If only a handshake agreement is available, the seller should be confident of the buyer s references and reputation. Written agreements offered by buyers include letters of intent to purchase material and formal contracts. Buyers, however, are usually most interested in large communities and businesses that generate relatively large quantities of material in a small geographic area. Buyers are often less enthusiastic about dealing with rural communities or small businesses because they typically spend more money on transportation and education of local program employees while receiving less material. Smaller communities and businesses can attract more secure markets by marketing their recyclables jointly through a cooperative marketing organization.
Cooperatives can also share education programs, transportation and storage.
Organization staff saves participants time and money by arranging contracts, handling bookkeeping duties and maintaining current information on markets. When assessing markets, remember that over the long run, the ability to move materials to a buyer on a regular basis will be more important to the success of the program than the price paid. Developing a relationship with a buyer who will attempt to provide a market for steady customers during poor market conditions is essential to the success of a program. Some communities and business jump from buyer to buyer, depending on which company is giving the best price at the time. Although this method might increase revenues in the short run, a program with no loyalty to its buyer can expect no loyalty in return from its buyer during hard times.