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Deduction for "trash"

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    diesel1 is offline Metal Recycling Entrepreneur
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    Quote Originally Posted by Patriot76 View Post
    Since scrap yards differ as much as scrappers, this response is based on my local yards. Car bodies are crushed here and trucked to other facilities for processing. Our prices reflect the average garbage found in a vehicle. Our crushers cannot handle busses so they must be sheared like other machinery.



    The 30% figure is very high (seats, glass, and vinyl equals almost one-third of the weight of frame, motor, axles, and body?) This is negotiable and based on someone that will only bring in one bus. My standard strategy in working with a new individual or yard is to negotiate up front a tier system. First bus 30% deduction, second bus 25% deduction, third bus 20% deduction, all additional busses at 18% deduction. They can still earn a profit this way and you improve your margin through volume.
    I appreciate the input from other members. A puzzling factor in the bus biz is that there is a local scrap yard that has bought batches of these buses in the past and had them flat-bedded 90 miles to a mega-mill processor in Chicago. I talked to the towing company; who told me that the towing, same as they charge the other guy, would be $500 per bus. The people I deal with cannot figure out how a guy can pay over $100/ton for the buses, plus a $500 tow and still make money. I'm thinking that the processor in Chicago has a better handle on actual yield from buses, can process them efficiently and thus pay more. And they may be paying more based on the total volume that the yard sends in, versus a one-shot guy like me.

    My real confusion though is this: the scrap yards are paying "X$" for full weight on "dirty" scrap, whether it is general "sheet", car bodies, appliances, aluminum breakage, etc., with the trash factor figured in. I can understand deductions for tires, wood floors, etc.. For instance: I took in an aluminum semi trailer with wood floor and steel frame. The yard paid breakage rate minus tires and 1000# for the wood floor, which seemed very fair on a 12K# trailer. But that was only about 10% of the total weight. So; 30% on buses seems way unreasonable. I have 1 more processor to talk to before I decide whether to proceed.
    Last edited by diesel1; 05-26-2018 at 08:12 AM.

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