Ethics and Projects benefitting Rob Simonich's family

Joined
Feb 26, 2002
Messages
119
I have some strong feelings and thoughts about projects that are conducted using Rob’s name and logo with the stated purpose of benefitting his family.

This post is not directed at any one person or group of people specifically.

I am taking the time to write this before I go into work and instead of working on grad-school deadlines because it seems that things are moving really quickly and to hopefully prevent this uneasy feeling I’ve gotten and gossip I’ve heard when things like this have happened in the past. And because it's just the right way to approach things.


1) It’s an excellent and wonderful thing that people are going to commit time, labor and $ to doing this, and folks wanting to take this on should be commended. Rob was full of an uninhibited sense of fun, energy and spirit. He would be so happy to know that others have absorbed that energy and want to channel it to help provide for his family since he can no longer.

2) Projects should be done in good taste. They should be something that Rob would have wanted and agreed with. Agreed with in many aspects – from a technical perspective (is this the type of knife that Rob thought could do the job?) Agreed with from a cool perspective (would Rob have thought that this tee-shirt or coffee mug or whatever was cool? Or dorky? )

All this is very subjective.

Rob's wife Christine Simonich should of course be the _final_ approver on these projects.

Who in the knife industry knew Rob the best and knew his opinions on stuff? It seems like his bestist-buddies were Jerry Hossom and Mick Strider / Duane Dwyer.

My perspective on this comes from:

a) Rob was one of the awesome men who made the time to help me with getting my hideaway knife from the final design to something that people can order. Both in being a finishing artist as well as giving me lots of advice on who to work with and who to avoid for whatever reason in the industry. Rob described Jerry, Mick, and Duane as his brothers. One of the changes Rob told me last week that he wanted me to make sure to add to his gunner grip page, in addition to the new pics, was thanking Duane Dwyer for helping Rob secure the military contract on his Gunner Grips.

b) From working with Rob on a couple of other projects like maintaining his website and one project that has not yet reached fruition.

So while Christine should be of course be the final approver, I think a couple others should be in the approver loop – others with whom Rob was closest and who knew him best.


3) Projects should be conducted with fiscal transparency.

a) The activity of any bank accounts or paypal accounts that are set up to receive $ for the Simonich family should be looked at by an independent 3’rd person. This is NOT a statement about trust. It is a statement about how charitable efforts should be conducted and best business practices.

b) Saying “All proceeds will go to the Simonich family” is MEANINGLESS.

That says **nothing** about what Rob’s family would ever realize, if anything, from the project.

Why does that not have meaning?
Because “proceeds” mean profits. Profit calculations include subtracting out “Costs”. Profit = Sales $ (aka “revenue”) - Costs (aka “expenses”)
Because costs can include a lot of things.

The problem is best described by example:

Harold the knifemaker wants to make quantity 50 of a certain knife design to benefit Rob’s family. He passes the design by a couple others in the industry who were close to Rob and they and Christine give it a thumbs-up from a “Would Rob Agree with this?” perspective.

All 50 sell.
Time to write the check.

What expenses did Harold incur? Harold decides the expenses of the project included 2 new belt wheels, a machinist’s salary for the 2 days, belts, long distance phone calls charges to his project $30 / hour for his time, a flight to Montana to delivery the check in person, etc. So the Simonich family *could* end out realizing very little from a significant amount of income, and a lot less than what the knife buyer’s impression of what the family would be obtaining from his or her purchase.

What if Harold asks Christine is it OK if I deduct these expenses? *Of course* she is going to say yes. She has already told me she does not want to ask for donations for just the family, and had me edit that out of the note from me on Rob’s website.

So what is the ethical way for Harold to make a statement about a project like this that keeps things on the up-and-up and doesn’t put anyone in an awkward situation?

So that a potential customer can know approximately how much of what the purchase price will end out with Rob’s family?

Either:

1) “$100 (or, “At least $100”) for every knife sold will be donated to the Simonich family.” That statement is clear, transparent, and auditable.

*or*

2) “All sales $ after steel, belts, and heat-treating costs will be donated to the Simonich family.”

