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Is this possible ?

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  1. #1
    KingKopper started this thread.
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    Is this possible ?

    Where i live in NJ, romex is at 1.52/lb. Just 50-100 miles away in PA they are paying .80/lb.

    Is it possible for me to buy in PA at 1.10/lb from the yard itself, then use a box truck to bring it home and sell it in NJ for 1.52/lb ? I have about 4000$ to do this with. Let me know what you think

    Last edited by KingKopper; 10-04-2014 at 10:51 PM.


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    It is impossible to answer this question...? Can you buy at that price? Can you sell at that price? Are you renting this box truck? How much gas will you spend trying to make this $150? Only YOU can answer your question...
    ~You have to start somewhere to get anywhere~

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    First place I would start is asking the first yard if they will sell and at what price? We could discuss all day and night, but the yard has the answer you're looking for. Best of luck.

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    The yard that is paying .80 is selling for more than 1.10. You have an interesting idea, but in this case it is not going to happen. It never hurts to ask of course.

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    Mechanic688's Avatar
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    If what you say could happen then if I figured right you stand to clear $558 before expenses.
    P & M Recycling - Specializing in E-Waste Recycling.
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    Quote Originally Posted by Mechanic688 View Post
    If what you say could happen then if I figured right you stand to clear $558 before expenses.
    ??
    He is positing he can buy wire for $1.10 and sell it for $1.52 and he has $400.
    3636.36 # wire purchased at $1.10 = $4000 (he has $4000)
    then 3636.36 # sold at $1.52 = $5527.27
    $5527.27 - original $3636.36 investment = $1890.91 profit before other expenses.

    **his original post said he only had $400 (thus mine and Mech's math), OP edited the amount so I have now edited my math =)
    Last edited by ScrappinRed; 10-05-2014 at 02:01 AM.

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    He said he had $4000. Also, there would be no need for a box truck if he had $400 to buy the wire.

    To the OP - You could maybe make some money off of this but not as much as you expect with the numbers you gave. First, I agree you probably won't be buying from the yard at 1.10. But, see how much they would sell at. You could probably get a better price locally if you are bringing over a ton of romex so that is something to look at as well.
    Last edited by ryanw; 10-05-2014 at 01:48 AM.

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    looked like 4000 not 400 to me
    Currently looking for a job in or related to scrap/recycling. Relocation is possible for the right offer.

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    Quote Originally Posted by MattInTheHat View Post
    looked like 4000 not 400 to me
    he originally said he only had $400... either way I changed my math to reflect. thanks!

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    Mechanic688's Avatar
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    400 worth of wire I think I could fit in my Taurus, wouldn't need a truck. Couple of bucks saved

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    Quote Originally Posted by IdahoScrapper View Post
    First place I would start is asking the first yard if they will sell and at what price? We could discuss all day and night, but the yard has the answer you're looking for. Best of luck.
    agreed

    not only that
    u should speak to the yards u want to buy from, see if they will sell at a cheaper rate- if u buy all that they may have.
    then speak to the yards u want to sell to- see if they can give u a better rate cos ur going to bring in a big amount.

    and then do your homework- regarding fuel & other related expenses

    in the end its your decision
    but from the way i see it, theres potential to make some decent money.

  18. #12
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    Quote Originally Posted by Mechanic688 View Post
    If what you say could happen then if I figured right you stand to clear $558 before expenses.
    I stand corrected.

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    I think I would give it a try with smaller number before I threw my hat over with all you have. It would suck to get to the sell yard and have them tell you that it is X grade when you expected to cash in Y grade.

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    I also doubt you will be able to buy from one yard and sell to another and make a profit. Why wouldn't the yard just fill one of their own trucks and drive over to the other yard and pocket all the profit. Yards are working off of contracts that they have to meet. Make certain that the yard with the big price isn't just trying to fulfill a contract and are offering a big price to do it. This can lead to a very brief bump in the price. You could be left holding the bag.

    What worked for me a few years ago: My neighbor scraped and sold me his insulated wire at the local price of $0.65lb. I saved what he had and what I produced selling in a city about 2 hours away for $1.10lb. I had a couple customers that I would pick up from in that city so the trip up made money and the trip back made money. Also I would only go when i had over 1000lbs of wire.

    This situation worked well until my neighbor stopped scrapping and I lost my customers in the other city. Mike
    "Profit begins when you buy NOT when you sell." {quote passed down to me from a wise man}

    Now go beat the copper out of something, Miked

  22. #15
    KingKopper started this thread.
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    Thanks for all of you opinions. And by the way, the number was always 4000, never edited this post. After thinking about this all, im going to call a few yards. Id be buying 4000 lbs of romex for $4000, taking it home and selling it for 1.54/lb (todays price). Id make 2100 before the expenses of the 100$ box truck, 30$ on gas, so ~2000 is a good profit i figure.

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    It wouldn't surprise me if the yard you want to buy from is selling to the yard you want to sell to. If the yard you want to buy from quotes you a price close to the $1.54# you will have your answer. Yards will not take less than what they are already selling material for. No matter how you approach it. You can explain to them they would be saving time and gas by selling to you but I can assure you they are still going to want a premium price.

    I hope i am wrong. Let us know what happens.
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    1956's Avatar
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    Wire is one of the biggest profit margins a yard works on, there are many grades and many different recovery percentages, the higher the recovery(the amount of copper recovered after the insulation is removed) determines its true value, many yards when buying wire have two grades number one, and number two, there are big differences in the two that's where they make there high margins if they know there grading, ok I forgot about Christmas lights number three, so it would be very possible to buy from one yard and sell to another for a profit. To expand on this a little about margins yards work on, when you sell your electric motors depending on how many attachments they have, will determine if they are clean motors or FE motors (dirty) so as a example clean motors are .30@lb and dirty are .20. When the yard sells there motors they all are loaded in the same container and sold for the same price hence there margins. Other examples are altanators, starters, those are blind items yards make nice margins on them, opposed to say UBC'S where aluminum cans are aluminum cans every body's got them margins are low.

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  27. #18
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    Quote Originally Posted by KingKopper View Post
    Thanks for all of you opinions. And by the way, the number was always 4000, never edited this post. After thinking about this all, im going to call a few yards. Id be buying 4000 lbs of romex for $4000, taking it home and selling it for 1.54/lb (todays price). Id make 2100 before the expenses of the 100$ box truck, 30$ on gas, so ~2000 is a good profit i figure.
    None of your numbers work out to possible 4000 lbs of wire and $2100 profit, but best of luck to you if you can pull it off

  28. #19
    KingKopper started this thread.
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    After talking about this with my father-in-law, who's a yale graduate, a succesful entrepreneur, and very wealthy(good for me), He said hed fund this and expand my purchase to 50000$, and im not pulling your leg. The only way he said he was going to do it, is if I could find a solid supply of copper material (#1pipes,THHN,Romex,BB) thats within a 200 mile radius, and if the math adds up to where we can make a high enough profit after transportation(gas only) and price fluctuation. We are hoping to get about .19-.24/lb profit. I dont know if i could really arrainge this all on top of the fact that its going to be hard to find a place with that much supply. Plus theres a ton of other variables. I just see an oppurtunity due to the fact that that most people dont have 50000$ to invest into something like this. If i can pull it all off, I'll definetly let you guys know about it.

  29. #20
    KingKopper started this thread.
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    If any of you can find me a large supplier in the Northeast, please let me know their prices and contact information



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