Bad News on the Harman End

[webbie]

Our friends over the the coal forum shared this with me:
(broken link removed)

Apparently, this is a new wrinkle. Even promised stoves are not gonna be made or delivered. Based on the information we have now, it is Harmans fault, not the dealers. Dealers were promised and scheduled (and therefore sold product) based on what Harman said....and a note went out to dealers this week stating otherwise.

Hopefully some dealers will fill us in more. Interesting double whammy for Harman.....go out of business one year (forced sale) and unable to produce product the next year. Amazingly enough, this might help them since folks will cancel orders, etc. so they won't be as far behind (being optimistic, here).....

At this point, only a Harman stove IN STOCK is truly a Harman stove!

-----------------
From Article:
"Hundreds of people who hoped to fend off huge oil bills this winter by installing a pellet stove are being told their orders will likely go unfilled.

Rocky Gaslin of Rocky's Stove Shoppe in Augusta learned Tuesday that Pennsylvania-based Harman Stove Company is unable to deliver more than 300 pellet stoves promised Gaslin just a few months ago.

Harman dealers across the state were given similar notices this week, Gaslin said.

"We sold based on the number they said they would give us. Then they changed (the numbers)," Gaslin said. "I'm extremely frustrated. People are counting on them."

Gaslin, who spent much of Wednesday on the telephone delivering the bad news to his customers, plans to meet with Harman officials in Pennsylvania on Monday and hopes to return to Maine with more information and, ideally, more stoves.

"We have to get some stoves for them," Gaslin said.

A phone message left for a spokesman at Harman's parent company, Hearth & Home Technologies, was not returned"

 

[hoverfly]

Well mabye a new sourse of pellets just oppened up..........Those got pellets and will have no stove.

 

[stoveguy2esw]

dang would not be good to be an exclusively harman dealer right about now. those guys are gonna take it in the shorts. hopefully most have other product lines that can pick up the slack but they will still be hurting as in most shops that carry harman , that is their "flagship " line. hadnt thought about that til just now, wow! gonna be a lean winter for a lot of dealers. that truly sucks. and in a year where a lot of dealers could have had record sales.

 

[cimbo190]

When you read the article, it is simply stunning what will actually be delivered versus what was anticipated.

When I read the article yesterday, I began the thread of "The Day Harman Died". That type of stunning news just strikes me as something that could "kill" a companies reputation. I don't think so in terms of seasoned pellet stove owners, but certainly to the newer or soon to be owners, there must be a sense of not wanting anything to do with Harman. Too bad for all.

 

[stoveguy2esw]

When you read the article, it is simply stunning what will actually be delivered versus what was anticipated.

When I read the article yesterday, I began the thread of "The Day Harman Died". That type of stunning news just strikes me as something that could "kill" a companies reputation. I don't think so in terms of seasoned pellet stove owners, but certainly to the newer or soon to be owners, there must be a sense of not wanting anything to do with Harman. Too bad for all.

if this was a new company or young i'd fear for it more. though i think the number one priority is the same as i felt VC 's was, restore the market's confidence in them. its a daunting job but it can be done.

 

[cimbo190]

When you read the article, it is simply stunning what will actually be delivered versus what was anticipated.

When I read the article yesterday, I began the thread of "The Day Harman Died". That type of stunning news just strikes me as something that could "kill" a companies reputation. I don't think so in terms of seasoned pellet stove owners, but certainly to the newer or soon to be owners, there must be a sense of not wanting anything to do with Harman. Too bad for all.

if this was a new company or young i'd fear for it more. though i think the number one priority is the same as i felt VC 's was, restore the market's confidence in them. its a daunting job but it can be done.

Good insight. I really hope so. The more good stoves out there the better for all.

 

[STOVEGUY11]

Ok this is what I dont understand. It states in the article the dealer in question sells on average 100 stoves a season. Harman set it up so you could order for this season 110% the average of your last 3 seasons of sales. He then this season sold 350 stoves he promised. Im no math wiz but 110% of 100 is not 350. Unless Im reading this article wrong.

 

[cimbo190]

Ok this is what I dont understand. It states in the article the dealer in question sells on average 100 stoves a season. Harman set it up so you could order for this season 110% the average of your last 3 seasons of sales. He then this season sold 350 stoves he promised. Im no math wiz but 110% of 100 is not 350. Unless Im reading this article wrong.

