Help with E-waste pricing dilemma...

I just finished read the thread by PickerBenny about escarp pricing.

http://www.scrapmetalforum.com/scrap...ap-prices.html

There is a recycling company about 45 minutes away from me that has everyone from the area going there. There prices are horrible and across the board there prices are near the same as that thread.

If this company sells small motherboards at 1.25/lb for instance and in the buyer/seller section Ewasted (for example) buys at 1.90/lb. I could buy at 1.30/lb to stay safe. Though a lot of computer repair places in area said that my prices would have to be better than .10 or .15 cents for them to switch. I offer free pickup and the other place does not. How do I price myself better without killing my margin.

Do I offer better pricing to companies and keep prices just .05 to .10 cents above with general public? What do I do???

If I was in that situation and knowing prices, I'd do what it takes to get the product and drive a truckload up to them. Spread the expense over 500 - 1000 lb. I've driven from Ind. 5 hr. and it was worth my time.

You don't have to compete just on price. Remember if you are picking up and taking stuff the other place does not. If you are willing to break items down to get the high grade material then you may be able to simplify their lives.

Next consider how long will it take to get enough product to justify the trip to sell. Prices do change and not always higher. Having a relative large stock on hand may put you at risk of loosing money holding on too long.

If its convenient to ship pallets then you can hold less and not risk loss due to changes in pricing. If you want to know my opinion read my tag line. Mike

It's only 2 1/2 hr drive, I'd do a car load every chance I could. (I have from here)

I would buy it higher and bring a trailer load to the buyer im from MN and will be bringing a massive load to ewaisted at the end of the summer when I fill my shed up with escrap. If you have that much volume coming in from people its well worth the buying at higher pricing. Go as high as it takes to win bizness over than over time slowly cut prices back down closer to your competitor.

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Go as high as it takes to win bizness over than over time slowly cut prices back down closer to your competitor.

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That right there is why I no longer do business with a Ft Wayne buyer.

Or like Mike said, (Mike D, not our Mech..to many mikes!) point out to the IT guys, your picking the stuff up at your expense. Ask them what they pay in gas to drop it off. Sounds like their trying to pull a yard on you..trying to see how high you'll go.

If it were me, I'd put up ads on CL an everywhere else in the area, an offer to buy at your price, with free pick up. You may not get the IT guys trying to hold out, but you'll get everyone else who doesn't want to waste gas driving. They'll make more going local with you then driving further out.

Then do as Mike/Mech suggested, an drive those loads to your buyer! ;)

That's just me tho, an I admit..I march to a different tune.

Sirscrapalot - It is hard to imagine a more stupid or more dangerous way of making decisions than by putting those decisions in the hands of people who pay no price for being wrong. - Thomas Sowell

I really appreciate the quick response from everyone. Thank you again!

A pocket full of money goes a long way as well. Show them you are serious. If you get them to be your customer be ready to pick up when you get the call. I would also not monkey around with pricing. If your buyer drops prices then of course you have to adjust. Be upfront about this with your customers. Let them know it works the same way at the scrap yard too. The benefit is that you are coming to them and it is saving them time and gas.
Get to the owners not their employees, more likely than not the boss wants their people working for them not wasting time going to a scrap yard.

Ok. I sent out emails on pricing that is above the big competition on town to 4 different computer repair shops. It's been 3 days. No hits yet. No biggie. Just gotta wait it out. Though i just got my business cards and have been handing them out for a week and a half. My phone is non-stop ringing because of the cards. I just picked up 8 iMacs and LCD monitors, 300 lbs steel and a grill. Tomorrow I have an appointment to pick up another 15 towers. All of it is free!

I feel so dumb!!!

customer service will trump price to most long term customers. I don't know your situation but becoming a middle tier buyer is a huge gamble. although having a top tier buyer just down the road is a big plus.

This is our 4th year and just last month one error in judgement. nearly put us out of business. we will make it but, we still haven't fully recovered.

When you become a buyer you now take on responsibility to others not just your self. What you do and the decisions you make effect them as well.

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Originally Posted by Rollyrogers33

Ok. I sent out emails on pricing that is above the big competition on town to 4 different computer repair shops. It's been 3 days. No hits yet. No biggie. Just gotta wait it out. Though i just got my business cards and have been handing them out for a week and a half. My phone is non-stop ringing because of the cards. I just picked up 8 iMacs and LCD monitors, 300 lbs steel and a grill. Tomorrow I have an appointment to pick up another 15 towers. All of it is free!

I feel so dumb!!!

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Now put on a nice collared shirt and take your business cards and visit those repair shops you emailed. Put a face with a name and you be remembered. Even if you don't make a deal the first time, stop by every 10 days or so and update them on your pricing.