Jump to content

Wikipedia:Articles for creation/2007-11-30

From Wikipedia, the free encyclopedia

This is an old revision of this page, as edited by 64.235.82.96 (talk) at 06:20, 30 November 2007 (→‎Bring It On: new section). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.


clanahaha

This request for creation has been declined. Please do not modify it.
This is an archived discussion. Please do not modify it.

Stanford Hall (Loughborough)

This request for creation has been declined. Please do not modify it.
This is an archived discussion. Please do not modify it.

Monash Gryphons Amateur Football Club

This request for creation has been declined. Please do not modify it.
This is an archived discussion. Please do not modify it.

Tanky-Wheely

This request for creation has been declined. Please do not modify it.
This is an archived discussion. Please do not modify it.

Blippo

This request for creation has been declined. Please do not modify it.
This is an archived discussion. Please do not modify it.


The Bobby E. Leach Center

This request for creation has been declined. Please do not modify it.
This is an archived discussion. Please do not modify it.

Barry Dolinger - Prodigy

This request for creation has been declined. Please do not modify it.
This is an archived discussion. Please do not modify it.

UPLB Thespian Circle

This request for creation has been declined. Please do not modify it.
This is an archived discussion. Please do not modify it.

Nickolas Rumplik

This request for creation has been declined. Please do not modify it.
This is an archived discussion. Please do not modify it.

Michael B. Gallagher MFA Yale '70 Abstract Expressionist/Illusionist

This request for creation has been declined. Please do not modify it.
This is an archived discussion. Please do not modify it.

Dawley Farm Village

This request for creation has been declined. Please do not modify it.
This is an archived discussion. Please do not modify it.

My days at the Vesely Company by George McCollough

Gene Vesely had a 6th grade education. He had worked for many years as a carpenter and a builder of modest sized commercial buildings. He hit it big when he invented the folding trailer and turned it into a business. Gene took his company public and its shares were then traded on the American Stock exchange. Gene profited handsomely from the shares he disposed of in the initial offering of the stock. He went from owning all the shares, to owning 2/3 of the shares, so he still had control of the company.

Gene Vesely had built a very profitable company when he owned it privately. His Apache camping trailers had 40% of the folding trailer market. He had a very strong dealer organization of some 400 dealers, country wide. He had the over-the-road hauling trailers and tractors to move the trailers, 9 or 10 at a time, to the dealers. But what happened when he took the company public was that other people found out how much profit there was in making and selling folding camping trailers. Several new businesses were set up competing for the trailer market with our dealers and others. Pricing suffered, and the Vesely company’s 40% of the market shrank over several years.

Gene’s grand plan was for the Vesely Company to be a major factor in all aspects of the recreational vehicle business. · The company had purchased land for three travel trailer plants. One had been built in northern Ohio and one was under construction near Harrisburg, Pa. The steel to build the third was on the ground at a location in western Illinois. The plan was to build three more after that. · The company had invested a quarter of a million dollars in preliminary design and molds for a fiberglass-bodied Class A motor home. · The company had a home grown design for an all-terrain vehicle. It was amphibious, 6 wheeled, equipped with a separate planetary transmission for the 3 wheels on each side and had a 20 HP 2-cycle engine and a body of molded polyethylene. Over a million dollars was invested in this project. · The company would recapture the bulk of the camping trailer with the new design that replaced canvas components with plastic elements.

As I look back today from the vantage point of knowing how the Vesely Company fared over the long run, Gene would have been well advised to have sold the company to a larger firm not in the recreational business. Instead Gene took his company public and its shares were then traded on the American Stock exchange. He had acquired street smarts, financial savvy, some production know-how and he never feared to put his money where his mouth was. At whatever he put his mind to, he intended to be the biggest and best.

As an example, with early profits from his business, he had acquired a couple thousand acres of farm land south of Lapeer. He acquired a herd of some 500 Holstein cattle and produced and marketed milk from about 350 milking cows routinely. He raised all the grain that the cows needed. He employed a Farm Manager from Carnation Milk to run his operation. One of the Dow family members was a noted architect, and Gene had one of his houses built by a pond in the middle of the farm. Gene’s intentions were to have a premium Holstein herd, and to breed a special Holstein bull, whose semen he could sell for breeding purposes for a great deal of money. The farm took a good bit of Gene’s time and he was constantly getting stuff and people from the trailer operation to do things at the farm..

