Update Regarding Delays on the Fourth and Fifth Production Runs... 10/18/11
Faustine has already delivered 75 units in the 4th production run and so far, has shipped around 200 Phantom Dx2s in 2011, our best year yet! However, for the past several weeks some parts issues have placed a temporary hold on production. This is much like the 3 month delay we had in 2010 from back-ordered parts. We're doing all we can to deal with the issue and get back up to speed. Since we receive calls, voicemails and e-mails daily regarding the production delays, we wanted to address the most frequently asked questions here.
What is the current status on back-ordered parts?
Several weeks ago we discovered that some of the electronic parts used on the Phantom were on back-order. The supplier is now waiting on the parts manufacturer and unable to offer us a firm delivery date. As a result, the fourth and fifth production runs are on temporary hold.
When will I be getting my Phantom?
As soon as we receive the last few parts, we'll set up a new schedule with our manufacturers. Our past attempts to estimate future delivery schedules have backfired on us too often as "supply chain" problems and manufacturer's schedules are outside of our control. This makes it very difficult to give customers a firm delivery date. It's a source of shared frustration for customers and Faustine. Parts will be available very soon and we'll get back into a regular production routine.
Can you use different parts or different suppliers?
If the solution was that simple, we would. Some of our parts have to meet exact electrical specifications and are only sourced by a single manufacturer or supplier. We search regularly to see if any new parts are being produced that we can substitute. Unfortunately, when larger companies rely on the same parts for their products, and have the buying power to order them by the thousands, that sometimes creates a shortage for small companies. We aren't in a position to order large quantities of expensive parts and put them on the shelf for later production runs.
Don't customer deposits pay to keep those parts "on the shelf"?
In the early days of Faustine, customer deposits covered the costs (just barely) of building a Phantom. Tim was doing all of the building and wasn't paying himself. As Phantom orders multiplied, we contracted and trained Southern California manufacturers to produce Phantoms, significantly increasing our production costs. Upgrading the Phantom to the Dx2 model also increased the price of parts and manufacturing. Customer deposits don't fully cover those costs any more... Faustine pays for the remaining up-front production costs and is only paid back when Phantoms are finished and ready for delivery. This is why we currently produce Phantoms in small batches. After we purchase all of the parts and go into production, we are operating at a loss until your Phantom is ready and we collect your balance. It's definitely in our best interest to keep shipping Phantoms!
Can you find partners / investors to put up the capital to increase production?
We are pursuing that. We joined with an investor / partner in October 2010 and it invigorated Faustine with new capital, resources, and additional personnel. Our partner took over the business management, we found and trained new manufacturers, the 3rd production run got underway, we took A LOT of new orders, and Tim was training others to take over his many duties so he could return to designing new products. We had a new company, a new website, new endorsements, a new momentum, and were on schedule to finish our backlog of orders by the 2nd quarter of 2011. It was great to finally be operating on that level. That relationship ended suddenly in late February when our partner developed serious health problems and had to leave Faustine. The resources he brought disappeared and we were back to operating on a smaller scale again. It was a setback that we are still recovering from. We are continuing to look for compatible partners / investors.
Why do you extend your delivery schedules repeatedly if you're not sure you can keep them?
It's not intentional. We are reacting to circumstances and have to adjust. The 4th run was originally scheduled to be finished no later than May, a realistic schedule when we were operating at an accelerated pace earlier this year. When the partnership ended, that one event created a domino effect. That was our first big schedule slip this year, and it was substantial. It took some time to regroup and figure out how we would complete the remaining orders with minimal personnel and resources while we looked for a new partner. That's when we started producing Phantoms in smaller batches of 25 units. We have had some scheduling delays and parts delays since then, each one of which causes us to change our delivery times for customers further down the list. We don't like having to make such predictions because there are so many variables outside our control that can change the schedule again. It's a tough position to be in but we recognize that our valued customers deserve at least a "ball park" estimate and we take our best guess based on current circumstances.
Why should I continue waiting for my Phantom?
We are committed to delivering your Phantoms. You've put in your time and you deserve to have the best. We had some unpredictable setbacks this year but our goal is to keep growing as a boutique company with top quality products for discerning guitarists and tone freaks. The customer feedback we're getting on our latest 4th production run Phantoms is excellent... these attenuators are the best we have ever produced and are setting a new standard for features, versatility, and transparency.
We value your loyalty to Faustine and your continued patience is very much appreciated!
I read in this thread some where that this guy's wife was still taking orders after the fact. Man that is just so wrong if this is true.
As it stands they aint producing units... so why resurrect them?
