Turning Over Scrap Metal

**BigIgg** · 12-12-2010, 08:26 AM

I agree, theres no reason to hold onto it when you already know your making a large profit. where im from in NJ, when guys buy auto scrap, they only work with like a 20% profit.. scrap guys by me are a dime a dozen

**Mick** · 12-12-2010, 08:53 AM

When you say 20% profit, are you saying they pay 80% of market value or are they taking into account transportation (fuel, labor) and administrative costs? If they're paying 80%, I'd question if they're making ANY profit unless they're "processing" vehicles (cutting cat converters, batteries, copper etc). The most I'll EVER pay is 50% (for batteries) and most of the stuff I get is either free (I get it out of their way) or around 20% (.25 per for brake drums)

**BigIgg** · 12-12-2010, 03:01 PM

yes, i mean if something is worth $10 they will pay $8.. these guys do this for a living.. if they load up an econovan to the max and end up with a $2,000 ticket they made $400 for the day.. different material varies, i know people buy rotors for $1.25, depending on the size they may make .25-.50 a rotor.. aluminum wheels they pay up to $20 a wheel depending on size.. they work with a very tight profit margine. But like i said they do this for a living all day and get alot of business. I live in a very populated area and just in a 2 mile radius they would be able to stop by 25 mechanic shops/repair shops. I work for a scrap yard, and i see 1st hand some of the big tickets these guys walk away with.

**Mick** · 12-12-2010, 03:30 PM

Big tickets don't mean anything, though, if they wind up with nothing to show for it but a ticket. They may take in an Econovan full, but I'm taking in an 18' dual-axle trailer maxed out that I got for free or maybe $50.

**BigIgg** · 12-12-2010, 09:30 PM

Ok, obv the bigger the ticket.. the more $$ there getting.. and your comparing apples to oranges, i dont know you or do i know how successful of a scrap guy you are. All im saying is where im from(north nj).. "paying no more than 50% or .25 per brake drum" you would not be getting any auto scrap around here.. they would laugh at you and just sell to some1 else who is willing to pay top $$. Like i stated, scrap guys are a dime a dozen around here, and there about 5 scrap yards in a 30 mile radius easily. As for doing some1 a favor, its not even that big of a favor bc they can easily drive 15 minutes them selves and get paid. Its very simple.. people arent stupid, and they know scrap has a value. And around now its a very good value. Every1 wants to get paid. were not talking about joe shmo who has a washing machine that he wants removed from his home. This is auto scrap.. repetitive scrap on a weekly basis.. end of the year its tens of thousands... and btw where im from a ton is 2240, not 2000.

**BigIgg** · 12-13-2010, 03:51 PM

Im not talking about whole cars, im saying car "parts" rims,starters,alternators,batteries,rads,cats..etc .. stuff that isnt being proccessed, just taken to a scrap yard and being sold. Minimal labor involved, and like a stated these guys arent having to drive very far to buy auto scrap. Im not talking about driving 10 miles to pickup a fridge.. I guess its hard to understand if your not from this area.

**TheMetalizer** · 12-13-2010, 05:43 PM

Originally Posted by Mick

Big tickets don't mean anything, though, if they wind up with nothing to show for it but a ticket. They may take in an Econovan full, but I'm taking in an 18' dual-axle trailer maxed out that I got for free or maybe $50.

I have to agree with Mick on this one. Just because some guy comes in with $2,000 worth of stuff doesn't mean their making a decent profit. How do you know that they are buying at 80%? Do you know how long it takes for them to accumulate that much scrap?

If scrap men are a dime a dozen in north nj (which I know they are) how do all of them buy stuff at 80%? There isn't a big enough supply for that to happen. each guy would buy $100 worth of stuff a day (spending $80) and at the end of the week they would be making $120. If someone makes $400 a week, they are one of a few doing so and they don't have a day job.

20% is about how much of a margin scrap yards buy and sell scrap at. If they already buy that much scrap, are comfortable with working in a 20% margin and can handle that much cash flow, why wouldn't they just start up their own small scrap yard!

btw
1 ton = 1 short ton = 2000 pounds
1 gross ton = 1 long ton = 2240 pounds
1 tonne = 1000 kilograms ~ 2205 pounds

**BigIgg** · 12-13-2010, 06:13 PM

ok, how do i know they pay 80%? they tell me.. i see these guys on a daily basis.. ive built a relationship with them.. ive seen there price sheets.I work for a very large scrap company. how do i know how long it takes them to accumulate? I SEE THEM EVERYDAY.. loaded to the max. The handful of guys who know what there doing, and they must be doing something rite, are making big $$. Your not gonna sit there and tell me what i see on a daily basis. And let me tell you if you really think scrap yards work with a 20% margin, your sadly mistaken, especially not on steel. And a guy driving around buying auto scrap with an econovan or trailer, is nothing compared to "starting there own small yard"..Tri-state area you get paid for 2240.. and Mick, god bless if people are giving your trailer loads of scrap for free, thats great.. bottom line is that kind of stuff doesnt happen too often in the north jersey area! You cant compare a trailer load of light iron to a van full of aluminum wheels,or cast aluim trans, etc.. I stated a simple fact, where im from in order to buy auto scrap you have to pay close to 80%.. Not exagerating, in a 30 mile radius theres about 10 scrap yards! competition is heavy over here..

**TheMetalizer** · 12-13-2010, 07:11 PM

I wasn't trying to be rude or upset anybody. I was just talking from my experience. What margin does your scrap yard normally buy at?

**BigIgg** · 12-13-2010, 07:50 PM

Im not trying to argue, i just feel like you guys are disagreeing with me, even tho its the everyday facts.. as for prices, it all varies on the material.. obv you cant compare the mark up of light iron to lets say bare bright.. ive seen guys get payed 140/ton for light iron, when i was getting 180.. that rite there tells you theres plenty of room to play with, with steel it depends where its going, and the quality of the metal we are shipping out. we get away with mixing cast iron 180/ton for average person, with #1 prepared 220/ton.. i wouldnt be suprised if there getting close to 300/ton for prepared #1.. thats a large profit huh.. it all depends on the customer also. actually let me correct myself, the other day i got payed 260 for cast iron, soo that rite there tells you they must be getting atleast 280 for prepared 1, since the cast gets thrown in with the #1.