Important considerations for dealers

created 10-1-96 last changed 5-23-01 -this page accessible as http://www.phact.org/e/dennis13.html

some open questions for dealers of Dennis's technology Ok now your a dealer - you effectively have a franchise, but how to make good on your 10K investment? Well you really need to start a business to make the sales and bring the money in. I offer the following list of questions for dealers to ask themselves. I think Dennis would have been more fair to answer a few of these questions during his rambling 6 hour presentations. I don't want this page to insult dealers, I want to offer ideas and information useful to dealers. So please respond if you have any.

  • How are you going to take care of installations and service?
  • What will be your cost of each device? -I've recently heard 15000$, which means it would take a few years to pay back. Where will you get that kind of money, and which dealers will manufacture the highest quality machines. I for one doubt that Dennis will come up with big 3rd party money for the machines. You have do to some serious thinking before raising more money if he asks you later in 97.
  • How much competition will you get from other dealers? (Dennis makes no effort to insure unique territory like any legitimate dealership)
  • How will you deal with the fact that most newer meters don't measure reverse power flow? To get around this, you may need to get a special instrumentation agreement with your local power company. And how will he handle the phact that you need $10000 equipment to synchronize outgoing power to be the same line frequency and phase as the power company power you want to add to?
  • What rate of income can you expect over time from each installed site? ( the calculation is take the number of kilowatts the machine puts out minus the number consumed by the family all times the number of cents the power company will give you for sold power (typically 2 - 5) times 87.6 - the result is the number of dollars per year you can expect) -remember that you will have to pay interest on the cost of the machine.
  • What liability insurance do you need? Many states and localities require this. You should investigate requirements early.
  • In most states, anything you hook up to the electric needs to be UL approved - Dennis has never produced a product that has earned this.
  • What special permits will you need to make installations, what inspections will be necessary? What are special safety considerations. Any equipment involving energy has a chance to fry building or kill people. If it has special refrigerants, you'll need to post bond and get special servicing equipment and pass stringent tests to charge and service it.
  • What is the realistic (not just promised) lifetime of the unit? -and how does that enter into your rate of return on investment?
  •  What is the typical on going service cost per kilo watt hour on the units? (my own guess is that a heat pump running continuously will need to be replaced or overhauled every 5 years -this could have quite a negative impact on rate of return)
  • What kind of contract do you want to have between you and your customers? They won't deal with you unless you have some kind of guarantee and service agreement. You also need to protect yourself against possible lawsuits from customers or injury liability from any of your service people who get electrocuted, blown up or what ever. You can always contract out for all these things, but that would eat into your profit margin.
  • How are you going to stay afloat if Dennis greatly delays product release? (there's no sign that the original promised shipments before the end of 96 have been made) BWT seems to be shifting focus from the free energy machine (his big crowd draw)
  • What would be expected yearly business costs due to taxes, accounting, legal, travel, promotion, office, installation, office, equipment and advertising expenses? I recommend trying to do everything out of your house for as long as possible. But to be big, no one will trust a business running out of a basement.
  • What independent reviews have been done on Dennis's products? What are your legal rights?
  • What recourse do you have if you decide you don't want to be a dealer anymore?
  • How can you raise the great sums of additional money needed to survive your first few years of business?

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     GEET - an effort at replication - gives information on the high mileage carburetors that have never been shown to really work.
     

    I'm going to try to get answers to these very serious questions. People must respond to me directly, I want to start a newsletter just for dealers of information which won't be on these pages. I'm not authorized in any way to speak for Dennis or to represent BWT.

            IS Dennis completely truthful?
     

    Dennis doesn't admit the high cost of selling to the grid  I heard from a power company that most power companies require approved three phase directional power protection, phase and ground overcurrent, over/under voltage, over/under frequency and sync-check in addition to the necessary controls at each proposed installation.  The costs per site are generally
    well over $10,000.   A little expensive for complete system Dennis once
    said would cost around $2,000 to make.
    dennis has a long list of promised devices that have never worked:
    • plastic houses
    • power wagons
    • the medical laser camera
    • the heat storage devices
    • UFO's that people can walk in
    • Cars and trucks running on ambient heat.
    Dennis says he was locked up for a crime he was never convicted of. He skips the important reason for this:  He plead guilty to 7 counts!
    Dennis says dealers can get rich with the products already available. He doesn't mention that his private newsletter admits that he has hardly any sales of it with 2000 dealers.  There is no open evidence that any dealers have ever made a living selling real products.
    Dennis has said the Browns Gas machines weld. others have said they don't.  BWT is unwilling to supply the name of a single welding house that regularly uses the machines. The machines are heavy, unreliable and certainly not UL approved.
    Dennis says he has devices that produce far higher power output than input. Independent people have found this isn't so.  Jim Murray says Dennis asked him to fake measurements to fool investors.
    Dennis says he has 2000 dealers If that is the limit, how can he also be selling dealerships all the time?
    a few unanswered questions for Dennis:


    back to Eric's main Dennis Lee page
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    a discussion of pphacthological concerns for dealers

    Creator of this page

  • NATIONAL FRAUD INFORMATION CENTER and state attorney generals offices and investment fraud -the SEC's number is 202-942-8090
  • scambusters gives information mostly on fraud over the internet. great list of scams
  • Consumer Sentinel: Complaints - direct form to allow people to submit complaints

    •  http://www.crimes-of-persuasion.com/ - a great resource of scams - their report on Dennis's operation
     Prosecuting Attorneys, District Attorneys, Attorneys General & US Attorneys on the Web
     Internet Fraud Complaint Center
    Comments can be sent to eric@voicenet.com I'm happy to publish critical responses to my claims. 

    This page has been hit  times.

    By the way, Yull Browns idea to incinerate nuclear waste sounds a little funny. Think about this, if there is still radiation left after a nuclear explosion which has 1,000,000 degrees of heat, how is a welding gas going to do better. I think he's just confused because it's hard to measure radiation while it's dissipating through hot gas. His stuff never really panned out in Australia, I can't say I feel a lot of confidence it will work here either (but I'm just skeptical)