Analysis of ewaste true value

**MisScrap** · 10-04-2012, 03:07 AM

Originally Posted by ScrapYaHerd

I've always thought about operating/profit margins while scrapping. With typical scrap it is pretty easy since there is a maximum of only 1 or 2 metals combined and you can find the spot/market prices of these metals rather easily. This helps me figure out how the scrap business works and what margins everyone operates on. When recycling ewaste I have never been able to quite grasp what is the exact make up, what are the margins, and how much is really to be made in the end. So that basically brought me to ask myself what is my load really worth? For me purchasing high grade boards is the lowest margin of anything which makes what I found funny.

Tonight I did a little research on the process the big companies use on refining the material, about $25,000 bare minimum per process/metal. I quick/rough calculated a "small" setup would be no less than 250k just in equipment.

This might explain why someone feels entitled to so much of the profit in the end. I will take you through some numbers and show how it works.

Lets say your busy and you get 1,000lbs of clean "mother boards" in a month.

All prices will be roughly around spot. This is percentages I gathered through my research of that 1,000lbs of material.

Copper value @ $3.70/lb=$429
Lead@$1.00/lb=$10
Zinc@$.90/lb=$5
Alum@$.90=$9
Nickel@$8/lb=$80
Gold@$25,000/lb=$25,000
Silver@$493/lb=$246
Palladium@650=$3,250

Lets say that is a good mix and you get $4.50/lb you just made $4,500, wow big deal hahah......

Wherever your buyer sells to it's final value should be $29,000...This price and market are highly dependent on metal prices. There is definite disproportion of margin looks like a good business to be in to me with over 500% profit margin between us and the refiner.

1,000lbs of Clean Mother Boards is busy....I do that in a week and a half...and I just run a recycle/ scrap yard...sounds like either A- your are not ambitious (lazy) or B- you have employees that are not inspired/ ambitious (lazy) ....either way I'd go back to the board on that one bc I get paid more than that per pound for my boards...you must look at overhead...ALL OVERHEAD...

I'm just kinda dumbfounded how 1,000lbs a month can be busy...need more coffee

**jaydee1445** · 10-04-2012, 05:36 AM

Originally Posted by MisScrap

1,000lbs of Clean Mother Boards is busy....I do that in a week and a half...and I just run a recycle/ scrap yard...sounds like either A- your are not ambitious (lazy) or B- you have employees that are not inspired/ ambitious (lazy) ....either way I'd go back to the board on that one bc I get paid more than that per pound for my boards...you must look at overhead...ALL OVERHEAD...

I'm just kinda dumbfounded how 1,000lbs a month can be busy...need more coffee

It's all relative. Sounds like you are one or two steps up in the food chain. Imagine how busy you would be knocking on the door of every computer repair shop in a good size metropolitan area competing with all sort of tweekers that hit the same guys 3 times a week. To make it even more interesting limit your cash on hand to a $1,000 so if you stumble on more than a few hundred pounds you need to bring in another scrapper.
1,000 pounds would be busy for any one of your street customers which is were Scrappy and a lot of the forum members are at. On the flip side 1,000 lbs is mid sized customer for us.
Put it in further perspective are you ready to step up and start buying straight loads? I'll make it easy for you 40k of low boards @ $.28 or $11,200, COD because as a new buyer no one is going to give you net terms. Now lay out another $.02 for freight so you are into it for $12k and either you fly 1,000 miles and inspect the load or take a leap of faith based on pictures, hoping the seller isn't a scum bag and stuffing crap into the bales. What will you if you do get screwed on a load and your buyer rejects it? All that BS for a nickle after 7 to 10 days if your lucky.

**drozenski** · 10-04-2012, 08:01 AM

See if Ewasted will share his story about good boards on top of a bunch of gaylords and what he found under them.

It's a good story for this type of business.

**MisScrap** · 10-04-2012, 10:21 AM

Well...I'd fly out...you can get pretty cheap flights with south west and be back in less than a day and on to the next load...

And my facility has less than 10 employees...I have 2 guys dis-mantling/ processing part time on the computer end (as the rest of the time they work on my salvaged auto) then 2 others processing the paper goods and plastics. Glass is more of an obscurity around me for recycling...(besides the bullet proof glass sheets that I currently still have over 24,000 lbs of if anyone is interested)

And my bank is stretched through many different markets and in regards to my e-waste dept...it is at times the equivalent...

I guess it all depends on the biz' plan...their workflow...what they do, how they do it, how quickly they can turn it to reinvest it somewhere else...

I don't live in a big city though am located between the 2 largest in my state and just happen to be lucky enough to be 30-45 mins from my port. (it also helps that I've been in this industry since I was 19 and spent many years just learning every bit of knowledge I could from whoever have a moment to talk...selectively that is...I was able to learn from their successes and failures and when my chance came...I grabbed it and haven't looked back!)