Hello,
We break down items to increase profit but, there are couple of different outcomes when we separate two or more items that were once connected by screws, welds, glue, etc. Here are those outcomes:
1. Metal A appreciates and metal B stays the same. (ex taking brass fittings off of a water heater: metal A (Brass) appreciates in value and metal B (tin) stays the same)
2. Metal A appreciates and metal B depreciates. (ex. taking copper wire out of a transformer: metal A (copper) appreciates in value and metal B (steel) depreciates.
The one I want to focus on and want people to keep in mind the most is outcome #2. I forget about this sometimes when I am breaking down but, lately I am trying to be more aware of it. Most people including myself look at the expensive metal in the item and think "look how much more I am getting for this copper" but, dont realize that the other metal (the metal that weighs much more) is going down in value. Lets use the transformer example:
-Transformer example: I am just going to make up some weights and numbers for the example. Lets say you can recycle a transformer that weighs 7lbs for $.25/lb not broken down = $1.75. If you break it down you get .5 lbs copper @2.30=$1.15 and 6.5 lbs#1HMS @.10 lb= .65 a total of $1.85. In this example there is only a $.10 increase in profit if you break it down. A lot of us are thinking "if I take the copper out, instead of .25/lb I will get 2.30/lb!" But, many times we dont realize the steal part of the transformer (the part that weighs way more) has decreased in value by .15/lb! So instead of thinking "I am getting 2.30/lb instead of .25/lb for copper", now I think "I am getting .25/lb instead of .10/lb for my steel" Plus you dont have to do the labor of breaking it down
-Another example is when you clean up metal attached to rubber, wood, plastic, or other trash. Let say you are breaking down a steel treadmill. I feel it is ok to take the motor out but, I no longer break down the tread mill and clean up the steal. If I break it down I increase the value of the steel by .04-.05 cents but, I no longer get payed .04/lb for the wood and plastic I take off of the treadmill. Not only that, I have to get rid of the trash that is left over and maybe ever have to pay to dump it eventually.
-I recently stopped clipping cable ends for this reason. For clean #2 insulated wire I would get .85/lb and for contaminated I get .45/lb. I get about double the price if i clip the cable but, after I minus the weight of the plug end and my labor it just doesnt seem to be worth it. So, if i leave the cable ends on I get .45/lb instead of .13/lb for the cable ends.
In Summary, most of the time when one metal appreciates and the other depreciates, for me it isnt worth it. By not breaking down as much stuff this helps me to focus on picking stuff up, plus I just got a new puppy who loves to chew on cut off cable ends. So with breaking down transformers, cutting cable ends, and other situations like this you can make a little more but, for me after I factor in the depreciation of the other metal and my labor it just doesnt seem to be worth it. Hope this helps
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