Buddy Fruits POP Stained Display

Hi Krisi, in regards to visiting our place , I had answered that same question to Jim, perhaps in the future, on an order like that is worth the 2-4 hours border crossing one way, such as the Coke display or larger.

I told Jim that I would send him videos of the processes for re assurances. I will upload and send in the morning.

Thank You

Oscar Almaguer

ps  Check Monday or sooner?

Oscar-

I think 500 units might be worth it and would like to be able to make that decision myself.  I would like the address of your factory to discuss with our engineer and then decide if we think that trip would be worth it.

Kristi Pisarev

760-722-2300  x237

Hacienda Rustica <haciendarustica.com@gmail.com>
Feb 5

to Kristi
Hi Kristi, I am worried as well, I had no idea of how much time in sanding it takes to have all 1000’s components for proper stained application, it may take another week, I hope not. You may want to talk to Jim about the due date to your customer. I am positive that all 500 pieces will be will be ready by 2.16 or sooner. Staining this order takes a week with 6 people.

I am making one presentation similar to the FinalPacking.dox where I go over each one of your revisions made on 3 samples we sent. So that you can see all corrections are made, also I am taking extra measures to verify all sets are pre tested before packing. I will be there in Oceanside when the boxes arrive and we can go over all pieces so you can tape them closed yourselves and feel good of the product as you will have verified.

Thank You
Oscar Almaguer
Kristi Pisarev
Feb 5

to me
Oscar-

Thanks for the update. Please send me the address of your facility. I have asked too many times now L.

Kristi Pisarev
760-722-2300 x237

From: Hacienda Rustica [mailto:haciendarustica.com@gmail.com]
Sent: Thursday, February 05, 2015 12:58 AM
Version: 2014.0.4800 / Virus Database: 4257/9061 – Release Date: 02/05/15

Kristi Pisarev
Feb 9 (13 days ago)

to me
Hey Oscar-

I hope you had a nice weekend. Can you please update me on the status of production? Do you have any pictures? Please send me the address of your facility that you are making them at.

Kristi Pisarev
760-722-2300 x237

From: Kristi Pisarev [mailto:kpisarev@richltd.com]
Sent: Thursday, February 05, 2015 9:31 AM
To: ‘Hacienda Rustica’
Subject: RE: Buddy Fruit Units

Oscar-

Thanks for the update. Please send me the address of your facility. I have asked too many times now L.

Kristi Pisarev
760-722-2300 x237

From: Hacienda Rustica [mailto:haciendarustica.com@gmail.com]
Sent: Thursday, February 05, 2015 12:58 AM
Hacienda Rustica <haciendarustica.com@gmail.com>
Feb 9 (13 days ago)

to Kristi
Hello Kristi, nice weekend sanding Friday, Saturday and Sunday lots of wood that was my weekend. Today we started cutting the drawers, we are checking each side ( ladder) with a drawers to make sure each piece will fit, so far so good we got about 200 done. WE hope to start staining by the weekend. I mentioned to you about sending the boxes un-taped, so you can check all pieces one by one. I think 2 persons 6 hours can check each piece, this way you can be sure you got the right product. I did not get a comment about this, also I wanted to ask you how much did you charge your customer for these items stained, I think it is fair to ask.

Thank You
Oscar Almaguer
HaciendaRustica.com
Kristi Pisarev
Feb 10 (12 days ago)

to me
Oscar-

This is really getting delayed. When do you plan to have them all stained and packed? Please send me the address of your facility. Why will you not tell me? This is the 8th time I am asking for the address.

Kristi Pisarev
760-722-2300 x237

From: Hacienda Rustica [mailto:haciendarustica.com@gmail.com]
Sent: Monday, February 09, 2015 8:45 PM
Version: 2014.0.4800 / Virus Database: 4257/9087 – Release Date: 02/09/15

Hacienda Rustica <haciendarustica.com@gmail.com>
Feb 10 (12 days ago)

to Kristi
Hello Kristi, please send me a corrected PO and Specification drawing that reflects the modifications to the order, (essentially new location for perforations for the casters, double sided signs and stain application on all pieces.)