And then at the conclusion of the project, or every once in a while, as checks are getting written to the Simonich family, a 3’rd party audits what’s going on.

Not conducting charitable efforts this way is ethically “gray”.

There was some rock group, Nine Inch Nails perhaps (?), who signed a contract based on a % of profits (instead of a % of Sales aka revenue) with a record company, and they received very little if anything from the sales of that album.


Also please note:

Saying “$100 of each knife sold will go to the Simonich family” also leaves room for the person undertaking the effort to (technically speaking) “profit” somewhat from the project.

Others disagree, but I don’t see a problem with that at all.

Margins in the custom-knifemaking world are small when you honestly account for all expenses, both fixed and variable. There’s not much room for error and paying the mortgage, health insurance, electric bill, etc.

Scenario: A talented knifemaker with a good idea who wants to implement it to help the Simonich family but otherwise __could not__ unless he profited somewhat over the “hard costs” of the project to pay his own bills with… Well, I think it would be a shame for that project to not happen.

Again, it’s a shades-of-gray thing. How much “should” someone profit from a project described as a “benefit” for the Simonich family? Well, gee, I don’t know, something “reasonable”.

But what I *do* know is that if the terms are stated clearly, I as a buyer can make a decision about what project I will support through the purchase of the knife, tee-shirt, etc.

Now let’s “Cowboy Up”, capture some of Rob’s energy and spirit, help his family, and have some fun doing it. :)

FrontSight
 
I began writing something very much like this yesterday and just ran out of energy, and I thank FS for doing this. This is a VERY DIFFICULT time for Christine and she is not really in a position to handle all the goodwill, and some not-so-goodwill that's being directed at her. While we all rush to help, some of that help gets in the way of Christine's space to grieve and deal with a lot of personal, family and pressing business issues that accompany this kind of situation. Frankly it's just too easy for her to say "yes" when she doesn't really have the time to consider all the ramifications such an answer might entail.

Example, and this is what I was about to respond to yesterday. Getting together some T-shirt and stickers, etc. requires a licensing of Simonich Knives LLC (SK) logos. That's a legal undertaking that requires the logos be protected by law while their use is allowed for just that specific project and for a specified length on time. At some point SK may want to license a company to make shirts for their business and that company may not want someone else holding the same license to compete with them. A contract may require certification that such a license doesn't already exist, and then things get complicated. I'm sure you can see my point.

I can tell you there are some miserable SOB's who are trying to profit from this situation as I type. I know that; they've called me. I can also tell you that Christine at this moment has no way of knowing what her situation is and can't be expected to under the circumstances. She needs time to morn, then some more time to get her arms around all of the aspects of the business and company finances that only Rob knew. That will take time and is a lot more important than anything else right now.

So let me suggest this. If you really want to help Christine and Megan, send her a check. Let her decide in her own time what she wants to do with that money, and be satisfied that you've done a very good thing to help Rob's family. Leave the T-shirts, special edition knives, and other "business" deals for another time when she is better prepared to cope with the ramifications these things might entail.

Thanks for your understanding and support. These are very difficult times and with the wonderful support so many of you have shown for Rob and his family I'm sure we can help Christine through this. MANY of us have lost a dear friend, some have lost a brother, all have lost a great knifemaker, Christine has lost more than anyone. Right now her wellbeing and long term security are all that matters. If anyone has specific questions on this, please feel free to email me. I'll explain as best I can, but there are many questions unanswerable right now. Thanks.
 
I have a thought here. Since it appears that Christine intends for Simonich Knives LLC to continue as a business, perhaps one way to honor Rob's memory and also help his family financially would be to help make SK a success. Make a personal committment that 3 months, or 6 months, or a year from now you will make a purchase from SK. Personally, I can't think of a better tribute to Rob than to use the tools he designed and created.
 
I would have to agree with Jerry on just sending a check to Christine and let me tell you why.

