Starting a Scrap Route

I've seen from some of the replies here, that it can be difficult to break into the 'routes' of auto shops and machine shops. But I was wondering how you guys had been approaching the shops-
Do you just offer free removal and hauling?
or is anyone offering to pay the shops?? Maybe even a toke amount would be sufficient since you're hauling it off.

Or does anyone just buy the metal from the shops outright?
Offer than a slightly lower price per pound that a scrap yard, but offer them free pick up.
Something like - bare, bright copper @ $1.5--$2 a pound-insulated wire at $1.00 a pound and aluminum at say $25 cents a pound.

or finally - what about offering them a dumpster, and then taking a percentage for hauling and the disposal/selling.
(I'd rather make 105 of a $1500 load than nothing.)

I started by buying batteries and moved into other scrap items when a garage owner offered to sell me some radiators. I then went around to other garages, offering to buy their repair stuff. I settled on offering set amounts for specific stuff (ie Radiators - 0.75 for aluminum; $1 for brass etc) and about 25% for general metal like iron, aluminum etc. I still buy some, but a lot I get free. For catalytic converters, I generally contact the yard as I buy them and pay 50% since even at 50%, there can be a big profit margin.

Renting dumpsters is a good revenue source, too, but have a "tipping fee". Make the two separate charges. Sorting out of the dumpster would be at your discretion and not something you offer them anything for.

Basically, you have to figure what will work for YOU.

Thanks for the input Mick- I know your a font of knowledge around here and people really appreciate you sharing what you know.

I have some ideas on my own, but I don't want to waste time and money reinventing the wheel if I don't need to. I wanted to see what was working for other people. I've peppered one of the owners at the recycling yard with questions, and I have an email out to him now that I'm hoping he will answer.

Among other things, I wanted to see how they would pay me if I set up a location that took the yard's dumpster.

Mick- are you paying cash up front, or will any of your customers let you pay them a week after pick up (after you've had time to sell the material)?

I pay "cash on the barrel-head at pickup". I've never tried saying I need to sell the stuff "for cash flow". I just think it would look unprofessional. That's what will differentiate you from the guy running all over with the rattle trap pickup with junk overflowing & falling off the bed. Present yourself as a successful business person and that's how you'll be treated.

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Originally Posted by Mick

I pay "cash on the barrel-head at pickup". ..

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Do you carry a scale, or are you just paying per item?

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Originally Posted by Rusty Nuts

Do you carry a scale, or are you just paying per item?

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Technically, I pay per item. For some stuff, like general iron, aluminum etc, I have a bathroom scale in the truck. I'll weigh stuff "for my benefit" but they're welcome to look at it if they want. Then I tell them I'll pay them $xxx for the pile or for that item, etc. What they infer from what the scale told me is not relevant. I also have a medical office-type scale in the garage I use the same way. For big stuff, I just "eyeball" it and say something like "That looks like about 1500 pounds, I'll pay $100 for it." Then, like I said, for some common things I have set prices.

I just started a local route a week ago with a couple of local restaurants, by giving them two roll around trash cans [WalMart] and getting there metal cans that food comes in. Though it is still cheaper than AL, it still has value and it helps to tell them how you are cutting back on their Dumpster usage, as these cans take up a lot of space.
I will let you know how it works out in a few weeks, but HEY, it's free stuff to me. If this test out good, then I will expand it to others, and if not, then I will still have two roll around trash cans that I can use with other projects.

TJ not a bad idea. You may find that the real value might not be in the steel cans, but in the fact they now know you collect items to recycle/scrap. The employees may run accross things at home or from friends that they need discarded. Good idea

It already has happened that way,lol.
The owner had a fire at his home and when they were pulling out from demo, he gave me his messed up HVAC stuff.

I have picked up another restaurant as well as started hauling in cardboard from them.
The cans also got me a free upright freezer from a lady, and it worked, SO, I sold it for a quick cash return of $75.
Right now, I am sending the cans to the scrap yard in my cars and refrigerators that get scrapped. Fills up the "air space".

TJ what about the food leftover in the cans?
Does the scrap yard ever give you any problems with the cans?

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Originally Posted by Catfish Bob

TJ what about the food leftover in the cans?
Does the scrap yard ever give you any problems with the cans?

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I was wondering about that today. You figure when they shred a car there's still oil residue from the engine/trans, what is food gonna matter? Good question and I'd be curious to know as I've started saving my food cans.

My yard doesn't even care if the cans of food are unopened.

3 weeks ago, I went door to door handing out business cards for my metal recycling, I now have a computer shop and a appliance/tv repair shop calling me for weekly pick-ups. I visited 4 computer stores and 3 appliance shops. The TV guy gives me 2/3 projection tvs and a flat screen or 2. I cant believe the copper and aluminum in these! and I get to tear them down at the shop, take my goodies and bust up the wood for his dumpster. He likes that he doesnt have to pay any one in his shop for this! I still have more stores on my list and a town 10 miles north and 10 miles south of me..........Woo Hoo I love recycling metal for money!!!........

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Originally Posted by Catfish Bob

TJ what about the food leftover in the cans?
Does the scrap yard ever give you any problems with the cans?

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Heck, I get cans from the steakhouse I work at "Every other week...", I take the cans from them and they are still full of food and sauces and what not.