The plywood from Luan to Birch I will absorb that cost, or the sudden prototype production request, do not need to be included.

According to V2-packing final: This is the last step in the assembly process

“STEP 4: Then the 3 remaining shelves will go on top of that. Then a final piece of corrugate.”

So boxes are not taped, and you will be able to inspect them all.
Thank You
Oscar Almaguer
Kristi Pisarev
Feb 10 (12 days ago)

to me
Oscar-

Can you please call me.

Kristi Pisarev
760-722-2300 x237

From: Hacienda Rustica [mailto:haciendarustica.com@gmail.com]
Sent: Tuesday, February 10, 2015 11:36 AM
Version: 2014.0.4800 / Virus Database: 4257/9091 – Release Date: 02/10/15

Hacienda Rustica <haciendarustica.com@gmail.com>
Feb 10 (12 days ago)

to Kristi
Hi Kristi, I prefer e-mail, will be best at this point.

Oscar
Kristi Pisarev
AttachmentsFeb 10 (12 days ago)

to me
Oscar-

· The boxes should be taped up.

· I would like to come and be a part of the final QC as you put them in the boxes. I really need your factory address to see how far it is.

· The shelves should be like the drawings and there are no changes. The first 3 samples were not correct.

· The artwork was in the BOM and should be a part of the price per the attached email.

· Can you please send photos of where you are in the production stage?

· What is the final finish date?
I hope that I have not done anything to upset you. The reason I would like to have a phone call is because I feel like you have not answered my questions about timing and the location of your factory. I feel I have been very accommodating throughout this entire process by supplying the hardware, buying the boxes, etc. I really just need to give our customers an update since they think the units should be done. I have attached another email where the latest you said you would be done would be the 16th and from your email today it sounds like the units will not be done on time. Delays are unfortunately inevitable sometimes and I can explain them, but I need to know a realistic finish date.

Kristi Pisarev
760-722-2300 x237

From: Hacienda Rustica [mailto:haciendarustica.com@gmail.com]
Sent: Tuesday, February 10, 2015 1:16 PM

2 Attachments

Preview attachment noname.eml

Message
noname.eml
Preview attachment noname.eml

Message
noname.eml

Hacienda Rustica <haciendarustica.com@gmail.com>
Feb 10 (12 days ago)

to Kristi
Please address the Stain modification, which is the real delay on this order and you know it.

I need a corrected drawing for my records. Also update the packing instructions to include taping, as you must do to your customers any modification takes consideration. I asked you to inform Jim about extra time for delivery. He knows better.

Thank You
Oscar Almaguer
Kristi Pisarev
AttachmentsFeb 11 (11 days ago)

to me
Oscar- The stain was in the original BOM that I sent you on 12-6-15. We discussed the stain in person. This is not a change or a modification that should affect the timing or the price. Please address the following questions or call me to discuss:

· I would like to come and be a part of the final QC as you put them in the boxes. I really need your factory address to see how far it is.

· Can you please send photos of where you are in the production stage?

· What is the final finish date?

Kristi Pisarev
760-722-2300 x237

From: Hacienda Rustica [mailto:haciendarustica.com@gmail.com]
Sent: Tuesday, February 10, 2015 2:19 PM
Version: 2014.0.4800 / Virus Database: 4257/9093 – Release Date: 02/10/15
Attachments area
Preview attachment noname.eml

Message
noname.eml

Hacienda Rustica <haciendarustica.com@gmail.com>
Feb 11 (11 days ago)

to Kristi
Hello Kristi, can you send me again that BOM again where it includes stain, please.

I will reply with answers quickly.

Oscar
Kristi Pisarev
AttachmentsFeb 11 (11 days ago)

to me
Oscar-

It is in the attached email. When do you expect to start packaging the units? Can you please send me the address?

Kristi Pisarev
760-722-2300 x237

From: Hacienda Rustica [mailto:haciendarustica.com@gmail.com]
Sent: Wednesday, February 11, 2015 12:01 PM
Version: 2014.0.4800 / Virus Database: 4257/9097 – Release Date: 02/11/15
Attachments area
Preview attachment noname.eml

Message
noname.eml

Hacienda Rustica <haciendarustica.com@gmail.com>
AttachmentsFeb 11 (11 days ago)

to Kristi
Kristi, see picture attached.

