Collision shops: Did I merely get lucky?

**BurlyGuys** · 09-03-2012, 08:15 PM

So in the course of my business I have developed relations with three collision shops. Each of them called me out of the blue, basically responding to my CL posts. The theme of each conversation has been, "Can you pick up my ferrous scrap every other week and not charge me to take it away?" For their non-ferrous they were doing it themselves. One collision shop has since gone away, citing that their corporate office has decided that they should make the money themselves.

I have just spent a couple of weeks hitting up more shops, and the general theme was "How much are you going to pay me for it?" or "We let the employees take it." This was after seeing more than 25 shops.

WTH? Did I just get lucky with the ones I have been servicing? Do you guys buy from these places? And if so, how much are you paying them, and for what?

If I fill my stake truck, I MIGHT get $250.00 for a full load. By the time I pay my helper and expenses, I just don't see there being much money left to BUY their scrap.

**Mick** · 09-03-2012, 08:48 PM

I used to pick up a body shop. I'd get the ferrous and they saved the non-ferrous for the employees to buy pizza with.

**EcoSafe** · 09-03-2012, 09:13 PM

the tighter the economy gets the tighter every one else gets.

**Mick** · 09-04-2012, 04:36 AM

Originally Posted by olddude

the tighter the economy gets the tighter every one else gets.

I agree and it must be getting tighter all the time.

**ggariepy** · 09-04-2012, 08:17 AM

Originally Posted by Mick

I agree and it must be getting tighter all the time.

Yes it is. The economy is going to start playing more sour notes, just wait and see.

**Hypoman** · 09-04-2012, 09:48 AM

I have a regular pick-up from a collision shop....... however it's owned by my wife's family so I have an "in" there. Otherwise most of the others round here are the same as what you ran into...... never know though, keep trying.

“Every strike brings me closer to the next home run.”
― Babe Ruth

**mikeinreco** · 09-04-2012, 10:46 AM

Originally Posted by BurlyGuys

So in the course of my business I have developed relations with three collision shops. Each of them called me out of the blue, basically responding to my CL posts. The theme of each conversation has been, "Can you pick up my ferrous scrap every other week and not charge me to take it away?" For their non-ferrous they were doing it themselves. One collision shop has since gone away, citing that their corporate office has decided that they should make the money themselves.

I have just spent a couple of weeks hitting up more shops, and the general theme was "How much are you going to pay me for it?" or "We let the employees take it." This was after seeing more than 25 shops.

WTH? Did I just get lucky with the ones I have been servicing? Do you guys buy from these places? And if so, how much are you paying them, and for what?

If I fill my stake truck, I MIGHT get $250.00 for a full load. By the time I pay my helper and expenses, I just don't see there being much money left to BUY their scrap.

For an individual like me (Not paying helper) it might be profitable to pay a little for the scrap..........For you being a bigger entity the only way it would profitable for you is to put a rollback dumpster at the lot and allow them to fill it with scrap........Of course this opens a whole new can of worms so I just wouldn't worry bout it (LOL)

**JPete** · 09-04-2012, 10:56 AM

You got very lucky. I used to do brake rotors and drums and would hit service stations. I got lucky on some and would get it for free, but 90% of others wanted 1-2 bucks each, saying that was what their regular guys pay them. I call BS on that, but the bottom line was most people pay for scrap whether it be iron or computers.

**ctscrapping** · 09-04-2012, 01:02 PM

No I kno thats not bs. My buddy works for a shop and witnesses his scrap guy paying them $1 a rotor and more for other stuff. He is then bringing everything down to new jersey to turn them in. I guess they pay more then here in ct but too much of a drive for me.

**chrisc** · 09-04-2012, 01:08 PM

New Haven pays more thats were it all goes.people pay i have to pay for junk people used to pay me but way it is now i guess

**JPete** · 09-04-2012, 01:10 PM

$2 for a 15 lb rotor is barely making money when you look at current prices. If they were SUV and truck rotors and prices were up, it would be reasonable.

I can see some collision shops giving it (frames and body work) away for free if you show up on a regular basis and get it out of there way ASAP. Do you stock pile it or take it straight to a yard?

**Mick** · 09-04-2012, 02:16 PM

Originally Posted by JPete

$2 for a 15 lb rotor is barely making money when you look at current prices. If they were SUV and truck rotors and prices were up, it would be reasonable.

I can see some collision shops giving it (frames and body work) away for free if you show up on a regular basis and get it out of there way ASAP. Do you stock pile it or take it straight to a yard?