I have had trouble follwoing all of this as well. A lot of information makes it all very confusing and a little hard to decipher what to believe.

 

[slls]

It makes me more want to know what really happened at Harmon to bring this on.

 

[SNAPMAN61]

I've done a lot of business with Rocky over the years both buying and selling.He is a class act all the way and will do whatever it takes to keep customers happy.I would love to be a fly on the wall at his meeting with Harman.

 

[STOVEGUY11]

It sounds to me the dealer in the article bit off more than they could chew. They promised stoves they couldnt get and they knew they coudnt get right off the bat. They sold 350 stoves, when they were allowed to get 110.

 

[Steveo]

Hopefully none of the dealers spent all of the deposits that were put down on the Harman stoves.

 

[boudreaub]

I'm a first time pellet stove buyer as well as a first time customer of Rocky's. Like others indicated in the article, I'm another one who put a deposit on a Harman P68, only to find out through the local news media that I likely will not get my stove as promised. I'm also another one with four tons of pellets coming, but no stove to burn them in, yet. I chose to go to Rocky's based upon the reputation of the shop as well as the reputation of the Harman product.

I don't blame Rocky's. He's in a tough position where he's being made to hold the proverbial bag so far. As first time customer, however, I don't appreciate how Harman is handling the situation with their vendors. AS angry as I am toward Harman, I'm taking a wait and see attitude. If Rocky comes back with no new information next week, I likely will look to getting a different stove, even if the delivery leads into the summer of 2009. However, as a potentially very disgruntled customer who may be in the market to once again buy more products in the future, the likelihood of my buying a Harman anything, ever, would be 0. But, before I make that decision, I'll wait for Rocky's return.

 

[gw2kpro]

Our friends over the the coal forum shared this with me:
(broken link removed)

Apparently, this is a new wrinkle. Even promised stoves are not gonna be made or delivered. Based on the information we have now, it is Harmans fault, not the dealers. Dealers were promised and scheduled (and therefore sold product) based on what Harman said....and a note went out to dealers this week stating otherwise.

Hopefully some dealers will fill us in more. Interesting double whammy for Harman.....go out of business one year (forced sale) and unable to produce product the next year. Amazingly enough, this might help them since folks will cancel orders, etc. so they won't be as far behind (being optimistic, here).....

At this point, only a Harman stove IN STOCK is truly a Harman stove!

-----------------
From Article:
"Hundreds of people who hoped to fend off huge oil bills this winter by installing a pellet stove are being told their orders will likely go unfilled.

Rocky Gaslin of Rocky's Stove Shoppe in Augusta learned Tuesday that Pennsylvania-based Harman Stove Company is unable to deliver more than 300 pellet stoves promised Gaslin just a few months ago.

Harman dealers across the state were given similar notices this week, Gaslin said.

"We sold based on the number they said they would give us. Then they changed (the numbers)," Gaslin said. "I'm extremely frustrated. People are counting on them."

Gaslin, who spent much of Wednesday on the telephone delivering the bad news to his customers, plans to meet with Harman officials in Pennsylvania on Monday and hopes to return to Maine with more information and, ideally, more stoves.

"We have to get some stoves for them," Gaslin said.

A phone message left for a spokesman at Harman's parent company, Hearth & Home Technologies, was not returned"

Harman's going to whipsaw again. They've gone from not being able to move anything, to (apparently) only being able to meet a fraction of the demand -- in a very short time span. Watch them ramp up and have oil move back down. Back and forth, back and forth. Who would think that a STOVE maker would see volatility like that?

 

[compressedwoodsupplier]

I feel for everyone that isnt getting there stoves. I have over a 100 stoves on order from breckwell and hope i can get mine. They have reassured me that i will so fingers crossed. If anyone in maine is looking for a stove give me a call to see if i can help you out.
207-542-0834

 

[MainePellethead]

dang would not be good to be an exclusively harman dealer right about now. those guys are gonna take it in the shorts. hopefully most have other product lines that can pick up the slack but they will still be hurting as in most shops that carry harman , that is their "flagship " line. hadnt thought about that til just now, wow! gonna be a lean winter for a lot of dealers. that truly sucks. and in a year where a lot of dealers could have had record sales.

