Contracts

When I used to do FREE metal pickups, I used to tell clients just to call me when they needed me. No contracts to sign. However, I have lost 2 good clients because there was no contracts, and they decided to give the stuff to their family/friends. So, I am done giving away my clients really.



Granted, I will have a lawyer finalize things, so the contracts could stand up in court, but I am curious to know how you all came up with yours?

I ask, because the last few times I asked them to draft me certain documents, they just gave me a look like "wth" and it took a bit to explain to them.

They are good, but o lord!

I will be making the contracts good for either 6 months or 1 year terms. Which can be voided upon mutual written agreement from both sides. However, if say the client decides to sell to abc recycling (fake company), then I can take them to court for damages (wouldn't really, but they dont know that).

Originally Posted by vijunk

The major potential downside would be your exposure to damages for non-performance.

This is why you would never or should never go into a contract if you know full well that you cannot keep your side of it up.

Only reason for non-performance would be my family vacation, but all clients *recycling and others* get a two week notice that I will be out of town for 1 full week.

You need to consider how many customers you may lose by bringing a contract into play...keep it simple. Over the years I have done dozens of deals worth tens of thousand based solely on two people looking eye to eye and shaking hands. Some would cringe at doing it that way but I never had a problem and also knew my options and what to do if things went south.

Kris Kringle:

I get what your saying. Truly, I do. Been thinking about it all day (while creating a certificate of destruction), and the more I thought about it, I will leave the metal part as it always has been (call, email, or go to my website when you need us).

For clean outs, I never used a contract before, because the type of work I can get done, I am always getting the work when it comes in.

I have just heard others talk about contracts, so figured it might be a good thing to implement.

Minus scrapping, I have used contracts in everything I have done. Just been normal business.

Originally Posted by PistoneScrapProcessing

Pay the piper or the music stops.

Hope you don't mind but I will be using that one...elsewhere of coarse.

Originally Posted by PistoneScrapProcessing

george theres scrapping is the same in every state no matter where you are. Sorry I have worked all over the east code. honestly your business model is unsustainable and is doomed to never grow to more then just you. You want everything for free then you go and cash it in and keep all the money. In my world thats called cheapskate. Prepare to lose all your clients just as you are doing as I type this. You already lost two and all it takes is a penny to outbid you so good luck on getting someone to sign on the dotted line. In this business you either create a way to set yourself a part from the rest of the scrappers or you get left in the dirt. How does eating dirt right now taste? Pay the piper or the music stops.

And you definitely did not read the post of where I talked about loosing those 2 clients.

I said, that they started letting their families take it in to help them out.

One customer was a HVAC guy. I called one day to let them know I will be out, and my friend that worked there, said that the owner decided to let his nephew do it, because he needed money for college or whatever.

My other HVAC guy was a SMALL time gentlemen, and work was getting slow...only income they had was his, so he decided to start scrapping his stuff again. Like a lot of my clients....he knew that stuff was worth cash, but when he first contacted me, his words were "I have already made plenty of money on it, so I just want it gone"

You say that I want everything free, yet I never said that. All I said, was that I never pay for anything, and I don't. No reason too, when I am always getting it for free.

Aside from contracts, you all think that the only way to get metal, or anything else to pay for. That is the way YOU run YOUR business. I know several BIG companies here, and one of them I know is nationwide, and they do metal, junk, electronics, etc and none of them pay for any of it. They are all PAID to take it away.

I can see people paying for electronics, because of how much any of it is worth, and how most can sell on ebay or else where for a nice penny.

But to me, electronics would be the only thing worth paying for, and even though, I know of one company here in Virginia, DC, and MD that does nothing but electronic recycling and they pay for none of it. Companies pay them.

You all have taken what I was talking about and totally blown it way out of proportion. You all make it seem like my head has swelled and I seem to think I am rolling with the BIG DOGS, when I never said that.

I am helping out another member with their business (name will remain private), and they use contracts with their clients. Granted they pay for some of the material, but none the less, I was curious to see who all might actually use contracts and if you do, how do you use them. Is it for certain clients/jobs, or what.

I get a lot of business, both residential and commercial. Some have been long standing clients since I started, and some call once every few months, and others are referrals from other happy, satisfied clients.

All I was seeing, is how contracts might tie into this business. Like I mentioned, I have always used contracts in every business I have owned.

You all can think what you want of me and every other member here who gets metal and electronics for free, and there is several on this board, but it don't bother me none.

Like I said, if I am getting something for FREE, no sense in paying for it. No, it is not being seeking a handout, me being a cheapskate, or anything else.

Like many have said, I am the one spending my gas, labor, sometimes the labor of others, time to load, unload, tear down, load again, unload again, etc. My time is worth money.

If I was constantly going around buying up product, most likely I would loose out on money.

Like I said before...most clients know that anything that they give us is worth money (even most times on junk jobs), and they don't care...they just want it gone.

I know of another guy on here who is small time or medium time, and he charges his clients as well for going and picking up stuff.

Like I said, we all operate things differently. Just because you all operate one way, does not mean, that is how the rest of us do it, and just because we don't do it your way, does not mean we are doomed to fail.

Contracts are a bad idea to ask for as you probably won't get it signed. However, why does everybody think the scrapper is getting the better end of the deal? If they have metal for removal on a regular schedule I would like to know i'm the only one they're calling.

Example: I have been being called for over a year by a motel chain that rents by the week. They always have about 10-15 mini fridges a bunch or bed frames when they call me. Resently they were having alot of trash furniture needing hauled away. So as a perk to them I would haul the furniture away for free too. I was like well they have been calling me bi-weekly for over a year 10-15 mini fridges at a time the least I could do is take a few loads to the dump free of charge. Motels remodel rooms like every 3 years or so. Well I ended up hauling so much thash to the dump that I eat up all the profit I had made off the fridges since they had been calling me(over a year) Well I was fine with this as they wouldn't be doing another remodel for atleast a few more years and I'd start making money again from them. After the remodel the new maintainance man started taking the fridges in himself. I feel like all the times I went and picked up the fridges was all for nothing as I probably lost money after everything was said and done. I wish I had a contract from them guaranteeing me all of it. Just my .2 cents

George we are all subject to feedback when we post, especially when you ASK for it. Take it for what it's worth and make your decision, no need to justify everything. Remember, you ASKED and members were happy to give their opinion.

Closed by request.