This is the attachment I get “noname.eml” is this where Stain is included in the original request from 12.06.14?.

I got the BOM Excel is thta what you are talking about?

I am in the office waiting for your reply.

Oscar

Attachments area
Preview attachment screen shot.png
Image
screen shot.png

Kristi Pisarev
AttachmentsFeb 11 (11 days ago)

to me
Oscar- the stain is in the BOM. I have reattached the excel BOM. I will also forward my original email.

Kristi Pisarev
760-722-2300 x237

From: Hacienda Rustica [mailto:haciendarustica.com@gmail.com]
Sent: Wednesday, February 11, 2015 12:39 PM

Attachments area
Preview attachment BOM-OUH-WDFLP- BLANK.XLS
Excel
BOM-OUH-WDFLP- BLANK.XLS

Kristi Pisarev
Feb 11 (11 days ago)

to me
Hi Oscar-

Will you be able to address the following points today? Our customer has called me several times today wanting an update.

· I would like to come and be a part of the final QC as you put them in the boxes. I really need your factory address to see how far it is.

· Can you please send photos of where you are in the production stage?

· What is the final finish date?

Kristi Pisarev
760-722-2300 x237

From: Kristi Pisarev [mailto:kpisarev@richltd.com]
Sent: Wednesday, February 11, 2015 12:53 PM
To: ‘Hacienda Rustica’
Subject: RE: Buddy Fruit Units

Oscar- the stain is in the BOM. I have reattached the excel BOM. I will also forward my original email.

Kristi Pisarev
760-722-2300 x237

From: Hacienda Rustica [mailto:haciendarustica.com@gmail.com]
Sent: Wednesday, February 11, 2015 12:39 PM
Kristi Pisarev
Feb 11 (11 days ago)

to me
Hi Oscar-

Is there anything that I can do to help with this? Our guys are not busy right now and have time to help. Does it make sense to ship us some of the parts to help process them? These units are for 1 of our largest accounts and I don’t want to lose them.

Kristi Pisarev
760-722-2300 x237

From: Kristi Pisarev [mailto:kpisarev@richltd.com]
Sent: Wednesday, February 11, 2015 3:20 PM
To: ‘Hacienda Rustica’
Subject: RE: Buddy Fruit Units

Hi Oscar-

Will you be able to address the following points today? Our customer has called me several times today wanting an update.

· I would like to come and be a part of the final QC as you put them in the boxes. I really need your factory address to see how far it is.

· Can you please send photos of where you are in the production stage?

· What is the final finish date?

Kristi Pisarev
760-722-2300 x237

From: Kristi Pisarev [mailto:kpisarev@richltd.com]
Sent: Wednesday, February 11, 2015 12:53 PM
To: ‘Hacienda Rustica’
Subject: RE: Buddy Fruit Units

Oscar- the stain is in the BOM. I have reattached the excel BOM. I will also forward my original email.

Kristi Pisarev
760-722-2300 x237

From: Hacienda Rustica [mailto:haciendarustica.com@gmail.com]
Sent: Wednesday, February 11, 2015 12:39 PM
Hacienda Rustica <haciendarustica.com@gmail.com>
AttachmentsFeb 11 (11 days ago)

to Jim, Kristi
Hello Kristi, there is no Stain On item 12 of your BOM, blank means zero. I considered all items before I agreed to the time frame and cost of $45.00 per unit knowing there was no Stain.

I was taking to Jim when you mentioned about the stain for the 1st time. We discussed stain later but is was a modification from the agreement. I will CC Jim, I said I didn’t know about being stained, I am scared now,( in shock really), I did not let Jim tell me how much time extra I had, I needed the extra pressure, I said to him.

I would tell the truth to your customer, that there was a misunderstanding with the stain, last time they received these pieces this was the finish in attachment A and this is the finish they will receive this time is in attachment B. Explain stain requires preparation of wood by sanding it.

