Originally Posted by
unknownk
Not really true. People can set their own prices in areas where the demand is greater then the supply and their unique skills are in demand. Exactly where does this apply in commodity scrapping in general? This is an industry where you have to have built up connections over years to get your material coming in at a rate you can make a profit. You need to juggle the different materials to know what you can and cannot make a profit on (this changes all the time and varies area to area). Knowledge and connections or being the only game in town are what makes or breaks you, same as in every other business. For somebody starting out now in a highly competitive area it is hard to make money even with skills.
I've seen my item #4 manifest itself in many different types of industries, so I know its a sound principle. I don't advocate it as an absolute in every circumstance, but its true more often than not. I know of 4-5 guys on this thread regularly that could walk into (almost) any location in the US and set up shop without connections and within a year have a successful business. It takes motivation and knowledge, period. The contacts will come. Competition is everywhere, so if you are fortunate to be "the only game in town" you are indeed lucky....for now. But having competition isn't what breaks you, it actually allows you to have a measuring stick on how good you are and what areas you can improve on. There are ALWAYS areas where you can separate yourself from others and provide a service that others don't/won't.
Unlike the original poster, I don't worry about the guys that are not "true scrappers". They don't pose a threat to my business and them overpaying for material will just hasten their departure from the industry. I set my own rules for what I pay, who I do business with, what I'm willing to do (or not do), etc. I am confident in my abilities and painfully aware of my deficiencies. I focus on what I do best, represent myself honestly to my clients, and try to meet or exceed their expectations. While I do most of the things the OP described as necessary for a "real" scrapper, I really haven't kicked off my business as one might for a new startup. Given the great success I've experienced in just the first year, I'm almost afraid of what will happen if I actually did a marketing campaign. I thank God regularly for the blessings and I count this Forum as one of the best tools for my success.
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