The Burly Thread: Charging for your services

[scrapGAME]

I contend that even if you are a one man/woman with a pickup truck operating out of your garage, you need to be charging the SAME RATES or BETTER! If you are doing services for free, you are losing money!



The floor is now open for discussion...

depends on the area .... too many scrappers here to charge a fee to pick up scrap

[BurlyGuys]

depends on the area .... too many scrappers here to charge a fee to pick up scrap

Then it might not be a good business for the area. Just sayin'...

[newattitude]

Then it might not be a good business for the area. Just sayin'...

Again, EVERYONE is doing this now - in all areas I scrap in which is around 7. I'm lucky to get a couple truckloads a night in the bigger areas any more. If it werent for all the contacts I've made, i wouldn't get half as much as I do now.

Lots of folks are out of jobs and scrapping to make some food money.

I'm sorry but, I can't afford to drive to a town 50 miles away just to scrap either and try to get leg on up the competition there too.

What do you want me to do? give up on something I've done for over 3 years now just because of the competition? I just have to go out more times to try and get it before they do.

[scrapGAME]

Then it might not be a good business for the area. Just sayin'...

no right or wrong answer burly .... business is still good its just a lil more competitive is certain areas .... 20 miles west of us my brother in law is charging and getting 25 dollars per single item pickup multiple item pickups are free ...

[BurlyGuys]

no right or wrong answer burly .... business is still good its just a lil more competitive is certain areas .... 20 miles west of us my brother in law is charging and getting 25 dollars per single item pickup multiple item pickups are free ...

You know what, if it works for people to do free pickups, then god bless! I just can't imagine it working for me.

[KzScrapper]

You know what, if it works for people to do free pickups, then god bless! I just can't imagine it working for me.

Well of course it wouldn't work for you...you have way more overhead and your in a different line of work that happens to have scrap metal as a by-product.

I commend you on having a great business model and if I were wanting to be in the Junk Clean-Out business I would be stealing many of your idea's.

[Bear]

You know what, if it works for people to do free pickups, then god bless! I just can't imagine it working for me.

no, it won't work for you. You have to do what you have to do. You're in a category most of us don't have to think about, worry about, or even consider. Where I'm most times happy if I have the gas to get there, you have to ensure being able to cover your many expenses, and beyond, into making paychecks, insurance payments, and fuel and truck service checks that won't bounce. Two completely different worlds, and you have lots more to consider, and lots more people depending on you to pull it off successfully, where all I've got to do is make it back to the house and I'm good. You've certainly picked a subject that covers a great deal of ground, and you have a lot of good points for all to consider here, God bless you too Burly.

[taterjuice]

depends on the area .... too many scrappers here to charge a fee to pick up scrap

Couldn't agree more !

[newattitude]

depends on the area .... too many scrappers here to charge a fee to pick up scrap

Exactly. I used to be the lone scrapper. now, there are at least 4 other trucks and sometimes more in my neighborhood. If I advertise to remove that fridge for say 10.00 and the other guys offer to take it for free - who you think they're gonna call? The freebies.

[VERYOLDGUY]

If I am doing a cleanout or cleanup, I charge based on what I think it will take for me to do it. Part of this is how much it costs me to do the job the other part is based on what the rate of return for that investment is going to bring me in net profit. (my paycheck).
A lot of times these cleanouts and cleanups are going to be garbage that I can't sell or scrap and good scrap. Doesn't matter in that case the scrap is just extra cash for me.
If all of the cleanout is metal then I may not charge depending on how much metal we are talking about.

[GeorgeB]

Burly,

You know by now, I have the upmost respect for you, and agree with a lot of what you say, for many different reasons. However, this is a subject, that no matter how you word it, there is going to be lots of people who think people like us are crazy or insane for charging for our services, or that we should be paying for it.

In all honestly, if they were in my neck of the woods, with gas prices, and the prices of scrap right now, they would QUICKLY realize where we are coming from, and that even as someone with just a pickup, you need to charge, or you will go broke and not eat.

