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What was your first year like???

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    What was your first year like???

    Hey Scrapping Brethren!!!

    If you have seen me posting around here you can see that I am looking for a way in, LOL. In the long run my focus will be recycling Solar Panels and components to Solar Systems, but in the meantime I want to build the recycling and scrap division as much as possible.

    I am curious to know your experiences of starting your business's. The high's and low's... the wins and the losses...

    What where your biggest challenges? Did you make any money your first year? What did you really invest into the company (besides all your time) in the beginning? How did you come about your first clients? How fast were you able to grow? Etc... Etc...

    Let's open the floor for discussion and do a little Q&A... no name tags needed.

    Brandeezy


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    A good truck, a few hand tools and A STRONG BACK GO along WAy.........I think the good truck is imperative as you can't make any money sitting on the side of the road........Invest a few extra bucks in something newer and it will pay off in the long run.........My 2007 has 165,000 and if I can get to 200,000 I will be looking for another one

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    Quote Originally Posted by Brandeezy View Post
    Hey Scrapping Brethren!!!

    If you have seen me posting around here you can see that I am looking for a way in, LOL. In the long run my focus will be recycling Solar Panels and components to Solar Systems, but in the meantime I want to build the recycling and scrap division as much as possible.

    I am curious to know your experiences of starting your business's. The high's and low's... the wins and the losses...

    What where your biggest challenges? Did you make any money your first year? What did you really invest into the company (besides all your time) in the beginning? How did you come about your first clients? How fast were you able to grow? Etc... Etc...

    Let's open the floor for discussion and do a little Q&A... no name tags needed.

    Brandeezy

    You just need a game plan , and with a little bankroll your clients become customers . When I first started I took everything I could get my hands on . Now I focus on select items that yield the highest profit margin for my time . If one wanted they could stock pile until they had a load worth hauling . 1956 wrote a excellent article on the very subject .

    Organization,breakdown,separation and research are going to make or break you . We all see items in the shred pile that could have been paid higher with just a little work . I was guilty of this starting out so that will be my low point . It was just that when I had a steel load to go in any broken tool or random dirty metal would accompany it . I suggest you learn from my mistake on that as you could be giving money away .

    When I started I offered free recycling services now I buy electronics and computers from my customers . Networking is key , also get a good magnet many of them and some business cards . Start with family and friends then branch out to your closest people like gas station attendants, bank clerks , storage employees . Eventually you will be ready to buy . But don't spend a dime until you know what's what . I aquire most of my scrap at live auctions and storage auctions I also check gov deals for a good buy .

    ". It's all what you make it , your time and knowledge will determine your outcome " - metalbestos

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    First year is FUN!
    Fun finding stuff.
    Fun selling stuff.
    Fun breaking down stuff.
    Fun doing what you want to do.

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    Quote Originally Posted by hobo finds View Post
    First year is FUN!
    Fun finding stuff.
    Fun selling stuff.
    Fun breaking down stuff.
    Fun doing what you want to do.
    Now when I go to the storage unit every night to break down ewaste I say It's time to make the doughnuts!!!!..........This job gets repetitive like everything else but the freedom it allows is second to none.........Someone who is not self-motivated will not make in the scrap biz......Like any other biz more fail than succeed

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    Now when I go to the storage unit every night to break down ewaste I say It's time to make the doughnuts!!!!
    P & M Recycling - Specializing in E-Waste Recycling.
    If you enjoy your freedom, thank a vet.

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    First year was suppose to be scrapping the ranch. That was the game plan. Contacted by a neighbor right away and started scrapping their farm. Half way through their farm, the local water district asked me to scrap a water tank. While doing this several farmers needed their properties cleaned up. Started to diversify and was contacted by a developer to salvage an old power plant. The water tank is done and when the power plant is done I will return to the farms that were left behind.

    Controlling my time - yes, having fun - yes, making money - I have not stopped long enough to figure this out. Been fortunate enough to be able to reinvest all profits back into the business. So to make a long story short, this life style keeps me upright and kicking. It pays the bills, provides entertainment, and allows a person to work for themselves instead making money for someone else.

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    Yooooo!!!! Thanks guys!!! I was starting to wonder if anyone was going to post on here, LOL.

