Here's my .02 worth about the TRF Car Club and/or CMAS. First, what's the
difference? I guess that CMAS is more intimately tied with the Coventry
Inn, but they're both the same principle, namely the infusion of cash
without having to supply anything tangible immediately. In accounting
terms, those who join either organization are capitalizing the enterprise
without getting equity in the company.
Now the fear is, of course, that this money will be sucked into just keeping
the doors open. Again, the accountants will tell you if it ain't equity,
and it ain't assets, then its liability. This seems especially to be the
case with the Car Club scheme where next year you get your renewal back in
parts credits. Just ask any Albanian about that as a way to save for the
future! After the 1st year, any renewing member (who actually uses his
parts credit) becomes another drag on the business (although there may be
something to be said about having a guarantee of a $100 order every year
from each member). I suppose that the 1st year's $100 goes straight into
TRF's pocket with only a membership card (big whoop) and some kind of
discount scheme going out, and if enough people join, that may make some
difference (but $2,000,000????). I think it's too bad when we have to pay a
premium to be considered an "A list" customer even if we spend $$$ on parts
orders. You have to wonder where this all will lead.
Count me in with those who would truly mourn the passing of TRF. I
sincerely hope that this is not where its headed. I have had many dealing
with them over the years, and have almost always been impressed with their
dedication to the hobby and the marque. They always get at least half of my
order and usually all of it, but they must know that they are in serious
competition with other suppliers who also provide the parts and service that
I look for. TRF is no longer the juggernaut that it once was among TR parts
suppliers. The jokes about backorders aside (although they are amusing) TRF
does seem to be getting their act more together as far as in stock inventory
(at least from my experience). It is because of TRF and the efforts of all
their employees that I have the confidence to own 2 (count 'em - 2) TRs. I
am looking forward to re-restoring my '60 TR3, and doing a "rolling resto"
on the TR6. If I didn't have the support of suppliers like TRF, I don't
think I would attempt this. But... I have real concerns and doubts about
the future of an organization that wants to get back into financial shape by
deferring their liabilities rather than actually clearing them.
|