San Jose bakery loses thousands of dollars after Tesla reportedly cancels large order
San Jose bakery loses thousands of dollars after Tesla reportedly cancels large order
A catering contract to celebrate Black Heritage Month turned into a tough lesson for a Black-owned bakery in the South Bay earlier this month.
Two days after taking a job for Tesla, owner of The Giving Pies got a simple text message canceling the order
A catering contract to celebrate Black Heritage Month turned into a tough lesson for a Black-owned bakery in the South Bay earlier this month.
What started as a $16,000 deal ended up costing the small business owner thousands of dollars instead.
On Valentine’s Day, the owner of The Giving Pies in San Jose's Willow Glen neighborhood received a pretty sweet call from a representative with Tesla: a catering job for thousands of mini-pies for a Black History Month event.
Owner Voahangy Rasetarinera, who started the business out of her home in 2017, says both sides agreed on a quote and exchanged an invoice for 4,000 pies for delivery this week. Because of the tight turnaround, Rasetarinera asked staff to work extra hours, she bought ingredients and packaging supplies and declined at least three other catering jobs.
This sucks but it is a hard lesson about dealing with large companies. If any company wants anything that doesn't comes off the shelf of the store, they have to pay upfront. Pay has to be by a certain amount of days in advance of delivery date or the date is not guaranteed and will be late. Work doesn't start until payment is done. If they want to pay after delivery, sign a contract, require an advance of at least half of the bill or materials cost (whichever is highest), non-refundable, include a cancellation fee. Put this shit up as terms of service on a website and direct everyone to that page whenever you are contacted by a new client. The larger the client company, the more important it is to be this strict. For you it might be a bankruptcy inducing amount, but to them it will be immaterial pocket change, so you have to hold your ground.
I was a small business owner in this same situation. I got a contract, I got partial payment up front, then they reneged upon my finishing the job and asking for the rest of the payment. They said they'd pay me 10% of what they owe, AND demanded additional services for free. I took my contract to a bunch of lawyers, all who said the same thing "They're too rich to sue. They will delay, stall, and after years, even if you won, they still probably won't pay." What they owed me, they bragged about paying every time they flew their private jet. They could easily have paid, but instead they decided to destroy me and my company.
This isn't something the small business owner can protect against. To the rich, none of us or our laws matter.
The partial payment wasn't large enough if it left you wrecked at the end. Generally the partial payment should pre-pay to cover all of your expenses and labor. The final payment is the profit margin. That way you are never on the hook for a potential loss and will always break even.
So for the bakery, they should have had a full prepay policy on all special orders. Even if "customers" walked away because of the policy.
Name and shame my dude
*Reneged :)
The rich no longer fear the guillotine.
Can you tell us who? Maybe someone will “run into” them.
I assume you went on some John Wick style rampage killing them and their families?
It is fascinating to watch the rise and fall of Tesla's reputation. They went from "the cool brand" everyone wanted to something that automatically gets you labelled as a sucker and a douche, almost overnight.
I'm tempted by Lucid products right now.
Thats what happens when you get a bunch of weirdo cultists who willfully ignore just how much of an astonishingly massive cunt Musk is, was, and always has been, until he pushes even them to the point that they have to admit what they always, deep down, knew.
Tesla could get away with musks behavior if the product was good. It's not, it's overpriced and regularly scores amongst the lowest in reliability and build quality.
To be fair, most of the Tesla buyers in Sweden are absolute douches on the streets. Not all though.
There is such a power disparity between large corporations and normal people or small businesses. A corporation can make a small decision that would devestate a person or small business and it doesn't affect them at all.
I don't think this is legal, since it's a custom order. This is not like a consumer ordering an off the shelf product, it's more like a verbal contract IMO, but IANAL.
I'm betting managers were planning this, but when Musk found out it was for black history and ordered it canceled.
And while it is easy to just get paid in advance, sure, but that is a double-edged sword. Many companies and wealthy individuals will just use another company.
Then let your competitors wind up losing thousands of dollars when they cancel on them.
This is my thought as well. Such a predictable pos.
Should have told him it was for Musk Appreciation Month.
Seems like it would be fairly simple to at least sue them in small claims court. California allows up to $6250 for businesses.
I’m really surprised that, given the size of the order and the tight time frame, that she didn’t ask for the money up front…
But yeah. If she has anything in writing she should go to small claims 100%
Permanently Deleted
Yeah, did she even know it was for Tesla? Some kids could have called up as a prank phone call.
I used to live down the street from The Giving Pies when they first opened. They make great pies and the staff were really nice. Sucks to see this news!
https://www.ktvu.com/news/business-booms-at-san-jose-pie-shop-after-tesla-backed-out-of-large-order
The pie shop is doing better now than it ever was and Musk now has a new pile of shit he just stepped in, all in all a happy ending
The article does not say that she recouped her losses, so I'm not sure if it really is the happy ending you're claiming.
Don't get me wrong, it's nice that the San Jose Sharks made a $500 order, but she's out $6000 and I think the article would have mentioned if she made that and more back.
Tesla seriously fucked this woman over. And not just that, but fucked her black-owned small business over by claiming the order was for Black History Month, which makes it far, far worse. The only one who can make it up to her is Tesla.
Man this is some trump tower level bullshit tbh
Rasetarinera says after her story went viral, Tesla offered to buy the pies and a tour of their factory. She says she still hasn’t received a payment, so she’s focusing on other customers like the San Jose Sharks, who spent $500 on pies after hearing her story.
Even more. Literally then teased her again.
Make pies out of the rich
"Let them eat Musk."
I've seen a documentary about that called Sweeney Todd. Apparently people used to just break out in song in the 19th century.
Sounds like some clueless HR manager didn't know the owner of the business was a white supremacist and tried to organize a Black History Month event that was more than just a boilerplate press release.
what a bunch of trolls
Oh sure, but when I walk into the strip club and say I'm giving pies, suddenly that's "sexual harassment"?
Swing and a miss