newbie needs help.. plz

Hello all

I've been reading this forum for a while and now finally decided to come aboard. My past few generations have been in scrap metal business in India and my dad as of now imports alternators/ generators and starters from US and recycle them by taking them apart. I reside in Hamilton, ON which is the hub of Canadian metal industry and I am considering doing the same business here to help my own pocket and local job market. Sellers in Texas and California are demanding almost $0.70 per lb for alternator scrap and average weight of an alternator is approx 12 lbs. I want to do it as a full time business by renting a warehouse hiring couple of friends to help me out and dissemble as many alternators as possible to sell copper, aluminum and heavy melt separately.

What would you gurus think about it? is there any money to be made here? some ppl have told me that 0.70 is too expensive and some have told me taking alternators apart still pays you the same amount in north america. is it true???


kindly help Gurus. Waiting for your tips, guidance and advice.

Sargodhaco

Welcome to the forum. I hope you can find what you need here. It's not my area of expertise, sorry!

core buying is a very competitive business with a small per piece profit, and takes some pretty deep pockets.

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Originally Posted by Scrapette

Welcome to the forum. I hope you can find what you need here. It's not my area of expertise, sorry!

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Thanks Scarpette. At least you replied my fried.

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Originally Posted by olddude

core buying is a very competitive business with a small per piece profit, and takes some pretty deep pockets.

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Thanks Olddude. I do have the money and capability to dissemble it but i don't have enough North American market experience and I don't know if its viable to do it on a decent scale by hiring 3-6 friends and selling the different metals individually.
$0.70/ lb is my cost. is there any money to be made???

.70 seem very high to me. I would look for smaller yards in smaller towns and try to get a better price, also print up some flyres and cards to hand out to other scrappers.

hit all the auto repair shops and auto parts houses you should be able to buy there for scrap yard price, cut out the middle man.

Welcome to the forum, I've neever broke down a starter so I am not able to help you out but would be intresting to know how you make out. Good luck.

"metal recovery by dismantling of scrapped starter motors, auto generators and alternators"

http://recyclebiz.com/automobile_gen..._recycling.pdf

Welcome,
At $0.70 #, rent on a building, gas, water electric, insurance, North American wages . I think you would lose money or just break even.

Old toothless bassmaster, That is a really informative pdf that you posted. Thanks!

Thanks for the PDF bassmaster! Using the numbers in it show that the average 15 pound altenator would have 1.5 pounds of copper, 10.5 pounds of shred and 3 pounds of cast aluminum. using the prices I get at my yard (2.60 for copper, .11 for #2 prepared and .55 for cast aluminum) I would gross 6.70 dollars per unit. At .70 a pound the altenator would cost you 10.50. No wonder my yard only pays .32 a pound for them.