Anybody have a formula for cost of storage versus selling for more than scrap?

[BurlyGuys]

I only have about 1800 sf of warehouse space, and as you know it fills up fast! I have a few filing cabinets, which is something I get on a regular basis. Let's say a cabinet weighs 40 pounds (total guess, here) at 200 per ton means its worth about 4 bucks as scrap. I can sell one once in a while for twenty, so $16 more than scrap.

Worth storing?

[Craasher]

I dont think there is a formula but a list of priorities. If you know you can sell them for $20 but scrap them for $4, and you have the room keep them. If you run across something that needs the file cabinet space that you can scrap it for $5 but sell it for $25 I would scrap enough cabinets to make room. To me its like playing cards. You only have so much room in your hand so keep the good cards and discard the worse cards.

[brandon]

i would only keep the ones that are in great condition, one thing to remember too is that you can store smaller worth more than scrap value item inside of the file cabinet. if you have good height in your storage area stack your cabinets.

[miked]

In addition to what Craasher stated you can consider if the sales of file cabinets lead to other business? If they do help sell other items then they are worth more. I don't resell anything at this time but used to sell used "junk" at flea markets. Even at flea market selling you need to stock stuff that on their own might not make sense but complement the business. Mike.

[mikeinreco]

I usually scrap all file cabinets........To me thay are just not worth the storage space..........You have to remember that most bussiness are going to digital files and the ones that do use file cabinets probably have plenty and file cabinets (especially the older ones are built to last)......My .02 worth if it's even worth that

[KzScrapper]

I just keep the ones that lock and have a key...list them for a while then scrap if it doesn't sell when I need the space.

[DropYoTop]

.......(S+D)
TYK=_____+WIW
........A²-S



(things you keep)(Supply)(demand)(area)(size)(what it worth)

[mrsamsonite]

Some of these points have already been mentioned but, these are the most important points to consider:
-Do you have space?
-Is there something more valuable that you can store instead of the file cabinets (opportunity cost)?
-The cost to take file cabinets to the scrap yard (gas, time, wear and tear, labor).


Me personally would keep some of the good ones just in case someone asks for them, and scrap the rest. File cabinets are large (take up lots of space), somewhat heavy, and not worth that much. You dont want to be handling these types of items (also couches, and other furniture) more than you have to. Focus on the smaller more expensive items to resell.

I always try to resell items first if I can because the return is way more than recycling but, I put items under $50 in one category and items above $50 in another category. I dont go out of my way too much to sell things under $50 but, I will go out of my way to sell things above $50. I guess thats the way that I try to do things but, I am a small opporation, maybe you are able to have your employees handle the smaller stuff too.

[Russell]

Part of my job is loading unloading stored items in/ out. Items stored are on a cubic foot basis. Stacking things or using shelving/ racking greatly increases capacity. Perhaps dedicating xxx amount of space for such items would be a good investment, in the long run. Maybe what you sell from storage could possibly cover your rent/ lease?

[happyscraper]

That's something you have a deside for your self. Personly every thing I get gets broke down and sold as scrap unless it's something that I can use. I know sometimes I lose money for not trying to sell for more than scrap. Some people do buy file cabinets and if you can move them rather fast buy all means sell them otherwise scrap them. My two cents.

[Area67]

I have 8000 sq.ft. and my rule is "factor four", a fairly standard way to determine warehouse space. If the item can bring 4 times what you paid (time/fuel/hauling) it gets 30 days, otherwise ship it. That keeps your overhead working not draining. The waiting for "the right guy" point of view will over run your space fast.

[Libertytow]

Burly i have the same problem but i have 11800 sq ft. rule #1 everything gets 30 days then goes bye bye be it cutting price scrap donate etc i need a lot of turnover though or i am bankrupt soon after

[nebrs13]

sometimes id rahter sell some #1 with #2 why, chase down dollars tripping over pennies, lol or something like that

[Russell]

There absolutely is a formula. Rent per sq ft/ filing cabt sq ft. (Say 1$ per sq ft / filing cabt is 3 sq ft) holding cost of 3$ per month. Selling value 20$- scrap value$4. Selling value gain of 16$.

Selling value $16/ holding cost $3 = 5 months for your break even point, holding longer is costing you money. Assuming the scrap value doesn't drop or rise.

There is also opportunity cost to consider... Could that space be better used for something of a higher value, or perhaps a piece of equipment that will make you more? Perhaps not paying for that space could give you more leverage for other areas of your business.

[BurlyGuys]

I've discovered another part of the formula...the ability to walk around! I am in absolute purge mode right now!

"The usefulness of the teacup is in its emptiness.". ... Master Po

[scrapperben]

depends on how high your roof is, they stack on top of eachother so if you can stack 4 up then it only takes up the floor space of 1.
so the cost of storage is divided by 4.

what about utilising them whilst in storage, each draw can hold something like cpu's, ram ect and then when someone wants one, you empty it out and sell it, so it's paid it's way in storage.

$4 today you can buy say a pc with that money tommorow, following day you scrap the pc and sell it for $8, next day you buy 2 pc's and turn it into $16 and $32 then $64 and so on.
about 30 days into it you could have like $10,000 all from that measly $4 you got from scrapping the filing cabinet.
so technically, that filing cabinet has cost you $10,000 to store it for 30 days.

[wavecrazed]

I want to buy some land and build a warehouse.Scrap out of it. My father did it in the 70's, Built boats. split it up into 3, rented it later on. Sold it for some cash later. The killer is taxes and insurance.

[Russell]

Scrapperben what you're talking about is opportunity cost.

[charn]

Filing cabinets could be filled with dirt or concrete and used as structural material.