Warning* before you start a scrap metal business consider this

[Tcgs]

Yeah but can we call it Red Truck?

Nope

[NobleMetalWorks]

I'm more interested in how you franchised, it has a lot of value and would be an interesting thread to start. I have a successful business that I am currently growing, or have been growing over a long period of time. I don't scrap, but instead I'm what you would call a precious metal refiner.

I would be most interested in your sales pitch honestly. That will tell me a good amount of information.

For example, if you search for a franchise that has to do with recycling, you might come across something like this:

Junk Genius | Professional Junk & Trash Removal

I am not asking for any proprietary information that I couldn't already get off the web or by asking a company who specializes in helping you franchise your business, I'm just asking about your personal experience, and what your particular franchise offers. I hope you understand my question clearly because I am honestly interested in what you are offering people, and how you got there.

Scott

[Tcgs]

This is not a post for franchise help scott.

[Tcgs]

Also, Scott.
As for my time management.

I built the accounts in month one.

Been fine tuning since.

We run trucks on Tuesdays, sort and dismantle what we didn't sell on Tuesday on Wednesday. I do invoicing and check writing on Fridays. Thursdays are for my "once every two week" clients.

I work full time around the clock, but as for the scrap portion, two days a week.

[Tcgs]

This is not a post about franchise help. There is not franchise opportunity available.

[BRASSCATCHER]

Here is my level.....I have never looked upon anyone doing an honest days work as being below me, no matter what they do and I teach my children that as well.

[griff5693]

Here is my level.....I have never looked upon anyone doing an honest days work as being below me, no matter what they do and I teach my children that as well.

Well said.....just like a lot of others on here

[TheRecycler]

It appears that a lot of people want to get in the scrap metal business. Part of me says, "Great! Entrepreneurs" However, what I see is a bunch of Wantrepreneurs. People who think that going into business is easy, and that all they need is to make a couple hundred bucks a week is good enough. What we have is a flood of bad scrappers.

Consider which scrapper you want to be



Level 1 Scrapper = I get my scrap from the streets, its almost always free. I make about $50-500 a week.

Level 2 Scrapper = I rely on some actual business techniques to acquire my scrap but I am still dependent upon the streets for my scrap. I can bring in some decent income from $500-1000 a week.

Level 3 Scrapper = I rely completely on business techniques to acquire scrap. However I am still far from my goals. I have some help scrapping but if I am not involved in the process, my business declines. We make a decent amount of money, but overhead is a B*tch I only pay myself $5000 a month or less.

Level 4 Scrapper = I own a small scrap yard. Were constantly buying and selling. Its hard to keep up with the pace of business, and the market dictates our fortune. Things are good but could go either direction. I make a six figure income and don't have to beat myself up everyday at work.

Lets be real, nobody wants to be just a level 1 scrapper, you can say that you have to start somewhere. Unfortunately level 1 scrappers almost never make it to a level 3 or more.

Maybe you have a good idea, thought it was original, then came to the forum and realized everyone is doing it. You may still try, but getting past level 2 is hard. Only a true entrepreneur will make it to level 3 or beyond.

The only way I see it possible is to start at level 3 and progress to 4 and beyond. This means a substantial investment into the business. Maybe not all at once or in the beginning, but building a scrap yard from the ground up isn't the easiest way to pay the bills at home now or any time soon.

If you value your hands, feet, and other appendages, you will soon realize that level 1 and 2 scrappers are in constant pain from scrapping injuries.

If you value your public image, just ask a life long level 1 scrapper how he feels when people watch him digging in the trash. Even as a level 3, you will come home dirty and smelling bad.

Is this business for you? Only you can decide. Just consider what kind of business you want and the best way to get it.

You make a valuable point and thank you for presenting the different levels, I never thought of it like that. Personally, I view scrapping as an alternative to the monotonous 8 our work day. Yes, I get all my scrap for free because I'm really good with numbers and communication. As a former math teacher and a holder of a B.A. In Communication, it's the perfect combination. I take a professional approach to what I do. I have a business card, I exercise extreme business ethics, and so on. The end result, I don't have to find scrap, it finds me. So, what category would I fit in, maybe 3a. I sell a product I never pay for which yields me 95% interest ALL the time. While you make a larger sum of money each year, try answering these questions: how is your health and how much free time do you have on your hands to exercse and spend with the family, i have a ton of both. how much do you have to spend to make that much, i bearly spend $1000 to $20,000. Do you get my drift, its not working hard thats the key, its working smart. Can't wait to get your response.

