I was just in a client meeting when the client suddenly said “Totally Awesome is going out of business?!” He had just received an update on his laptop and saw this article in the Salt Lake Tribune. First LoveSac declares bankruptcy and now this. Seems like every business person in Utah who is the least bit zany is having issues.
Apparently it’s a done deal. I can’t say I’m all that sad to see them go, having had some negative experiences with Totally Awesome Computers about which I’ve previously posted on this blog. At the same time, being a business owner myself it is a bit sad to see any company go out of business, if only for the sake of the employees and customers, but also due to the fact that it probably didn’t need to happen.
As of this moment anything that can be said by myself on the matter is pure speculation, but here are my top five reasons for why I speculate TAC is going under:
1. The advertising stopped working. Maybe it was a fad, but maybe all the people who could be influenced by it already bought computers from TAC and there was no one else to market to.
2. Lack of focus. First computers, but then Dell Shanze buy a gun range, starts doing infomercials, and buys a hanggliding outfit?
3. Legal troubles. If you haven’t heard about Shanze waving a gun around in a Draper neighborhood go do some Google searching on it. Maybe the distractions got the better of him.
4. Not living up to the brand. The “brand” that TAC had could be summed up as better computers, fair prices, and excellent customer service. However, reality for many customers was quite the opposite. Maybe it finally caught up with him.
5. Maybe it’s just hard to compete with Dell. Companies generally go out of business because they aren’t making any profit, and it’s hard to make a profit selling computers when Dell does them so much cheaper and better.
Here’s another article from the Deseret News: http://deseretnews.com/dn/view/1,1249,635189251,00.html.
Apparently he’s gone insane. Here’s a quote from Dell Shanze himself:
“It’s too bad that all of the media in Utah are liars and murderers,” he said. “You just destroyed the greatest computer company of all time. We were the best in the world, the world champion. All this hatred was created by you. You’re basically angels of Satan. All I can say to the people in Utah is, please pray for all the news people.”
I saw this last night! I saw the interview on the news. I feel horrible for the people that worked there. I know a couple people that counted on TAC for their sole income.
But at the same time, I believe, technology has advanced to the point that even the CHEAPY Dell’s are pretty decent for most people. So I guess all those lifetime warranties are bunk now? Maybe it was service costs that finally did him in. I know a #2 type person over there. I will know more monday and let you know.
Rumor has it the gun incident really hurt his business due to all the negative publicity combined with some stations refusing to run his ads as a result of the incident. I got both sides of the gun story, not just what the media was printing, and frankly, I side with Mr. Shanze on that.
He *should* be a little wiser in dealing with the media all the same, but he’s not totally off base in his accusations if the rumors are to be believed. It would be nice to get to the bottom of this. Perhaps Jeremy can shed some more light on this.
Another update on the story, nothing too interesting, except mention of an IRS inquiry I hadn’t heard of: http://www.sltrib.com/business/ci_3576339
I know that Del has lost his mind. It is not new news. He has always been a misfit. Just look at his past. He is just getting what was coming for a long.
I also know about tax issues that a past employee has told me he was a part of with his wife. Who also should go down with Del? My friends wife was an accountant for TAC.
I hate to see him lose everything but Del can’t play God. There is only room for one God and Del is not it.
Some more news/press, much of it entertaining and/or sad:
http://kutv.com/local/local_story_063134438.html
http://www.ksl.com/?nid=148&sid=171274
http://www.itsbadbusiness.com/2006/03/totally_awful_computers.html
http://www.heraldextra.com/content/view/168478/
http://www.ksl.com/?nid=148&sid=171734
Narcissistic Personality Disorder…I have a former employer that has it..not good for business and not good for the people around you
Dell Schanze left some comments on my blog claiming that I am hate filled and influenced by the devil in my opinions. I have invited him to explain his side of the story on my blog, but so far, he has not provided any information.
http://www.ksl.com/?nid=148&sid=277941
Totally unrelated, but still awesome. Dell Shanze is in the news yet again, this time for paragliding too close to the freeway. Classic.