New Scrapper: Balancing the start up budget. tools, gas, etc

Ok well its been about a month and half maybe 2 since i started first picking cans, then to getting electronics, now for last 3 weeks including metal. I have only been to the yard once. to take a load of ferrous metal and got more than double what i thought i would get with a whopping $35 and some change. I am looking to go to scrap yard again this Monday to take my non ferrous and newly acquired metal items. Got fingers crossed hoping my visual estimate once again equals a double payout when i go.

Seeing that at this time i have a limited route ( radius of about 10-15 miles max.) and mainly its between places i am usually gonna end up going anyway (im an early morning shopper, post office, atm person lol) i figure for a week in my camry I spend an extra $10-15 a weel worth of gas scrapping . Not much overall, but when trying to keep the ledger it helps me figure out when and if I am breaking even.

Over the past few weeks i purchased a few items to help in my process

Drill - harbor freight about $15.99
Cordless Recip saw harbor freight about $35
Diagonal cutters harbor freight 3.99
security bit set - harbor freight 5.99
bit holder - harbor freight 1.99
12 inch prybar harbor freight 1.99
2 pairs of gloves harbor freight @ 1.50 each total 3.00
aviation tin snips harbor freight 3.99
adapter set that allows you to put sockets on your drill from harbor freight I think it was 3.19
metal cutting blades for recip saw harbor freight 7.99

so to round it up to about $84.00 so far

sad thing is I am probably going to harbor freight tomorrow and purchase the item # 91223 angle grinder with coupon for 14.99 along with the thin metal cutoff wheels for 5.99 in order to try to take the copper out of some of the items i have picked up.

I have purchased all these items cash, so no worry about credit or interest on them. The only other thing i can see purchasing in the next 2-4 weeks is a rooftop luggage rack that i can put on my car and some ratcheting ties which totalled together could cost between $40-75 . Along with some starter business cards im budgeting about $25 for that.


I figure when i go to the scrap yard for second time ever this week. i will have atleast broke even for what i have spent so far in tools and gas for the time i have been doing this. (there was atleast a week i was down because of a sprained knee)

Any possible purchased i might need (besides truck or van) that will help me with my scrapping

I figure If i have a good week this week, i should finally BE ABLE to make some real money scrapping lol

Suggestions please.

Sounds like you have the basics down. If any of those items don't last or fail you when you need it most, then replace with some better quality stuff, but you have a good start on stuff.

Maybe search Craig's list for some used tools with a brand name. They may be cheaper and last longer than those from harbor freight.

Keep at it, you have a great start. Are you working a regular job and doing this on the side?

Don't use you aviation snips to cut wire. Good luck.

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Maybe search Craig's list for some used tools with a brand name. They may be cheaper and last longer than those from harbor freight.

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Also check out your local pawn shop for better than average tools, A lot of guys pawn their stuff when they need to pay a bill.

Remember that not everything is scrap.

As Mech said..hit those pawn shops! I've gotten some great deals on power tools there, hell even ones I'll never use..lol.

Good tip mech!

Sirscrapalot - ?

I buy all my tools from harbor freight except my cordless screw driver that I bought at walmart for twenty bucks. What I did was every time I went to the yard I would take some of the money out and set it aside till I had enough to buy some tools. Don't forget the magnet unless you already have one.

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Originally Posted by Sirscrapalot

As Mech said..hit those pawn shops! I've gotten some great deals on power tools there, hell even ones I'll never use..lol.

Good tip mech!

Sirscrapalot - ?

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bought a brand new dewalt 1/2 impact wrench (forget the exact model) for $85 at my buddies shop the other day, i took it all the way to the back of the storage container just in case my Makita ever quits on me

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Originally Posted by happyscraper

I buy all my tools from harbor freight except my cordless screw driver that I bought at walmart for twenty bucks. What I did was every time I went to the yard I would take some of the money out and set it aside till I had enough to buy some tools. Don't forget the magnet unless you already have one.

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i know magnets are everywhere but i get mine from my yard, the same ones the yard uses on a keychain

As long as you stay consistent and educate yourself on the forum, we will make your money.

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Originally Posted by corycouch

i know magnets are everywhere but i get mine from my yard, the same ones the yard uses on a keychain

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I get my magnets from microwaves. There is two in everyone of them.

I've never thought about the microwave. I learn something new on here almost every day. Thanks guys.

Please keep us posted on Yard trip #2, i recall your post on trip #1. And speaking for myself,--i enjoy seeing the progress as it helps me judge my own.I also like Harbor Freight--have bought many tools from them over the years.