    All great info! I think the way I may go is with E-Waste. Reason being with looking into the recycling of Solar Panels down the line this side of the industry aligns best with what I am trying to do... I think it will leave me better prepared.

    When getting involved in the E-Waste, what has been the best yielding finds/buys that you guys have come across? I honestly don't know where to start with this, and am looking for some direction. I found a 22' Box Truck with 60k miles on it for only $15k, so the truck is possibly right around the corner, but before I go jumping into that I want to get some customers, and know what goods I am looking for.

    Saw a thread the other day on the Hoboken school system in NJ scrapping all their laptops. They are only about 30 minutes from me... I was going to contact them, but what the hell do I do with 1,200 laptops if I can get em? See my dilemma? I got guys at the port for direct sales of metals, got guys about an hour away who will take all the paper and cardboard I can bring them... but when it comes to this stuff I don't know what it's worth, or what to do with it.

    I said it before and I'll say it again.... Anyone who thinks this is "Easy Money" either doesn't know what good money is, or sold their soul to the scrap devil! LOL

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    You could sell those as complete units . I love computers but hate laptops hey each there own right .
    If you broke them down to components or sold as working you would make more . Many diffrent paths to go but your time will decide what's best . Many buyers post what they pay so find a close one and see if they can do better with your volume.

    Me personally I sell whole or box up and save for a rainy day or two

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    I suggest you take to time to have a good understanding of ewaste before investing in major equipment like a truck. Unlless you have other uses for the truck. Mike
    "Profit begins when you buy NOT when you sell." {quote passed down to me from a wise man}

    Now go beat the copper out of something, Miked

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    Time to do some reading thru the whole Ewaste recycling section, alot of what you talked about is in there.
    I second what was said that you need to know what's what before you jump in neck deep. There is good (great) ewaste then there is bad (so-so) waste. Don't waste the energy (labor) and warehouse space to stockpile something that pays .15 a lb.

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    My first year I threw away/drove past/undersold FAR FAR FAR more than I made. Once I even took a box of 20 motherboards to my scrapyard & got paid $0.10/pound for them. Sheesh!

    Second year has been less so, thanks to this forum.
    Out of clutter, find simplicity. --Albert Einstein

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    First year, an all others after that...keep reading the archives here.

    Oh an being a hard headed son of a ***** will help you excel in this field many times over. It's not for those easily offended, that lack a thick skin, an can't handle being told no. You will fight for every bit of scrap you get, you will protect your clients/customers like a cop over the last doughnut(I kid I Kid! put the tasers down coppers! ) an many other things.

    So..read the archives. Put that info into motion, then profit. It's really as simple as all that.

    Disclaimer: No feelings, egos, or anything else were meant to be hurt with this post. This post is written in a honest, no sugar coating or beating around the bush here manner. If that offends...you have apologies an a hug will be incoming soon to your inbox. Please don't hold your breath awaiting it tho, our shipping times have been known to take a good long while. Oh an this post isn't directed to anyone in particular..just explaining I'm blunt. Shocking I know.

    Sirscrapalot - Now offering footie pajama's for scrappers. Steel toed footie pajamas! Who needs snoogie..when you can have a scrappie!

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    I thought my first year was good until tax time and I only profited $200.00 lol, yikes. But that was my learning year and before I had developed contacts and researched routes and had a game plan.
    Scrapper, Scrap Yard Worker, Horse farm worker, Cooler Puller and just plain ''tired''

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    This is question that you can answer for yourself just by reading old threads. I can't stress enough the benefit of researching the archives. Members that don't are really cheating themselves. The stuff you learn just researching 1 question is so valuable.

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    Alright- the first year. It can be fun!

    Trucks:I started out with a Dodge Dakota that I already had. It was a good truck, but a little too "end of life." I'd make sure to get a good, reliable truck if you don't have something already. There really isn't a bad choice, but you'll want at least a half-ton. For heavy stuff, I prefer the Ford 300 Inline 6. For speed on the Interstate, I like a Small Block Chevy V8 (Currently run a 305). Whatever you get- it needs to work. If your truck fails, so will you.

