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Scoopers & Friends Discussion Board Archives

Messages archived from the Scoopers & Friends Discussion Board, going back to May of 1998. The discussion board board is an online forum about the business of pet-waste removal. Browse the messages, CLICK HERE TO SEARCH by keyword, or click here to participate in current discussions.

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Page Eighty

NIMBY
Anyone with a suggestion..I would appreciate it
Thu Dec 6 20:03:45 2001


As most of you know, I purchased a business from a retiring scooper about 4 months ago. He has kept his phone line open so that he can refer to me new clients.. I pay him a $20.00 finders fee for each referal. Well, this is the scoop... he can't remember too much of any of our conversations. He tells me one thing then retracts it the next time we talk... He just told me that I have not spoken to him for weeks but in actuallity, I spoke with him just 8 days ago... well here is my problem, when he gives me a referal, he has already talked to the potential client, telling them what the price should be... HIS price... his prices were much lower than mine. I have spoken to him about this but he still seems to do it... I don't want to lose these clients, so I have been acepting his prices (he is acting to these people as if it is still his business, not referred out, as if I am an employee). If anyone has a way for me to TACTFULLY deal with the situation, keeping in mind that he doesn't seem to remember much... I would greatly appreciate the input... Laura
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Tim
Re: Anyone with a suggestion..I would appreciate it
Fri Dec 7 22:06:27 2001


Sounds like fun.
First thing I would do is find out what kind of marketing he has done to keep getting calls 4 months later! Next, I would let him close out his phone line, tell him you no longer need it or his referrals, then have the number forwarded to your business line. (that is, if his phone number was a business line and not his home line.) That way, you can have it forwarded to your business without him knowing and take him out of the loop.

Otherwise, I'd let the new folks know that their quoted rate is an introductory rate and will be raised to your present rate in one month. (or 2, or 3, or whatever time frame you want)

All the other ideas sounded good so I hope that helped.
Tim
Scoop Masters
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NIMBY
Re: Anyone with a suggestion..I would appreciate it
Fri Dec 7 22:47:45 2001


Will the phone company really let me have his forwarded calls without his knowledge? How does one go about doing that? It sounds a bit risky, he could call the number and see that I stole it (sort-of). As far as his marketing goes, it is a yellow pages listing..that's it, nothing special.. I will DEFINATELY be in next year's book!
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Anonymous
why not print up something
Wed Dec 12 23:59:28 2001


why not print somethng up that he could read to the callers. something like
i have turn my company over to so and so . this is theri phone number or do you wish for them to call you back and explain to him mention no prices
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Anonymous
Just be honest with your NEW clients
Mon Dec 10 22:10:38 2001


Hey just tell the folks. This guy has desserted the business and your purchased it from him, give them a new phone number and tell him to go fly a kite without the referral $$$$$$$$. Get Smart!!!!!!!!!

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NIMBY
I don't think you understand...
Tue Dec 11 01:33:03 2001


I would guess that your business is large enough that you do not need or want anymore customers. As I explained HE calls me with referals. IF I had contact with the client first, that would be a totally differant story. Also, 6 referals in less than a month is a LARGE growth rate for me and well worth keeping the contact with him. My integrity tells me that you NEVER stiff someone funds due them. I was just hoping the advise I would recieve would help me to better handle the forgetfulness factor, not dumping the whole setup, or not paying fees due. I truely hope that I misunderstood your response and you are not so cavelear with your clients and contacts.
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Red
Re: Anyone with a suggestion..I would appreciate it
Fri Dec 7 23:05:52 2001


Well, it usually isn't as cut and dry as that. Most likely it is his personaly number - why else would he still have it. I guess maybe he kept it for the referral money - ?

If he did cancel the number the phone company usually won't give it to anyone else for at least 6 months. If things worked out then it wouldn't be HIS forwarded calls but rather you would now own the number and would be paying extra for the phone company to have it forwarded to your current one (rather than getting another line in your home). It's called "Telebranching" where I live. I got a number 4 years ago and have moved twice since then. The 2 new places I moved did not allow or offer that specific prefix that my old address had given me so although I had "disconnected" that old number when I moved, I still owned the number so that anytime someone calls it, it automatically forwards to my current home number (a.k.a.: my office number). In fact, I don't even know what my current home number is as I only use the old work number that is being auto-forwarded. (I also have a cell that I call my "home" number".)

Sorry for the run-on sentences. Hope this makes sense.
-Red
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Pat - Tidy Pets Unlimited
RE: Suggestion
Fri Dec 7 07:21:46 2001


Hey Laura,

Seems to me that you have a very delicate situation that must be handled very tactfully like you said. I also, have been in a very similiar situation myself and the utmost thing you should NOT do is talk bad about this man to any of the client's you receive from him.

