Contracting for C.O.D. Oil company

Biged

I am in the process of negotiating exclusive rights to an Oil Company's service work. anyone every done this before and is this contract something you would draft yourself or would you get a lawyer involved.

Maine Ken

Why a contract? I do the same for a COD company. They recommend me exclusively. It is all recommendations, HO's call if they wish or they go elsewhere. It works very well. I also do the same for another company that has several service Companies handle their accounts. That too works very well. Contracts can lock you into something that may prove to be more hurtful than benificial.

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mark_56

I agree with Ken. I work the same way for a local company. One hand washes the other. They recommend me, I recommend them. Many of their customer's will not pay my prices and that's fine. Those who want the same fuel for less and are willing to pay more for competent service know that they're getting a deal. And nobody has to get sticky with legal flypaper.

STEVEN MARKS

I agree. I also work part time for a local oil company installing new boilers. He gives me the leads and I sell the job to the customer and I am paid upon completion. He takes care of all the billing and assumes all the risk. I always leave something for him so that he's happy.

Unknown

I am a service only company that has friendly relationships with the discount oil companies. Theres not really much to negotiate,.. they need you equally as much as you need them. All of my relationships are like Kens,.. recommendations. I would avoid any kind of contracts or money exchange for leads and/or commisions.

Keep it simple,.. he recommends you to his customers for service, you recommend him to your customers for fuel delivery.

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mtfallsmikey

I did it for almost 10 yrs.

My "retainer" for giving this jobber's customers priority service was in the form of free fuel oil for my house! No written contract, but his customers were chintzy, actually walked away from several unsafe situations which upset them, so make sure you have a clear-cut policy in case of any furnace or boiler you service that is unsafe.