co op thread lets talk.

hope this is ok with monitors. if not let me know/

I'm interested in a co op ans well as several others
I have had a chance at some stuff I cant do by my self. but passed on one because it is was marginal.

I may loose the copper deal, because there are variables, again Im just not sure what the profit is going to be, there will be profit, just not sure how much. at this point I think near $1000. I am going to try to do the deal on my own and buy it Half and half.

the hang up is the good yard I deal with just wont commit to price without seeing it so some could be at $1.56 and some at $2.16 or it could all be at $2.16.

this is the hang up I see in a co op

any ideas on this scenario. any one.

As long as both parties are equal partners and understand that they have the chance to either lose money or break even I don't see a problem. I have done co-op types of deals before and I went in understanding I could lose money. Fortunantly they all worked out but that was because of due diligence before hand. Never take on a green partner!

ive not participated in these threads because as far as i know no one is even close to me on the forum. i would venture a guess tho that as smart as all you guys are on here chances of two of you losing money would be very slim. i know things happen but we all know our prices though they vary from yard to yard they are relativily close. the only way i could see any of you losing money would be an equipment breakdown or some unforseen issue and thats gonna happen anyway whether by yourself or as a team. if i was close to any of the guys ive met on here i would gladly work with any of you on practically any job as long as my skills allowed it.

Well its an eyes open deal, if everyone reasonably understands that variables. I assume you buy a quanity of insulated wire, seperate it according to grade and then shop it around to buyers. There can be surprises but no one should get involved who can't live without the money. I believe if you can't live without the investment money you should not get involved.

In my case my involvement, if I were to, I would not be traveling to Fl. or doing any of the work. My only involvement would be putting up a little money. I would not have expectations of a full share of the profit because my lack of hands on work. That does not mean I am ready to throw money just anywhere. Mike

lets figgure out a formula for the partner who does the work . like fuel and work time.

fuel can be documented. but work time cant. however I think mininal expence for work time like $10 per hr. or aq percentage of net.

Quote:

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Originally Posted by corycouch

ive not participated in these threads because as far as i know no one is even close to me on the forum. i would venture a guess tho that as smart as all you guys are on here chances of two of you losing money would be very slim. i know things happen but we all know our prices though they vary from yard to yard they are relativily close. the only way i could see any of you losing money would be an equipment breakdown or some unforseen issue and thats gonna happen anyway whether by yourself or as a team. if i was close to any of the guys ive met on here i would gladly work with any of you on practically any job as long as my skills allowed it.

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Cory, I'm actually heading down to Jonesboro to visit family in May. Small world. Doubt I'll be having any scrappin' time though on this trip.

Olddude, I really like the co-op idea. I think it would be hard to come up with a standard formula. People will have very different ideas of the value of work vs. the value of bringing the deal to the table.

One job may have little work. Transporting a load from point A to point B. The next may require 100 hours of breaking down product before it can be turned.

I think terms would have to be agreed upon for each deal depending on the circumstances. Sometimes it may be more like a brokerage deal: "I've got a customer with X #'s of YYY. You can have the deal for a 10% fee"

Other times a partner ship: "We each put in $300.00 to buy this load of wire and get together and strip it. Split the profit 50/50."

Other times an investor. "I have a whale that I need to buy $1000.00 worth of copper from. I've only got $800.00. Kick in $200.00 and I'll make sure you get a 50% ROI in 5 days."

Now these are all bogus numbers, but I think you know what I mean.

Having a forum to post offers and negotiate terms by PM would be great. No need for the world to see what agreement you come to.

I know the forum software vBulletin has an option to have leave feedback on transaction so that other members can see positive or negative rankings on deals that people were involved in.

we eat a taco bell almost everyday(work for pennies eat on pennies), or at the chefs inn its close to the yard, more than welcome to join us for lunch it would be a good time.

I very much like this concept and hope it takes hold. I will venture that every "buy" opportunity is going to have very personalized circumstances, so trying to develop a guidebook may be very difficult at first. However if we share the details of what did and did not work we will start to get a feel for how to evaluate the jobs. I have done some of these type of ventures with "silent partners" that just put up the cash to buy, I handled to actual work/transport/sales. I usually paid a 20% return on the "buy" money. Other times I have turned "whales" over to larger outfits for a 50/50 split.

I agree with Area67 and Midnight. The guy purposing the deal would come up with the split for each deal and those who want to participate can agree or modify the deal as needed. Mike

that may be the way to go. Every deal will be as different as the material. for example there is no wat to tell exactly what a comp is worth. so maybe all e scrap is split evenly, and the inital buyer keeps power supplys, flopy drives and hard drives, the co op gets all boards except for floppys. all cases,and cpus in return for the work + fuel.

another idea would to give the originator 10% premium of the net for finders fee and labor.

I think 20% on returned investment is a great deal. If I personaly came across say 500 computers and didnt have $2500 to buy them. I would have no problem payiong someone $1200 for a $1000 investment in money alone. That way you as the worker are taking all of the guesswork from the invester standpoint. Might not be a true co-op but I would think if its a money only investment then it wouldnt be a co-op per say.

I also like the idea of starting a deal like olddude said he needs $2000 to buy the load of wire. He needs someone to buy half the load. Instead of one person paying $1000 maybe you can get 10 people to pay $100. Kinda like our very own micro lending machine :)

I would rather see the deals kept as simple as possible with 2 maybe 3 people at the most. Either work it as a silent partner kind of deal on a guaranteed return or a 50/50 split with both parties doing an equal amount of work.

I agree the most with the above posts stating each job would have to be evaluated on a job by job basis as there are to many factors to come up with a blanket policy. Definitely some folks on here that could move some serious material and make some good money when they pool their resources. Personally I've never been much on long term partnerships since ditching one 20 some years ago, I have done plenty of work though with other contractors on the same job with one common goal in the end, to have a finished product. Difference being, I knew I was going to be paid if my part was done even if someone else dropped the ball.

we need to confirm with the admin. is this considered a buy and sell, if so then a scrap room membership is required. my personal opinion is that it should be a sepret section even if it is a pay section.

I think it should be in the paid member section as well. If you're serious about scrapping then you'll pony up for a membership. And yes, I'm going to upgrade soon as well.

If it were a seperate section then those with some extra change could scan the co op ops.

here is a perfict example,, my copper buy goes down today or 12,ooo lbs of copper a year goes down the tubes. I have half the needed cash to buy the initial purchase. my only choice is to try to convince him to sell me half today and half tomarrow, if he is too busy to mess with that then me and we have lost 6 tons of copper. with a co op those other members of the forum aside from me would benifit, in this case with out the co op we all lose.

a side benifit of a co op could well be that as restrictons and regulations on scrapping tighten, a member of a nation wide co op could well have a leg up on bidding for and complying with future regs just around the corner. just a side thought.

many of us are just back yard scrappers, but as members of a co op, we become nation wide and can be sold to the regulators as such. this would make dealig with local yocal regulators much easier.

was going to add something else but got a call for 20 computers and completely lost my thought. hey its a sinior thing :)