New Scrapper: Balancing the start up budget. tools, gas, etc

Sounds like you have the basics down. If any of those items don't last or fail you when you need it most, then replace with some better quality stuff, but you have a good start on stuff.

Maybe search Craig's list for some used tools with a brand name. They may be cheaper and last longer than those from harbor freight.

Keep at it, you have a great start. Are you working a regular job and doing this on the side?

Maybe search Craig's list for some used tools with a brand name. They may be cheaper and last longer than those from harbor freight.

Also check out your local pawn shop for better than average tools, A lot of guys pawn their stuff when they need to pay a bill.

Remember that not everything is scrap.

I buy all my tools from harbor freight except my cordless screw driver that I bought at walmart for twenty bucks. What I did was every time I went to the yard I would take some of the money out and set it aside till I had enough to buy some tools. Don't forget the magnet unless you already have one.

Originally Posted by Sirscrapalot

As Mech said..hit those pawn shops! I've gotten some great deals on power tools there, hell even ones I'll never use..lol.

Good tip mech!

Sirscrapalot - ?

bought a brand new dewalt 1/2 impact wrench (forget the exact model) for $85 at my buddies shop the other day, i took it all the way to the back of the storage container just in case my Makita ever quits on me

Originally Posted by happyscraper

I buy all my tools from harbor freight except my cordless screw driver that I bought at walmart for twenty bucks. What I did was every time I went to the yard I would take some of the money out and set it aside till I had enough to buy some tools. Don't forget the magnet unless you already have one.

i know magnets are everywhere but i get mine from my yard, the same ones the yard uses on a keychain

As long as you stay consistent and educate yourself on the forum, we will make your money.

Originally Posted by corycouch

i know magnets are everywhere but i get mine from my yard, the same ones the yard uses on a keychain

I get my magnets from microwaves. There is two in everyone of them.

Buy what you need. If you need it now, you'll likely need it again. Last month I spent $429.69 on tools & equipment. Never, ever, ever, be scared to invest in your business. Keep your reciepts. You'll need them next April 15th (You ARE holding out to render unto Caesar, aren't you??!!??)

You can even utilize that money to help fund purchases as you go along.

How I do it: I track every dime I bring in from scrapping & resale. I subtract every dime I spend to bring in the aforementioned dimes. I divide the result by 3, and I keep that one-third of my year-to-date profits spread out among my Paypal account (~20%), my business account (~30%) and folded up Benjamins in my fireproof safe (~50%). Anytime I need to buy something, I don't have to scramble around withdrawing/transferring money to do so... I ask them if they prefer Paypal, a company check or cash. It's usually cash!

Then, each April, when Uncle Sam wants his bite outta my @$$, I can send him his ransom as painlessly as that can possibly be accomplished.

But as far as tools go, I don't want to miss out on making a thousand this week by not having the tools & equipment because I was too scared to spend 100 last week.

Originally Posted by Sirscrapalot

I get magnets from all kinds of places, stereos( I know right!) speakers, microwaves, hard drives. I don't discriminate..a magnate is a magnate is a magnate.

Sirscrapalot - I'm not prejudice I scrap all electronics equally. - Me

That's where I have to argue, you can take one of those magnets that the yard gives you and check a bunch of screws from different electronics. Then go back over them with a HD magnet and you'll pick up another half dozen or so. You'll be picking up the slightly magnetic stainless also that a normal magnet won't touch.

One more thing, don't focus so much on the money, focus on good, clean, and efficient scrapping and the money part will take care of itself. Money becomes an issue if you buy scrap, but since I don't, making money is not an if, it's a when. I sell a product I do not pay for. Now that's a sweet deal.

Originally Posted by TheRecycler

I sell a product I do not pay for. Now that's a sweet deal.

I must respectfully disagree with the steadfast rule of never paying for scrap.

I get the appeal of having zero investment in your product, but the truest truism of all truisms is "It takes money to make money". If you are able to keep yourself as profitably busy as you desire to be and still follow your rule of never buying inventory, then by all means carry on smartly!! But if you're ever having downtime, or find yourself doing dubiously profitable things like unwinding miles of yellow tape to recover tiny thin strands of copper from a miniscule transformer, then perhaps a re-thinking of the 'no buying' policy is in order.

Last month I won an auction for $95.27. It's virtually impossible to separate out every last dime of income from those items... random unstripped wire went in the tub with wire from other sources, small heatsinks from servers went in the 6063 tub, etc, etc. but I do know of right at 900 bucks worth of income that was solely attributed to the items I got in that auction. I'll take a 900% markup any day of the week!

Unless, of course, your intent is more to purely be a RECYCLER, as your name implies... if the money is your secondary motive, coming in after the satisfaction of having salvaged those items from entering the wastestream, I get that, too.