Finishing these 500 pcs. requires 20,500 pieces of pine to be sanded on 6 sides that is 123,000 actions in preparation for the stain. I am not including the 2,500 pcs of 1/4 birch plywood those only need stain, in total 23,000 pieces of pine take stain applied and removed, and as you requested, let to dry before packing. You may do this a lot faster then me, but this means 2-3 weeks additional in labor then 4-6 weeks as agreed. I have had 4-6 people non stop, it is just labor and expenses, I miscalculated the amount of labor involved.

I will ask again please send me an updated Specifications, BOM and Final packing instructions for my own records. I asked you 2 times before.

It shall include, 0.375 on the legs for the shelves (10,000 perforations) need to read “through” as it does for perforations for the casters, caster perforations need to read the modified location to the edge of the legs, stain, double sided signs, 2 sheets of printed assembly instructions, and that boxes are Scotch Tape closed. If you recall, You did send me a revised Spec sheet after modifications on the Fiji project.

May I suggest to you again that all boxes should be open as detailed in your Final packing Word Presentation, this will allow you to inspect all boxes at your discretion and feel confident that all boxes are complete and in excellent aesthetic and working condition as I committed.

Modification from 1/4″ African Mahogany to Birch plywood and rushed samples transportation to U.S. are at my expense.

2 Attachments

Preview attachment A.jpg
Image
A.jpg
Preview attachment B.jpg
Image
B.jpg

Jim Hollen
Feb 12 (10 days ago)

to me
Oscar- Thanks for your email. My main objective now is to finish as quickly as possible and make sure we are delivering a high quality product. I think 2-3 weeks of additional production time will mean that we will lose our customer. They are one of our best customers so we can’t afford to do that. Right now our shop is not that busy so we should be able to help with the staining. How quickly can you get us units for us to stain? Let’s figure out how we can work together to get the project done. Thanks for your help.
Jim
Jim Hollen
President
RICH LTD.
760-722-2300 ext. 229

From: Hacienda Rustica [mailto:haciendarustica.com@gmail.com]
Sent: Wednesday, February 11, 2015 5:16 PM
To: Kristi Pisarev; Jim Hollen
Subject: Re: Buddy Fruit Units

Hello Kristi, there is no Stain On item 12 of your BOM, blank means zero. I considered all items before I agreed to the time frame and cost of $45.00 per unit knowing there was no Stain.
Hacienda Rustica <haciendarustica.com@gmail.com>
Feb 12 (10 days ago)

to Jim
Hello Jim, sorry to have bothered you, I am pretty sure it will be ready this Tuesday or Wednesday, I will be present during each box being packed, each ladder was tested with a drawer for a perfect fit, as we are in the midst staining already. I tried to tell Kristi I prefer no visitors I know you understand, I will video record packing, each box will have a number and an initial from me.

I will swing by today to pick up the packing material.
Jim Hollen
Feb 12 (10 days ago)

to me
Oscar- I know it can be a big distraction to have visitors so no problem. I just wanted to offer to help if we can. I know it is stressful so I don’t want you to feel too much pressure, but it’s a really important project for us so I want to make sure we are both successful. I will make sure we have the packing materials ready for you. Thanks again for all your hard work.
Jim

From: Hacienda Rustica [mailto:haciendarustica.com@gmail.com]
Sent: Thursday, February 12, 2015 11:32 AM
To: Jim Hollen

Jim Hollen
Feb 17 (5 days ago)

to me
Oscar- I wanted to check in to see if you are on schedule to get the units across the border. Please let me know if we can still expect to receive the units today or tomorrow or if there is anything we can do to help. Thanks.
Jim
Jim Hollen
President
RICH LTD.
760-722-2300 ext. 229

Hacienda Rustica <haciendarustica.com@gmail.com>
Feb 17 (5 days ago)

to Jim
Hello Jim, I requested several times updated corrected specifications there are errors in the original. Also modifications were made and approved by Kristi, please send that, it will help very much.

My accountant is helping me determined why is this job taking so long. I was there at the factory all day along with 4 other workers, it seemed like we did not make a dent.

