I am looking to start a business

[SoFlo]

I just made a similar post in a different section but was not sure where it goes.



I want to start scrapping. I love to set my own hours and such and I also have a set up pretty much. I have a F250 short bed pick up and I have a 6x10 enclosed trailer.

What does it take to start my own scrapping business? Do I charge people to pick stuff up or just pick up for free and that is where $$ comes into place when I scrap?

Is there health issues or hazards? Chemicals or anything you deal with that is harmful?

[Patriot76]

I responded to a previous thread of yours and will be more specific here.

The answers to your questions depend on the type of scrapping you decide to pursue. E-scrap produces different challenges than flipping cars, curb shopping, or scrapping farm machinery. Everyone on this site has found their own niche in the scrap world.

For me the biggest safety hazard is myself. For others it is using tools correctly, knowing which metals give off cyanide gas, knowing what paint has lead in it, knowing how to use a torch and what type of torch, etc.

Each person also has their own method of gathering inventory. Some pay, some get paid to haul it off, some dumpster dive, others use percentages between the owner and themselves. Another variable that impacts the answers to your questions is your location. Rural scrappers have different challenges than urban scrappers. U.S. scrappers have different challenges than Canadian or international.

To many variables to give you a specific answer. Welcome to the forum and good luck.

[numbers]

One of the best ways to answer your questions will be to spend about 40 hours reading the various posts on this forum. By that time you will have gained enough knowledge to answer the questions you posed and have enough knowledge to make some money.

[mikeinreco]

go for it!!

[mseashell]

I have to agree with patri

[Tincankeith]

Baby steps. It seems you really haven't done much scraping. I would start as a side thing and read this forum as much as you can. Starting a business is a big leap. You need a license for the company, IRS #, lnsurance, and many other hoops to jump thru. Yes there are many ways to get hurt or killed if your not careful. Like you I would like to do this as well but have settled to work on it as a "side hobby" and over the last 2 years have made some great connections. Just takes time.

I wish you luck.

[mseashell]

I have to agree with patriot and numbers both. It all depends where u are, what u are willing to do etc. I for instance have a contract with my local windstream internet and telephone company. I get all their scrap copper wire(about 25 to 30 lbs of clean #2 and about 50 lbs of UB #2 a week). I also get about 100lbs of metal and about 30-40 modems a month. I also have flyers up everywhere and run adds in my local newspaper. The biggest advertisement I have though is word of mouth. A good rep gets u places. Try to be fair. If u driving down the road and see a junk pile somewhere on a farm, stop and talk to the owner. Feel him out. Sometimes he will give it to u, sometimes u can make a deal that u do all the work and he get 25-30 or a set % of the money. Also read as much as u can on here. I have only been a member on here for a month or less, but have found some really good advise in the answers to questions I have asked and others have asked. There is some really smart ppl here and so far everyone has been really helpful and patient with me (especially etack:-) with the ta cap questions lol). Most of all be safe and have fun tearing stuff apart. Its a good release. Welcome to the forum by the way

[SoFlo]

I already have a guy in town 15 min away who wants me to come pick a few things up. I am going to pick them up and just learn from what I get and dissect it from there.

I just didn't know if you could catch cancer or major health issues you know.

But when I start out I believe I want to start out by collecting smaller stuff rather than scraping a whole car or larger items. Start with computers, electronics, batteries, etc.

[mseashell]

Do some research and figure out all of ur non-ferrous metals alum. Copper, brass, stainless steel, etc. Then shop around and get prices. U can call any yard and they will tell u the different prices. If doing escrap then defentally read. Some of the escrappers on here are geniuses. I started escrap about 6 months ago, and in the past month have learned 3 times as much as I learned the first 5 months. Everything in a computer is sellable. Even most of the plastic (ABS). Vcr dvd players etc are the same way. Again be safe and go make some money and have fun doing it.

[Mechanic688]

Every yard has different prices on the various metals, find the best prices, then we have buyers here for the escrap.
If after you have jumped thru all the Gov't hoops your still gung-ho with this then get your business cards and start passing them out to everyone you know and meet. Even family, for they know people also. It takes time but you never know who's setting on a crapload of scrap.

Break one of everything down once and you will see where the time wasters are.

http://www.scrapmetalforum.com/scrap...ess-cards.html

http://www.scrapmetalforum.com/scrap...t-so-good.html

[Sirscrapalot]

Reading the posts here, will save you a world of hurt...but figuring it out as you go..works also.

Jus' saying..

Sirscrapalot - Keeper of the traveling cooler

[wayne1956]

Research, research, research. You will find close to 100% of the answers if you will spend the time to look at the posts under several of the sections on this site, particularly the "how to's" and the question and answer section.

[SoFlo]

Ok thank you everyone. I was talking to a guy who scraps in my area earlier today and he told me he stopped scrapping around here because everybody pays crap.

And now he scraps cars by going up north and stuff like that. He said a cat converter up in Ohio they will give him $120 and down here they give like $40 or so.

[mseashell]

All depends on the area and the connections u have. Someone might get 40 for a cat cov and u might get 80 for the same one from the same person. Its good to have some good connections in this business. I have a guy that is from around here that only buys stuff that has a core on it, like converters, alum wheels, rotors starters and alternators, break calibers etc. He pays more than the scrap yard ever thought about paying. For example the local yard gives 6 dollars for an average battery (about 35 lbs). He gives 12. Get ur name out there and get a GREAT reputation. That will help more than anything

[Scrap808]

For my e-waste collection and brokering business, I registered as an LLC with state and county fairly easily. After I filed as an LLC, however, I realized I needed to a whole more to operate my business legally:

LLC filed with the state of Hawaii and City & County of Honolulu
State and county resale license
State of Hawaii General Excise Tax license
Scrap metal recycling permit
Various e-Waste certifications
Various insurance

And that's just for e-waste! If I wanted to salvage cars I'd need 2 other permits, if I was in demolitions that's another 2/3 permits and certifications. But, on the other hand, I am the only e-waste recycler in the Honolulu area that offers free pick up of all electronic waste and I have various business accounts with local computer repair shops and junk removers. If you feel you move the volume and have the cash flow to warrant the permitting and certification fees, then go for it. You also have to take zoning into consideration. If you have a business, I don't think your local municipality would like thousands of pounds of toxic e-waste sitting in your basement or garage.

But like I said, after all things considered you feel its time to take that step, then go for it. Even just starting out with a DBA and having a professional, legal business image can boost your sales. I was struggling to find sources of e-waste before I registered. And once I did, I had to turn down customers because I couldn't handle the influx of calls.