Annual potential

Hello,

I'm new to scrapping but I enjoy it. I am very curious to hear some annual earnings for people doing this as a full time job. I know it can vary widely depending on how you are running your operation but I would love some input on actual earnings.

Thank you,

Fair enough. What I am looking for is a guy with a truck or two and a couple trailers that collects full time (40+ hours a week) Not necessarily a yard owner and not the hobbyist.

Thank you for your service to this country. To answer this question is difficult because many variables affect the answer. No profit was seen in the first year because all sales went to paying for tools and equipment. Second year same answer.

Some on here set goals to buy a used truck and trailer to expand their scrapping. Some just do it for recreational money and vacations. Some do it for survival.

To give you an idea of potential, one scrapper was so successful that when his sons graduated from high school, he bought each of them a semi, trailer, and a skid loader with attachments and each is working full time supporting their families in the ultimate lifestyle.

Without knowing what type of scrapping you are pursuing and your location, it is impossible to give you an answer. If you want an idea of potential, I am a retired public school administrator and make as much as I did as a principal. To put a number on it Google administrative salaries in the Dakota's.

I understand that this will consume a lot of time. I expect it to. The reason I am looking for some input is that I am considering turning down a business opportunity that will generate about 350,000 annual gross income to do this full time. I want see how some of you are doing to help with my decision making process. I know how to run a business I am just looking for a general market analysis.

Stress should be a consideration also. 350,000 a lot of coin.

It will be set up as an LLC. No partners. My start up cost is around $100,000. I will have 2 full time employees. Annual overhead including my salary is around $200000. I have a few ideas that I think could grow this to the same or better. Below is one of my ideas. I live in a huge maritime community and I see half sank ships or large boat a lot. The insurance companies have already paid the owner for the damage and the vessel itself. If I were to offer a small amount or percentage I think I could easily aquire these ships. I am working on the logistics of how to raise, dismantle and transport the materials but I think it could be very prosperous.

My latest challenge has introduced me to several individuals that make that or more in a year. Each of these individuals found a niche in the market. I am going to venture a guess that the majority of full time scrappers on here do it because of the lifestyle and independence, not the money.

The real question is not how much money can be made, but are you willing to bet on yourself. Some realtors make $ 20,000 a year and others make millions. Some scrappers are getting $ 135 a gross ton right now and others are getting $ 250 a net ton. Some scrappers have to travel 60 miles to a scrap yard and others have to go across the street.

My recommendation is to set some goals and create a business plan. Then ask the forum if your goals are realistic and what is the best way to achieve them. Example, is it possible to cut five tons of prepared iron in a day? Yes if you have the right type of metal in one area. Is it possible to break down 25 computers a day? Yes, based on my limited research it is possible, but finding 25 computers would be the challenge. Then apply the answers to your business plan to see if it will work for you.

Good luck with your decision. Mine was easy, what type of lifestyle did I want to enjoy. The money was immaterial.

Sorry, while the above was typed two posts were added.

It sounds like you already have a business plan and have thought things through. This is a no brainer for me, but then again I love challenges.

Please keep us posted on your progress. I have a similar scrapping opportunity and would love to borrow some of your ideas.

Originally Posted by BeachMetal

I understand that this will consume a lot of time. I expect it to. The reason I am looking for some input is that I am considering turning down a business opportunity that will generate about 350,000 annual gross income to do this full time. I want see how some of you are doing to help with my decision making process. I know how to run a business I am just looking for a general market analysis.

This business is like any other,you get out of it what you put into it. I own a painting business and for the most part it's seasonal, with the scrap I can pretty much control the work and income. It takes time and commitment to get to this point. Personally I would rather scrap full time, but that would mean putting people that have worked for me in painting out of a job. As business man I see the potential in the scrap metal business as unlimited. To ask what a person makes for a living is just inappropriate. Do some research and make up your own mind if scrapping is the right fit for you. That way if you fail or succeed its all on you. Good luck wwhatever you decide.

There are many variable to the question. Scrap these days is easily available with all the right resources (internet auctions, business connections) where you make the money is with the knowledge of what to do with it. My biggest expenses are warehouse space and gas. It is very possible to make $50k and up if you create good contacts, know what and where to sell reusable items, and dedicate yourself to it.