New to Electronic Recycling Business... Any Pointers or helpful hints?

Hi All,

So my company has been doing very well for years on the repair and networking and sales end of the IT world. We are jumping into the recycling end because we are offered so much stuff. So I'm thinking why not? Just hoping once going we can get more clients. Some questions I have are...

1. Should I have companies sign a contract saying they'll only recycle with us?
2. I have a guy who will buy everything we get out right . I also am thinking it is much better to break it down and the profit will be greater.
3. Are there any tips you guys recommend?

Lastly Should I buy a cube van like a Isuzu or rent one and schedule all my runs in one day?

Figured if anything this post could strike up some good conversations and help some newer and older guys out.

Thanks Everyone,
Jim

MvP Electronic Recycling

Hi Jim,

There's lots to be learned here. The search function is vital when starting out in order to know what and what-not to break down. In my opinion, I would not have any contracts signed unless you are providing other serives and want to bundle extras with your already existing contract for IT. Breaking down equipment depends alot how much you value your time. I trully believe that 80% of the additional value from breaking down equipment will come from the first 20% of the work, after that would depend on oppertunity cost of your other businesses. Another vital part of this business is making sure you have the right buyer. Check the buyer and seller section of the forum and compare these rates to the rates of your buyer. Welcome to the forum!

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3. Are there any tips you guys recommend?

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Hi you might want to spend a little time here reading to see where the time is best spent. Certain stuff is worth way more than others broken down. Electronics Recycling
Then you might want to check our buyers prices for price comparison; Scrap Buyers & Sellers
Instead of getting a box truck, how about a trailer for behind your truck for now?

Thanks guys, definitly have been reading the forum, stayed up to 4am other night doing it. God Monday was a ruff ruff day! Lol
I thought about a trailer to, then have it for quads too... Trying not to use my truck tho to much, got such a great deal want to keep her low miles and pretty...

Go with mechanics advice of reading this forum as much as you can. Have your employees read it too. The information you can gain here simply from reading is worth a million bucks. As far as your questions, here is my 2 cents.

1. I would always try to utilize a contract with larger customers. The worst they can do is refuse to sign them. The thing is even if you do have a contract... Would you spend the money for an attorney for breach of contract?
2 . Should you sell outright? What do you think that guy is going to do? He's going to be breaking it down. So should you. Unless your business is so busy you don't have time to break it down and your margins when just flipping it to someone else is where you need to be. I would think you would need tonnage in order to make decent margins without breaking it down. And if it was me, if I had tonnage on a regular basis, I would hire additional staff.
3. The only way I would agree to rent a box truck is only if you plan out all of your customers on a regular schedule pick up. A non CDL (under 26,000 lb gross vehicle weight) box truck rents for about $75 per day. Even if you just did 2 days a week picking up customers that would be $600 a month on rental. Not That bad if you consider you don't have to bother with insurance, maintenance, towing, tires , etc. But it limits how many pick ups you can do per week. How about deliveries? If you choose to rent you need to utilize your time effectively and fill up that truck every time you get it. Transportation can make or break you in this business. It's all about density! The more you get in that truck with the least amount of miles equals less money spent.

2. Should you sell to a guy outright? Why do y

Small time people do not like contracts. Your contract would be more for a large corporation and typically contracts are for 1 year.

I wouldnt suggest a van at all. I would either suggest a trailer, or another truck.

Another consideration is the space needed to store and break down all of this stuff. A lot of this stuff is very bulky and eats up a lot of space. Some (but not all) buyers pay a better price if you sell larger amounts of scrap at a time. That means you might want to accumulate and store some amount of scrap. If you plan on dealing with large quantities you may also need a forklift and warehouse space.