I myself, used to be scared to charge, fearing that they would say "no, thanks, I will call someone who can do it for free". However, when my wife's uncle and I did it for a few weeks together, till he got on his feet, I started charging, and was surprised that everyone was agreeing to pay!

Since I am a small mom and pop and it is mainly myself that does this, this is why I can charge less than anyone else, and get the contracts.

I even know a few guys who don't operate as a business, and charge, and their clients, like mine, realize that they are in business to make a profit, and accept that.

Again, I comment you for what you are seriously trying to accomplish, but I feel that this is subject that most only go off their current situations and dont realize that even in their perspective areas, they can do the same.

Hell, here, I would say there is close to 100 scrappers that would gladly go 1 or more hours away for a stove, dishwasher, fridge, etc. Yet, I get a few requests per week. Go figure.

[newattitude]

In all honestly, if they were in my neck of the woods, with gas prices, and the prices of scrap right now, they would QUICKLY realize where we are coming from, and that even as someone with just a pickup, you need to charge, or you will go broke and not eat.

Nothing like belittling the ''little guy'' George. If charging for services works for you and Burly and other who do it - more power to you. But, hard as i work, please don't belittle what I do.

I bet I'm older than you and hey, I can read and understand things too! I ''understand'' where you are coming from, it just won't work for me. Doesn't make me a bad person.

[GeorgeB]

Nothing like belittling the ''little guy'' George. If charging for services works for you and Burly and other who do it - more power to you. But, hard as i work, please don't belittle what I do.

I bet I'm older than you and hey, I can read and understand things too! I ''understand'' where you are coming from, it just won't work for me. Doesn't make me a bad person.

Why do you feel the need to take serious offense to what I said, when it was not directed towards you, but to everyone in general?

Like Burly said, and I fully agree. If it works for you, then go for it. Support yourself and your family with all that it takes.

When I first started, I did the free thing too. Hell, I even drove 1 1/2 hours for some free appliances.

However, after 6 months, I did an evaluation and wondered how the hell I was making any money at all.

My point was more for those in the past, who would in some way talk bad about people like Burly and I for charging, when we should either be paying or doing it for free.

The only thing that makes me and VIP Recycling "more" then most members here, is I operate as a business. However, like everyone else here, I have no real over head, no big, fancy trucks, no employees except the occassional day laborer, and I charge for everything that I do. Not because I am a business, or I come off as a million dollar company, but because if I don't, then my kids and wife get to wonder where the next meal will come from, and how our bills will get paid. That is MY situation. Either charge and make a profit and a decent living, or do it all for free, and go broke in less than 2 months.

I know plenty of scrappers here who do the free thing, and it works for them, and we talk all the time. I even buy PCs from them when they get it.

See, I am not even opposed to paying for "scrap", as long as it is escrap. They get more than the scrap yards pay, and I make money when I turn it all in.

And you will notice, that I said, if you were in my neck of the woods, you would realize why we do what we do is all. Everyone's situation is different. All Burly and I try and do, is periodically is to get members (new, old, whatever), to realize that recycling is not all about just breaking down scrap and cashing it in, but sometimes you have more than the average expense, and need to ensure you are making enough to cover it.

I have nothing against you newattitude. I have seen lots of your posts, and know you are doing quite well for yourself, and you are rising up against most people's stereotyping. I actually applaud you.

[KzScrapper]

George...We are talking about two different kinds of businesses here. One deals in Metal that can be sold and one deals with junk removal that involves trips to the dump ($$), so yes you would be crazy not to charge. I'm an apple and your an orange...or vice versa.

There is value in the metal I pick up and it can be looked at in three ways. 1-Pick up for the cost of my overhead if the value is there for me to meet my target $ per hour. 2-Pick up and pay the customer if the value exceeds my target $ per hour. 3-If the value is below the target, charge them or tell them to call a Junk Removal Service. I will also note that when I pick something up I require easy access or the value goes down quickly.

