Scrap buying prices when picking up.

I just spoke to a local very professional outfit regarding what they pay if they pick up scrap from me. (I didn't bother informing them that I was doing research to know what I should pay customers!) They were very forthcoming.

I was told they pay on a sliding scale a percentage of what the load is worth, ranging from 20% to 80%. For under 500#, they were paying 20%, so 500# of shred, which would fetch $60.00 at my local yard paying $240.00 per ton, would be purchased at $12.00. Over 10,000# would pay $960, although if I took it in myself I would get $1200.

I found this information to be very useful in terms of offering payment when picking up metals. I don't know where the breakdowns are between the 2 and 8% payouts though.

We do the same thing with our corporate clients. The more pounds they bring me the more I pay. The reason for this is that I can keep my production lines moving with fewer change overs. This saves me money so its worth it to pay a little more.