Bad mouthing his character is not good business for you. You do not need to explain his memory situation to your new clients. I would simply go with the prices he has quoted and explain that they are not YOUR prices and you will adhere to that fee for a only a period of time, whatever you decide that should be.

If the new client really baulks at paying your prices, they aren't worth keeping and they really don't want the service that bad. If they stay with you after the increase, you are the one who will make out in the long run away :)

Hang in there and be professional.
Pat
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CA Mike
Re: Anyone with a suggestion..I would appreciate it
Fri Dec 7 00:45:26 2001


Hi, Laura -
I like all the suggestions so far, so I can't add much. I think that I would combine Red's and Judy's ideas if I were in your situation. Explain the differences in your service and his and offer the first month at the rate he quoted as an accomodation to the customer.

Since you specifically didn't buy his business (good decision), perhaps you can just have that phone line forwarded to your number. Of course, he would have to agree.

In any event, I would try to keep the referrrals coming. The price is right!

Mike

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Pooch Pal
Sticky
Thu Dec 6 21:51:40 2001


Laura,

What a sticky situation. Do you think he genuinely has dementia or alzheimers? Did you say once that he was an older man?

I was thinking along the same lines as Red. I would just explain the situation to new referrals and they can either accept your price or not. Have you given the old scooper a printed price list of your prices? Not that you want him discussing price with your clients, but better he discusses your price than his.

Another possibility might be to tell the new client that you'd scoop at the quoted price for a month as an courtesy/introductory offer/to honor what he quoted (however you want to put it) and then continue at your price.

Good luck. Let us know what happens.

Judy
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NIMBY
Re: Sticky
Fri Dec 7 00:35:18 2001


Thanks Judy, Yes he is an older man, I think he is senile, not alzheimer or dementia. He has very short term memory though. And because of his memory, he can't remember anything we disscuss. I have written him letters after each conversation, but it hasn't done any good so far. I am thinking that this referal thing isn't such a good idea. I am afraid he will forget who I've paid for and who I haven't then all the copies of checks etc... I just see it all as alot of extra work that with someone else wouldn't be an issue.
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floydPE
sticky
Fri Dec 7 10:35:08 2001


thats why they call it patiance, take it easy on him. just write evrything down just to CYA .WHat about changing your ph # or tell the new cust that the price he quoted was out-dated good luck
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Red
Re: Anyone with a suggestion..I would appreciate it
Thu Dec 6 20:43:39 2001


Wow Laura, what a nightmare. It just seemed too good too be true didn't it!?

1-800-MURDER.... :)

When told the facts of life concerning this situation and his stupidity does he refuse to change / stop doing it? If nothing else I'd inform the refered prospects that "He is very nice but senile old man that went out of business because of the prices he gave people were very unrealistic. He hasn't scooped in a long time and I'm not sure why he tells people what he does but anyway I'm here to make your life easier, very economically, professionally and hassle-free....!

Another one of my life quotes: Get it in writing.

-Red
PS: Don't you just hate the human race sometimes! :)
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NIMBY
Re: Anyone with a suggestion..I would appreciate it
Thu Dec 6 20:47:56 2001


Thanks Red! I got out of the grocery business so that I wouldn't have to deal with this type of person, well, I guess we can't have it all... but I sure will keep trying! I will try your words, they sound like they would work just fine... Laura

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minesweepers
suggestion
Thu Dec 6 20:34:01 2001


first of all see if you can get him to release the phone number directly to you.in your purchase did it include all of his advertising and logo's .the number may be included if not,then try to buy the number from him.what that is actually worth i have no idea.if all else fails the hell with him 20 bucks for a referal is alot anyway.start advertising as "formerly joe's pooh scrapers"or whatever good luck

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NIMBY
Re: suggestion
Thu Dec 6 20:45:03 2001


I did not buy his name, logos, or phone numbers. I personally do not like the way he handled his business, and did not want anything to associate me with him. I only bought the client base. As far as $20.00 per referal goes, I believe that it is a great price for a sure thing. I do not pay until the client pays. Advertising is the biggest expense in this business and if only I could pay just $20.00 for each client I would be much better off then I am now.
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minesweepers
twenty dollar referals
Fri Dec 7 23:58:02 2001


twenty bucks may be cheap for a referal but when you figure in the phone calls to straighten him out.the haggling with the new prospects ,time lost on a cheaper price that you didn't plan for and the tylenol that i'm sure you've been taking for the headache's he gave you it's just not worth it.me personally i can screw things up just fine myself i don't need anyone's help and i certainly won't pay someone to make my life harder.get rid of him he's not worth it if the referals can call him they can call your number as well .good luck
RON/MINESWEEPERS
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Mark
Re: suggestion
Fri Dec 7 01:10:04 2001


Laura,
If the phone line is his only line, there might not be much available.

