Unexpected profit - Should I give a kickback?

**TMoney** · 05-12-2013, 06:50 PM

One of the guys I regularly get scrap from has a business replacing water pumps, and tanks. About once a month he gives me a load of mixed scrap from his business. I estimate the weight of the load and give him half of the shred value. This leaves me with a decent profit after processing the scrap.

The last load was very small and only about 200lbs, so I gave him $10. One of the few items in the load was a submersible Gould's pump that he told me still worked. I looked it up, and saw that they sell for $700 new, so I put on the local classifieds. I stated that it was believed to be working but untested, and said make me an offer. I ended up getting $150 for it. Now I'm wondering if I should kick back some of the profit to my source, or just stick to our standard arrangement.

Thanks for your input, and sorry this post was so long.

**Electrowaste** · 05-12-2013, 06:56 PM

Personally, I would. It will concrete your relationship with him and that's what it's all about in this business. Just like you found him, someone else is looking for him and a 50$ bill leaves you with a nice gain and still shows him you appreciate the deal and that your honest. I live like that, because Karma can be a sweet lady sometimes. Others will have other opinions...

**toula** · 05-12-2013, 06:57 PM

I'd give him alittle something. I have a story sort of like that. I went to the FedEx drop off place and the guy there is getting to know me. He noticed a small tear in one of the boxes I had and taped it up for me without asking. I thanked him and then bought a roll of tape just to show the appreciation. It wasn't much but I always take care of the people that help me out.

Who knows what else your guy has laying around that he never thought to bring you.

**happyscraper** · 05-12-2013, 06:57 PM

I would go back to the man that gives(sells) his scrap to you and tell him that you sold that pump and offer to split the money with him. This will keep you in a good relationship with him and he might get you more pumps like that in the future. Just my .02

**bpatnoe** · 05-12-2013, 06:58 PM

Give him a little extra. It goes a long way. I have done similar deals and usually pays you back in a hurry.

**catfishsolich** · 05-12-2013, 07:00 PM

Take care of your regulars. I'd throw him 50 bucks. Next month he might have more resale items for you if he knows you'll do the extra work and still take care of him.

**happyscraper** · 05-12-2013, 07:01 PM

OH!! by the way, congrates on the score.

**Libertytow** · 05-12-2013, 07:06 PM

split the profit it will come back around tenfold

**Spidy** · 05-12-2013, 07:13 PM

Your deal is to give him 50% of the sale price of the scrap metal, so give him 50% if you sell a piece for more than that.

**TMoney** · 05-12-2013, 07:18 PM

Thanks all for the quick replies. I can see that everyone is on the same page here.

**BurlyGuys** · 05-13-2013, 05:53 AM

Originally Posted by TMoney

Thanks all for the quick replies. I can see that everyone is on the same page here.

Not so much...

**TMoney** · 05-12-2013, 07:19 PM

Originally Posted by Spidy

Your deal is to give him 50% of the sale price of the scrap metal, so give him 50% if you sell a piece for more than that.

Just for clarification, we never really made an actual deal. He started giving me the scrap for free, and I started offering him the 50%. I'm sure that by now he expects the money, but it's never actually been discussed as "our deal". My wording in the OP may have been misleading.

**Re-cycler** · 05-13-2013, 02:13 PM

Originally Posted by TMoney

Just for clarification, we never really made an actual deal. He started giving me the scrap for free, and I started offering him the 50%. I'm sure that by now he expects the money, but it's never actually been discussed as "our deal". My wording in the OP may have been misleading.

,

I apologize if I made you uncomfortable with the reaction to my opinion here, I did jump on and still count that 50% as a part of the deal.
I'm glad you are going to share and I really hope it helps your future with the guy, just make him an honest offer to sell any good items for him when you hand him whatever amount you decide on.
Most people don't want to mess around with leftovers from a paid service and are happy with a little bonus above scrap value now and then.
I do make deals with people that anything I can sell over scrap value I often offer them half of whatever it sells for.
and they are more than happy to add to the load and call me when they need a hand or have someone else offering a fraction of what stuff is worth.
If I am guessing about anything I say I try to make that point up front so they know whether or not an item is worth taking to higher levels rather than tossing it into the scrap pile.

