Answers with determining what to pay for scrap.
All newbies asking what they should pay for your scrap. Please read this thoroughly.
As with everything that is not coming from a retail store, anything is worth what someone is willing to pay for it.
Scrapping is educated gambling. The more you gamble, the more you can learn, and the more you'll make. Don't expect to make a ton of profit out of the gate, this is why there are so many people on here with 4 or 5 posts.
If you are looking to buy your friend of a friend's pile of scrap, go to the gym and start picking up the free weights. Give yourself an idea for what something weighs. buy yourself a set of smaller weights, or a scale and get yourself a "standard". get to know your standards, whether it be 1 pound increments, or 5. It is much faster and easier if you can get an idea of weight on the fly.
If you have to ask someone you don't even know if it is a good deal, you are getting into the wrong business (or hobby, depending on the person). Also, remember we aren't there to see the pile to even begin to give you an estimate of weight. We cannot help you as much as you can help yourself.
Take the item or pile in question and get your best guess for weight. break that item or pile down into it's scrap categories (for example: 80% steel, 10% aluminum, 10% copper wire. by weight). multiply each category percentage by weight, then by scrap value. multiply that number by your profit margin. If you are not confident, multiply the resulting number by your confidence percentage.
take the example load at 100 lbs:
100 (lbs.) x .8 (80% steel) x .10 (dollars per pound) x .5 (50% profit) x .99 (I am 99% confident that my weight is correct) = $3.96
100 (lbs.) x .1 (10% aluminum) x .50 (dollars per pound) x .5 (50% profit) x .80 (I am 80% confident that my weight is correct) = $2.00
100 (lbs.) x .1 (10% copper wire) x 1.00 (dollars per pound) x .5 (50% profit) x .85 (I am 85% confident that my weight is correct) = $4.25
3.96+2+4.25= $10.21
I should not pay more than $10.21 if I want to make profit using the "safe bet" method. Use this if you cannot afford to lose money scrapping.
Within that 50% profit, you can take out your time, fuel, maintenance, and perishable tools. If your time and fuel become greater than the profit you intend to make from the pickup, walk away.
If you are playing around with scrapping, and have invested a set number of dollars, you can afford to make a higher bid for the materials (therefore you do not necessarily need to include the confidence percentage in your calculations). If you think you can resell, repair, or otherwise use something you pick up, you can likely afford to make a higher bid for the materials.
You should be able to give yourself a rough calculation of each of these in your head on the fly. Nobody is going to look down on you if you are using a calculator, but I would refrain from showing them what profit margins and confidence factors you are including. Some people might be negatively impacted if you are looking to "double your money" off of them. Many do not take into considerations your time and fuel.
I hope you that take the time to read this help to generate fewer "what's it worth" or "what should I pay" threads.There are many other ways to calculate your potential profit or what you should pay, but this is broken down to the simplest principles and most generic version to cover a broad spectrum of individuals or items.
