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Customer Service Announcement #1 9/24/2014
We know that we have many customers who are upset with the lack of communication from us regarding back-orders and customer service issues. We want to fully explain and hope you will understand the level of frustration and stress we've been dealing with, after reading this. We will make good on all our promises! Following is a letter from the Owner of Shadow Ops
My name is Paul Russ and I have been the owner of Shadow Ops since September 2009, but have only been on site full time at the production facility, for a little over one month. I have recently had to move from VA to CO. to take over all business and operations management. Here is some history and perspective regarding our current situation.
Shadow Ops obtained its manufacturing license in February 2012 and started out as a small shop, with both myself and my partner having other full time jobs. Believe it or not, my company was created primarily with customer service in mind. In December of 2012, after the Sandy Hook shooting, I noticed that the prices for lower receivers were becoming absolutely ridiculous. Many stores were profiteering on items that I knew were excessively priced and we could produce a custom product at a more affordable rate. I decided that we would order new CNC equipment and secure purchase orders for forgings, to offer a custom laser engraved lower for $150, instead of the profiteering price of $450-$600. We had much success and sold $660,000 worth of these in January 2013 and $250,000 in February, but a series of events started problems I couldn't have predicted.
First, we were a victim of Operation Choke Point behavior by our credit card processing company which held over $500,000 during a time when our forged lowers were in high demand, with a lot of orders waiting to be filled. They told us that we wouldn’t be able to receive the funds until July or August due to the 3,200% increase in sales from December and our business was not approved for those levels of transactions. We could not keep taking orders we couldn't fulfill at that level and this threw our original timeline of delivery for lowers out the door and slowed us down on new product delivery immensely.
Many times, I both expected delivery or to have funds for purchase of secondary items, but both holds and chargebacks held us from shipping items in a timely manner. The crisis management had begun and in hindsight, I should have taken more control and told everyone what was happening, although I anticipated a quick recovery after the funds were released. That was the first mistake in our communications with customers, that I take full credit for and I am truly sorry for that.
At the end of last year, things got progressively worse, though I had thought we were doing pretty well. Even though we were running slower things just didn't seem right. Recently, it’s clear why. It was brought to my attention that during my partners entire management tenure, he was planning for a hostile take over of the business. I found out that he had communicated his intent to a potential investor early on, by telling him “don’t invest until I take over the whole business”. He was only a 10% owner, but he wanted it all. In December 2013, while I was still working in Virginia remotely he had verbally threatened me saying, “Give me the entire business or you will regret it!” and unfortunately carried through with his threat. When he realized I wasn't giving into his demands, he systematically began deleting all intellectual property of the company, took CNC fixturing for making our parts, stole furniture that was made on company time and paid with company money and began removing shop equipment that he wanted. His goal was to drive the company into the ground then offer to buy all my shares for pennies on the dollar with a new investor, or he was going to leave with all that he could get his hands on and start his own gig.
He then stepped it up a notch and sabotaged our most important company equipment by changing tooling CNC G-codes which created a production defect that were quickly discovered from about 50 customer complaints. I believe we have satisfied all those customers (if anyone's left will take care of them too at our expense). This gave us a another block of lost production time, catching up on back orders for the billet lowers. To make matters worse, I was totally understaffed as he took 8 out of 10 employees from the shop and other equipment which the company paid for in cash, to start his own business on our dime. This guy left Shadow Ops customers, friends and investors in the rear-view mirror without batting an eye. He was extremely selfish and immoral and although there is opportunity to pursue legal action, my current focus is solely on filling every backorder and taking care of our customers first.
I have moved to Colorado to manage the manufacturing facility and we have started resolving all the issues and have been fulfilling existing back orders. I will continue to move Shadow Ops forward in the direction I have always wanted it to go, by providing the best products I can possibly make, at a price that is fair for a top quality product. We have been working every angle to fix all problems and we have gone from a 2.5 hour lower receiver production time (on his watch) to one that is done in about 50 minutes! We have sped up everything exponentially and have already handled 75% of the back-orders to date. I have finally secured investors that understand what has happened to us, continue to believe in the company and love our products. We will now have ALL of the backorders taken care of in the next 60 days!
Additionally, I have secured massive new purchase orders that guarantees our successful turnaround. With this newly secured funding and large product orders in place, I can now hire a larger customer service team to start answering your emails (starting with this one) and they are going to have our communication system constantly improving. Currently we have three on staff and will be expanding that team, as fast as possible. I would have loved to tell you all what was happening earlier on, but honestly, I was working so hard on keeping us afloat that I didn't even know from one day to the next what our fate would be. I would answer as many emails and calls that I could, while also trying to get funding and find ways to make and ship each product that was ordered. I have been woefully understaffed and it has taken its toll, but this will also improve now that we are funded.
I believe most everything that has been sabotaged was uncovered and we can see light at the end of the tunnel now. I can tell you for the first time, without a doubt... that we are NOT going to close doors and any outstanding orders will be fulfilled in the next 60 days. We will also avoid any future back-order issues by eliminating pre-orders or making promises on new orders, for items that cannot be fulfilled within 5-10 business days. Obviously, all prior orders take priority over new ones. We are working diligently to create a better system on our website that will keep you updated on in/out of stock items, shipping delays, etc. and any customer service issues will be handled promptly by our new team.
You have my word that which did not kill us, will make Shadow Ops stronger than ever. Our new machining and production staff and those who stayed with me through this nightmare, are totally focused on taking care of our customers. We won't quit on you and the partner that did, will take his business reputation with him to his own demise. Ever since he has left, the leaches are gone, the loyal are being rewarded and we have improved our production times and quality. WE will continue to work together to bring you the best products we can make, at a price you can afford. Stay with us and you will be pleased at what is yet to come!"
For those who qualify and kept their orders open, thank you for being kind to us. I will have a lifelong FOUNDERS reward program in place soon, as well as more “Deal Coin” offers that make your custom lowers free in the end. Be sure to fill out the forms we send, so we can qualify you and keep you in the loop.
THANK YOU FOR YOUR BUSINESS!
- Paul Russ, Owner
(Family Managing LLC Member)
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