ChamUK
02-13-2004, 09:08 PM
There is apparently some controversy brewing at Calfee right now. I don't know if it will necessarily interest my fellow Serotta board members. It is an interesting inside look at Calfee. The man who designed Calfee's Stilleto, Fast Freddy Markham, has left the company, in what appears to be disagreeable terms. The following are letters posted from Mr. Calfee, and a response from Fast Freddy. BTW, in case some of you are wondering if Fast Freddy is really fast-he has gone over 80mph under his own power!
Just posted on ARBR:
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
Markham's response:
And now the truth
STILETTO:Sharp pointy object or bicycle best used for stabbing people in the back.
NEWS FLASH!!!
Freddy Markham survives a career assasination attempt by Craig Calfee...Markham was stunned and disappointed but vows to fully recover and move forward.
And now this by Fast Freddy:
"Does anybody really believe that Craig designed the Stiletto? Oh yea, he made some suggestions, but thats it."
"Does anybody really believe Craig designed the carbon fiber fairings? I don't think so. The man didn't know squat about recumbents and fairing before I showed up".
So let me start by telling you that my deal with Calfee was I would work for less wages and no benefits what so ever at producing a prototype bike and getting it to production. Once we went to production I was to be paid approx $$$ per bike. That deal never changed until the day Craig decided it was to much money for me to make. In our early talks, we had hoped to bring a DA equipped Stiletto to the market at about $4000 . I told him at that price I would sell more than he could make....at that point Craig could have said $$$ was to much, but he never did. At some point it was clear that we would have to raise the price of the bike....and we did...up$1800! Partly so I could still recieve my commission. It was clear to me that at that price I was not going to sell near as many...my solution was to bring in a SWB bike and between the two I was certain I could do alright. So now Craig has my two SWB bike designs and I'm sure that by now he's told everybody that it was his ideas.
Our last meeting had him present me with what was far less than promised or anticipated....I could have understood if my profit was not in the bike, but it was. So starting to smell a rat in the name of Craig Calfee I decided he could keep his profit sharing because I was losing faith in him... all I wanted was my original deal and I would be satisfied.
But no...Craig would have me sell his bike with no guarentee, no safety net, no benefits, at a price I was no longer satisfied with, but put a cap on me in case I do real well. That's not who I want to work for and that's not what I call incentive....at this point in my life I won't let somebody screw me this bad. Craig is dishonest and deceitful and I don't want anything to do with him or his company.
I have to address the fact that I took the Stiletto mold out of Calfee....a case can be made that it's really my mold, but my point was not so I could make Stiletto's but to keep Calfee from completing the total rip off and making them after I left. Not only does Craig want to rip me on the Stiletto's, but he's still in possesion of my fairing molds and he intends to make those also.
If honesty and intergety are something you respect you don't want a Stiletto anyway....there are a number of issues that are suspect on the bike. I always felt that it was something I could sort out within time, but if I'm not with that company, don't count on it being addressed.
I respect deeply most of the people on these newsgroups and I have faith that most of you can see through the crap that Craig Calfee laid down. I mean if you've read his response he basically says he ripped me off. Most of you know who I am. My record speaks for it's self. I have been the one defending recumbent rider 's rights since 1978. I've been in this sport a long time on all kinds of bikes...I'm not greedy, believe me, if Craigs offer was good I'd have taken it. He's a rip off and the Stilettos are not the bike I fully intended to make when I left Easy Racers to build my dream bike....I made enough design compromises that I'm less than thilled. So, for those of you who are on my side.... I'm building your bikes soon...you'll love them
Freddy
ps I'm actually quite touched by the support I've already recieved from a lot of you....I won't forget!
Just posted on ARBR:
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
Markham's response:
And now the truth
STILETTO:Sharp pointy object or bicycle best used for stabbing people in the back.
NEWS FLASH!!!
Freddy Markham survives a career assasination attempt by Craig Calfee...Markham was stunned and disappointed but vows to fully recover and move forward.
And now this by Fast Freddy:
"Does anybody really believe that Craig designed the Stiletto? Oh yea, he made some suggestions, but thats it."
"Does anybody really believe Craig designed the carbon fiber fairings? I don't think so. The man didn't know squat about recumbents and fairing before I showed up".
So let me start by telling you that my deal with Calfee was I would work for less wages and no benefits what so ever at producing a prototype bike and getting it to production. Once we went to production I was to be paid approx $$$ per bike. That deal never changed until the day Craig decided it was to much money for me to make. In our early talks, we had hoped to bring a DA equipped Stiletto to the market at about $4000 . I told him at that price I would sell more than he could make....at that point Craig could have said $$$ was to much, but he never did. At some point it was clear that we would have to raise the price of the bike....and we did...up$1800! Partly so I could still recieve my commission. It was clear to me that at that price I was not going to sell near as many...my solution was to bring in a SWB bike and between the two I was certain I could do alright. So now Craig has my two SWB bike designs and I'm sure that by now he's told everybody that it was his ideas.
Our last meeting had him present me with what was far less than promised or anticipated....I could have understood if my profit was not in the bike, but it was. So starting to smell a rat in the name of Craig Calfee I decided he could keep his profit sharing because I was losing faith in him... all I wanted was my original deal and I would be satisfied.
But no...Craig would have me sell his bike with no guarentee, no safety net, no benefits, at a price I was no longer satisfied with, but put a cap on me in case I do real well. That's not who I want to work for and that's not what I call incentive....at this point in my life I won't let somebody screw me this bad. Craig is dishonest and deceitful and I don't want anything to do with him or his company.
I have to address the fact that I took the Stiletto mold out of Calfee....a case can be made that it's really my mold, but my point was not so I could make Stiletto's but to keep Calfee from completing the total rip off and making them after I left. Not only does Craig want to rip me on the Stiletto's, but he's still in possesion of my fairing molds and he intends to make those also.
If honesty and intergety are something you respect you don't want a Stiletto anyway....there are a number of issues that are suspect on the bike. I always felt that it was something I could sort out within time, but if I'm not with that company, don't count on it being addressed.
I respect deeply most of the people on these newsgroups and I have faith that most of you can see through the crap that Craig Calfee laid down. I mean if you've read his response he basically says he ripped me off. Most of you know who I am. My record speaks for it's self. I have been the one defending recumbent rider 's rights since 1978. I've been in this sport a long time on all kinds of bikes...I'm not greedy, believe me, if Craigs offer was good I'd have taken it. He's a rip off and the Stilettos are not the bike I fully intended to make when I left Easy Racers to build my dream bike....I made enough design compromises that I'm less than thilled. So, for those of you who are on my side.... I'm building your bikes soon...you'll love them
Freddy
ps I'm actually quite touched by the support I've already recieved from a lot of you....I won't forget!