If its a dedicated line that he's still paying for, he might be willing to release it to you. You might be able to have the telco do the "That number has been changed to n..." recording that redirects it to you.

Another option would have the phone automatically redirect to your number. He would have to release the line and you'd have to pay for it, but it would get him out of the loop.

Also, has he referred enough to make worrying about the phone worth it? Maybe the few he has just need a take-it-or-leave-it offer.
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NIMBY
Re: suggestion
Fri Dec 7 22:49:41 2001


He has had quite a few referals for me in the last month.. 6 total in the last 4 weeks.
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Erin, Dirty Work
Re: suggestion
Mon Dec 10 18:03:09 2001


Laura - can you clarify or ammend your agreement with him so that a client has to stay on/pay for 3 months of service before paying the referral? That's what we do with the business we bought out. Otherwise, what is his incentive (as someone pointed out above) to not quote some goofy low price so that they will sign on and he can make 20 bucks from you?

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minesweepers
sugestion
Tue Dec 11 00:34:57 2001


i know i can't spell,the reason lawn maintinence routes are usually so cheap is because there is no gaurantee the customers you buy will stay with you.i think three months is fair for him to be paid on referals.if you want to be even nicer to this crazy old man then pro-rate the ones that don't stay.besides once they sign up give them your other number and forget MR. MAGOO
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Red
Re: suggestion
Fri Dec 7 23:09:41 2001


If he's got any relatives in the business in my neck of the woods let me know - despite the problems he's given you Laura, I'm sure you realize what a gold mine he was / is.

a bit jealous,
-Red
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NIMBY
Re: suggestion
Sun Dec 9 14:55:54 2001


Well Red, I don't think he has any relatives that are in the biz in your area... if he did, I would definately let you know! And yes, you are right, he is a gold mine for me. With all the new clients he is sending me, and the fact that I had a small story written about me in a free newsletter that goes to all the vets and groomers in Western Washington, I am growing so fast, I think I will be hiring a subcontractor soon. Since you have employees, not subcontractors, I would like your opinion on employees vs. subcontracting. I feel that not having to deal with the taxes and workers comp. will save me alot of hassle.. what do you think?
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Red
Re: suggestion
Mon Dec 10 09:39:17 2001


I disagree. There is absolutely no difference in my opinion. The only way they differ is in how their taxes are paid. I have both. Each new "employee" is a "contractor" for their first 90 days. This saves me a little and yet still keeps me legal. I also have a couple guys that I call upon when I'm short someone. They usually work a couple days a month for me. Each of them are also considered contractors rather than employees. I use ADP for all my payroll and employment tax and reporting issues. They are the largest in the country and will really take the hassle out of it for you. It's around $100 a month and worth every penny.

Congrats!
-Red
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Erin
Re: suggestion
Mon Dec 10 18:01:32 2001


Red - but don't you have to pay more for an employee versus a contractor via the emoployers percentage of Social Security?

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\Red
Re: suggestion
Tue Dec 11 00:52:16 2001


Hi Erin,
I really don't know the exact percentages but I probably do pay a little more overall in taxes for employees over that of contractors. What some of us may be forgetting is how high income taxes are. I think much of the money that we save by not having to match the employee's taxes is lost by having to pay more in income tax. Does this make sense or am I exaggerating the later too much?

-Red
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NIMBY
Re: suggestion
Tue Dec 11 01:37:41 2001


Don't you get to deduct the full amount paid to a subcontractor from your taxes? I know I can on my quarterlys here. Maybe I should ask an accountant. I was thinking that the disability/workmans comp. would be my main concern as far as cost with employees go.

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Erin, Dirty Work
Re: suggestion
Tue Dec 11 08:41:48 2001


Laura -

I am fairly certain you are right. Typically when you 1099 ANYONE, you get to write all that off. I think the percentage of SSN paid is 14% if they are an employee plus unemployment, etc. It is a lot to think about, that's for sure :)
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      Pooch Pal
contract versus employee
Wed Dec 12 20:55:56 2001


As I understand the IRS rules, if you have someone working regularly for you, we don't meet the definition that would allow us to carry someone as a contractor because we retain too much control over where, when and how they work. have I missed something that would allow subcontracting?

Judy
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Mark
Re: suggestion
Mon Dec 10 02:14:35 2001


I don't have employees yet, but thinking about it - A sub contractor is someone in the waste removal business like you. Be careful that you are not breeding a competitor.

You have so much more control of your business when you are the employer and pay a wage vs. partnering with a sub.

If a sub also has to drum up some business on their own, why do they need you?
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