**Spidy** · 05-13-2013, 11:23 PM

Originally Posted by TMoney

Just for clarification, we never really made an actual deal. He started giving me the scrap for free, and I started offering him the 50%. I'm sure that by now he expects the money, but it's never actually been discussed as "our deal". My wording in the OP may have been misleading.

I have probably misunderstood what you said then. I'm sure by now the 50% of the scrap metal is the deal because it has been performed so many times. I would still give him a gift, but it would be less than 50%. Giving him a nice dinner or something not money may prevent this from becoming a deal all the time, but don't do it for every single above scrap thing he gives you. I usually take a drink or some food to my mechanic because he is so good to me all the time.

**TMoney** · 05-14-2013, 08:27 PM

Originally Posted by Spidy

I'm sure by now the 50% of the scrap metal is the deal because it has been performed so many times.

I agree. I figure that by now, he expects a few bucks when I pick up scrap. That's part of the reason I was hesitant to give him a piece of the resale profit. I didn't want to set a precedent. Who knows though, this may increase my chances of getting more working pumps in the future.

**newattitude** · 05-19-2013, 09:48 PM

Originally Posted by Spidy

Your deal is to give him 50% of the sale price of the scrap metal, so give him 50% if you sell a piece for more than that.

I read it as he pays the guy 50% of the estimated weight. Thats the deal and if the guy is ok with that IMO, anything above that is the OP's good luck.

**Re-cycler** · 05-19-2013, 10:48 PM

I'm ok with what I say and do, My words don't differ from online to real life and I try to make my statements clearly and honestly so that there is nothing to read or write in between the lines.
I am amused that I inspired a couple rants.
Thanks
re-cycler
;?)

**Caveman** · 05-20-2013, 01:45 AM

You made more money than just scrap because dude said "hey, that one works and is worth some coin." You want to encourage him to do it more in the future so you make more money off of his scrap in the future. Offer him something extra this time (he may not want it,) and tell him you will pay him for anything like this that he points out to you in the future ( a new deal.)

Or give him nothing extra, and start checking all his scrap for resellable stuff yourself. no fun.

**Sirscrapalot** · 05-12-2013, 07:20 PM

Karma is always good to have in the bank...and this would be a good deposit.

Split it.

Sirscrapalot - To invent, you need a good imagination and a pile of junk. - Thomas Edison

**sledge** · 05-12-2013, 07:26 PM

Yup.. Broken Record here... Split it with him.. He will have an even more keen eye to find things for you.. Heck he may know an HVAC contractor, may have a buddy who owns a body shop.. possibilities are endless.. you don't know who he knows and networking in this game.. is a huge part of getting things flow your way!

View Poll Results: Keep the money or split the profit?

Unexpected profit - Should I give a kickback?

Thread Tools

Search Thread

Display

Hybrid View

Unexpected profit - Should I give a kickback?

The Following 3 Users say Thank You for This Post by Electrowaste:

The Following User Says Thank You to toula for This Post:

The Following 2 Users say Thank You for This Post by happyscraper:

The Following 3 Users say Thank You for This Post by bpatnoe:

The Following 2 Users say Thank You for This Post by catfishsolich:

The Following User Says Thank You to happyscraper for This Post:

The Following 3 Users say Thank You for This Post by Libertytow:

The Following 2 Users say Thank You for This Post by Spidy:

The Following User Says Thank You to TMoney for This Post:

The Following User Says Thank You to TMoney for This Post:

The Following User Says Thank You to Re-cycler for This Post:

The Following User Says Thank You to Spidy for This Post:

The Following User Says Thank You to newattitude for This Post:

The Following User Says Thank You to Sirscrapalot for This Post:

The Following User Says Thank You to sledge for This Post:

Thread Information

Users Browsing this Thread

Bookmarks

Bookmarks

Posting Permissions

The Scrap Metal Forum

SMF Recommended Links

SMF on Facebook and Twitter