If you had $5000. to get started in scrapping how would you use it?

I love reading the posts in this forum and I see all kinds of guys using different methods and ideas to scrap. I see many just doing it on a small scale with little to no money and many on the high end buying volume with quick turn over.
So my hypothetical question to you is if you had $5000. would you use it for advertising, auctions, buying and selling or a combination of all?

First thing I would do is set aside $3000 to keep the lights on for the next 3 months,quit my job so that I could focus the majority of my time on school first and then scrapping more. Other $2000 I would spend on a new shed so I have a place to work out of...and a couple new tools. Found out the other day at the Junk yard how helpful a cordless saws all could be..(or should I say would have been) could only imagine how much use a full time scrappers could get out of one.



Of course this is just hypothetical, I don't have it in me to quit my job and take a chance scrappers full time, wish I did though!

Invite every business owner in the area for dinner/drinks/strippers and get some leads.

well if yur gona do it legal like, that $5000 may get you started on the permits, paying off regulators etc. better hang on to that job for a while, its gettin real crowded down here. had a guy cqll me today from craigs list, and pretty much picked my brain (what few cells are left) then a couple of hours later a nice add shows up on craigs list with the same phone #. go figgure!

$1000 - Make sure you are fully equipped.
$1000 - Advertising
$1000 - Auctions/Buying Scrap
$2000 - Save for a rainy day or an awesome deal

Originally Posted by olddude

well if yur gona do it legal like, that $5000 may get you started on the permits, paying off regulators etc. better hang on to that job for a while, its gettin real crowded down here. had a guy cqll me today from craigs list, and pretty much picked my brain (what few cells are left) then a couple of hours later a nice add shows up on craigs list with the same phone #. go figgure!

A little comp aint a bad thing, hate to see he tried to learn what you know in a phone call and take your business though.

na he didnt get much just price range, but I fuggure if he needed that, he proly wont last long. dont think he has found the forum yet. Im going to run my price up a little and make him play break even for a while.

I'm not so sure much money on advertising will get you anywhere. Where do most people turn for needing scrap pick ups? Craigslist. It's free...and will get you the most return. Other ads will cost a lot, and there's really no guarantee on your ad being in front of the right person when they need you. It's too much of a gamble for such a small budget. A small, easy website is maybe a good way to spend a couple hundred...and a set of professionally made business cards can go a long way. Also having a few t-shirts made up will help you come across more professional and legit when approaching prospective customers.

A truck and trailer for SURE. Nothing too expensive, but also keep about $1500 to $2000 aside for repairs that WILL be needed soon. Also setting aside $500 for fuel isn't such a bad idea, to help you get through those slow periods where the money isn't coming in quite as well. A good cordless sawzall with an extra battery and some blades will be a good investment, too. Processing those radiators and pipes on the fly will pay for itself.

Another decent thing to spend a little money on is some truck lettering or magnetic sign to attach to your vehicle. You'd be amazed how many sets of eyes will run across your vehicle on a typical day of work...and this type of exposure is the sort of thing that can help a lot. If someone happens to see you driving down their road while they have a big ol claw foot tub in the garage they've been dying to get rid of...you might have just landed you some good cast from a very minimal investment. Moving billboards are a hit!

Without creating any major overhead like a building or recurring advertising costs...you should be turning a profit in no time. If you find yourself unable to keep up with the work load, or there just aren't enough hours in a day...a second truck/trailer and a helper or two is a great way to invest a bit of what's left. But remember - two trucks is double the gas, double the odds of a breakdown, and double the repair costs! Just make sure there's at least double the profitability out there before you put the cart before the horse!

Happy Scrappin!!!
http://www.basic-metals.com

Hmmm...if i had $5000. Since i wanna get into scrapping cars i would buy a car trailer and a winch. And use some more money and buy a car.

invest it all in computer scrap

Capital to offer farmers up front to scrap their old farm equipment. Go big or go home. Three or four old combines weigh in pretty heavy with fairly quick prep. The way I see it, start up cash should immediately start working for you. Nice tools and equipment is nice and even a luxury, but you have to have something to dig into first. Big money upfront swings even the most introverted scrap hoarder to sell.

Originally Posted by metalworks55

I love reading the posts in this forum and I see all kinds of guys using different methods and ideas to scrap. I see many just doing it on a small scale with little to no money and many on the high end buying volume with quick turn over.
So my hypothetical question to you is if you had $5000. would you use it for advertising, auctions, buying and selling or a combination of all?

Take $500.00 of it to outfit a small laboratory, fume hood glassware, chemicals and some acids Purchase C.W. Ammens book on refining precious metals along with C.M. Hoke's books on Refining Precious Metals Wastes and her companion book Testing Precious Metals.

Follow Hokes acquaintance tests as she has laid them out in her book to become familiar with colors and reactions for he metals your working with. Ammens is a bit more advanced, he covers evrything from wet chemistry to electro refining, you should have some previous background in precious metals before tackling his book.

From Hoes books you can walk right into Ammens.

I would buy scrap gold and silver with the remaining money, but not without first having read Hokes and Ammens books.

Originally Posted by GeorgeB

Out of curiosity, other than craigslist.org what sites or places do you use to advertise for FREE?

For sites, I have tried backpage.com but around here, it is useless.

Lol. I just took a look at backpage.com for my area. 99% of posts are spam...
I assume that social network sites such as facebook could be a goldmine. I know that in my county, there are 2 facebook groups set up for selling/buying/trading/free stuff. Also, set up a page for your business and get as many friends as you can. Post frequently to increase your exposure. If you're making a trip to pick something up, post an update... "at noon, I'm going to xyz neighborhood to pick some stuff up. Anybody else out there need something out of their way?"
I made a posting on freecycle the other day looking for old computers. I got an email from the moderator. Apparently there are quite a few people in the group that throw a fit if somebody's trying to make some money. So, I pushed the 'recycling' angle instead of the 'making a buck' angle and smoothed it over. I don't think the people that complain realize that you are still doing a service, even if you are making a buck. From the freecycle post, I have 4-5 computers to pick up from one guy and a lead on some office printers. Those office printers would cost the business $50 each to recycle through the washington ecycle program. That's a decent chunk of change that I can save that business and make a few bucks while I'm at it. Not to mention you're going to be saving a lot of stuff from reaching landfills.