Buying and selling lead-acid batteries

This fits neatly for those who buy cars & trucks.

This obviously won’t suited be for everyone, but if you are in the right circumstances it can be very profitable. Buying and selling lead-acid batteries to manufacturers makes up about half of my yearly income and involves way less work than metals. It also takes up less storage room. There is a bigger profit margin. You will generally be the only one in a specific area selling to that manufacturer so you can develop a captive market. You can successfully compete directly with scrap yards since you‘ll likely have the same buyer.

Contact a battery MANUFACTURER not a retailer (such as an auto parts store). Each manufacturer actually makes several brands.

There are some down sides, however. Batteries are heavy. A car/light truck battery weighs an average 34.5 pounds. You will need to be able to be able to transport heavy loads (I‘ve bought over 100 batteries at one place). Most buyers will only buy in bulk (my buyer’s minimum is three pallets or 144 batteries). You will need to be able to move heavy pallet loads to get them to/on the truck from the manufacturer (I use a 40 hp tractor with forks. Many use a forklift). You will have a significant amount of money tied up. It can take several weeks to get a check when you do sell (mine is six weeks - but it’s never been late). You should check local zoning before starting this. Check county and state DEP/EPA regulations. You will be tempted to sell the batteries locally as many will be good. If you sell (or advertise for sale) JUST ONE battery that you have bought for other than personal use, you become a Retailer and subject to a whole separate set of (very stringent) rules and laws. The fatal downfall that I haven’t found a way to combat is the retailer that pays the State “core charge” for junk batteries. I lost one of my biggest suppliers (an auto junk yard) to an auto parts store. The State’s core charge was more than I got from the manufacturer. So, mainly I concentrate on small shops further from metropolitan/urban areas. I can actually pay less per battery to make up for more travel-related expense.

If you don't mind answering how much do you usually get for your batteries?

Also how much do you usually pay people?

Changes all the time with the lead market. The last shipment in November was (I think) $7.75 or .22/lb. I try to pay 50% of what I expect. Right now, I'm paying $4 for Car & Lt Trk batteries. Larger batteries are prorated by type.

Yes, Exide uses 34.5 pounds. Like anything else, it just all depends on how aggressive I am in looking for batteries to buy.

Very easy. Just faxed them the business cert from the city with the Business name and EIN (or your SSAN). There was no application. But this was the local Exide branch for this area. Your area may be different.

There are no "business license" requirements as such in this state for a small operation in scrap metal (unless you deal with cars/vehicles, then you'll need a junk yard license). I have Commercial Auto insurance but when an insurance agent checked for General Liability as a recycler, she was unable to locate any company which would issue a policy for a small operation in this state (basically what you're saying). I initially called the Exide regional office and got directed to the local person for Maine. I don't remember an application, I just sent a registration form with the company name. The "type" of business was never an issue (it was actually initially a freight brokerage which is no longer operating as a freight brokerage). I've changed what I do under that name several times and the only real issue is when I file taxes. Then, they want to list what I actually do. I have listed several unrelated activities at once using the same business name.

Re: "business license" - unless you "store" materials, in which case you would be classified as a "junkyard".

Originally Posted by luke

so do you know about forklift batteries? I might have a chance to get some, but do you know what kinda money that would bring in?
Thanks

Be careful. Last ones I was offered, I'd pay something like a penny a pound. I've never gotten any and don't want to. Call your scrap yard or other buyer before you buy and ask about forkilift batteries.

Originally Posted by Mick

Changes all the time with the lead market. The last shipment in November was (I think) $7.75 or .22/lb. I try to pay 50% of what I expect. Right now, I'm paying $4 for Car & Lt Trk batteries. Larger batteries are prorated by type.

To my door I can pay around 30cents a pound. that will almost be $400 more over what you are getting now and my turn around will be less than 3days.