Buying copper piping (profit question)

[thirsty]

I have several plumbers that have contacted me about purchasing their copper piping and brass. One of the gentleman has around 400 lbs of pipe, most of it already clean of solder and paint (#1 pipe by me) and some of it too dirty (#2). Around my area, this plumber can get between 2.40-2.55 a lb for his piping. However, we know in our business that there are scrap yards that pay more than that. I have a yard that will pay 2.80-2.90 for #1 pipe and 2.60 for #2. My question is, what do I offer per lb for his copper for a profit? My thought is, I travel to his shop once a week or every two weeks, not out of my way at all since he is on my way home from work. This eliminates his need to load his truck, clean his own pipe, wait in line, waste fuel and time etc. What would you guys offer per lb and consider a reasonable profit? I have a scale, chop saw for cutting joints and plenty of buckets.

[ScrapYaHerd]

$2.55/lb. That way in case anything accidentally gets graded as #2 when you thought it was #1 or something dirty is hiding your still making $.05/lb if you can get $2.60 to cover costs not out anything with the potential to then make $.35/lb. That's not a very good return esp for having to put up a good amt of money but the only way I can see someone like a plumber wanting to sell to you.

[happyscraper]

Your doing the work, putting in the time, using your gas, that being said I would offer half of what you would get at the yard or offer to take it to the yard and give him a % of the ticket. my .02

[thirsty]

I was pondering offering 2.40 a lb. I figured its an offer, worst he can say is that he is happy with his current setup right?

[freonjoe]

I would offer them 90% of board price, as long as you're getting commercial prices. Point out the time you save them and pay in cash. Cash always talks in these deals.

[thirsty]

I would offer them 90% of board price, as long as you're getting commercial prices. Point out the time you save them and pay in cash. Cash always talks in these deals.

I agree Freon, cash is king. Most of the plumbers I know would rather spend their time running estimates, bidding jobs and spending time with their families and not loading pipe, driving and spending 40 minutes at a yard on a saturday morning.

[KzScrapper]

My .02 cents would be to have a good paper trail of the money going out and money coming in if you are showing the purchase as a expense on your taxes.

[SikoraMetals]

If it is going to be a consistent source of material for you, I would talk to your scrapyard about this opportunity if the guy is taking his scrap elsewhere. If you go to the yard and tell them "I will be able to start bringing a few hundred pounds of copper per month but I need to make it worthwhile for this guy to not take it to the competition himself" they might quote you a better price than you are already getting to try and get the scrap coming to their yard. There is a lot of competition for material right now.

[sjones99]

Here is another tip for ya...since he is a plumbing contractor he will receive a check for his scrap and have to pay taxes on it..so you can figure 30% of what he gets will go for taxes so even if you paid him 2.20 thats still way more than what he will have after taxes...remind him of that.

[thirsty]

If it is going to be a consistent source of material for you, I would talk to your scrapyard about this opportunity if the guy is taking his scrap elsewhere. If you go to the yard and tell them "I will be able to start bringing a few hundred pounds of copper per month but I need to make it worthwhile for this guy to not take it to the competition himself" they might quote you a better price than you are already getting to try and get the scrap coming to their yard. There is a lot of competition for material right now.

Yes sir, Ive been talking to one yard about that now. Sikora? Thats my mother in laws maiden name. Miłego dnia!

[PartTimeScrapper]

I would say make a deal with him to be paid 50 cents less than board price at time of pick up. That way yuour at least making a couple hundred bucks.

[thirsty]

"Here is another tip for ya...since he is a plumbing contractor he will receive a check for his scrap and have to pay taxes on it..so you can figure 30% of what he gets will go for taxes so even if you paid him 2.20 thats still way more than what he will have after taxes...remind him of that. "


Im not sure, but I think the yard he goes to pays him cash. This yard is about 2 miles from his residence, but he explained he always feels they are jerking him around with money. I honestly think he just wants to unload this crap as easily as possible for a fair price. I think I can offer that. If he is paying taxes on it, it should be a no-brainer for both of us. I just wondering if its even worth it. The was I see it, I have to sort and clean the pipe for the best price possible. Like Scrapyaherd mentioned, there will be a percentage of material as #2 for a lesser price. If Im going to the yard anyway to drop off other material, this could be a little extra bonus on top minus what ever my time for cleaning the pipe is worth.