Funny you say that.......theres a place not to far from me that sells "eclusively" Harmons...he has refused to sell pellets to people that didnt buy their stove from him....he has a HUGE lot filled with pellets. He said he was saving them for promotional for the stoves etc....lol.....looks like he will have to sell the pellets seeing as the stoves are way behind lol.

 

[compressedwoodsupplier]

thats probably a fact or he will be waiting a longggggggg time to get rid of the pellets

 

[rockettmantoo]

Hi all,
Im also a Harman dealer in eastern Maine. The timing of events is important. This is not the dealers fault. I had order conformations with ship dates from june 6 thru june 14(450 stoves). The 110% rule was sprung on us after we sold and promised stoves to our customers. FYI

 

[webbie]

Did they give any clear explanation? Other than increased demand?

 

[rockettmantoo]

No, getting info from Harman is like pulling teeth. They have a bunker mentality. We do get info from the rep firm though. That info is always very late. We have learned that Harman is stock pileing stove in antisipation of huge demand in the west where they are on nat gas.

 

[wberryment]

I just found this out from a friend on Friday night. I didn't believe him at first. I do now. I ordered a P68 from a dealer in Windham on the last week of May. I've been very patient and haven't been calling them. I managed to get my hands on 5 tons of pellets from Sams Club and it's all delivered and awaiting my stove. I was told that my stove would be in on the third week of June.
I want to go down to the store today and be told that I'm all set since Harman has my order and it will be delivered as promised. I guess I'm taking a wait and see and see what falls out of all of this. I can't believe that they have had 2 grand of my money for going on 7 weeks now and this happens. Maybe I'll be one of the lucky ones. I bought that model because I felt that it would take care of my 2000 sf home. I'm not going to find nothing now. I thought I was a head of the game by doing this in May. I'm so pissed with Harman and the dealers. You can't tell me that someone didn't know that there is an infinite amount of stoves that could be manufactured in a certain time frame. Promising something to someone knowing that it can't be done just stinks to high heaven. I guess it would be nice to see that you have an order on paper and you want it filled no matter how long it takes. But I haven't read the small print on the order. I'm sure there is something or some clause that will let someone off of the hook. I know if I bail out and ask for my money back then I will have to get in line with some other manufacturer and I know I won't get nothing until next year. What are the rest of you going to do that are reading this? Wait and see or bail out now?

wayne

 

[webbie]

No, getting info from Harman is like pulling teeth. They have a bunker mentality. We do get info from the rep firm though. That info is always very late. We have learned that Harman is stock pileing stove in antisipation of huge demand in the west where they are on nat gas.

If that is true - it seems wrong! Nat gas is as cheap or cheaper than pellets in most areas, and on the ethical side of things it would seem wrong to turn away existing dealers and customers (with firm orders) to take advantage of a "hopeful" scenario in the west.

In the end, I think that bunker mentality will work against them. When another company comes along and builds a similar product....AND talks to their customers and dealers, it will be a breath of fresh air. In this case, no news is bad news.

I was giving Harman the benefit of the doubt up until about now......thinking that being part of a big company with a decent reputation would be a plus.

 

[hoverfly]

No, getting info from Harman is like pulling teeth. They have a bunker mentality. We do get info from the rep firm though. That info is always very late. We have learned that Harman is stock pileing stove in antisipation of huge demand in the west where they are on nat gas.

I find that hard to beleave where there is a demand every where right now, I think production got cought with their pants down.

 

[jtp10181]

There is slightly higher demand here, but we are only putting in like 1-2 pellet or wood units a week right now as opposed to maybe 1 a month over the summer usually. Lots of interest but not a lot of takers. The sales of fireplaces out here is primarily gas units.

 

[cimbo190]

Hi all,
Im also a Harman dealer in eastern Maine. The timing of events is important. This is not the dealers fault. I had order conformations with ship dates from june 6 thru june 14(450 stoves). The 110% rule was sprung on us after we sold and promised stoves to our customers. FYI

This is what I am talking about. It seems the information coming out is so fast and out of order that there is too much to decipher. I had heard the 110% rule and I was wondering if the dealers were CRAZY for try to move so much product. It all makes a little snes once the dust settle, but right now there seems to be a lot of dust flying around.