    Space: I did E-Waste in my basement for the first year. I now have a processing center in our town- for the $150/month it cost me, it's well worth it. I spent more in gas to take stuff home. Don't run out and get a space, though. My first year was slow enough that it wouldn't have been profitable. By year 2, I had enough stuff coming in to justify it. We now get 4-5 computers per week. We offer free recycling, so if you paid out, you may get more stuff. Who knows? We're really starting to advertise, though. Speaking of which,

    Advertising: Cheap is good. Free is better. In a crowded area, competition will be tougher. I'm the only E-Waste processor within 100 miles, so conventional advertising works. I run newspaper ads. Some are free, and one is $7 per every three weeks. Well worth it. I run radio spots, too. They work well for collection events. I did an E-Waste drive in May. I had about 40-50 computers come in off the radio ads. For free drop-off, though, radio seems to be worthless so far. I've received two desktops because of radio. I can port my ads across the state. Next month, I'll try on the other side of the state and see how they do. One of the best ways of advertising, though: Truck signage. I made a plywood cap structure, so I have a Chevrolet 1/2 ton box truck, if you will. I painted the sides with our name and number. For the $50 it cost me to paint a box I needed anyways, it's well worth it. Plus, nobody will steal my truck, now!

    Trucking Nightmares: Going across state lines? Keep it under 10,000# Gross. Otherwise, you have DOT issues. Hauling CRTs can be an issue, too. Nobody has ever checked my truck, and they're enclosed and whole, anyways. Take them apart, and who knows? My largest issue with trucking has been the weather. I started with a stake rake on my Dakota. I now have an enclosed and caulked box on my Chevrolet. I lost a lot of stuff to water damage the first year. Now, this is much better. Winter pickup? Not a problem! If you're not a handyman, look into a Suburban or cargo van.

    Hard Drives: Wipe them, or destroy them. I take apart anything less than 60GB, that got wet, or has failed. If it's an 80GB or larger, I can put them in computers. Those drives get hit with DBAN. Any computer will work- I have three "wiping servers" - a Pentium III Compaq, a Pentium IV Dell Dimension, and a Pentium D generic (for SATA drives). The Dell is no faster than the Compaq. The Compaq is large socket, though, so it's worth more than the Dell

    Good Stuff: I run a computer shop that sells refurbished computers. Look into the Microsoft Registered Refurbisher program. License good computers, and you can make more than scrap. I don't apply licenses until somebody picks out their computer. This way, I don't run the risk of licensing something that never sells. Laptops are more desirable than desktops. Sadly, you'll probably get way more desktops.

    Bad/Old Stuff: Take it apart, and scrap it if it's newer than 1995. Vintage stuff can sell, but nobody wants piles of Pentium II and III Dells. If it isn't rare, don't worry. You'll get more. If it's rare, what the heck? Try selling it on Craigslist or in the classifieds maybe. You have nothing to lose.

    Buying Stuff:
    Don't buy at first. Wait until you make your first shipment or two, and then decide what to do. I had a man who wanted to sell Pentium II laptops for $10/each. I got them for free, and made about $5 on each of them. If I gave him $30, I'd have lost money.

    Shipping: Free boxes are key. If you can find a good buyer, shipping takes care of itself. Just don't splurge. My last shipment had a box with a muddy tire track across it. A $5 box means I just gave away some stuff. Plastic makes a good packing layer if tight. There is a major buyer on here who is paying $0.07 per pound on plastic. If I use bubble wrap, I get $0.00 per pound. Plus, I can get rid of it.

    Plastics:
    I hope there's a plastics processor near you. There isn't out here, so I actually lose a little on plastics. It will pile up quickly.

    Metal Cases: They're not worth much. I get $0.05 per pound for them. My last load earned me $56 for them. I paid nearly $40 in gas, but keep reading...

    Networking: Get your name out there. I made $0.05/pound on cases, but I now get computers from that metal recycling outfit. I get to keep everything, as long as I give them an equal number of cases for what I get. I'll give him a few cases in a heartbeat for computers. I also got free truck tires off of him. The point: meet people. I'm shy, so this has been a big challenge for me.

    Injuries: You'll get them. My fingers are often sore, and there's a little blood on them sometimes. Don't be aggressive like me if you want to avoid this. You'll still bleed, though.