[thirsty]

I would say make a deal with him to be paid 50 cents less than board price at time of pick up. That way yuour at least making a couple hundred bucks.

I like that idea myself!

[SikoraMetals]

"Here is another tip for ya...since he is a plumbing contractor he will receive a check for his scrap and have to pay taxes on it..so you can figure 30% of what he gets will go for taxes so even if you paid him 2.20 thats still way more than what he will have after taxes...remind him of that. "


Im not sure, but I think the yard he goes to pays him cash. This yard is about 2 miles from his residence, but he explained he always feels they are jerking him around with money. I honestly think he just wants to unload this crap as easily as possible for a fair price. I think I can offer that. If he is paying taxes on it, it should be a no-brainer for both of us. I just wondering if its even worth it. The was I see it, I have to sort and clean the pipe for the best price possible. Like Scrapyaherd mentioned, there will be a percentage of material as #2 for a lesser price. If Im going to the yard anyway to drop off other material, this could be a little extra bonus on top minus what ever my time for cleaning the pipe is worth.

Another thing to consider is if you get a yard to increase your copper price because you will be bringing extra quantity from this plumber, you could also be increasing the value of the copper you are getting from your normal pickups. The extra 10-20 cents per pound could definitely make it worthwhile if you typically have a good amount of copper anyways.

[Gord]

My general rule is 50% of what I get paid. For regular customers who provide for me I got to 75% of the value. I rareky have issues with that and I always pay in cash

[happyscraper]

I think I missed something, please explain. Everyone here agrees that you would only pay 5.00 for a complete computer tower and you can make 10-12 dollars off of it. but you tell Thirsty to pay 80-90 % for copper tubbing whitch is most likly to be used tubbing that would be #2 copper. I dout that the plumber is going to take the time to clean it once he finds someone to buy it from him. Even though he goes buy the place on the way home and he's going to the yard anyway he's still saving the plumber time and gas. I still wouldn't pay more than 50 or 60% of yard price. That's just me.

[PartTimeScrapper]

I think I missed something, please explain. Everyone here agrees that you would only pay 5.00 for a complete computer tower and you can make 10-12 dollars off of it. but you tell Thirsty to pay 80-90 % for copper tubbing whitch is most likly to be used tubbing that would be #2 copper. I dout that the plumber is going to take the time to clean it once he finds someone to buy it from him. Even though he goes buy the place on the way home and he's going to the yard anyway he's still saving the plumber time and gas. I still wouldn't pay more than 50 or 60% of yard price. That's just me.

There is a big difference in buying a tower that you have to spend time breaking down to make most profit and buying all ready to go straight to the yard copper. He said in his original post that most of it was #1 for his yard and some number 2. I personaly would pay a better price for 400 pounds of copper a month just like I pay more than $5 a tower to a scrapper who collects 50 computers a month for me.

[thirsty]

Sorry for any confusion guys. This plumber in specific does a good job of separating his #1 and #2. I dont know if he does this when he cuts the pipe from the site or what. I would estimate that there is probably 55 lbs of #2 out of the 400 +lbs. My yard just asks for no paint or solder and they will pay #1 prices. Any paint or solder and its #2. I even found that using one of those flexible sponge sanding blocks take most imperfections off the pipe in a matter of seconds, except the solder of course. I dont mind the little bit of cleaning, it relaxes me. Im going to meet with the yard owner this week and try to work out something comporable for everyone.

[sjones99]

"Here is another tip for ya...since he is a plumbing contractor he will receive a check for his scrap and have to pay taxes on it..so you can figure 30% of what he gets will go for taxes so even if you paid him 2.20 thats still way more than what he will have after taxes...remind him of that. "


Im not sure, but I think the yard he goes to pays him cash. This yard is about 2 miles from his residence, but he explained he always feels they are jerking him around with money. I honestly think he just wants to unload this crap as easily as possible for a fair price. I think I can offer that. If he is paying taxes on it, it should be a no-brainer for both of us. I just wondering if its even worth it. The was I see it, I have to sort and clean the pipe for the best price possible. Like Scrapyaherd mentioned, there will be a percentage of material as #2 for a lesser price. If Im going to the yard anyway to drop off other material, this could be a little extra bonus on top minus what ever my time for cleaning the pipe is worth.

Even if he gets paid cash there is still a receipt..same as gettin check...the scrap yards arent gonna pay the taxes for ya!