Anybody have a formula for cost of storage versus selling for more than scrap?

I dont think there is a formula but a list of priorities. If you know you can sell them for $20 but scrap them for $4, and you have the room keep them. If you run across something that needs the file cabinet space that you can scrap it for $5 but sell it for $25 I would scrap enough cabinets to make room. To me its like playing cards. You only have so much room in your hand so keep the good cards and discard the worse cards.

Some of these points have already been mentioned but, these are the most important points to consider:
-Do you have space?
-Is there something more valuable that you can store instead of the file cabinets (opportunity cost)?
-The cost to take file cabinets to the scrap yard (gas, time, wear and tear, labor).


Me personally would keep some of the good ones just in case someone asks for them, and scrap the rest. File cabinets are large (take up lots of space), somewhat heavy, and not worth that much. You dont want to be handling these types of items (also couches, and other furniture) more than you have to. Focus on the smaller more expensive items to resell.

I always try to resell items first if I can because the return is way more than recycling but, I put items under $50 in one category and items above $50 in another category. I dont go out of my way too much to sell things under $50 but, I will go out of my way to sell things above $50. I guess thats the way that I try to do things but, I am a small opporation, maybe you are able to have your employees handle the smaller stuff too.

Part of my job is loading unloading stored items in/ out. Items stored are on a cubic foot basis. Stacking things or using shelving/ racking greatly increases capacity. Perhaps dedicating xxx amount of space for such items would be a good investment, in the long run. Maybe what you sell from storage could possibly cover your rent/ lease?

That's something you have a deside for your self. Personly every thing I get gets broke down and sold as scrap unless it's something that I can use. I know sometimes I lose money for not trying to sell for more than scrap. Some people do buy file cabinets and if you can move them rather fast buy all means sell them otherwise scrap them. My two cents.

I have 8000 sq.ft. and my rule is "factor four", a fairly standard way to determine warehouse space. If the item can bring 4 times what you paid (time/fuel/hauling) it gets 30 days, otherwise ship it. That keeps your overhead working not draining. The waiting for "the right guy" point of view will over run your space fast.

sometimes id rahter sell some #1 with #2 why, chase down dollars tripping over pennies, lol or something like that

There absolutely is a formula. Rent per sq ft/ filing cabt sq ft. (Say 1$ per sq ft / filing cabt is 3 sq ft) holding cost of 3$ per month. Selling value 20$- scrap value$4. Selling value gain of 16$.

Selling value $16/ holding cost $3 = 5 months for your break even point, holding longer is costing you money. Assuming the scrap value doesn't drop or rise.

There is also opportunity cost to consider... Could that space be better used for something of a higher value, or perhaps a piece of equipment that will make you more? Perhaps not paying for that space could give you more leverage for other areas of your business.

depends on how high your roof is, they stack on top of eachother so if you can stack 4 up then it only takes up the floor space of 1.
so the cost of storage is divided by 4.

what about utilising them whilst in storage, each draw can hold something like cpu's, ram ect and then when someone wants one, you empty it out and sell it, so it's paid it's way in storage.

$4 today you can buy say a pc with that money tommorow, following day you scrap the pc and sell it for $8, next day you buy 2 pc's and turn it into $16 and $32 then $64 and so on.
about 30 days into it you could have like $10,000 all from that measly $4 you got from scrapping the filing cabinet.
so technically, that filing cabinet has cost you $10,000 to store it for 30 days.

I want to buy some land and build a warehouse.Scrap out of it. My father did it in the 70's, Built boats. split it up into 3, rented it later on. Sold it for some cash later. The killer is taxes and insurance.

Scrapperben what you're talking about is opportunity cost.