New Dealer looking for answers

**StarkeyScrap** · 04-14-2011, 01:53 PM

We are just getting into the scrap business as a dealer and looking to understand what kind of margins we should be expecting. We have heard considerable margins in the 50% to even 100% range, but the more research we do, the less I see of that. Can you give us any kind of average you are seeing once you have it sold to the smelter?

**Mick** · 04-14-2011, 02:17 PM

Welcome to the Forum, Starkeyscrap. That is going to vary WIDELY, depending on many factors such as area, competition and type of scrap you're dealing. I get a lot of stuff free for several reasons. For some stuff, I pay about 1/10 of what it's worth; other things up to 1/2. Just depends on what it takes for me to get it and still make a profit. For instance, I won't pay much (if anything) for Light Iron. I'll pay about 1/3 to 1/2 of what a catalytic converter is worth and about half for a battery.

**StarkeyScrap** · 04-15-2011, 07:41 AM

thanks Mick. I just thought I might have to post my pricing to be competitive with the other dealers in town, but may be best not to post? We have a large number of car mechanics and junk already in our industrial park and it may be difficult to tell people different prices, but I guess we will figure it out. Thanks for your thoughts.

**easyrecycle** · 05-22-2011, 06:00 PM

Find out what others are paying...then find your buyers around the pricing you found. Find out where they are taking there stuff. Sometimes if you "hang" out by a hard talking and bull scrap metalscrap metalscrap metalscrap metalting you will see trucks coming and going an just keep a log of the ones you see an kinda back follow that info. Yes its cheating but if you have to be here asking then that would be the best way for you.

But there is no set amount you will make. Its all based on how much of a item you have before you send it out (more means you will make more per pound than if you took 5pounds) an where you are at.

The more you spend the more you make. My avg week I send out around 5grand (5days our office is open) an we make a return around of 0.30cents when you mix everything together (thats $1500). Sometimes I get more of one item that has a return of $1.1per pound an so that means more is made per that week. Just find your buyers....get the metals coming in and sent out...real fast to spend all your money...have tons of items...but then having no money to send out all the goodies!