View Single Post
  #133  
Old 08-29-2013, 04:04 PM
2SlickNick's Avatar
2SlickNick 2SlickNick is offline
Senior Member
 

Join Date: Mar 2013
Location: Gilbert, AZ.
Posts: 1,268
Default

Quote:
Originally Posted by SYCARMS View Post
When I started looking for a buggy for my son, without researching the internet all that was available were the fun karts with pull start mower type engines found at most Wal Mart and K Marts. I then seen the Yerfdog @ Sam's. They looked sturdy and had electric start. They were all kind of homely looking but again we were looking for a go kart and not a car. This was in 2004. All the buggies mentioned so far were stickered Made in USA. In 2005 my son's interest in a buggy grew more intense. This is when I started researching on the net and found the Carter but wasn't crazy with the looks of it. It wasn't until about November when I noticed the Blade, and started learning the down side of the yerf. Moving forward to 2006, Stuart asked me if I would go to the yerf dog plant which was the first time I learned they were manufactured in Mississippi. They already had shut down and Stu was looking to purchase the stock. The factory was huge and had a ton of parts and buggies but were 90% returns, broken frames, axles, hubs, some were good but with bad motors. Shelves were stocked with new parts and frame pieces, accessories ect. Bottom line is BMI took control of the liquidation and would only sell everything including buildings and according to Stu wanted too much money for it. From what I learned is when Yerf started selling to Sam's the buggies were still made in the USA. Sam's then went to Yerf and said they needed there cost to be lower. This is when Yerf had them totally made in China and shipped directly to Sam's. Yerf still made them in house for their other markets. After about a year of the new Sam's deal Yerf had many returned buggies from Sam's club due to bad quality and were loosing money. Just a side note.. If I order buggies from China I have to put 50% down with the other 50% owed when the containers reach customs. After customs, epa inspections and payment is complete customs will release them to the buyer. Sam's on the other hand paid nothing until a container reached their store in which they paid Yerf 50% with the balance due once the buggy was sold. This keeps the inventory on Yerf's books saving Sam's taxes on inventory.. Sam's placed a huge order in 2005 prior to the Christmas season with part of the order delivered in time for Christmas and the rest by the first of 2006. In the mean time Sam's was putting the pressure on Yerf to sell them buggies with better reliability but the same low price. When Christmas came and many buggies were still being returned Sam's struck a deal with the crossfire people and refused delivery of any future Yerf buggies and the refusal of remainder of payment of already delivered buggies. This left Yerf with about 100 containers of buggies in customs for which they had no money left to get them out of port. This put more duties fees and storage fees on the backs of Yerf for which they were already over extended on their credit as well as delinquent in payments. That is the reason reorganization was out of the question and liquidation was the only option. So as Paul Harvey would say Now you know the Rest of the Story.
Wow, that is very interesting. I hope my choice with a Carbide ASW holds true to the company's name.
__________________
Growing old is mandatory
Growing up is optional
https://www.youtube.com/watch?v=NEXoa-8d7qE
Reply With Quote