Nemo's Update 10-8-2007

Well, what is going on around here???

We had a strong week last week, but we started this week with Columbus Day. Much of the surrounding buildings are Government or City agencies, and we do very poorly when there is a holiday. Yesterday's sales were weak, and today was weak, although not as bad.

We are hoping to see things go back to normal for the remainder of the week.

We did the coffee service for the American Diabetes Association Walk-a-thon last weekend at the Cheyenne Mountain Zoo. I also did candid photos, and formal group photos for the ADA website. It was a lot of fun...

Tracy and I are researching a second location for Nemo's Coffee! We did not plan to consider a second location until sometime in the undetermined future, but a situation has arisen that makes good business sense for us to proceed. The location we are considering is currently not in operation, and there are no signs, phone numbers, etc listed. I looked up the address in the El Paso County Assessor's records and identified three co-owners. I then researched them and came up with six phone numbers. The first five I tried were disconnected (Assessor data is from 2003). The final number was a good number, but I got voicemail. I left a message and I am hoping to hear from the current owner. I will keep pursuing this and keep you posted!

Things at Intel have been very interesting. I love doing the lab work, and this scope is something I enjoy doing. They still have several positions to fill, and I gave them contact information for my friend Kevin. He interviewed last week and started work yesterday. If you are in the Springs area (or are willing to move here) and have a technical background, give me a call if you are interested in working here. Please keep in mind it is a temp position which will end when Intel finalizes chip production at this facility (in other words, local is better than moving here).

We have had some problems with one of our equipment vendors. We paid for refurbished equipment, and they delivered the equipment WITHOUT refurbishing it. Once piece of equipment had tin foil jammed in the fuse block, creating electrocution and fire hazards. We have spent over $2400 replacing faulty equipment, and still have other concerns that need to be addressed. In the meantime, we have withheld $250 payment for a small wares order we did with the same supplier. It isn't much in comparison to the issues we are having, but I have chosen to withhold that payment until our equipment concerns are resolved. This company put an attorney on retainer, and sent the issue to collections in the last couple of weeks. I reached him by phone and set up a meeting for Saturday October 13 and he agreed to resolve our equipment concerns, rather than us counter suing him for far more than the $$ he is seeking. After agreeing to this meeting, we have continued to receive calls from his attorney, as well as letters from a collection agency. I am assuming these are events he set in motion and has failed to discontinue yet, considering that he is wanting to resolve the issues on Saturday.

In the meantime, I sent this notice to him since we are not clear on where he is headed with this (names have been xxxxxx'd out):

Mr. XXXXXXXXXXX (equipment vendor owner),
Per our previous discussion, you and I are meeting this Saturday to discuss several issues regarding financial transactions between XXXXXXXXXXX (equipment vendor) and Nemo's Coffee. Specific issues are:

1. XXXXXXXXXXX (equipment vendor) is seeking payment of approximately $250 for small wares.
2. Nemo's Coffee is seeking resolution of unsatisfactory equipment condition. An equipment package price of $7000 was to include refurbished equipment as follows:
La Marzocco Linea 3 Group Espresso Machine
La Marzocco Swift Grinder
Bunn Twin Brewwise coffee brewer
Bunn G1 bulk grinder
Fetco brew grinder

The equipment was delivered without being refurbished. Nemo's Coffee has spent $2400 replacing grinders (decaf and regular espresso grinders and a new Bunn G1 grinder) in order to operate their business. Furthermore, the Swift grinder was found to be jury rigged, with tin foil stuffed in the fuse block. This condition presents an electrocution hazard, as well as a fire hazard. Not only was this equipment not refurbished and not in good working condition, it was a serious safety hazard. The La Marzocco Linea has leaking steam wands (both), inconsistent performance from one group to another (probably flow meter issues), and has a group keypad that is defective. The Fetco grinder has no known issues. The Bunn G1 grinder grinds all coffee extra fine, regardless of the setting and is unusable. We have lost several whole bean coffee customers as a result of this grinder not functioning properly.

3. The Bunn coffee brewer was damaged by our electricians, and a meeting was held with XXXXXXXXXXX (equipment vendor), Nemo's Coffee, XXXXXXXXXXX (electric company), and XXXXXXXXXXX (my general contractor). It was agreed that XXXXXXXXXXX (electric company) was responsible for the damage to the brewer. It was also agreed that XXXXXXXXXXX (equipment vendor) would repair the unit and XXXXXXXXXXX (electric company) would be fully responsible for the repair cost. Nemo's was in no way involved in this transaction. XXXXXXXXXXX (equipment vendor) recently billed Nemo's Coffee for approximately $800 for the brewer repair. Per our most recent discussion, you agreed that we are not responsible for this repair cost, but you sent us an invoice anyway since you have been unable to obtain payment from XXXXXXXXXXX (electric company).

Nemo's Coffee has made numerous phone calls to XXXXXXXXXXX (equipment vendor) in attempts to resolve these issues. We have scheduled meetings with you, most recently on September 20, 2007, and you have not showed up, nor have you communicated with Nemo's Coffee to explain why you missed the meeting or to reschedule.

Nemo's Coffee then received a phone call from an attorney, stating that he has been placed on retainer to obtain approximately $1000 from Nemo's Coffee. First of all, that amount is incorrect, as the outstanding balance is approximately $225.

Since that time, you and I spoke and set up a meeting for Saturday October 13 to discuss these issues. You have stated that you are willing to make repairs to our equipment to bring it up to the standard that we agreed to when we set the purchase price. You also agreed that Nemo's Coffee is not responsible for the approximately $800 repair bill for the brewer.

We received yet another call from an attorney on Monday October 8, 2007, and I also received a letter of collections from XXXXXXXXXXX (collection agency) on Tuesday October 9, 2007. The letter from XXXXXXXXXXX (collection agency) stated the following:
"Your inaction has left us no alternative but to recommend to our client that this claim be forwarded to an attorney in your area for civil litigation."

This was the first correspondence we have ever received from XXXXXXXXXXX (collection agency), so the claim that we have not taken action is incorrect. In fact, Nemo's Coffee has made numerous attempts to resolve these issues though communications with XXXXXXXXXXX (equipment vendor), and YOU personally have not returned phone calls or attended scheduled meetings.

I am receiving mixed signals from you with regard to this situation. If you wish to resolve these issues Saturday, then I would like for you to discontinue the calls from the attorney, and the collection efforts. If you wish to proceed in that manner, I will be counter suing in the amount of $50,000 for breach of contract, harassment, false billing, lost revenues due to faulty product, and most importantly, for XXXXXXXXXXX (equipment vendor) knowingly putting my employees and my facility at risk by installing the Swift Grinder with electrocution and fire hazards.

I am assuming these continued phone calls and collection letters are a result of efforts set in motion that you have not yet terminated. Please notify me at your earliest opportunity as to your intentions. I will be placing my attorney on retainer Friday October 12, 2007 if I do not receive a response from you. I will also make another attempt to phone your office tomorrow.

James Dean Anderson II
Owner, Nemo's Coffee

I am hoping this letter will get their attention and put a stop to this garbage. Welcome to the world of business...

I need to run. Take care everybody and keep us in your prayers!
JD