Back in October I lost a very dear friend of mine in a motorcycle accident. He was captain on our fire department. As a way of remembering him I designed a pin that one can wear on their coat, hat, whatever. My intention is to give the profits of the sale of 200 pins to his wife. The cost of having the pins made was $2 per pin. I sold the pins for $10 per pin with $8 going to the family. All this worked well on paper. I put out $400 out of my own pocket and I would recoup it when I sold 40 pins, which I did. I also allowed for the family to get 30 pins which means I would sell outright 170 pins with a profit of $1700 ($1300 after I recoup my out of pocket cost). What I didn't count on was the thieving bastards who stole a $10 pin. Some SOB stole 12 pins from the locker which is a total of $120. Bastards. Gary's kids are now shortchanged and I have to foot the missing $$$. I really can't afford to do that but I have no choice. I can't screw over his kids.

Another thing that FS mentioned was giving Christine time to mourn. I can't tell you how important it is to let her do just that. Gary's wife constantly had people coming over to the house just after his death that she really had no time to sit back and cry. All of the help that you offer Christine is admirable but sometimes it will be unwanted at that time. If she needs help she will ask for it. Give her time and space to mourn. Some things will need immediate attention but the making of t-shirts, pins, stickers, etc. is to much to burden her with so soon being that she needs to approve such endeavors.

With all that said I think Jerry is correct in asking that you send a check with whatever you can afford to the family. Some of Rob's closest friends will do what they feel is appropriate to mourn him and that is fine. But not everyone needs to jump right in with a fundraiser idea.
 
The idea of sending a check to the family is a good one. I also like the idea of making sure Simonich Knives continues to be a success by supporting them with sales. I will make sure to buy some more Simonich Midtechs in the near future.
 
It's a shame that things like this have to be said. These things are just common decency. There's not a whole lot lower form of scum than someone who'd try to exploit a widow in her grief.
 
Thanks FS and Jerry. I know of several people, myself included who would like to help. Your advice is sound, and much appreciated.
Mike
 
I disagree with the thought that folks should not work on these projects that could benefit the Simonich family and should instead just send a check. (Of course, do both if you can!)

Because:

1) Yes, this week is not a good time to present these things to Christine.

** However **, even 'just' a tee-shirt project, will take a long time to get worked out. People who have the energy and inspriration and talent to work on projects like that should do so now! I'd love to wear a cool Buffalo'd Rob tee.

I will send a quick note to Christine saying
"Hey some really talented and good-hearted people have some ideas for Rob-related projects that they want to do for you. I want for you to decide WHEN you might be interested in hearing what they are thinking of. It can be next week or next month. Whenever you are ready." I think letting her decide when she wants to hear about these ideas is a good idea.

It might be sooner than we all think! Humans are very resilient. She is a smart capable woman. And she needs to grieve.


2) Yes, these projects will have lots of details, like the licensing of the logo, that need a pair of legal eyes.

Not a problem! I'd bet that the talent pool of the knife community has a pair of legal eyes that could write a pro bono paragraph that would be in the best interests of Rob's family related to the use of the logo.

The end result of these projects is a simple and wonderful thing:
- Rob's family is helped.
- The person who buys the knife or tee-shirt has something to cherish Rob's memory with.



** However **, just because the end result is simplicity doesn't mean that people can't assume that getting there will not involve lots of blood, sweat, tears, wrangling, compromise, etc. We owe it to Rob to not cry and want to take our marbles and go home just because we need to take the time to do the right thing.

FrontSight
 
Originally posted by frontsight
I disagree with the thought that folks should not work on these projects that could benefit the Simonich family and should instead just send a check. (Of course, do both if you can!)



I'm not saying that nothing should be done to benefit the family. What I am saying is don't over do it. You don't want the projects to overshadow his memory. The people in the knife world who are Rob's friends and knew him best and were the closest to him should determine what/how he should be memorialized, whether it be a T-shirt (which I would gladly buy), stickers, knives, etc. But again, this is if they want to do that.
 
The long and the short of it is this:

Christine will have final approval over any project that is done in Rob's memory. If she chooses not to and instead just wants to continue with the Mid Tech series, that is wonderful.

As stated above, it sickens me that anyone would want to profit from Rob's passing; and any project done through the community in his name MUST be completely transparent in all aspects. If something is sold in his name, then she should be getting all of the money, not just the "proceeds" or "profits".

