how many on here have them
route style? weekly pick up bi weekly ???
i have 14 contracted accounts and i am finding it harder and harder to maintiain the routes when their supply dries up any ideas
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how many on here have them
route style? weekly pick up bi weekly ???
i have 14 contracted accounts and i am finding it harder and harder to maintiain the routes when their supply dries up any ideas
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I am not a business so I have 2 informal agreements. If I was a business I would be out there everyday generating fresh ideas and I would stay diversified so as to help when prices fluctuate.
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i am definately diversified the probelm i am haveing is i have a truck on the road burning $30 a day in fuel to go to a shop EVERYday and get $8 bucks in metal. i have a contract that states i must show up daily by business close monday through saturday it wasn"T bad until recently they aren't doing any engine or tranny jobs while i understand they are slow the owner is less than relunctant to let me slide on the terms thoughts
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I would scout to see if they arent undercutting you. If they have someone coming in, after or before you, and then paying them for their scrap. They would be using you as a backup if they don't show. If I were to sign an agreement like that I think them granting you a min per day or pay the differences. Its way too easy for someone to abuse you in that manner. By me there are hoards of illegals that make a penny or two per pound from auto repair shops.
What are the terms of your contract if either of you default? Is it legally binding?
Last edited by Russell; 09-07-2012 at 12:41 PM.
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Russell the shop has alot fewwer cars everytime i go there i know the guy is hurting the lifts are always empty so i am not worried about that. The requirements for the contract stae i must have prrof of insurance with the shop named insured no biggie. it specifies by percentage the amount to be paid on the first and 15th for all invoices on collected metals no biggie. the contract goes from april 1st 2012 to 4-1-2014 and unless we both mutually agree there are penalties for termination on both sides.
it"s a standard contract no different than any other dumpster container/route contract.
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Hopefully business picks up for him. Perhaps some creative marketing to help. Afterall it sounds like his loss is also your loss. Perhaps a small investment into a prop. Do you have room on your truck to display a magnet with his business name & # ? After his gain would also be your gain.
Secondly speaking from experience from owning a window washing co. That flopped, I can say this. Keep your accounts together in proximity. The next best thing you could do would be to generate business inbetween your location and his.
Your not just loosing the revenue but you are also loosing that valuable time that could be spent doing something more profitable. So, the real value of what you are Truely loosing is far greater than the 22$ red mark daily. It's also causing stress. Pony up the default and get out if it if all else fails.
I'll refer to opportunity cost. I think this a great example of its meaning.
Last edited by Russell; 09-07-2012 at 01:47 PM.
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while i have room for a magnet i definately wouldn"t do it as i can already hear the cempetitors complauining at my other stops
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Not sure how this could be profitable........Re-negotiate your contract to once a week until biz picks up........If the shop does get over run with metal they can call you and you could swing by and pick up any excess......If the owner is a reasonable man he will understand once a week is better than every day.......If not what is the penalty to buy out??? Reason why I sign no long term contracts because anything can happen and I might not feel like working that day..........LOL
BUYING ALL COMPUTER SCRAP WORKING OR NOT
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the owner isn"T all that reasonable and absentee to boot the manager isn"T much better
default on contact has a penalty of $1500 for early termination on either side
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It probably sounded good at first but I never would have gotten myself into that (JUST THE WAY I DO BIZ)..........I wish you luck Maybe you could call the owner???Originally Posted by Libertytow
Metal Recycling Entrepreneur
He is intentionally putting the screws to you. He wants that $1500.
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I would have to plead insanity in small claims court, if were you , liberty.
Perhaps you were a bit over zealous with this kind if contract. I understand with the competition over shop scrap how it was drawn up like that.
Last edited by Russell; 09-07-2012 at 02:38 PM.
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i"ve had the contract since 2001 it was great up until the beginning of july this year the problem is because he"s slow yet he still wants me there EVERY day.
it was real lucrative when he used to do 5 enignes / trannys a day
Metal Recycling Entrepreneur
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Have you considered that perhaps HE is in violation of the contract? If it is a standard contract, it would have a provision against hazardous waste, which as defined by the state of New Jersey numbers over 1,000 substances including petroleum distillates (trans fluid) and gasoline. Complete list: http://www.nj.gov/health/eoh/rtkweb/...shhl_alpha.pdf
You might want to have an attorney look at the specifics of this, and if your attorney finds holes in it, your attorney might advise you to document the hazards, and send the shop an invoice for $1500. by certified mail, registered receipt, etc.
Metal Recycling Entrepreneur
maybe he's in denial, wishing it was like it used to be, afraid if he slacks off it'll never come back, who knows
President, VIP Recycling
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Libertytow,
I know those contracts seemed like a good idea at the time, but right now, it seems as if they are hurting you more than making you $$$.
I wouldnt have made the contracts that strict, one a week or bi weekly is more than enough, and then if a client needs it more, than that is fine.
Contracts like your talking about, should be more for bigger companies, not auto shops.
George Beale - Founder & President - info@viprecyclingjunkremoval.com
VIP Recycling Junk Removal LLC - Premier Scrap Metal, Junk, & Electronic Recyclers!
http://www.viprecyclingjunkremoval.com
Metal Recycling Entrepreneur
what percentage does he get ? offer a bigger percentage for less pick-ups, kinda like a trade off
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This is why I don't sign contracts. In this busness the scrap is there one day and not the next. My .02
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Jpete said it
We're the renegades of Junk!
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when i first started i thought like that also but it"s only a 2 bay shop and used to fill up FAST therefore the everyday worked well
i have the contracts with bigger companies to the owner here is just unreasonable
Bear he gets 75% of all tickets cashed in
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