Is it worth calling machine shops for scrap?

Several years ago ,I rode with a friend (who worked for Smith Metal Company) to Corinth MS. to trade out 40' containers. We went to a plumbing manufacturer and retrieved a container loaded with Gaylord boxes of copper turnings and dropped off an empty. The company was giving it to SMC as a tax write off. At this present time ,a company here in town called United Stainless, gives a flatbed semi trailer load of stainless pipe to SMC every week+ as a tax write off. My brother-in-law and a few others I know work there, and they are the ones marking the pipes for salvage. The company only receives an Uncle Sam reimbursement for the materials. My local Wal-Marts trade in batteries go to Exide in AL. as the same deal. A friend of mine (Steve Gee ) is contracted to a company in Memphis. His payout for an average 1 and 1/2 gaylords of 308 stainless is around $3000 a month. and it is a 100+ mile drive for him to get it, but it pays some bills ,and the company writes it off at the end of the year..

You want to get scrap in volume , The TRICK is DON'T pay for it ......contract it. You pick up and clean it up at a set time every so often. And they get Uncle Sam to cover the material replacement with new and time or labor lost and lost sales revenue sometimes. The reimbursements all together are WAY more than scrapping could ever yield.



Contractors work the same game ie; profits for the year are taxable. So they buy used machinery at a high interest rate to show a loss on over all income for the company.
Then after taxes reimburse the losses ,the note is paid off early ,waiving the interest on a $100.000.00 excavator on a 10 year loan now became a $50.000.00 excavator on a 6 month loan. And smaller companies can do this on a larger scale because they work with a smaller profit margin.