Putting together a proposal for a Marine repair biz.

I'm working on a proposal to put to a Marine Repair biz. We've already agreed to a bin placement with free pick-up for general scrap (iron, dirty aluminum, dirty copper, etc), but the biz owner would like to be paid for his clean aluminum, clean copper and batteries. He currently hauls this stuff himself to a yard that is very close by (5 min drive). It's uncertain how much volume he will generate..... it's a small but prospering and rapidly growing biz and could be a very good source for me. I have facilities to store stuff until the weights make it worthwhile to haul to higher paying yards 1hr away. I have no idea what the price points should be considering that we will pick-up, pay on the spot, and save him the time/space of having to deal with it. Any thoughts or ideas? I would appreciate hearing them. Thanks.

Expect a lot of Cast Aluminum with bits of steel that is easily removed (either by unscrewing or grinding out). Plus quite a bit of Sheet Aluminum. If you're getting the Irony (dirty) Aluminum/Copper free, I'd suggest, as an inducement, to offer him maybe five or ten cents a pound below current market for the clean stuff & batteries. There won't be all that much, relative to the stuff you'll process. You might put it in the proposal that stuff like engine blocks and pistons are to be considered "Dirty" if you think he might take the pins/rings out himself. Besides, if he DOES try this, you'll still make .05/lb.

The batteries will be mostly a wash, but .05/lb, you'll still make about $1.50 ea.

Dont take it to another yard. Try to find a refinery that will take the items from you. If you have the room (an the money) to stack it up...then ask them to drop a scrap trailer an load it up an when its loaded...send it off to the refinery.

Let them know you are small but you are growing..you will all so get better pricing on the metals than you would if you just took it down to the yard.

Just something to look into...

Mick... Interesting thoughts. I hadn't really been looking at it that way.

I'm still getting an average of 10.50 per battery, or $ 0.28 per lb. If it goes any lower I'm going to drop my price I'm paying to 4.00 or 4.50.

An update on this. This resolved itself in a very positive way for all concerned. After a few brief discussions we've agreed to a bin placement with weekly pick-up of ALL the scrap materials generated at no charge and no cost. As I mentioned the business is a busy and rapidly growing concern, and they've realized they simply are not going to have the time to deal with it in any other way. They've concluded that the benefit they are going to receive by having this dealt with in a clean, professional and efficient manner will far outweigh any they might get from sorting/cleaning/storing/selling the materials themselves. A real win/win deal, and a big confidence booster for me moving forward on other deals. Thanks for the advice above - it worked out differently, but the thoughts given did help by prodding me to look at things from several different angles and will definitely be of benefit in the future.

congrats vijunk !

Very nice! Grats!