Going back to my earliest days at the Vesely Company, I had a lot of people that I now supervised, and with whom I needed to get acquainted. One of my first jobs was to find a new V. P. of Finance for the company. The man who had held that post had recently resigned. I located a man with all the qualifications needed named John Herring. John came onto the scene, and though he only stayed about 18 months, he did a bang-up job of getting the accounting, cash management, receivables running smoothly. John’s predecessor had committed the company to a roomful of IBM equipment which was being installed at that time. The IBM Company had a birds nest on the ground with this program at Vesely Co. John sold me on the idea that we didn’t need the expense and staff to get as sophisticated as IBM was setting us up to be, and so, he canceled the rest of the installation, and had IBM take back all of the hardware they were setting up for us. We dropped a very large expense for the installation and the pay of about ten people afterward to keep it running. We had a serious cash pinch that spring. Gene had gone to the Caribbean on a vacation trip, and we needed $200,000 fast to meet our cash obligations. John and I called him in the evening and he transferred that much of his personal money to our bank as a personal loan to the Company. The cash problem, and the direction of the accounting and financial aspects of the company soon settled down. When John Herring left we had to fill that VP post again. Bill Offer, from whom I had rented the Tan Lake house, was a finance and accounting man, and he had quit his former company when he departed Phoenix. Our bank, Detroit’s Manufacturer’s Trust, knew Bill Offer well from his former employment, and they highly commended the idea that he would work for the Vesely Company. We offered the job to Bill, he accepted it, and was still there when I left the company in 1979.

When I reported for work at the Vesely Company on October 1, 1969, the engineering department, augmented by Gene’s acquisition of a design firm, was busy designing the folding trailer that would have no canvas, but would instead be enclosed with solid walls and roof constructed from parts made of molded ABS plastic. The top was to be raised by cranking a gear box .Gene had set up very large plastic sheet making equipment. Also he had installed 3 vacuum-forming machines that were very large for their day. These new trailers, in two lengths each of which had two floor plans, were to be in dealers hands before Christmas in 1969. No more of the canvas side and top trailer on which his business had been built were to be produced. His worry was that if the old line were still being built when he introduced the new, no canvas, line, the dealers would push the old product and there wouldn’t be enough push at the dealer level on the new model. Therefore, by abandoning production of the old and successful canvas sided line, the dealers would be forced to sell the new product at a volume that would be profitable for the Vesely company.

The trailer wasn’t ready for production in December when it had been promised for dealer deliveries, and didn’t get ready to ship until late February. Even then, there were very serious quality problems that had been designed into this radically new unit, and too often it wouldn’t work well when being raised or lowered. It was a good looking unit, but dealers were afraid to put it up and down for customers in their showrooms, lest it malfunction. The company sold a lot of those trailers in 1970, but they were a serious problem for the dealers and a lot of the retail owners..

The poor quality 1970 model Apache camping trailer caused a complete redesign of the trailer to be produced for the 1971 model year. It was still “solid state” but much had been changed to eliminate the problems encountered in field use of the 1970 model. Because the new design made the unit a little higher, the over-the-road haulaways used to carry the camping units to the dealerships had to be recreated and their capacity was reduced by 2-3 trailers per load, depending on the mix. In any case, there was a big expenditure to build 20-some haulaways, and the freight cost/trailer delivered to dealers increased. The 1971 model was much more reliable in use than the 1970 models, but still more refinements were needed. The Vesely product wasn’t first rate until the 1973 model year. That year’s trailers were excellent performers but were considerably more expensive to build that the “solid state” trailer was expected to cost when it was first conceived. Product quality for the “solid state” Apache was fine thereafter, but it was priced much higher than Gene had allowed for in his planning.


As a result of not getting the traditional canvas models from us in 1970 and 1971, many of our dealers either dropped the Apache line, or took on a competing line of canvas trailers as well as continuing with the Apaches. In view of the dealer’s reluctance to depend entirely on the “solid state” line, Vesely returned to the production of a canvas type unit, as well as continuing with the “solid state” line. By the time these trailers were back in the market place with Apache brand on them, a lot of dealer support had been lost - irretrievably, as it turned out.

More trouble was on the horizon. The plant under construction in Pennsylvania got finished. It was staffed and production began. Unfortunately, as in the case of the Ohio trailer plant, there was no demand for our trailers.

Early units of the all-terrain vehicle production that had been retailed brought more signs of trouble. They had transmission problems and became virtually unsaleable because of their poor reliability reputation.

It fell to me to get the company situated so its cash in would exceed its cash out and quickly. I convinced Gene that the only path was for returning to our bread and butter business and dump the activities that were consuming money, but not producing any. Accordingly, I took the steps necessary to close down and sell the travel trailer plants. I also shut down the all-terrain vehicle activities, which included the production in Lapeer, and the several warehouses and sales offices we had set up around the country. Manning count was reduced from 350 plus to about 125. The remaining manning was totally devoted to the camping trailer line.

In 1973, I was elected to the Presidency of the Vesely Company. Gene remained as Chairman of the Board of Directors. Gene’s interest in the daily activities of the company had waned considerably. He had bought a condominium in Boynton Beach, Florida and was spending a lot of time there. He left the running of the company pretty much up to me.

Another event in 1973 was the cutoff of oil from the OPEC countries. This was a devastating blow to the whole recreational vehicle business. The retail sales of RV’s virtually halted, and so did shipments from the factories to the retailers. Everyone in the business had inventory and the inventory levels were based on an expected rate of retail sales. The folding camping trailer was the least affected by this development, but it hurt just the same. It took months for retail sales to begin again, and with sales expectations lower, there was a lot of inventory between the dealers and the manufacturers to dispose of before manufacturing of RV’s could get going again.


