BAD day for a scrap yard

First, let me make clear that this is NOT about any scrap yard I have written about before. I will not name the yard involved, but it is NOT a yard in Oakland (for those reading this from Maine).

Went to check out a yard this morning, Got there and had a "CLOSED" sign in the window. Door was unlocked, so I checked the office - empty. I could hear a couple guys in the work room. Pretty soon, they came out where I was. Asked them what was going on. Earlier, they'd had a check bounce and had to close down till they got money in from a load. Figured they'd be closed for 2-3 weeks. OOPS.

Sounds like the beginning of the end. I know another small operator around here who has a reputation for bounced checks and several guys have warned me away from him. Nothing kills business faster.

Originally Posted by Escrap

That is why you should always have a line of credit at the bank. LOL

The problem with lines of credit is that they can be canceled at any time, without notice. Any balance becomes a loan, due and payable immediately. It happened many times over the past few years.

They mentioned Newport being closed, too. I forgot that. Not sure, but I'd guess there are several reasons. High fuel cost eating into profit. Less scrap due to so many yards opening in a relatively small area. Also, less scrap lately because so much was scrounged up a couple years ago. Poor business planning. My guess is a few more will go away before long.

Originally Posted by vamped400

all im hoping is that the scrap game doesn't die soon.

An old Boyscout campfire song comes to mind:

"If I were not a scrapper, I wonder what I'd be,
If I were not a scrapper, a _________ I would be! (followed by some funny saying from said profession, repeated numerous times)"