Given the market, why are the newest scrappers even bothering?

This is a great time for someone to start scrapping. ( I have not been drinking)(yet)... Ask yourself what was or is the hardest part of starting up a new business ? Money!!!! When we started Urban E Recycling 3 and half years ago Gold was at 1800 Silver was at 48 and copper was hovering around 3.50 and shred was .11lb. Sounds great except we didn't have money to buy material with. I purposely avoided customers I knew I couldn't buy from yet because of that, so we had to set up a business model that worked around that point. As we developed cash flow I was able to get more aggressive on the buying side but it took time.



Now with prices so low it takes much less to buy and you can make the same margin as you did before perhaps even more. If you are never going to buy scrap then because so many have decided to "drop out" there is so much more volume out there which will more than make up for the loss of high prices. BTW gas is down over 2 dollars from the good old days also so factor that in to your CR<V=NP That is cost ratio lower than value equals net profit. ( I completely made that up and it doesn't really make much sense but it makes me look smarter than I am )

In all seriousness though, this is a great time for someone to get into the business if they are willing to commit to it,work hard and be patient. Feel free to contact me about start up experiences or just to tell me im a idiot . Good luck and sincere wishes for a happy safe and prosperous 2016 everyone