The way I worked it was that his guys piled stuff in a particular place outside the side door. One side of the door was "waiting for insurance adjuster". Then it went to the other side of the door for me to pick up. My "hook" was the stuff would never be in the way of driving beside the building. In the summer that meant going there every two weeks. In the winter, at least every week. I'd also go the day before any predicted snowstorm to prevent stuff from getting buried and/or frozen into the asphalt. I just stockpiled everything but I have the setup and room for that.

Funny story - You should have been there when I stopped one day and there was a complete transmission. I was struggling getting it on the trailer so asked a guy who was walking by to help. He about came unglued. He'd put it there till he could put it back in his car. Two minutes later and I'd have been gone with it.

**landmine** · 09-04-2012, 03:35 PM

Shops are a hit and miss for me too.
Some are happy to be rid of it, others take offense that you would even talk to them

I have no problem paying $1 for a rotor or alum radiator.

**Tcgs** · 11-15-2012, 07:23 PM

I do exactly that. These guys are %70 of my business. Its difficult but there are ways to be profitable and still pay a really fair price for the materials. Be careful tho, check with your state and make sure you understand your regulations and get the right equipment. Think big, if you build it they will come!

**1956** · 02-27-2013, 12:08 AM

Run your business like a business.Auto body shops are a great source of steady scrap they always have it and need to get rid of it.The trick of body shops is that you are providing a service for them and thats what we really do,we take there garbage and make money from it.The tin/shread is the way into them,we remove it for free but where there is the real money is in the other goodies they have,the rads,once in a while copper rads,aluminum rims,batteries,a/c compressors,harness wire,just to mention a few.don't forget the cats.be smart i bring some donuts for the guys, once i got a tool box form one shop they didnt have the room for any more i gave it to the next shop now i have a friend,most shops are looking for a few bucks that few bucks stops them from giving it to the next scrap guy that was just passing thru,and its on my truck the next time we pick them up,the hole key in this business is to have steady supply of money coming in, no scrap no money i will pay a little today to make a lot tomorrow.

**rascoil** · 02-27-2013, 09:32 AM

Only thing we buy from body shops is the Aluminum hoods and condensers that get damaged in a wreck plus the aluminum wheels if they have them. Leave the other stuff alone it's not worth your time. Cost more to haul then you can make from it. Our truck has a licensed digital crane scale on it. We just weigh it right there and pay them so much a pound. You can purchase one on Ebay for around 150.00 Saves them time now days a company needs every dime they can get. They welcome cash with open arms.

**sledge** · 02-27-2013, 05:37 PM

I hit 3 shops last week.. All "Have a guy" one dude was downright HOSTILE, I asked if I could leave my name and number.. he curtly said "NO" so I thanked him for his time and left.

**1956** · 02-27-2013, 07:30 PM

Getting new customers is always hard,the more shops you stop at the more you will get,yes they all have a guy but s!!!!it happens, new shop manager,the business get sold,I always have a ciean shirt in the truck,first impressions are important I try not to look like the rag man.You have to put your self in there place,would you let just anyone walk around your place and take things out? Referrals are the best,ask your customers if they have some friends in the business most do,dont forget the dounts every once in a while.

**rascoil** · 02-27-2013, 10:13 PM

I ended up getting a small town with 34 stops just because the main guy died and mom and pop owned auto parts store recommended me to the rest. People talk. Reputation is everything now days. People just don't trust people any more. Sometimes I have to go to a business 5 or 6 times before they just give in and see we are serous. Sometimes you have to pay more than you do on the ordinary to get a new client. All is fair in business. Do what you have to get a new customer. Most important thing is do what you say you are going to do. If you tell them you're going to be back on a specific day or week of the month be there. Once you have the trust it all good. People talk to each other don't think they don't.

**Ribbedroof** · 02-28-2013, 01:11 AM

I have been in the collision business 20 years. First shop I worked in, we had the lot guy make a load when we got a utility trailer's worth. Second shop and current both have a guy that picks up the ferrous every week(we generate quite a bit). The aluminum is culled, sold to a local buyer, and proceeds split by the 3 office guys. Most of the domestic automakers now are adding a $50 core charge on new wheels, so we don't sell too many of those these days. I believe the OEs are trying to put the remanufacturers out of business by reducing their pool of available cores, just as they have done with bumper covers, window motors/regulators, and now head/tail lamps.

Sledge, you did the right thing in a tough spot. Sucks I know, but having worked the front desk in the past, it can get pretty annoying when you get multiple people every day asking for the scrap....not to mention the ones that drive around back and help themselves without asking.

Collision shops: Did I merely get lucky?

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