Hi guys - (sorry for the length of this, in advance!)
My name is James, from south/central Maine, and I'm pretty new to scrapping. I made an intro post a few days ago here: http://www.scrapmetalforum.com/intro...rom-maine.html
I have been learning as much as I can about the industry. Reading as many threads in this forum, youtube how-to videos, and talking to as many experienced people like Mick, and IRL friends who have done it for a while. With all of this information being collected, I've gotten a better idea at what the options are out there, and what type of operation I want to run. I'd consider myself above average intelligence, and very above average in regards to work ethic, drive, and determination.
I just want to take a moment to explain a few things about my current situation, before I explain my dilemma. I work 9-5 in an office, so scrapping is "part time" for me. However, since getting into it I've been spending 3-4 hours every night, and almost 10 each weekend day. Due to my hours, I also have to hit the scrap yards in the morning before punching in. That adds up to almost a full time job. I have a nice, one bedroom apartment on the third floor of a building, in Lewiston, Maine. To this point, I've already had to haul a few things up to my apartment (with the help of a friend), but that can't be a consistent theme. My buddy has a wife and kids, and isn't always attainable , and hauling washers and dryers or other things for temporary storage will not work.
My funds are pretty tight. Moving out on my own (ending a relationship and no longer splitting finances), although amazing, is much more expensive. I am pretty good with my money, and am able to pay all of my bills on time, including my new truck I got a few months ago. (Small Chevy s10 4cyl 5 speed - which is allowing me to scrap in the first place). However, everything to do with scrapping, including any costs (equipment, any fees or gas) has to come out of its own pool. So far, I've been successful with this. My first haul made me 75$ (turned in scrap, but sold a few things above scrap value.), so I have the first 'investment' to continue. At this time, I do not have a trailer, and in no way am I able to spend the hundreds of dollars (or less) on getting one. If I did, as I mentioned, that would HAVE to come from the money that I have made scrapping in order to acquire it. My funds are so tight that I can't take it away from bill paying in order to buy it, to try to make more money. Although it's a catch 22, it has to be that way. In addition, I have been looking into the option of getting a self storage locker. There are several around me, including one just 2-3 minutes down the road at a reasonable price. This may be the option that I need to do if space continues to be a problem. However, as I mentioned (notice a consistent theme?) my funds are tight, so if I were to get a self storage, that would have to be with the money that scrapping generates.
Okay, if you've read all of that, I salute and thank you. Onto my dilemma.
My dad owns/operates a salvage yard in Maine. Most of the cars (about 4,000 total?) are from the 50s-80s. 99% of what the business is, is people coming to get the parts they need for their older vehicles. The cars themselves cannot be scrapped, due to that being how he makes his living. (Him scrapping the entire yard and making around 1.5m$ is a discussion for another day.) However, through the years, they have collected a tremendous amount of scrap. I have been going over all of this stuff with him. We came upon an agreement where I would haul it and take 50% of the profits. Split right down the middle. Here's where my dilemma comes in. Our home (and where the yard is) is about 20 miles from my apartment and where I work my office job. That's a 40 mile round trip. (Not including a 10 mile round trip, 5 miles one way - to the scrap yard.) Last night I filled up my truck with light steel, as much as I could. With a complete truckload (a very heavy desk, two trunk doors from a van, some steal beams, some old tailgates, and other small misc steel) I went to the yard. This one I go to offers the best pricing, and even offered me a bump after I explained the salvage yard and that I'd be a consistent customer. I made 31$.
Half of that, my share, is $15.50... Driving around 50 miles in my vehicle (one of those trips with a full load) brings me to about $10 or more for gas, give or take. That's not including my 3-4 hours time, and the wear and tear to my truck. (You know I'm going to have to replace stuff with this weight on there, much faster than if I didn't have it.) As of right now, it's completely pointless to continue this way. I'm not above making a small profit, or putting in the hard work for a great learning experience, but this just couldn't be something that I continue. It's quite difficult for me, because as a scrapper, I have access to an almost unlimited amount of scrap. You guys would salivate all over the place if you saw how much was available. However, the distance the split 50/50 are issues.
I would consider myself above average when it comes to marketing, flyers, business cards, stickers on your truck, and spreading the word of my business. I'm not afraid to talk to anyone, and most people would say I'm pretty personable - I am in sales and have gone to school for business, so all of this is something I'm very familiar with. So, if I wanted to stop doing the haul away method for my dad, and advertise just within the Lewiston/Auburn (twin cities) area (for my own little business) I could do that. However, then comes a space issue. Do I try to generate enough money to get my own locker? If so, that's 50$ in costs per month, minimum. However, that's only 5 trips to and from my dad's house. (that could be done in one week, not in the entire month like the locker fee would be.) If I did this method, I would keep 100% of the money, drive much less, but need to acquire a storage room, most likely.
I also would like to get into e-waste. Because of the area I live in, (one of the most city-like areas in the entire state), the e-waste volume would be pretty high. I wouldn't mind investing hours every day to rip apart all of the stuff and sit on it for a while until I collect a good amount, with doing random pickups on the side for immediate cash. However, this again means I may need a (24 hour access?) storage, because I don't have anywhere to be smashing things that isn't 20 miles away.
In addition, I just read the other thread where prices are supposed to plummet even more in July. Although this doesn't sway me (turning something free into money is still profitable, even if there's less profit to be made, right?), I do want to take it into consideration.
If you have read all of this, you deserve some sort of award. And if you HAVE indeed read this - my question to you is, what do you think I should do?
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Originally Posted by Mick
P & M Recycling - Specializing in E-Waste Recycling. 
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