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Trying to stay low key from the big dogs

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    Rollyrogers33 started this thread.
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    Trying to stay low key from the big dogs

    A week back from vacation and already have two business set up for pick up of computers and office equipment. I meet with another computer repair shop on buying Ewaste. I am having a hard time trying to keep up with buying all of his stuff. Monday I bought 40 towers from him at $5 a piece. Wednesday I went back and bought 10 used working laptops with cameras. Today I bought a bin and half of old CDROMS and 20 LCD flat screens at $4 a piece.

    Now before anyone jumps all over me for paying for LCD's. It was part of the deal of buying everything and more.



    This guy just has more stuff then I have money. The owner of the computer repair shop told me that there is a large recycler in town that pays these prices. I could easily sell to the buyers on this website and make more money than what that guy is buying at. He said that he remembers back 10 years ago when this recycler got started and he sold him stuff all the time. The second to last time he went to the his buddy's recycling yard he was told by guy he wouldn't be able to wait on him personally because he was too busy. The owner than told me that he went there 2 months ago and got paid close to $8,000 in Ewaste and his buddy wouldn't even come out of his office to say hi.

    I told the repair shop guy that it's free pick up and I match prices or even do better. It's saves him money and time. He said that he would call his recycling buddy and try to set up a time I could go meet him and see his operation. I declined several times. I figured if I am out pricing this big time recycler in town, then I don't want be like little red riding hood skipping my way down into the wolf's cave. I was told he has a million dollar machine that eats towers like nothing and his buyers are Chinese that he fills rail cars with Ewaste. Anyways, if the owner can't get a visit from the recycling buddy. Who am I to him, no one. Except some who is slowly chiseling away at his honey pot.

    I want to stay off that guy's radar as long as possible.
    Last edited by Rollyrogers33; 08-08-2014 at 11:24 PM. Reason: Spell check
    "It's not the years, honey, it's the mileage." Indiana Jones - Raiders of the Lost Ark

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  3. #2
    msmoorad's Avatar
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    low key/profile is the way to go

    when u get big-ppl notice
    and then jealousy, greed & other factors come into play

    nobody needs that

    as long as u are able to live a decent,comfortable life
    who cares how much money anyone else is making- be happy for them & carry on with your thing.

    thats how i see it.
    Last edited by msmoorad; 08-09-2014 at 03:34 PM.

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  5. #3
    Rollyrogers33 started this thread.
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    Hey, some people want it all and those are the ones you stay clear of.

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    mikeinreco's Avatar
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    When I first started with Ewaste I wanted everything I could get my hands on........As you progress and learn you will become more selective and realize every deal is not worth the money/time/effort...........

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    spinroch's Avatar
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    The big dogs locally have gone out of their way to convince me that there was no room for me in the eWaste arena. I have contracts with some to handle my downline scrap, but they keep trying to convince me that I will fail as a business. Silly boys!
    F1 Recycles

    Electronic/Electrical/Mechanical Recycling
    www.f1recycles.com


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  10. #6
    SparrowMetals's Avatar
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    I have "big boys" in my line of scrap collection that I routinely out-price. One benefit of being a smaller company is low overhead. I don't have ten trucks on the road and a dozen guys to make payroll for. They do. I'm willing and able to spend some extra time with my sellers to really go over their materials and pay them correctly on their high-grade stuff. The "big boys" see this as a waste of time, and they flat-out won't do it. Rather than pricing units individually based on actual values, they cling to "averaging", which is designed to work in THEIR favor, not the seller's. $60 units and $200 units have no business being in the same category, but that's exactly what these guys do. With this method of buying, there are risks. They know this, so they will also intentionally lowball on much of what they KNOW is good material, as "insurance" against getting a bad batch. I have no need to play such games, and my offer vs. theirs reflects that fact every time.

    I would go and meet this guy, check out his operation and have a friendly talk with him. Nothing to fear, he's just a man. Some of the big guys like to act all big and bad, brag about their million-dollar operations and how "nobody can beat them"... I've found this last statement to be false every time. These guys CANNOT stay in business on the profit margins that a small operator can make it on- Not even close. Yes, they get paid better than we can for their material by moving large volumes, but that's not enough to offset their huge overhead expense and, unfortunately in most cases, just plain greed. Most of these guys are simply too accustomed to making big margins, and they won't change that even when it costs them accounts.

    I think you'll continue to do just fine. Once your customers like you and know they can count on you/trust you, it's hard for any other buyer to get a foot in the door, no matter how big they are. The big boys have tried it here with my customers, and they were shown the door. Most sellers know that good, honest scrap buyers can be hard to come by, and if they like you, they won't take the risk of switching without a very good reason.
    Sparrow Metals- Automotive core and converter buyer in Central PA since 2012.

    www.sparrowmetals.com

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