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Customer Relationships

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  1. 04-21-2017, 02:36 PM #1
    nutpie
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    Customer Relationships

    I remove boilers and oil tanks for a plumber friend. I started working with this guy 6 months ago and since then I have gotten no less than 5 jobs through him giving people my phone number. Most recently (two days ago) I got a call from a big plumbing business to haul 6 big hvac heaters. I did not have to remove them from any building, they were right outside in the parking lot waiting for me. I usually charge a fee for removal of most anything, and I wrestled in my mind wether to charge this place or not. I did not charge for this pick up.

    Scrap value - +$65
    Pay for helper (2 hours) - -$20
    Gas/wear and tear - -$12

    Total net profit - +33

    Time - 2 hours= $16.50/hour

    Eventually, as my business grows, I will have expenses such as, Insurance, Income Tax, etc.



    So, just looking at these number I should have charged a fee. But the circumstance of this particular client make me think differently.

    Fin
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  3. 04-21-2017, 02:36 PM

  4. 04-21-2017, 04:42 PM #2
    mikeinreco
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    Around here if you tried to charge people just laugh....a list a mile long for people to pick up scrap for free as long as they just have to load and go.....
    BUYING ALL COMPUTER SCRAP WORKING OR NOT
    CHECK OUT MY BUYERS THREAD http://www.scrapmetalforum.com/scrap...nic-scrap.html

    https://getjunk.net/Knox-County-TN-0...Recycling.html
  5. 04-21-2017, 07:17 PM #3
    nutpie
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    Quote Originally Posted by mikeinreco View Post
    Around here if you tried to charge people just laugh....a list a mile long for people to pick up scrap for free as long as they just have to load and go.....
    It is the same here, which is part of the reason I did not charge. Scrappers are a dime a dozen, not as much with the lower scrap prices, but they are still around.
  6. 04-21-2017, 08:05 PM #4
    Patriot76
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    Everyone's situation is different. Many on the forum defend charging clients for removal of scrap. This is understandable in the city where you are moving scrap many stories of a high rise. If every thing is on ground level, getting it for free is a great deal to me.

    The reason for this perspective is you just need to load it, haul it, and collect the money. For me collecting scrap for free is a gift. The PR with both companies will provide more business, a win/win for you. Conclusion: you made the right decision.
    Give back more to this world than we take.

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  8. 04-21-2017, 09:53 PM #5
    mikeinreco
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    Yea in this area the better scrap is always put up for auction...computers/ac units command a premium in quantity

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  10. 04-21-2017, 10:16 PM #6
    miked
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    For some they direct their business in a direction that allows them to charge for removal. In these cases there may be more material that must be disposed of rather than taken to the scrap yard.

    Either way you are still aiming for a way to produce a profit for your business. I feel you have to adjust your business in the direction most beneficial and attractive to you.

    Good on you for developing your customer base. I started buying scrap in the very beginning and did some curb shopping. In the end I was buying from computer repair companies. 73, Mike
    "Profit begins when you buy NOT when you sell." {quote passed down to me from a wise man}

    Now go beat the copper out of something, Miked

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  12. 04-23-2017, 11:03 PM #7
    matador
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    It's virtually impossible to charge for removal here. People have large tracts of land, and whatever was abandoned there years ago will just stay there. You made the right move IMO
    More than Scrap Value Shipment Tips: http://www.scrapmetalforum.com/scrap...tml#post242349
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