E-Scrap Refining

Originally Posted by numbers

This thread really helps put a few things into perspective. It lets me know that the larger buyers don't have a large profit margin. I can also see that if a buyer has a lot of pounds going to a refiner, they may (or should) also have the additional cost of hedging the price in the futures market. For now, I think I will stay right where I am at sending pallets and fed-x boxes to various buyers. Thanks to Ewasted and BumpRacerX for sharing this information.

There really isn't a huge margin at all. I was like everyone else, thinking that the big players were making some serious bank, but it's totally a volume game. I have tons of respect for Mario (Ewasted) for doing what he does. It takes some serous cajones to play the game at the level he's at volume wise, and he's really on top of it.

Originally Posted by BumpRacerX

There really isn't a huge margin at all. I was like everyone else, thinking that the big players were making some serious bank, but it's totally a volume game. I have tons of respect for Mario (Ewasted) for doing what he does. It takes some serous cajones to play the game at the level he's at volume wise, and he's really on top of it.

I appreciate the kind words bumper. I am happy someone else is finally vouching about the margins. They definitely are NOT what they seem. 3-8 % is accurate.

There is MUCH more to this than volume. Some comments I hear in this business (and most businesses) regarding issues with growth:
1. If I had more money I can do better
2. If I had a bigger facility I could do better
3. I need more employees
4. If I had more customers things would be easier

What you need to say to yourself, if you had any of the above, what is the imapct of that?
1.Having more money to buy material doesn't get you any closer to success. In fact it puts in you a place to take greater RISKS. This business is CALCULATED risks.
2. If your facility is bigger your over head is higher - insurance, utilities, taxes, etc.
3. More employees means more equipment, higher turnover, increased likelihood of competition, theft, etc
4. More customers means more work. Ironically, you usually need more of the 1-3 above to satisfy the needs of the increasing demand.

I suppose my point is, whatever your needs are today they probably won't be tomorrow. Don't set your sights on the "What if's". Keep your sights on what you can control today.