Rob had a huge impact on all of us. Anything done in his memory must meet the standards he lived up to. Everyone I've talked to who knew Rob had nothing but respect for him. Personally, seeing him was one of the things I looked forward to when I went to shows, and he had the same effect on just about everyone. As such, there is a massive desire to want to help do anything that can be done to make sure that Christine is taken care of, and that it's done properly.

Most of all, it must meet Christine's approval, because if she doesn't want it it doesn't matter what we all say and I respect that completely.
 
I’m sorry, I’m not trying to start an internet argument, but I teach Finance and I’ve been cringing every time I see “proceeds” and “profit” used in this discussion. I feel the way most of you would feel seeing a knife used as a pry bar, so I’ve got to say this.

I do not believe proceeds are the same as profits.

Proceeds are cash inflows. In the case of a sale of real estate or some financial asset (stocks, bonds, etc.) the applicable commissions or fees are deducted before the seller receives the cash flow. But, this definition does not include the initial cost, any modifications to, or carrying costs associated with the item sold. I did see a couple of internet dictionaries that used the word “yield” as part of defining profits, but that goes against everything I can find in my collection of textbooks and the logic of the definition.

Profit is a more encompassing term that considers all costs (inventory, production, etc.) in determining gain or loss. If we want to talk about gross profit, or before-tax profit, we’re just narrowing the definition a little, but the basic concept is still the same.

Like I said, I don’t mean to start an argument, especially in the middle of this thread. I just had to point that out. Now I’m gonna sit quietly and wait to see what kind of fund-raiser the group comes up with.

Jim
 
Everyone who wants to contribute will do so in their own way. Personally, I've got a lot of t-shirts already, and pins pins pins. I never have enough knives and I think if Simonich Knives is going to be an ongoing enterprise, buying those knives is a great way to provide a continuing income for the family and a continuing source of pride and self-reliance, too. And every one of us could probably enjoy another one or more of those knives. Besides being an outstanding human being, Rob was a fine knifemaker.

This is not a happy time, but it's a good feeling seeing so many people really caring and working to help.
 
Hi Jim,

Thanks for bringing that up! This is something that I had explained in my original post, but deleted because it was getting too lengthy.

The financial terms dictionaries say that the term proceeds sometimes refers to net proceeds (after any commissions, fees or other charges are deducted), and sometimes refers to gross proceeds (before such deductions).

Dictionary.com describes it as:
pl.n. pro·ceeds (prsdz)
The amount of money derived from a commercial or fundraising venture; the yield."


However, all these definitions secondary to the fact that in actual usage, 100% of the time, when I have seen this statement related to a fundraising effort:


"All proceeds will go to the __Simonich family__"


every common usage implied proceeds as profits or "net proceeds". What every person means is that "After my costs, I will give this money to the charity."

I think folks don't realize they have to add the word "Net" proceeds to be technically correct or clear in what they are saying.

Now the next important question is: do you believe in EMT, with a close second being: which syllable has the emphasis in the word finance? :).

Again, thanks for raising the point.

FrontSight
 
Well, I was born in New Orleans and claim Texas as home, so I usually say "fu-NANCE."

I like the EMT, but I think the latest papers by Fama and other big names have recognized persistent anomalies (like firm size) that add to the explanatory power of the CAPM and other pricing models. Truth is, I’ll believe just about anything I can get published in a journal.

(I suspect the crowd wants us to go back to talking about knives.)

Jim
 
Probably putting my two cents in where they aren't really needed, but plain and simple...listen to Jerry. "Nuff said" as Rob used to say -:)
 
Originally posted by bald1
but plain and simple...listen to Jerry.
Yep....

Jerry's so cute when he gets that wryyy semi-lecturing tone in his voice like when I made a $500 mistake and he says,

"[FrontSight], it's really good that you approach things from a different angle than the rest of us. But the next time you get an epiphany, please call me first."

:: ring ring ::
"Hello Mrs. Hossom, is Jerry there?"
"FrontSight, he's grinding right now."
"OK, but can you tell him I'm having an epiphany?"

:D

FrontSight
 
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