Friday, October 01, 2004
Thoughts on the Demise of Arc Flashlight
Peter Gransee, owner of Arc Flashlight, LLC, announced that it was going out of business on September 22, 2004. This news was disappointing but not surprising. I knew Arc Flashlight was having financial problems because:
Peter Gransee could have kept his company alive if he managed his company better. Peter's biggest mistakes are:
- Arc couldn't fulfill orders for its high demand products, namely the Arc AAA.
- Arc had QC (quality control) problems with its products, i.e., the Arc LS and Arc 4.
- Arc had to deal with multiple lawsuits from Maglite, CMG Equipment which was bought by Gerber Legendary Blades and vendors.
Peter Gransee could have kept his company alive if he managed his company better. Peter's biggest mistakes are:
- Peter cut off his internet dealers and forced all internet sales through Arc's website
- Peter did this for two reasons: a) as a response to County Comm selling Arc AAA flashlights under dealer cost and, b) to follow Surefire's lead who also prohibited its dealers from selling on the internet.
- Peter paid his vendors late or did not pay them all
- A judgement by one of Arc's vendors forced Arc to shut down on September 22, 2004.
- Peter did not concentrate on its best selling product, the Arc AAA. Most people can afford a $25 - $30 Arc AAA as opposed to a $180 Arc 4.
- By giving up only 1% more control of Arc Flashlight to investors, Peter could have obtained enough funding to pay off Arc Flashlight's debt and put it back in the black.