Buy what you need. If you need it now, you'll likely need it again. Last month I spent $429.69 on tools & equipment. Never, ever, ever, be scared to invest in your business. Keep your reciepts. You'll need them next April 15th (You ARE holding out to render unto Caesar, aren't you??!!??)

You can even utilize that money to help fund purchases as you go along.

How I do it: I track every dime I bring in from scrapping & resale. I subtract every dime I spend to bring in the aforementioned dimes. I divide the result by 3, and I keep that one-third of my year-to-date profits spread out among my Paypal account (~20%), my business account (~30%) and folded up Benjamins in my fireproof safe (~50%). Anytime I need to buy something, I don't have to scramble around withdrawing/transferring money to do so... I ask them if they prefer Paypal, a company check or cash. It's usually cash! http://imageshack.us/a/img7/4236/6bc.gif

Then, each April, when Uncle Sam wants his bite outta my @$$, I can send him his ransom as painlessly as that can possibly be accomplished. :(

But as far as tools go, I don't want to miss out on making a thousand this week by not having the tools & equipment because I was too scared to spend 100 last week.

I get magnets from all kinds of places, stereos( I know right!) speakers, microwaves, hard drives. I don't discriminate..a magnate is a magnate is a magnate. :lol:

Sirscrapalot - I'm not prejudice I scrap all electronics equally. - Me

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Originally Posted by Sirscrapalot

I get magnets from all kinds of places, stereos( I know right!) speakers, microwaves, hard drives. I don't discriminate..a magnate is a magnate is a magnate. :lol:

Sirscrapalot - I'm not prejudice I scrap all electronics equally. - Me

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That's where I have to argue, you can take one of those magnets that the yard gives you and check a bunch of screws from different electronics. Then go back over them with a HD magnet and you'll pick up another half dozen or so. You'll be picking up the slightly magnetic stainless also that a normal magnet won't touch.

Your allowed to disagree with me at times Mech, it's ok. :p I dig what your saying to.

I don't ever use magnets from my yard, as my speaker magnet(s) does the trick an if it's not handy, I have a bunch of HD ones attached to my toolbox on my table in my shop. So I guess in my case it's a matter of not really using a 'weak' magnet. I've yet to come across anything magnetic mine can't detect.

If everyone agreed with me, I'd be worried. ;)

Sirscrapalot - Stuck stuck goose!

One more thing, don't focus so much on the money, focus on good, clean, and efficient scrapping and the money part will take care of itself. Money becomes an issue if you buy scrap, but since I don't, making money is not an if, it's a when. I sell a product I do not pay for. Now that's a sweet deal.

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Originally Posted by TheRecycler

I sell a product I do not pay for. Now that's a sweet deal.

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I must respectfully disagree with the steadfast rule of never paying for scrap.

I get the appeal of having zero investment in your product, but the truest truism of all truisms is "It takes money to make money". If you are able to keep yourself as profitably busy as you desire to be and still follow your rule of never buying inventory, then by all means carry on smartly!! But if you're ever having downtime, or find yourself doing dubiously profitable things like unwinding miles of yellow tape to recover tiny thin strands of copper from a miniscule transformer, then perhaps a re-thinking of the 'no buying' policy is in order.

Last month I won an auction for $95.27. It's virtually impossible to separate out every last dime of income from those items... random unstripped wire went in the tub with wire from other sources, small heatsinks from servers went in the 6063 tub, etc, etc. but I do know of right at 900 bucks worth of income that was solely attributed to the items I got in that auction. I'll take a 900% markup any day of the week!

Unless, of course, your intent is more to purely be a RECYCLER, as your name implies... if the money is your secondary motive, coming in after the satisfaction of having salvaged those items from entering the wastestream, I get that, too.

To the OP I have to say, I think you did it a little backwards.

Unless the tools were absolutely needed it would have been better to go to the yard first, then buy the tools after your payout.

If you continuously buy tools and such and "hope" to get your investment back, the road you are traveling could turn out to be the loongest road you have ever been on.

And as far as buying scrap goes, it is a really good way to make more money.

I could spend $200 on 50 towers and double my money in a few days, or i could spend $200 driving all over town for a week, looking in dumpsters and find maybe 20 towers.

Buying scrap is a really good way to make a quick easy flip on your investment.

Of course i started with only "free" stuff and put back 50% of my profits for tools and such, which led to having enough cash to start purchasing auctions. I still put 50% of my monthly profits back into my account for buying power and it has allowed me to buy more and more. Now i dont necessarily have to flip one auction to be able to buy another. I can do 3 or4 a week if the price is good enough.