Thank You
Oscar Almaguer
HaciendaRustica.com
Jim Hollen
Feb 17 (5 days ago)

to me
Oscar- I am now very concerned about this project. Kristi emailed you the updated drawings showing the 2 changes: (1) addition of the stain, and (2) moving the castors to the outside. So you should have everything you need. We are now in trouble with our customer who keeps asking for updates. We can’t afford to lose one of our best customers. You said below that you have not made a dent in the project, which concerns me since you said on Friday that you were finished with all the parts. I think the best thing to do now is to get us whatever parts you have finished as soon as possible and we will finish the project here. Please let me know the exact status so we can communicate it to our customer. Thanks.
Jim
Jim Hollen
President
RICH LTD.
760-722-2300 ext. 229

From: Hacienda Rustica [mailto:haciendarustica.com@gmail.com]
Sent: Tuesday, February 17, 2015 10:36 AM
To: Jim Hollen
Subject: Re: Checking on Shipment Status
Hacienda Rustica <haciendarustica.com@gmail.com>
Feb 17 (5 days ago)

to Jim
Hi Jim, Kristi just send some specs, she corrected the 2000 caster perforations in the new location that is good, the larger 10,000 perforations 0.375″ need to read the word “thru” in the specifications, but that is OK now.

You acknowledged the addition of Stain and I appreciate that. Kristi never did, she alleged it was included, that is provably why she did not sent an updated BOM.

Stain changed everything Jim, it is a different process, that is why we have in our policy that any change of modification takes several weeks from that date, because time is everything for everybody, me, you and your client. If Kristi would have been upfront about the stain most likely I would have declined, or requested a different time frame, I think what she did that was dishonest and that it compromised any business relationship.

In order to apply stain these units, wood needs to sanded at least all visible sides, since yesterday I am not sanding the shelf rests that to try to speed up the order. Allow me to explain, shelf rests are 10 small pieces per unit of 3/4″ x 3/4″ x 11.25″ that piece has 6 sides, times 10 pcs. per unit, times 500 equals 30,000 times placing the surfaces on a power belt sander very lightly, you can not use gloves on this very small pieces and we did at least for half of them the rest are not being sanded as of yesterday.

You seemed incredulous when I explained the “sign”. Please visualize this type of labor, so that you may explain to your client. 7 pcs. x 6 sides = 42 x 500 = 21,000. 1 of the 6 sides is not sanded only routed to make space for the sign then glued, so 20,000 sides were sanded for the signs only, then all nail holes wood puttied and sanded by hand to avoid touching the “buddy fruits” logo. Staining, wiping and drying is separate.

Legs are the same, 4 x 6= 24 x 500 = 12,000. Drawer sides are 4 x 5 x 500 do the math, this is sanding only. Cutting, perforating, assembly, staining, drying is a separate processes.

Realistically all units will be ready by the end of next week.

Thank You
Oscar Almaguer

Oscar- I have had a chance to review all of the numbers. I think it would be fair to agree to pay you $40 per completed unit. This is how I got to that number:

1. We originally agreed to $45/unit with us supplying the castors, the screen and the ink.
2. You asked us to source the box ($2.45) and print the header signs ($3.10 based on your quote of $1550). So these two items total $5.55 that you would have had to pay for.
3. In addition, we paid for other items that you would have included in your original quote. The items below total $6.54:
4. #8 1 ¾ Modified Truss Head- $.04/unit
5. 30mm Machine/Fine Dec Screw- $2.04/unit
6. Connector Screw (KD) SBW 7 x 17mm HD BZ- $4.34/unit
7. 4mm wrench- $.06/unit
8. 5mm wrench- $.06/unit
9. Finally, we will estimate that it will cost us over $2500 in labor to pack the units (over $5/unit) which we assumed you would do.

In summary, I think it would be fair if we started with our agreed-upon price of $45 and we subtracted from that $5.55 for the box and header and $6.54 for the hardware which would create an adjusted price of $32.91. This does not even include the $5/unit for packing labor which is going to be a real out-of-pocket cost for us. However, I know you underestimated the project so instead of $32.91 I will agree to a price of $40 per completed unit. I think this is more than fair. It is really important that we can  complete the order and have it ready for pickup on Monday since we promised our customer we would ship this week. Please let me know the details so we can pick up. Thanks.

Jim

Jim Hollen

President

RICH LTD.

