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Purchasing from a competitor?

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    snowyscrap started this thread.
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    I also had another question along the same line,

    What are thoughts on starting a scrap yard out here? We have a place I could stay for free, cheap land we can rent, and there is plenty of material! Like I said before, the closest yard out here is a hour and a half away and pays very little per ton. We would open a low budget, shoe string yard that buys from the local farmers and whoever else wants to bring in the metal. Almost every farm has metal out here because there isn't a easy way to bring it in and make it worth their three hours driving.

    The equipment we would need would be a skid steer, a scale, and either a loader or a excavator with a magnet. Just estimating the costs (eBay and craigslist) we decided we could buy everything we would need for around $40,000 and say another $10,000 for buying capital?

    It would be pretty easy to cash flow and you could fill up your spare time by cutting up the combines and tractors. I could run the yard while my brother ran the trucking, we also have a mini mill about the same distance from us as the yard we sell to. The person we know that buys here said that if we could get a least a semi worth (or a couple smaller trailers) we could sell directly to them and make a bit more.



    Thoughts once again? Thanks

  2. #2
    JohnC4X4's Avatar
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    Opening a yard WAY above my pay grade

    Couple things that do jump out at me
    Not like the old days >> Meaning EVERYTHING is super regulated
    Guessing it would take years and lots and LOTS of Ca$H to get all the permits in play
    The Government agency like the EPA would have a lot to say

    And there is no way you would be able to run an operation like that under the radar >> Even in the middle of no where
    There is always someone asking questions

    And 10K would not be nearly enough to cover the scale for 1 week

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