Hello again,
I have posted on here before about starting a scrap yard in a small farm town that we have hauled out of and have strong last name recognition. Me and my brother are currently trying to put ourselves through college through scrap removal. I have two idea's one is a ferrous yard in the small rural town, the other is a small yard in the cities. Here is what I have figured out before-
1. Start a yard in a rural farm town. We would purchase ferrous and non-ferrous metals and prepare them. The equipment we would purchase is a log grapple trailer (unloading scrap), a skid steer, a truck scale, and an office building. We will also get a PO software. The reason there is a need for a yard is because the closest yard is 100 miles away and they only pay $60-$70/ton. We have been collecting scrap from farms, but many farmers have expressed interest in hauling their own scrap if it made more financial sense. We would open the scrap yard just out of town (we have free land we can use) and pay the same as the yard that is 100 miles away. We would then haul the scrap 250 miles and get $300 a ton from the steel mill (We know the buyers, we just need a semi load). This leaves us with plenty of room for fuel and profit.
2. The second idea is to open a scrap yard that is only open at nights (say 5-9) and doesn't have 100 pound minimum like the other yards. We would pay significantly less then the other yards because of not having a limit. Our market would be business owners and home owners that are wanting to get a little extra cash. We would also pay market price for non-ferrous, this would appeal to contractors because we are open late so they do not need to take time from working to bring there scrap in. We would need a warehouse, fork lift, pallet scale, postal scale, and a few other things.
Thoughts or comments?
Thanks!
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