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.

My opinion, you will be cut out of the picture within a month. I would use caution how you approach this. Remember, it is your knowledge of how materials must be broken down that is of demand, not your ability to haul items. Once you teach them how items should be broken down and seperated, you don't have much to offer that would warrant 50% of the profits.

If I was you go for it, Easy money, don't got to use your tools, and if its closer to the yard heck It'd be worth it for me atleast. But try to keep your knowledge to yourself though.

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

I would state that my reasoning for not accepting the deal is that you would need to double check their work in order to maintain your businesses integreity. I would also suggest you mention some of the liabilities and hazzards that come with ewaste speration, that alone should give him reason enough to not want to take the liability of having his employees seperate the materials.

Holy Cow!!!! I won't do that even if they were giving it all to you. Even if you where completely secretive about what your doing, they still would see the piles of separated material and after a month or so, your out and they hire a minimum wage worker to do your job. Keep taking to your place, even though the hassle, but keep your "living" out of the "big business" hands. Thats like shipping all of our work over to China and putting the Americans out of work. Job security is the name of the game.

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

then again I wouldn't at all

I'd agree but would say I have to work out of my facility and be at my business. They wouldn't leave there business to do something for you. Why should you?

In this business knowledge is the most important, once they learn that by looking over your shoulder, you will have nothing left to offer them, and they can easily bypass you. If they have several thousand pound per month, there is plenty of profit to be made, and they might want to get all of it evetually.

I would have never explained the process to them..u screwed up there..now however, if u dont cut a deal, well they prolly will find someone else to help them..go for a 60/40 n tell em they gota transport to the yard..

You use that j.r. s in cottage grove?...BTW how bout an intro neighbor...best of luck

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.

I was surprised that no one mentioned having them sign a contract. I would lay out all expectations and then put them in writing, sign it and then have it notarized. If they balk at signing something then you will know for a fact that they are planning on cutting you out. Having a signed contract alleviates a lot of problems and gives you legal recourse should they not hold up their end of the bargain.