Originally Posted by
happyscraper
Do not sign a contract, the first few boxes will look good having memory and mother boards mixed in then a few weeks latter the boxes will start having more and more low grade boards. I would offer .80# as long as you can at least look in the boxes first. Do you have a buyer for low grade boards? It seems like alot of people don't have a buyer for low grade boards.
I think the best answer is going to be, It's always a matter of how much risk you are willing to take.
The yard obviously isn't going to take .80# because they have a yard giving them 1.00#.
If you want to "float along" you can easily hedge your bets and take very little risk, but in turn, you will get very little reward. I personally would work out an agreement and buy the boards for as little as I could (maybe 1.15). I would buy a few gaylords and NOT SPEND THE MONEY, instead keep rolling in back in until I went through a few to know where I was at. Sure, I could be risking about 2k but I really think the chances of losing your a** are low if you are smart.
On 500# if you are getting 20% high grade at 1.15#:
100# high grade x 3.50 = 350.00
400# low grade x .10 = 40.00
Your potential loss is only 185.00. When you throw in processors, ram, heat sinks, CBM, your potential loss is much less. With a high volume you should be able to get a better price from the buyers also lowering the potential loss. While the upside is not a huge windfall, it could easily be a steady profit and allow you to grow.
It's all about how much risk are you willing to be subject to. There is a reason that someone is paying 1.00#, there is money to be made.
In life sometimes you have to take a chance.
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