Scrap is and always has been a volume and niche business. The structure of the industry in the glory days of metals was the peddler sold to the small yard. The small yard sold to the big yard and the big yard sold to the mill. Each step of the way everyone made money.That went away when the conglomerates came in and bought up everyone in the 90s and again in the past few years.
E-Scrap is still running the proper way. The smaller guys are selling to places like
Ewaste and myself and although Ewasted might be going to the refiner im going as high up as possible without the refiner. I have niche markets for my low grade and I run my business accordingly . I dont publish a price list because I wont pay a one time customer with 30 lbs the same price I pay some of you guys and other repeat and volume customers. That is how I can work off of small margins and im content with my results..You and Joe are working off of a much bigger percentage but your doing the work. im recieving a finished package from you that I dont have to assign a labor cost to because its ready to ship. if you actually paid yourselfs a salary or hourly wage you would find I believe that you are actually working off of the same margins the rest of us are. Nothing wrong with how your thinking except the numbers. The reason I finally piped in was that in order for you and evryone else to grow there has to be a realistic understanding of how the industry works. Your growth only helps me as it all comes back to volume...
Bookmarks