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 Kris Kringle

Hmmm George this is kind of a weird one you don't pay for the metal but yet you want someone to sign a contract. How would that benefit someone that is giving you stuff for free? I mean what would you do Say OH Mister you didnt give me your stuff I am going to Sue you? I just don't get it. Clue me in how that is suppose to work?

Me personaly If you was to ask me to sign a contract I would Laugh in your face. If you was paying me for something then I would require you to Sign My contract of course there would be lots of T/C on it.

T/C= Terms and Conditions

Lots of contracts that people sign, even when done by big corporate lawyers, aren't worth the paper they are printed on. They are more used as a security blanket.

I say this, because if someone really wants out of anything, there are so many lawyers that can find loop holes in anything to get you out and not a dime out of pocket except for their fee.

Even if I was paying for material, I still would not sue anyone. Not in this type of business anyway. You will be out of a lot of money quickly just on court and lawyer related charges.

Also that is why contracts have it in there, that it can be dissolved early as long as both parties mutually agree.

Might work different in TX, and other areas, but around here, I know of several big scrappers that just have themselves and a few trucks/trailers and don't pay for material, and they have corporate clients sign contracts all the time.

Here, companies just want their product gone NOW...they don't care about the best possible offer, or anything else. To them, this stuff has NO value. I know, because I have done plenty of corporate pickups already to know this for my area. Heck, half the time, the stuff looks like it was just purchase but never used, and yet, they just ask me how quick I can have it gone.

But like I said, 2 contracts of mine that were weekly went to their family or friends, even though I always showed up and was always quick. So, I am sorry if I am done seeing business go out the window, when a simple little contract can assure me that it may not happen.

If it does happen, I will simply let it go, and if the client wants to contact me in the future, I simply tell them that due to a breach in contract on their part, I am not interested.

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.

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.

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

George stop thinking people owe you something for nothing sounds like welfare I want my free stuff and I want it now. In order for you to contact the work you need to pay for anyone offrring over a penny can get the work. Nothing in life is free. Not to rip on you at all but this isnt pre2003 when scrap was collected for free and people did want it done and gone. Now everyome knows scrap is worth money and everyone can pimp scrap to the yard people want paid for it even if its only a few bucks or else you are providing a service anyone with a truck can do. You want to grow your business it takes money to make money. You are basically looking for a handout and trust me people hate that attitude now a days.

Like I said, before, I am not talking about what works for you in your state, or any other. I am talking about what I know for this surrounding area.

I do residential, as well as commercial pickups. I never pay for any of it. Because around here, the prices change almost daily, if not multiple times per week. Everyone I pickup from, from the most part all know this stuff is worth something, and most know exactly what it is worth. However, the way they look at things is that they have already made money off of it, and that is cool with them. I think there is a total of maybe 5 times I ever paid for anything, and even then it was nothing more but a few bucks.

I am not a cheap skate by any means, but at the same token why pay for something when you can get it for FREE?

If someone called you up and said come pick up my metal, and didn't ask for anything, you sure wouldn't offer anything.

No one ever said anything in life is free. I have been working since I was 14. To be honest, I am surprised the government hasn't come up with some scheme to make us all pay for the air we breathe anymore.

Also, wanting commercial clients to sign a contract, making you the only one who picks stuff up, is not looking for a hand out...just business.

There is roughly 5 or 6 companies here in the Northern Virginia area that I know do things off of contracts with clients. All they do is like me...they go out when called, or they go out at a certain time weekly or bi weekly.

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.

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.