    Making money:
    You will... eventually. Don't spend at first if you don't have to. I bought a box truck for events. It was the dumbest move I made. I got a rust bucket that I pulled off the road for safety. It's been in the shop way too much until I pulled the plug for major frame rust. I made only three pickups with it. When I needed it, it was in the shop, or wouldn't run. I went back to my Chevrolet or the Dodge many times when I needed that box truck. Now, I have an overpriced storage unit that gets moved with a farm tractor and chain. I should have waited on a truck. My Dakota was on it's last legs, but it lasted me long enough to show me what E-Waste could do. Don't spend on equipment, though. My hard drive shredder is a belt sander for the platters. My wiping computers were all turned in for recycling.

    Mistakes: You'll make them. I sold about 200# of large socket boards, some with 486 CPUs, for $0.20 per pound. I really don't want to talk about that. I did get, my payback, though. There was a free recycling bin for a few months with that company. I loaded it with all the gutted CRTs I could process. I now charge for CRTs. If that bin wasn't there, I would have had no free outlet for them. I get $10/unit ($5 for old iMac G3s), and don't make much with that.

    My advice (condensed): go for it. Don't invest much in it, and you won't lose much. Make sure to read the DEQ/EPA laws, and any laws for your area. Trucks need to be good, not like my E350. Keep a box/cap on trucks. I lost about $500 of stuff in one major rain storm. Now, that doesn't happen. Have a neat work area. Don't have stairs unless necessary. Using my basement was a terrible idea! Be ready to make mistakes. You will. Trust me, I've made many... and still do. I made money my first year, because of resales. That's the lions share of my profit today.

    Most importantly, don't be afraid. Get some old computers, take them apart, and send a few boxes off to a reputable buyer.

    -----------------

    Sorry for the long rant that may not bear much to the question. If you have any questions, feel free to ask. I'll tell you what I can.

    Happy scrapping!

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  31. #17
    Brandeezy started this thread.
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    Wow! OK, this is much more involved then I had thought.

    Thanks for all the input guys. I am still reading through everything. Tremendous response here. Thanks again to everyone.

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    Quote Originally Posted by matador View Post
    alright- the first year. It can be fun!

    trucks:i started out with a dodge dakota that i already had. It was a good truck, but a little too "end of life." i'd make sure to get a good, reliable truck if you don't have something already. There really isn't a bad choice, but you'll want at least a half-ton. For heavy stuff, i prefer the ford 300 inline 6. For speed on the interstate, i like a small block chevy v8 (currently run a 305). Whatever you get- it needs to work. If your truck fails, so will you.

    space: i did e-waste in my basement for the first year. I now have a processing center in our town- for the $150/month it cost me, it's well worth it. I spent more in gas to take stuff home. Don't run out and get a space, though. My first year was slow enough that it wouldn't have been profitable. By year 2, i had enough stuff coming in to justify it. We now get 4-5 computers per week. We offer free recycling, so if you paid out, you may get more stuff. Who knows? We're really starting to advertise, though. Speaking of which,

    advertising: cheap is good. Free is better. In a crowded area, competition will be tougher. I'm the only e-waste processor within 100 miles, so conventional advertising works. I run newspaper ads. Some are free, and one is $7 per every three weeks. Well worth it. I run radio spots, too. They work well for collection events. I did an e-waste drive in may. I had about 40-50 computers come in off the radio ads. For free drop-off, though, radio seems to be worthless so far. I've received two desktops because of radio. I can port my ads across the state. Next month, i'll try on the other side of the state and see how they do. One of the best ways of advertising, though: Truck signage. I made a plywood cap structure, so i have a chevrolet 1/2 ton box truck, if you will. I painted the sides with our name and number. For the $50 it cost me to paint a box i needed anyways, it's well worth it. Plus, nobody will steal my truck, now!

    trucking nightmares: going across state lines? Keep it under 10,000# gross. Otherwise, you have dot issues. Hauling crts can be an issue, too. Nobody has ever checked my truck, and they're enclosed and whole, anyways. Take them apart, and who knows? My largest issue with trucking has been the weather. I started with a stake rake on my dakota. I now have an enclosed and caulked box on my chevrolet. I lost a lot of stuff to water damage the first year. Now, this is much better. Winter pickup? Not a problem! If you're not a handyman, look into a suburban or cargo van.