One of the fringe benefits of the job with Vesely Company was a company car. Also, they paid for my membership in the Lapeer Country Club. This was a low budget 9 hole layout, but it was fun to play. I shot my first 18 hole (two nines) round in par there. I was President of the club for one year. I think that it no longer exists and is now a housing development.

For the first few years at the Vesely Company I was on a new learning curve. I was in a world more like mechanical engineering then chemical engineering. Also, it was the equivalent of getting a Masters of Business Administration. I learned a lot about the responsibilities that went with being listed on a national stock exchange. We were regular borrowers from a major bank. We had production employees, who were affiliated with the United Auto Workers, and truck driving employees, who were represented by the Teamsters. We processed steel into parts with a variety of presses. We formed ourselves, or contracted out, the many parts of our trailers that were made from plastic. We had a variety of credit arrangements with our dealers. We had to be able to fund the payroll every week and to stay as current as possible with vendors. Our business was particularly tricky from a cash management viewpoint, because it was so seasonal. The last years at Vesely Company were an exercise in managing costs so we could stay within our cash inflows while we were facing a gradually declining sales volume.

There were two major reasons why we were experiencing declining sales. The first was that, in abandoning our canvas trailers that had such a strong share of the market for folding trailers, we had, in effect, created a Cadillac camping trailer which was doomed to get a Cadillac share of the camping trailer market - about 5%. We were headed in that direction.

The second reason was that as our camping trailers became more expensive, the Class C, or mini-motor home was becoming very popular. Though these were considerably more expensive than our Apache Solid State camper, a mini-motor home buyer could get 8-10 year terms, while 3-4 year terms were the rule for the camping trailer. It was a fact that for many items, notably cars, sold largely with a down payment and monthly contract payments, the size of the monthly payment was the measuring stick for the buyer. The length of time taken up by the monthly payments was of much less importance to him. Consequently, a retail customer could, for very little, if any, more in the form of monthly payments, have a mini-motor home sitting beside his house instead of a fold down trailer. The neighborhood and family prestige factor was much in favor of the motor home.

So, our Solid State Apaches had two effective competitors - (1) folding trailers of the canvas type that were cheaper and (2) mini-motor homes with a lot more apparent value but about the same monthly payment for the buyer. We had tried building travel trailers, 5th wheel trailers, and mini motor homes. We had little success in selling them as the market was full of long-standing producers of those product lines. Our best regular Apache dealers had split us with other camping trailer brands that retailed for lower prices. If we sold one of our dealers a mini-motor home, it was 2 camping trailers less he had room for in his floor plan limits. The result was that our product line was in its death throes. Gene Vesely’s grandiose ambitions and plans had folded in on themselves.

About 1977, Gene Vesely was kidnapped out of his house for ransom. He escaped and returned home, a shaken man, in about 12 hours. He and his wife, Anne, left for their Boynton Beach apartment in Florida, and I think he only returned to Lapeer once after that.

In the late part of the year of 1978, Gene Vesely was approached by a syndicate of investors to explore his interest in selling the Vesely Company. He was interested, and I was encouraging him to sell out. These folks went to the annual Louisville Recreational Vehicle Show and were impressed enough with what they saw to make him an offer. He sold his shares to this group in early 1979 for a half million dollars up front and an annual payment of $45,000 each succeeding year for 5 years ( which I am sure he never got). There were three major investors in this group. Two were Canadians. One of them owned a small-town hotel chain in Canada and the other was between ventures having recently sold his interest in a Calgary steel company. The third and largest investor was a Californian who was in the used automobile wholesaling business.

These three appointed the Calgary Canadian, Norman French, to be the partner who would oversee the operations of the Vesely Company. Norman began appearing at the company’s offices that spring, and he and I got pretty well acquainted. He liked to play golf and chess, and we did some of both together. He was a personable fellow, but he never was far, even in the office, from a whiskey bottle. The business slide that we had been experiencing for a few years continued and the new owners were fast becoming disenchanted with their purchase. I had been gradually cutting staff at all levels for about 3 years and these folks wanted more. In addition, Norman French was not being well accepted as a leader in the remaining working group because they were still looking to me for direction. The upshot of this was that one day near the end of September, Norman proposed to me that I resign. I had options to buy about 3000 shares of Vesely stock at $2.50/share that I had never exercised. . These people had promoted the stock vigorously, and it was selling for about $13/share. I gave him my resignation, and the next morning exercised my options and sold them immediately at the market price. I took away from the job a wonderful, painful, frustrating and broadening experience. Thus ended my 10 years of time at the Vesely Company. There is a great deal more I could have written into this opus about the Vesely Company but this is enough as an overview. I could easily write a book about this experience.




Sources

http://www.apacheowners.com

http://www.apachepopups.net/cms/modules.php?name=News&file=article&sid=3

http://www.rv-news.com/may2003/contents.cfm


67.80.77.211 (talk) 06:11, 30 November 2007 (UTC)[reply]


Bring It On

Bring It On is a non-album track featured in the Madden NFL 2006 football game. The total track time is 3:19. It has yet to be featured on an album, single, compilation or EP.

Sources

64.235.82.96 (talk) 06:20, 30 November 2007 (UTC)[reply]