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PaperProphet

09/28/08 2:55 PM

#4909 RE: look1 #4899

NGRN also had some local machine shops produce some prototypes of the EC V. That took several weeks and the company cited the lengthy time as being the result of the machine shops being too busy. It shouldn't take years for a contract manufacturer to produce any units.

The EC V isn't complex. If anyone wants something manufactured, they just need to find one of a multitude of contract manufacturers around the country. They don't need to go to Italy nor Bulgaria to find one.

I believe NGRN was with CM2 for around two and a half years, give or take. CM2 does contract manufacturing--they manufacture products for customers under contract. For them to 'drop the ball' on only this particular product while continuiing to do work for other customers and for NGRN to tolerate no progress for two and a half years in manufacturing this relatively simple item indicates the problem isn't with CM2. I'm guessing NGRN got in the door to CM2 as a potential customer and then threw terms at CM2 which made it unworthwhile for CM2 to actually produce the EC V. There are any number of other contract manufacturers available, even in the USA where they can be easier to contact, to produce products of virtually any sort--provided the manufacturers have terms where they're confident that they'll be paid for their work. They're not in the business of financing startups with free work until the startups take off.

Undoubtedly NGRN wanted to shift the financial risk to CM2 in case the product didn't sell. If NGRN got in the door with another manufacturer to produce the EC V, I'm guessing the terms NGRN wants are similar to what they had with CM2.