Originally Posted by
snowyscrap
We are in the Midwest.
My thought was at looking at Hammel shredders that we could get a higher price because we could sell directly to a mill instead of to a shredder or the mills shredder. That would be a higher price per ton. I have seen that these shredders can run 25-35 cars per hour. I know this is less throughput then large shredders that do not move.
I'm not trying to discourage you, I just want you to be sure you know what you are getting into. This is also to help out anyone that reads this and thinks about opening a yard. If you sell to larger yards, you wont need trailer loads, but you get a smaller payout.
Time for very sloppy math
25 cars per hour 6 hours of run time 150 cars a day
150 cars 350 each 52,000 per day going out that you have to wait to get back
You need a lot of cash on hand to run a yard
aluminum. lets say you need a trailer load to get a fair price. Not sure how much aluminum fits in a trailer, lets call it 10 tons
You pay out a little low at .45 so you need to pay out $9000 before you can ship it out and then wait for a check.
what about copper, should be able to fit 20 tons of that and you pay out real low at 2.50 thats $100,000 you are sitting on
It is not unreasonable to think you could have $500,000 or more just sitting in your yard, and who knows how much out on net 15, 30, or more.
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