Your expert opinion needed?!

Hi Y'all,

My name is Billy, and though I am a newly registered user, I have been browsing for quite some time. This forum has been helpful in getting me started, and I want to say thank you to everyone!!

On a different note, I do need your opinion on an interesting offer I received today:

I have been buying servers, finger cards, etc from a local networking company. Since they do have some volume, I have been buying from them at around 35%-60% scrap value, depending on the item. Today, the IT manager contacted me about some finger cards (About 50 lbs worth) and 20 servers (EMC Centera Node), and they asked what exactly I do with them. I told them a little about my process, and they offered this: Instead of buying all of the equipments/parts/servers/etc from them, how about if I break all of their scrap down on a regular basis, and we just split the profit. They will offer all the necessary tools, and a warehouse space for me to work in.

My train of thought is that this is quite a good offer, as they probably produce several thousand pounds of scrap each month. I am already purchasing them in around that price range, and we are splitting right down the middle. They are closer to the scrap yard than my place, so less gas for me considering I don't have to drive there to pick stuff up, bring it back to my place, break it down, and drive it out to the scrap yard. Also, I don't have to invest in tools (which I already have, but want to upgrade), and the hassle of hauling stuff up and down the basement. Sometimes though, I want a second opinion on things as I don't think too clearly when I think something is too good.



My only concern is that if they learned everything that I do, they just might cut me out in the future. I will try hard to protect my "knowledge", though most of these can be learned online via forums like this one, or other articles.

What's your thought on this guys/gals? Has anyone have had similar agreement in place? What should I look out for? Should the split be 50/50? Anything else I am missing? Thank you very much for your time. I am looking forward to your response. As always, y'all are the best!!

Billy

I wouldnt do it for lest than a 60 40 split. Your time is worth something right? Also I think I would just tell them you would buy all the scrap and still work at your own place.

Not much of a way to keep things secret if they can watch over your shoulder...

if you do, then I agree with a 60/40 split.

then again I wouldn't at all

This happened to some one that sells to me. He found a place and did the same thing. 11 gay lords of mother boards, 1 gay lord of fingers and tons more. He went on vacation and when he came back the guy was no longer their. He cleared out a 14,000 SQ foot ware house and vanished. The guy wont answer emails or phone calls.

My clients ask all the time what i do. The only thing i tell them is i recycle them for the precious metal. That's about as detailed as i go.

Giving up your business is not a good way to go.