Beware Getting ‘Just One or Two’ Third Party Locations

by Ranger Kidwell-Ross We know of at least one instance in which a third-party contractor awarded all but one of its 20-some retail accounts in a geographical area to one sweeping contractor of the two in the area. However, one location was awarded to the competitor contractor. As a result, if the third party vendor loses that retail customer then if you signed their standard contract that allowed it to do — instead of lining out that clause and having it initialed by both sides prior to signing — the third party vendor can keep both of the contractors in that area out of working directly for the retailer OR working for whatever third party vendor is put in place after the first one is fired. Always read your contract and believe in the worst case scenario occurring resulting from whatever clauses you sign! If you don’t want to work under the conditions stated in the contract then have the contract changed until it’s reasonable for you. While you’re at it, remember that most third party vendors ‘low-ball’ the expected pricing they send to you. That’s yet another reason why it’s so important to know your costs down to the penny per hour so you know what price per hour works for you. Third party vendors structure their businesses to maximize their profit, which you should be doing as well. So, don’t take their word for what your price per sweep should be. If you know your costs you can’t be lured into signing a contract that doesn’t bring you your expected rate of profit. Remember: You can always contact the WSA office for ideas and advice. If we can’t help directly we’ll put you in touch with a member of our Mentor Team.