[Tcgs]

I have a full commitment to my family. Hence I could work harder. I find more value in time than I do money, which is why I love my business so much. I can rearrange my schedule any week to fit my activities with my son.
As for how much do I spend? I spend about 60% of all the revenues on costs of goods sold and overhead. The 40% pays my salary and invests back into the company.

As for working hard, I do have plenty of hard work, but for the volume I do, its pretty smart work. I actually have some help as of recently. Better to get help then to break my back every Tuesday.

[NobleMetalWorks]

Edited:

I had to edit what I said, this thread is like driving down the freeway and seeing a car wreck, you know you shouldn't look because it causes a traffic jam, or diverts your attention from driving and could cause a wreck, but as you drive by you just cannot help looking, and commenting.

To the OP. Just admit where you are wrong, apologize, and lets move on. I forgive you, I'm sure everyone else wants to forgive you as well.

Scott

[griff5693]

YOU GUYS!!!

GREENTRUCK is MY FRANCHISE

I guarantee the contracts, the scrap, and the system.

I operate one of my own franchises.[/QUOTE]

OK let me educate you a little.... you have either bought a franchise or you own a company and are selling franchises....or you owned the company,sold it to someone and bought back a franchised piece of it....which the latter would be the smarter of the three options

[parrothead]

I think the problem with the original post is trying to cram every scrapper here on the forum into four distinct categories. We probably have 20 or more categories of scrappers here. The original post made it sound like if you don't fit into one of those categories, you are flat out doing it wrong (or worse, you suck at it).

[Tcgs]

I think the problem with the original post is trying to cram every scrapper here on the forum into four distinct categories. We probably have 20 or more categories of scrappers here. The original post made it sound like if you don't fit into one of those categories, you are flat out doing it wrong (or worse, you suck at it).

You are right
The problem is trying to cram everyone into 4 categories.
anyone wanna try to make these categories more accurate?

[TheRecycler]

I think the problem with the original post is trying to cram every scrapper here on the forum into four distinct categories. We probably have 20 or more categories of scrappers here. The original post made it sound like if you don't fit into one of those categories, you are flat out doing it wrong (or worse, you suck at it).

I agree with you. I don't need a lot of money and scrapping gives me what I need to do what matters to me, spend time with my family and workout to maintain great health. Not to smoke like a dragon and eat burgers and turn into a tub of lard.

[Tcgs]

Its hard to manage all these posts, so please ask your questions again if I missed them.

[Cole]

I guess by your standards I am a level 1 scrapper. But that's perfectly fine with me. I work 3 days a week at my real job and bring home over 100k a year. I scrap for fun and all the money goes towards my kids college fund. But I guess by your standards im below you. But im perfectly ok with that.

[Tcgs]

I guess by your standards I am a level 1 scrapper. But that's perfectly fine with me. I work 3 days a week at my real job and bring home over 100k a year. I scrap for fun and all the money goes towards my kids college fund. But I guess by your standards im below you. But im perfectly ok with that.

I don't think you are below me. I don't rank myself against other people, only on what I think I am capable of doing and where I actually am.

[NobleMetalWorks]

Speaking of/ Tom, the founder of Junk Genius and I had a meeting about 9 months ago, and asked why I was doing my business on the side and be a full time employee.
He insired me to go this route.
You are making my day Scott!

THATS RIGHT I KNOW THE GUY YOU ARE COMPARING ME TOO!

I wasn't comparing you to junkgenious, I was asking if you had information like junggenious. Also, I'm not sure what you meant by what you said. Were you working for junkgenious? Or your conversation with Tom who is the founder inspired you to franchise yourself, or you called him up to inquire about buying a franchise, and he inspired you to start your own? What exactly did you mean, call me dense but it's a little difficult to understand to be honest.

If you are creating businesses and then selling them, that's great, but that's not what a franchise is. That is creating a business and selling it. If you have successfully sold a franchise, then you would have the information I am curious about. Or at least I would assume you would.



Scott

[Tcgs]

I will not provide information about my franchising a business on this forum.

[billygoat]

Honestly, something smells fishy to me. You say things and make great claims about your business but there is never really any substance. When someone asks you a direct question you don't really answer it, instead you go off at a tangent.

I'm done following this thread. I have better things to do.