760-722-2300 ext. 229

Oscar- Wow. That is a very impressive response. Thanks for your quick work on this. We did not hear from Coke yesterday but expect to hear from them today. Right now there are two issues:

1)      Coke really wants these units to be FSC certified. We are FSC certified and can make the first 5000 units using FSC certified wood. However, we are being told by all the major FSC certified suppliers that it will take 4-6 weeks to get enough FSC certified to complete 5000 more units. We told Coke that the only way to meet the deadline is to compromise by agreeing to use non-FSC wood. I am not sure if they are going to be willing to do this. I am also assuming your factory is not FSC certified. I just wanted to be aware of this issue as we discuss it with Coke.

2)      We established a budget for the unit of $60 which is what we calculated would be our cost to make these units in our shop. We figured materials at about $30 and labor at about $30. The one thing we have not accounted for is the transportation cost to bring the raw materials to you and then trucking 5000 units from your facility to Oceanside. So we will have to work on that part.

I will let you know as soon as we hear something today. Again, I really appreciate your response. I will be in touch.

Jim

Jim Hollen

President

RICH LTD.

760-722-2300 ext. 229

I don’t agree that 45 is a fair price. as You can see on a similar item with less material (FSC wood) far less labor and non stained, you estimated $60.00 per unit.

You employee performing under the colors of Britcan, Inc DBA Rich LTD.  tried to bait and switch on this order and it is documented with dated emails. This is less then honest on your part. I prefer to believe this is not the MO of your company.

However I want to resolve this amicably and promptly.

I agreed to 45.00 did not agreed to a double sided sign, digitally printed. The only signs I made for you were with silk-screened.

I intend to finish this agreement for 45.00 plus 35.00 extra for the stain, includes 8 gallons of stain , 3 weeks of extra sanding and preparing, packing and delivery to Mesa Otay as agreed.

You need to bring the packaging material that was not ready or incomplete when I spent the days to go to Oceanside to get it. You can bring that on Thursday morning so that we can start packing and have all 497 pieces ready by Monday morning in Otay, that is the fastest  We can do. I can say the quality is very good and guaranteed. If you want to pick up unpacked and breach the original agreement, the cost is the same.

Thank You

We have not stopped working on this order and dealt with less then accurate drawings,  modifications, additions. My policy reads “delivery time from last modification”

‘2.28.15

Jim Hollen <jhollen@richltd.com>
4/7/15

to me
Oscar- We have been promoting the displays and have some interest from a few customers. However, they only want 10-20 displays. I think that is how we will be able to sell them instead of one customer who wants to take them all. Can you suggest a good way to handle this? Maybe we can get 100 of them to start and then bring up more once we sell through those. I know we will need them without the logo. Let me know if you have any ideas since we need to get back to these customers. Thanks.
Jim
Jim Hollen
President
RICH LTD.
760-722-2300 ext. 229

Hacienda Rustica <haciendarustica.com@gmail.com>
4/7/15

to Jim
Hello Jim, see if you can take 200 at a time, I can use the space. I am getting busy with my line of work. I will appreciate it.

Thank You
Oscar Almaguer
Jim Hollen <jhollen@richltd.com>
4/7/15

to me
Oscar- I am glad you are getting busy. I think we can take 200 at a time. We just sent out a email campaign letting our customers know we are running a big sale. We are offering these racks for $85/unit. Let me know if you think this would work: If we take 200 units, we will store them in our warehouse. As we get orders we will pay you $48/unit and we will take $37/unit. You give us the units without the Buddy Fruits silk screening and also provide the hardware and castors we gave you. We will purchase the boxes and put the units in boxes. I think this approach is the best way to sell the units because most customers will order 5 or 10 or 20 units rather than a larger number of units (unless we get lucky). Let me know if this works and when you can have the units available. Thanks.
Jim

From: Hacienda Rustica [mailto:haciendarustica.com@gmail.com]
Sent: Tuesday, April 07, 2015 2:13 PM
To: Jim Hollen
Subject: Re: Question about Buddy Fruits Displays
Jim Hollen <jhollen@richltd.com>
4/8/15

to me
Oscar- Please let me know about the email below. We have customers who are waiting for an answer. Thanks.
Jim

From: Jim Hollen [mailto:jhollen@richltd.com]
Sent: Tuesday, April 07, 2015 3:37 PM
To: ‘Hacienda Rustica’
Subject: RE: Question about Buddy Fruits Displays
Hacienda Rustica <haciendarustica.com@gmail.com>
4/9/15

to Jim
They are ready, let me know when you want to come or send someone to pick them up. I go to AZ tomorrow, Monday would be good. let me know.

