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Is Direct2 (Chelton's experimental company) going bankrupt?

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LarryRosen

Joined: 16 Jan 2006
Posts: 415
Location: Medford, NJ

Posted: Wed Mar 29, 2006 6:43 pm Post subject: Is Direct2 (Chelton's experimental company) going bankrupt?

Thanks for making me feel comfortable    I did send in my money for 

the $26,900 SV-10.  I hope you are wrong.



The price of the SV-10 is now $29,900 and SV-Sport (no RV-10 wire 

harness) is $27,900.



Larry Rosen

http://lrosen.nerv10.com



scott(at)keadle.com wrote:



 	  Quote: 	
		   I was planning to buy an SV-10 Chelton system for my panel this week, 

 when I got the word that Direct2, the supplier/manufacturer, was only 

 going to honor their quoted price ($26,900, discussed here 

 previously) if they recieved full payment by the end of the week. I 

 offered to send the full amount to an escrow agent, or to the 

 distributor/panel-builder, but they reportedly said they would only 

 take cash. Makes me wonder why they would be operating like that. All 

 I can come up with is that they are short of cash (maybe because of 

 the Crossbow AHRS recall) and maybe even almost out of business. I 

 would sure hate for anyone (especially me) to give them $27,000 and 

 get absolutely nothing in return. Much bigger companies have gone 

 bankrupt and taken customers deposits down the drain with them.

  

 Scott Keadle

 RV-10 in progress

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_________________
Larry Rosen
#40356
N205EN (reserved)
<http>

Scott Keadle

Joined: 10 Jan 2006
Posts: 31
Location: Lake Norman, North Carolina

Posted: Wed Mar 29, 2006 7:01 pm Post subject: Re: Is Direct2 (Chelton's experimental company) going bankr

Me too. It should be a very good product. I was worried about their integrity when they said they would not honor their quoted price, and then worried about their financial stability when they said they wanted all the money up front before production. I have not spoken with them personally yet, so maybe there was a misunderstanding, but I think they lost a lot of customers if it's the way it appears. Of course, if they're headed belly up, they gotta do what they gotta do to try and keep the lights on... 



Scott



[quote="LarryRosen"]Thanks for making me feel comfortable    I did send in my money for 

the $26,900 SV-10.  I hope you are wrong.

]

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_________________
Scott Keadle
14A, Lake Norman Airpark
N426AK RV-10, final assembly
N246SK, Giles 202, flying

Tim(at)MyRV10.com
Guest

Posted: Wed Mar 29, 2006 8:28 pm Post subject: Is Direct2 (Chelton's experimental company) going bankrupt?

I have no statements of fact to give, only guestimates and opinions.

I don't know if I'd believe that they're cash short or ready to

go bankrupt.  I guess you would never know if that were the case,

but I really doubt it.  I have heard that the cost of the harnesses

may have been more than expected.  I have heard in the past that the

cost of some of the components of the units themselves went up

back when they started with the G2 processors.  But, I would guess

that this has more to do with the AHRS issue than anything else.

It is/was a significant hit to have to do the right thing and take

back the AHRS units and replace them with something reliable.

I would bet some chickens that they would want to recover some

of that outlay from Crossbow.  Consider though what might happen

if they were unable to get some refund from Crossbow and they

already announced that they would support the existing base....

They still have to buy the new AHRS units to replace the old, and

the cash has to come from somewhere.  In the end, the new purchasers

will end up with an improved system over what was offered previously.

I'm sure they would have liked to ask the past customers for more

money for the AHRS, but that was already a done deal.  So it would

come from future sales.  Again, that's just a guess.



As for the full payment issue, I had to pay for mine in full

almost a year ago, by the end of that particular week, if I wanted

to get the interconnect harnesses included with the purchase.

I know that people would *like* to put a deposit down on the

gear, and pay more later, but I don't see anything inherently

wrong with asking for full payment as long as you get an

accurate delivery timeline.  It sure weeds out those who aren't

committed, of which I'm sure there are many.



Regarding the price increase, I am sure there will be many people

who are unhappy with that.  It is a real hit.  But, it's a little

over 10%, and even engines are taking healthy jumps as of late

also, so increases are just a fact of life.  I can't say that I

know I would have gone the same route, had I been facing the same

price structure at the time of my decision...I just don't know.

What I can say is that knowing what I know today after flying

behind it, I know from that perspective that I'd make the same

choice again.  There will be those people who were already predisposed

to not liking the higher price, or didn't see the added value.

Those customers were lost long ago.  The ones I feel bad for

are the ones who will change their minds now, with the higher

price.  Without flying behind it, I can understand the urge

to drop the plans and switch products.  Everyone has to do

what they have to do, however, so if it doesn't fit the budget,

it just may not be do-able.  I still advise watching the training

DVD, and if at all possible, fly behind the system before

turning it down.  It would be worth a couple hundred bucks to

fly somewhere for the opportunity.



More in a different post...

Tim

Tim Olson - RV-10 N104CD - Flying

do not archive

scott(at)keadle.com wrote:

 	  Quote: 	
		   I was planning to buy an SV-10 Chelton system for my panel this week, 

 when I got the word that Direct2, the supplier/manufacturer, was only 

 going to honor their quoted price ($26,900, discussed here 

 previously) if they recieved full payment by the end of the week. I 

 offered to send the full amount to an escrow agent, or to the 

 distributor/panel-builder, but they reportedly said they would only take 

 cash. Makes me wonder why they would be operating like that. All I can 

 come up with is that they are short of cash (maybe because of the 

 Crossbow AHRS recall) and maybe even almost out of business. I would 

 sure hate for anyone (especially me) to give them $27,000 and get 

 absolutely nothing in return. Much bigger companies have gone bankrupt 

 and taken customers deposits down the drain with them.

  

 Scott Keadle

 RV-10 in progress

- The Matronics RV10-List Email Forum -

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sschmidt(at)ussynthetic.c
Guest

Posted: Thu Mar 30, 2006 10:41 am Post subject: Is Direct2 (Chelton's experimental company) going bankrupt?

Scott is right when he says they won't take credit cards.  But I don't

think they ever have.  I do wish Direct 2 Avionics acted like Grand

Rapids or others where you only pay once the device is ready to ship.

But there are tons of companies in this industry that don't take credit

cards.  Real bummer because the skymiles would have been nice for the

panel and Chelton system. 



Scott Schmidt

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LloydDR(at)wernerco.com
Guest

Posted: Thu Mar 30, 2006 11:25 am Post subject: Is Direct2 (Chelton's experimental company) going bankrupt?

Order through Stein and you can use the credit card and get your miles

Dan Lloyd

40269

Do not archive 



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johnwcox(at)pacificnw.com
Guest

Posted: Thu Mar 30, 2006 5:31 pm Post subject: Is Direct2 (Chelton's experimental company) going bankrupt?

Dan, that is a great piece of valuable information and a needed plug for

someone adding real value to the RV-10 community.  I think Tim would

echo your sentiment even if he didn't get his air miles.



John 

Do not Archive



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