What we don't need to happen as a result of this thread is a bunch of new scrappers failing because they think they should charge folks for something when the value of the metal they are picking up will meet their target $ per hour. They also need to realize that pay is based on experience and the longer they do it, the more they should make as they gain experience.

Ewasted must be excited to know that he has the green light from you and Burly to start charging folks for sending stuff to him. Think about it...

[GeorgeB]

There is value in the metal I pick up and it can be looked at in three ways. 1-Pick up for the cost of my overhead if the value is there for me to meet my target $ per hour. 2-Pick up and pay the customer if the value exceeds my target $ per hour. 3-If the value is below the target, charge them or tell them to call a Junk Removal Service. I will also note that when I pick something up I require easy access or the value goes down quickly.

KZ, You and I have the same outlook with this. Except for the fact, that I never pay for scrap, aside from PCs from scrappers. All scrap metal pickups from me is either for free, or at little cost. Depends on how far out they are, and how much quantity that they have.

What we don't need to happen as a result of this thread is a bunch of new scrappers failing because they think they should charge folks for something when the value of the metal they are picking up will meet their target $ per hour. They also need to realize that pay is based on experience and the longer they do it, the more they should make as they gain experience.

KZ, The value of metal in your area might meet or exceed your target $ per hour, but with the current prices here, you had better charge, or be able to do 2 or more loads in a single day to make any decent, worth while month. Most of you always talk about getting .09 to .11/lb. Here it is 0.075/lb.

Also, the only way that experience has anything to do with how much they can or should make, is the experience of breaking things down.

A non experienced scrapper/recycler can make as much or more or less as someone who has been at it for years. All depends on their prices, and if the customer is willing to pay for it or not.

And I can tell you that a ton of people, especially in my area, have no clue at all to what metal scrap is worth. Every time I am at the recycling center at the landfill, I see upwards of 10 vehicles (residential and commercial) dumping loads of metal off, and the kicker, is that the landfill charges them to do so!

The whole point of this thread, I believe to have been/is is that depending on your area, and how big or small or little you are, that sometimes it is necessary to charge for any service in order to stay in business. That no one should think that they have to do pickups for free, or pay, or charge to get the job at hand, BUT they need to evaluate each and every case to determine what the appropriate action needs to be, and then DO IT! If they can afford to do the pickup for free (metal, junk, electronics, etc) then go for it! If they can afford to pay a little, go for it!, if they need to charge, then dont be afraid to do so, and stick to your guns! so you wont go broke doing the job!.

That is at least been my whole point.

[hobo finds]

Removed a fridge for an old lady she wants to give you $10.00, she already gave you ice tea and cookies while you were there... You advertised for free removal, do you take the $10?

[KzScrapper]

Removed a fridge for an old lady she wants to give you $10.00, she already gave you ice tea and cookies while you were there... You advertised for free removal, do you take the $10?

If she insists, you bet...consider it a tip.

[BurlyGuys]

Removed a fridge for an old lady she wants to give you $10.00, she already gave you ice tea and cookies while you were there... You advertised for free removal, do you take the $10?

Ever seen a waitress turn down a tip?

[NHscrapman]

Ever seen a waitress turn down a tip?

Yes but in a country where they get paid a living wage.

I have done both as a small time business charging when it is necessary. Most of my pickups are free unless they require labor. I charge for my labor because that is how i eat. pulling fridges out of basements, tearing up old delapitated campers in someones backyard. barn and shed clean outs these are charged jobs. if someone puts a washer dryer in their yard and calls me it is free no labor. or someone has a pile in their garage easy access no charge.

That's how I roll

[scrapGAME]

Removed a fridge for an old lady she wants to give you $10.00, she already gave you ice tea and cookies while you were there... You advertised for free removal, do you take the $10?

of course you take the 10 bucks ....