    hard drives: wipe them, or destroy them. I take apart anything less than 60gb, that got wet, or has failed. If it's an 80gb or larger, i can put them in computers. Those drives get hit with dban. Any computer will work- i have three "wiping servers" - a pentium iii compaq, a pentium iv dell dimension, and a pentium d generic (for sata drives). The dell is no faster than the compaq. The compaq is large socket, though, so it's worth more than the dell

    good stuff: i run a computer shop that sells refurbished computers. Look into the microsoft registered refurbisher program. License good computers, and you can make more than scrap. I don't apply licenses until somebody picks out their computer. This way, i don't run the risk of licensing something that never sells. Laptops are more desirable than desktops. Sadly, you'll probably get way more desktops.

    bad/old stuff: take it apart, and scrap it if it's newer than 1995. Vintage stuff can sell, but nobody wants piles of pentium ii and iii dells. If it isn't rare, don't worry. You'll get more. If it's rare, what the heck? Try selling it on craigslist or in the classifieds maybe. You have nothing to lose.

    buying stuff:
    don't buy at first. Wait until you make your first shipment or two, and then decide what to do. I had a man who wanted to sell pentium ii laptops for $10/each. I got them for free, and made about $5 on each of them. If i gave him $30, i'd have lost money.

    shipping: free boxes are key. If you can find a good buyer, shipping takes care of itself. Just don't splurge. My last shipment had a box with a muddy tire track across it. A $5 box means i just gave away some stuff. Plastic makes a good packing layer if tight. There is a major buyer on here who is paying $0.07 per pound on plastic. If i use bubble wrap, i get $0.00 per pound. Plus, i can get rid of it.

    plastics:
    i hope there's a plastics processor near you. There isn't out here, so i actually lose a little on plastics. It will pile up quickly.

    metal cases: they're not worth much. I get $0.05 per pound for them. My last load earned me $56 for them. I paid nearly $40 in gas, but keep reading...

    networking: get your name out there. I made $0.05/pound on cases, but i now get computers from that metal recycling outfit. I get to keep everything, as long as i give them an equal number of cases for what i get. I'll give him a few cases in a heartbeat for computers. I also got free truck tires off of him. The point: Meet people. I'm shy, so this has been a big challenge for me.

    injuries: you'll get them. My fingers are often sore, and there's a little blood on them sometimes. Don't be aggressive like me if you want to avoid this. You'll still bleed, though.

    making money:
    you will... Eventually. Don't spend at first if you don't have to. I bought a box truck for events. It was the dumbest move i made. I got a rust bucket that i pulled off the road for safety. It's been in the shop way too much until i pulled the plug for major frame rust. I made only three pickups with it. When i needed it, it was in the shop, or wouldn't run. I went back to my chevrolet or the dodge many times when i needed that box truck. Now, i have an overpriced storage unit that gets moved with a farm tractor and chain. I should have waited on a truck. My dakota was on it's last legs, but it lasted me long enough to show me what e-waste could do. Don't spend on equipment, though. My hard drive shredder is a belt sander for the platters. My wiping computers were all turned in for recycling.

    mistakes: you'll make them. I sold about 200# of large socket boards, some with 486 cpus, for $0.20 per pound. I really don't want to talk about that. I did get, my payback, though. There was a free recycling bin for a few months with that company. I loaded it with all the gutted crts i could process. I now charge for crts. If that bin wasn't there, i would have had no free outlet for them. I get $10/unit ($5 for old imac g3s), and don't make much with that.

    my advice (condensed): go for it. Don't invest much in it, and you won't lose much. Make sure to read the deq/epa laws, and any laws for your area. Trucks need to be good, not like my e350. Keep a box/cap on trucks. I lost about $500 of stuff in one major rain storm. Now, that doesn't happen. Have a neat work area. Don't have stairs unless necessary. Using my basement was a terrible idea! Be ready to make mistakes. You will. Trust me, i've made many... And still do. I made money my first year, because of resales. That's the lions share of my profit today.

    Most importantly, don't be afraid. Get some old computers, take them apart, and send a few boxes off to a reputable buyer.

    -----------------

    sorry for the long rant that may not bear much to the question. If you have any questions, feel free to ask. I'll tell you what i can.

    Happy scrapping!
    all i can say is wow!!!!!!..........good info

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    What was your first year like???

    matador that is a great post. thank you. as I'm in my first year. I made a good purchese. but I did plenty of research, this site (app) is invaluable. stay here I try to get on everyday for an hour to see what you guys are talking about. I don't need to ask question other will think of them before me

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