Oscar
Jim Hollen <jhollen@richltd.com>
4/9/15

to me
Oscar- Would it be easy for you to get them to the Otay area and we pick them up from there? Monday can work. Is the arrangement (revenue split) that I proposed ok with you?
Jim

From: Hacienda Rustica [mailto:haciendarustica.com@gmail.com]
Sent: Thursday, April 09, 2015 8:15 AM
To: Jim Hollen
Subject: Re: FW: Question about Buddy Fruits Displays
Hacienda Rustica <haciendarustica.com@gmail.com>
4/9/15

to Jim
I sand the 200 buddy fruits logos off and re-stained them all, pack the hardware for 200 units OK. But You have to arrange to pick them up and pay the 48 each with a Cashiers check on the spot. Also you may pay via Paypal a small advancement 10% so that I can start the sanding and staining.

Oscar
Jim Hollen <jhollen@richltd.com>
4/9/15

to me
Oscar- I can’t pay for them in advance. I can pay you each week as we sell them, but we don’t have the cash to pay for all 200 and have them sit here for months if they don’t sell. If you want to move these you have to trust me and work together. If you don’t want to do that, they can just sit there and we’ll make our own units in our shop. I’m trying to help you.
Jim

From: Hacienda Rustica [mailto:haciendarustica.com@gmail.com]
Sent: Thursday, April 09, 2015 8:53 AM
Hacienda Rustica <haciendarustica.com@gmail.com>
4/9/15

to Jim
I am sorry I can not do that. I will sell when I have time. I thought you said you have customers waiting for an answer.

Oscar
Jim Hollen <jhollen@richltd.com>
4/9/15

to me
Oscar- Yes, we have one or two customers who want to take 15-20 units. I was just trying to help, but I guess if you don’t trust me, then we have no basis to work together. Best of luck to you.
Jim

From: Hacienda Rustica [mailto:haciendarustica.com@gmail.com]
Sent: Thursday, April 09, 2015 9:01 PM
To: Jim Hollen
Hacienda Rustica <haciendarustica.com@gmail.com>
4/10/15

to Jim
I now understand your idea Jim, but 20 pieces going through U.S. Customs generates the same process expense then 200 pieces with the exception of the percentage amount of declared total value. $150.00 process fee, + 150.00 transportation to Otay or 250.00 to Oceanside.

Oscar
Jim Hollen <jhollen@richltd.com>
4/10/15

to me
Oscar- I know it is too expensive to bring 20 pieces to the U.S. My ideas was to bring 200 units over and we would store them in our warehouse until they sell. We cannot pay for them in advance, but as they sell we would send you a check for $48 per unit. Maybe we can cut a check each week for the number of units that sell that week. I think we have a much better chance of selling the units than you do since we are in the business, and we would make the effort and absorb the cost to promote the units to our customers. You have my word that you will get paid for the units as we sell them. Please think carefully about this because I think it is the best way for you to recover your money.
Jim

From: Hacienda Rustica [mailto:haciendarustica.com@gmail.com]
Sent: Friday, April 10, 2015 9:10 AM
Hacienda Rustica <haciendarustica.com@gmail.com>
4/10/15

to Jim
Please understand me Jim, your 12k deposit did not cover for my expenses, I borrowed money to finish your order.

I painfully did not take orders since I took the initial Fiji order of which I made 400 dollars.

As you did I bet on our business relationship and as you put it, your gal made a typo error that sent me on a spin, I am a very small fish and I know you are not.

My bookkeeper is writing this as a loss to keep Mexican IRS from my back on this order, that is why I will advertise as FOB Tijuana, I am sure you can afford 200 pieces Jim please try I appeal to your good nature and understanding. I will hold the 300 pcs. at no storage fees until you need more, and need you will.

