In 2007, when I found out that Platinum Equity was about to purchase Tecumseh, I stayed near my phone, hoping that its representatives would call me and I could give them the following free advice: “Don’t do it! If you want to sell engines or own a company that makes engines, buy an engine company in China or buy engines from an off-shore engine manufacturer or buy Briggs & Stratton. But don’t buy Tecumseh.” I never got the call, but then again I don’t make the “big bucks” (not that I wouldn’t like to have charged $5 million for that advice!)
I wonder if my fee is less than what they’ve lost on Tecumseh since they bought it, including selling the Peerless division to Husqvarna and the remaining assets of TecumsehPower to Certified Parts Corporation (CPC) in February.
I am glad to see Certified Parts buy TecumsehPower. There’s something comforting about a proven national parts distributor for recreational equipment buying TecumsehPower assets to get into the Tecumseh parts business. CPC should be very good at parts distribution and Tecumseh engine end-users, service centers and distributors should benefit.
On the other hand, when I see CPC owner Jim Grafft make comments about getting into the engine business, I worry that he doesn’t get “it” (the engine business) any better than Platinum Equity did. Fox example, Grafft told The Janesville Gazette that down the road his company could produce engines locally, a step that would rev up the potential for new, well-paying jobs. Grafft also said that in order to build engines, he would need to study the market and determine the players and their relationships with engine companies. “A lot of these relationships go back years, but there are certainly some smaller original equipment manufacturers – even bigger ones – that don’t have relationships with engine companies.”
Here’s an old-timer’s free engine advice to Mr. Grafft - advice that would normally cost anybody else at least $5 million: “Don’t try to be an engine manufacturer. Stick to parts, make a lot of money and keep Tecumseh engine owners happy.”
I know that Mr. Grafft didn’t buy TecumsehPower to lose money. I suspect he paid a lot of money for it. And I know he’s thinking of every conceivable way to make some of that money back. But my free advice stands. He will look back and regret the day he becomes a domestic engine manufacturer instead of just becoming the Tecumseh parts supplier.
By the way, I’m rooting for Mr. Grafft to be a success at whatever he decides to do with TecumsehPower. It will be a positive reflection on this industry if he and we can keep the users of Tecumseh engines satisfied and happy, create new jobs, put people back to work, and create enterprise value.
Every Friday afternoon between 5 PM and 7 PM, the Edison Lounge in downtown Los Angeles serves customers complimentary grilled cheese melts and tomato soup as well as 35-cent Depression-era cocktails, such as the “401(K),” a gin cocktail served in a half-empty glass. Pardon me if I don’t laugh.
If you haven’t heard about “greenwashing,’ I suspect you will, sooner than later. “Greenwashing” is the over-selling and under-delivering, and sometimes potentially misleading claims made in the marketing of green products. It’s become a significant issue in Australia and has caused Australian consumers to be very skeptical of claims about green products.
A recent study by design firm Blue Marlin found that in Australia “being environmentally responsible was one of the least important drivers (of increased sales.) Even among supposedly “green consumers,” only a small proportion said they are motivated by environmental product claims.” Overall, two thirds of respondents said environmentally friendly products were overpriced, rising to 72 per cent among families with children.”
In another survey by Mobium Research, it was found that almost nine in 10 Australian consumers distrusted green claims. (www.cnn.com/2008/TECH)
I have to agree with the feelings of Australians about green products. I think many green products are overpriced in this country. And some green product claims are so far-fetched, they defy belief. Many American consumers, like the Australians, are not motivated to make a purchase based on environmental product claims, especially if the cost is significantly higher than what they pay for a similar non-green product - at least not yet.
Personally, I would be willing to pay more for electrical power produced by wind or solar energy. It’s not good nor is it rational for this country to continue to be dependent on foreign oil for our energy needs. Period.
George Bernard Shaw once said, "A life spent making mistakes is not only more honorable, but more useful than a life spent doing nothing." Whew, thank goodness! I think there’s hope for me yet.
I wonder if my fee is less than what they’ve lost on Tecumseh since they bought it, including selling the Peerless division to Husqvarna and the remaining assets of TecumsehPower to Certified Parts Corporation (CPC) in February.
I am glad to see Certified Parts buy TecumsehPower. There’s something comforting about a proven national parts distributor for recreational equipment buying TecumsehPower assets to get into the Tecumseh parts business. CPC should be very good at parts distribution and Tecumseh engine end-users, service centers and distributors should benefit.
On the other hand, when I see CPC owner Jim Grafft make comments about getting into the engine business, I worry that he doesn’t get “it” (the engine business) any better than Platinum Equity did. Fox example, Grafft told The Janesville Gazette that down the road his company could produce engines locally, a step that would rev up the potential for new, well-paying jobs. Grafft also said that in order to build engines, he would need to study the market and determine the players and their relationships with engine companies. “A lot of these relationships go back years, but there are certainly some smaller original equipment manufacturers – even bigger ones – that don’t have relationships with engine companies.”
Here’s an old-timer’s free engine advice to Mr. Grafft - advice that would normally cost anybody else at least $5 million: “Don’t try to be an engine manufacturer. Stick to parts, make a lot of money and keep Tecumseh engine owners happy.”
I know that Mr. Grafft didn’t buy TecumsehPower to lose money. I suspect he paid a lot of money for it. And I know he’s thinking of every conceivable way to make some of that money back. But my free advice stands. He will look back and regret the day he becomes a domestic engine manufacturer instead of just becoming the Tecumseh parts supplier.
By the way, I’m rooting for Mr. Grafft to be a success at whatever he decides to do with TecumsehPower. It will be a positive reflection on this industry if he and we can keep the users of Tecumseh engines satisfied and happy, create new jobs, put people back to work, and create enterprise value.
Every Friday afternoon between 5 PM and 7 PM, the Edison Lounge in downtown Los Angeles serves customers complimentary grilled cheese melts and tomato soup as well as 35-cent Depression-era cocktails, such as the “401(K),” a gin cocktail served in a half-empty glass. Pardon me if I don’t laugh.
If you haven’t heard about “greenwashing,’ I suspect you will, sooner than later. “Greenwashing” is the over-selling and under-delivering, and sometimes potentially misleading claims made in the marketing of green products. It’s become a significant issue in Australia and has caused Australian consumers to be very skeptical of claims about green products.
A recent study by design firm Blue Marlin found that in Australia “being environmentally responsible was one of the least important drivers (of increased sales.) Even among supposedly “green consumers,” only a small proportion said they are motivated by environmental product claims.” Overall, two thirds of respondents said environmentally friendly products were overpriced, rising to 72 per cent among families with children.”
In another survey by Mobium Research, it was found that almost nine in 10 Australian consumers distrusted green claims. (www.cnn.com/2008/TECH)
I have to agree with the feelings of Australians about green products. I think many green products are overpriced in this country. And some green product claims are so far-fetched, they defy belief. Many American consumers, like the Australians, are not motivated to make a purchase based on environmental product claims, especially if the cost is significantly higher than what they pay for a similar non-green product - at least not yet.
Personally, I would be willing to pay more for electrical power produced by wind or solar energy. It’s not good nor is it rational for this country to continue to be dependent on foreign oil for our energy needs. Period.
George Bernard Shaw once said, "A life spent making mistakes is not only more honorable, but more useful than a life spent doing nothing." Whew, thank goodness! I think there’s hope for me yet.
