How are sales to end-users conducted?

Hello All -
I'm doing some research for a project (finding better ways to connect buyers and sellers) and could use some of your expertise in the scrap industry.

Specifically I'm interested in sales from the scrap dealer to the end-user. Do you sell directly or do you use a middleman? What is the typical sales process and how has it been changing in recent years? Are any sales done via online auction or marketplace? How about sales to foreign buyers (China and the like) - different from a domestic deal?

Thanks in advance for your help!

Much has been written on this subject so I recommend you spend the time to read the old threads. This extra study will add to your base of knowledge.

Also an introduction from you telling us about you and your background in scrapping.

Personally why should I give you how I conduct my business? What do I get out of your study of me? I really didn't like your approach it read like I should jump at the opportunity to share my personal insights in my business. Sorry if I sound snippy but each of our new members show up with an implied or explicit promise to share their experiences with the rest of us.

So my question to you is why should I share with you since I don't consider myself your personal lab rat? Mike

Hi Mike -
I am a consumer goods supplier -and I have very little scrapping knowledge, but an extensive background in logistics and manufacturing. I contract for finished goods however I get pushback from the factories on materials availability and costing (typical) - so I'm looking for a better way to get raw goods. Hence my interest in buyer-seller connections.

Your response seems defensive - my intent was not to offend, merely to reach out to learn. I will take your suggestion to read past threads to learn more.
Regards,
Will

I may catch some heat from you long time users,because in new here. I had to learn all this myself also.

I have had a lot of help along the way. My mentor who does a million dollars a month told me he would rather deal with educated customers and buy all day long then wait for big score once a week.

He opened my eyes 5 years ago. I went from a homless kid to selling 20 million pounds of batteries in a few short years.

All loads to end users are based on contracts you take. Their are many different buyers and markets.

I know about lead. I'm a battery buyer. I'd like to think the best. There is always a bigger fish though.
Lol

When I go out buying I know I have a contract I've taken for a certain amount (44,000) lbs usually. If I ship that load to my buyer in the terms of our contract, I'll be paid usually in net 7 days. Other buyers (smelters) for lead will pay sooner. They are usually brokers. They set up contracts,steal a few pennies per pound and just push paperwork.

I have a battery smelter about 6 hours from here that will pay me a few cents more per pound but payment is net30 days.

If your buying or filling a trailer a week or twice a week or once a month that laymen terms and your relationship is so important.

You want to put out all your capital to fill a load then wait a month to be paid. What will you tell your customer base when they come in every day with more while that load is at the smelter !!!!!! I have no $$$$


That has happend to me a lot.

So have a guy that is rich or an angel that will help you sell in less than truck load amounts to flip your $$ while you wait for the payment on your load.

Buyers after years of doing business will help to force a fast payment but usually its pisses them off if you do it all the time.

Be right back.

Aaron.

So, let's say I have enough batts to fill a trailer. I get enough to fill two to three loads a week !

How much $$ for money will selling to a refiner get you. There's many brokers who will take your loads mixed. Say half batts, quater rotors and quater rims on pallets wrapped.

Buyers like that are willing to make the small margin between. The absolute end user price and what they are paying you. If the trailer is ready to be re shipped to their buyers only.

That's happening now. I'm sellin my material batteries, cats, rims, ironly al and rotors to my long term buyer and mentor. He is paying me so close to
TL price its crazy and he does little work. Funny the two smelters here east of the Mississippi know when my loads are going to him. I stop selling to them for a few weeks or moths and he starts doing a million pounds of batts in a few months again.

Yes your going to lose nee profit this way. It's higher than selling to a middleman, and I get to keep flipping.

There is more material out there than I can buy still.

I'm a h/s drop out that just knows how to work. This isn't rocket science. Its fun work and we meet the best people.

I don't know if that helps your question.

Lots to talk about.

If the price changes after you take that contract your covered.
Watch the lme or comex.

If it goes up your usuallu not going to get paid more unless your having dinner with the refiner once a month. Lol.

They include shipping in price.

Some buyers like (won't give end user name)will let you mix copper, brass rims and batts. Only a Gaylord of each isra grades.

Knowing the grading is first thing.

Your Gaylord of old brass if your putting comp in it they are not goin to upgrade the box. If your number one box has a bunch of tinned wire. Your whole bale of wire is now number 2.

Ops you work for free son!!

When your selling to your local buyer or yard they will work that out.

I wouldn't start selling TL amounts to end users before you know your ready. You blow that up your screwed. Not many around for me and my battery addiction to make mistakes. Yes lots of brokers but only three real end buyers in this country.

Yes I'm losing what .05 cents on my orders because I'm short selling (ltl) to my buyer because I need $$ now. My fault I don't have the huge $$ to do it now alone. .05 on 100,000 is $5000 a week I'm losing. But I know he gets it. That keeps my buyer like my best man at a wedding. He sends guys to me with material!

He also understands when I truck load to a smelter.

I have a gold mine I won't talk about to many people that involves better than scrap price. On my items its a nice way to make your margins go from 10 percent to 1000 percent.

My name is Aaron (batman)

I love batteries.

Last thing for now. Its sat and I'm getting traffic here.

Many of the buyers advance $$. Even refiners buying pl pt etc on assay will front stupid $$ to their most reliable customers. Why. I tell you once again. There is more material out there than $$ for most of us. If you have $$ in your pocket at thr end of the day your either getting your gold mine for free or stupid rich to start and should help smaller buyers buy their loads and make stupid $$ on your $$. Every millionaire I know in scrap has done just this.

They have been where I and maybe you are. More customers comin or calling than you have $$ to pay. Crazy.

Its Aaron the batman at Stillwater.
Google me and give
Me a call. I'm a non educated hard working person who makes mistakes. I learn from them and others who I work with. Thr guy pushin a shopping cart to your loading docks with al cans you can learn a lesson from. What is it. Who knows.

I'm in central ma too so come on by.

Sorry to take over the thread ill start my own. Sorry.

Mike has a point too. I have a business that cost $$. Needs the proper everything. That is waking up knowing you need to make $500 a day to break even.


These secrets shouldn't be given out so easily. Ive busted my ass. Hard.

A few good few people
Help me.

Let's talk and make $$ together. With the right ones.

I'm getting a smaller margins from pocket deals. Or truck dealers.

It's How I started though.

Bump this thread!!

Let's put stuff together.

Aaron.