Oscar
Jim Hollen <jhollen@richltd.com>
4/10/15

to me
Oscar- We don’t have $9600 to pay for 200 pieces right now. We had a terrible first quarter where we only did half as much as expected. I would try to do it if I had a customer who I knew would take all 200, but right now we only have customers who need about 20 units.
Jim

From: Hacienda Rustica [mailto:haciendarustica.com@gmail.com]
Sent: Friday, April 10, 2015 11:09 AM
Hacienda Rustica <haciendarustica.com@gmail.com>
4/10/15

to Jim
JIM, Pick up 200 pcs. pay for 100, We build trust from here.

Oscar
Jim Hollen <jhollen@richltd.com>
4/10/15

to me
Oscar- I checked with our sales team. They said right now we only have one customer who said she might take up to 20 and that she could possibly use 65. We don’t have the cash to even pay for 100 units right now because we are still waiting for cash to place orders with China for displays we really need. If we have the units here we will really try to push them to our customers, but we can’t do that unless we are sure we can get them. I really think we can move them, but we simply don’t have the cash.
Jim

From: Hacienda Rustica [mailto:haciendarustica.com@gmail.com]
Sent: Friday, April 10, 2015 12:47 PM
Hacienda Rustica <haciendarustica.com@gmail.com>
8/5/15

to Jim
Hello Jim, I really hope you are well health-wise and that you are having a better quarter. I am getting busier opening a couple of very small showrooms in NM and TX I will be in need of space very soon. I know we tried to work together to get those pieces out of our location, it has been a space problem for me all this time, I believe this should be yours now.

I have consulted legal advise and you will receive a invitation to resolve this issue, at Arbitration/mediation Services recommended by S.D. Superior Court, a step to avoid filing. I hope you can purchase $10,000.00 worth of units, that is all I ask and end this unresolved business issue.

Sincerely Oscar Almaguer
Jim Hollen <jhollen@richltd.com>
8/5/15

to me
Oscar- It sounds like you have not been able to sell any of these units. As I have said all along, we would like to try to work with you to get these sold, but we can’t take any of these units in our warehouse until we get customer commitments. I think I offered a couple of different options, but you wanted all of the cash upfront so it didn’t work for us. If you want to consider moving some of the displays here, we could possibly store them and try to sell them to our customers and then split the profit as we discussed before when they sell.

I understand you may want to pursue legal action against us. Based on my experience that is not a good option. We had a similar situation in the past where we tried to make some racks in Mexico and the guy only delivered part of the order and was late. Our U.S. customer did not pay us for any of the racks he received so we tried to sue him for payment. What I learned from that experience is that if the company you are trying to sue has a potential counter claim against you for being late or not delivering, it is really not possible to win the case. We spent $20K-$25K on attorneys fees and were not successful in getting a judgment against our customer to pay us. In that case, he even received most of the displays he ordered. With our situation, we would have a strong counter claim against you, particularly since we did not receive the racks. Therefore, I think you would just spend a lot of money and not get the outcome you are looking for.

I think a better option is for us to work together to move some or all of the racks here (we are also tight on space). We can then try to get them sold and divide the profits as we discussed. I am certain this approach is the best way for both of us to recover our investment.
Jim

From: Hacienda Rustica [mailto:haciendarustica.com@gmail.com]
Sent: Wednesday, August 05, 2015 11:06 AM
Hacienda Rustica <haciendarustica.com@gmail.com>
8/5/15

to Jim
Just to clarify your perception, I have never tried to sell anything at all, if I would, it would be to Buddy Fruits but I don’t want them to know about this incident and incidentally cast you in a bad light.

I say, save what you need to say for our meeting in friendly Arbitration.

You would prevail in a long legal battle because as you imply, you have deep pockets. However it is you and me before a judge in Small Claims, I will prove you made changes which were denied and later acknowledged, so delivery date only follows a natural posted process. Your company will have a judgement.

Please do not reply to me anymore and let’s let the professionals do their magic, all pieces are available if you want them, along with hardware that according to your gal with the “typo” is much more then what is needed fro 500 units.

Thank You
Oscar Almaguer
HaciendaRustica.com