to be a point where the fee doesn't apply. The contract is two-way. If the customer is in breach for backing out, GTM may also be in breach for not providing a product in a timely manner. Maybe the contract doesn't have a set date in it. I'm sure when the contract was written, they had no idea that in December nobody would have their kits.That doesn't mean that the contract can exist in perpetuity. At some point the customer must be able to get out at no charge if there is no reasonable expectation of having the other end of the contract fulfilled in a reasonable time frame.

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2011 MB Touring-Sport-6sp-Nav/GTM TT/FI TT TDX/JTran/Kosmic/Eibach/Hotchkis/SPC/CSF/RPS/SoThatsWhereAllMyMoneyWent

Alkatraz

I agree to some extent Chuck. They definitely could wave a 'restocking fee' (lol at the irony in this term) in order to save face and not have people giving negative feedback. Many businesses would, others don't, thats GTM's choice. It looks like Mike made some effort to help out by a) not charging the full 25% and b) offering to put the $ towards other parts.

If the poster (forgot the username, sorry) could post more detail and explain why he didn't just get exactly $475 worth of parts, then it would be easier to comment. Not knowing more detail it seems weird to right off the $475 instead of at least getting something out of it? Again, not attacking poster, just need more detail.

The initial reason that he had 'restocking fee' written into the contract is because he was using the 'layaway' setup to try to save some money. Correct me if I am wrong but no one who paid up front has been charged this fee, correct?

zguynate

Regarding your earlier post, I understand the cost of R&D. I signed up at the end of August, so the ball was rolling way before they received any of my money.

I sent them $1900 to get started. 25% of 1900 is $475. The reason I decided to eat it is because the invoice they provided me was crazy. Over $400 from which I could get from another vendor. Their advertised price. For the same exact items. $200 more for a clutch and flywheel. I asked if there was anything that GTM could do regards to pricing seeing as how I could get the same products for literally hundreds less than their invoice. I was told no. I feel thats horrible customer service and the reason that they wouldnt budge is because im screwed both ways. Pay over $400 more for the same product, or lose $475 and go with another company who I know has better customer service. Im going to support a company who I feel wants my business. So rather than spending $2100 to support them, I would rather reluctantly eat $475 to prevent from giving them any more money.

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2009 370z touring w/sports package

Alkatraz

Thanks for clarifying Dragonbreath!

Were the prices that they quoted you for the parts the same as the prices listed on their web page? Or did they quote you more than their normal retail prices for the parts?

I totally understand that you decided to not give them any business as you were unhappy. No problem there at all. Thats what happens when a company lets people down, they lose more than just the initial business. They lose a lot of potential future business as well.

I probably would have just ordered $475 or so of parts from them and moved on. Looks like it would have been a good opportunity to cut losses and get away from the bad deal cheaply. But I have the advantage of hindsight so I hope that you are now moving forward and still going FI!

zguynate

No the prices they gave me were also their advertised prices on their website. If it was more I would have stroked out lol. Unfortunately I didn't have the option of only spending $475. It was all or nothing.

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2009 370z touring w/sports package

Alkatraz

Well i guess that you cant really blame them for wanting to charge their normal prices. Again, they could have kept you onside by charging less but decided not too, their choice, customer(s?) lost.

So GTM only gave you the option of getting the $475 back if you bought $2000+ worth of parts? If so, thats a bit low. They probably could have played ball a little better than that to keep you onside.

DEpointfive0

Being a cost analyst... You cannot charge the customer for your sunken R&D costs or anything going into the making of a product; especially when the product isn't out yet. Your profit margin should be so high that you cover the R&D, but in this scenario, the customer shouldn't be held liable.


I'll go back in my hole now

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Alkatraz

True. However GTM have purchased products in order to fulfil a contract with the purchaser. Once the purchaser pulls out, GTM are stuck with the product and the loss of the already invested $. They must be able to charge a fee to help to recover these lost $. They don't have to and due to the massive delays, they probably shouldn't because it looks bad (obviously!) but that doesn't mean that they cant.

DEpointfive0

Disagree; that's the business's decision. You CANNOT CHARM THE CUSTOMER for what YOU think is the correct way to run a business. You can outsource everything to China and make it for less, you aren't required to buy equipment to make things in house; after all, how have they been making the previous 1000 turbo kits and S/C kits?

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