High metal prices are bad for business

[Mick]

No, I haven't lost it. There are two reasons I'd rather see prices decline:



1. Everyone and his mother is now a scrap metal dealer and there is less for me. I've lost three accounts (two auto repair shops and a trucking company) within the past week due to "I'm going to start hauling my own stuff in". In all three cases, this was the direct result of a decline in their own business and looking for revenue. I've had other people who I've gotten stuff from in the past, tell me the same thing.

2. These "DIY'ers" have no clue what they've got. When I ask if they sort the metal, know #1 from Light Iron, strip copper wire or cut iron from aluminum, they tell me they just "throw it in a pile and take it up there". I've offered to give the Unprepared prices for stuff such as Insulated Copper, Irony Aluminum etc, but by that time, they're committed to doing it "their way".

So I've decided on maximizing the value of what I've stockpiled and hold onto what clients I've got left. High gas prices don't bother me as much as high metal prices. Hopefully, gas prices will get so high that carrying a few pounds in the pickup or 4x8 trailer won't be worth it. That's why I try to leave on good terms; Say "Thanks for your business in the past"; Leave my card and say "Call me when you change your mind". I also plan to stop by periodically.

[Thejapster]

Yea the days of people giving you there scrap is coming to a end very very fast!

[Mick]

Face it - we are that evil "Middle Man". Whenever times get tough - he's the first to get cut out.

[Mick]

Just got back from another trucking outfit where I'd arranged to haul several tons of truck brake drums and we'd "split the ticket". His mechanic has decided to haul it for a little extra money. My suspicion is that the mechanic is doing it for less of a percentage than I'd get or as part of his job.

[rca987]

Every little bit helps, Kris Kringle.

[sjones99]

That is why you guys need to push the point of getting paid cash vs check due to tax reasons.

[Ditchdigger]

Ok I expect to Get Hell from this Thread. Yeah everyone is a scrap metal guru any Idiot can Do it Just ask anyone.

Not going to give you hell but I think it's an indisputable fact that like some other enterprises, the price of entry into the field is very, very, low. Anybody with a pickup truck is pretty much already set up to become a new competitor. That's not to say that just anybody will be able to optimize their earning potential, but the point is, they don't have to, in order to take business away from the guys who are already practicing at a professional level.

Also, as Mick points out it's a business where you're constantly at odds with people's own ability to do what they want to have done. I've seen it in the snow plowing business. Back in 93, we had the "Storm of the Century", and though we were primarily doing commercial accounts, we got dozens of calls for residential work. "Can you come out and plow my driveway?" The following year, we had a similar storm, and didn't get half as many calls. I believe that was due to the fact that everybody and/or their neighbor went out and bought a blower. The work was still there; people just chose to do it themselves rather than pay somebody else to do it.

[hobo finds]

No, I haven't lost it. There are two reasons I'd rather see prices decline:

1. Everyone and his mother is now a scrap metal dealer and there is less for me. I've lost three accounts (two auto repair shops and a trucking company) within the past week due to "I'm going to start hauling my own stuff in". In all three cases, this was the direct result of a decline in their own business and looking for revenue. I've had other people who I've gotten stuff from in the past, tell me the same thing.

2. These "DIY'ers" have no clue what they've got. When I ask if they sort the metal, know #1 from Light Iron, strip copper wire or cut iron from aluminum, they tell me they just "throw it in a pile and take it up there". I've offered to give the Unprepared prices for stuff such as Insulated Copper, Irony Aluminum etc, but by that time, they're committed to doing it "their way".

So I've decided on maximizing the value of what I've stockpiled and hold onto what clients I've got left. High gas prices don't bother me as much as high metal prices. Hopefully, gas prices will get so high that carrying a few pounds in the pickup or 4x8 trailer won't be worth it. That's why I try to leave on good terms; Say "Thanks for your business in the past"; Leave my card and say "Call me when you change your mind". I also plan to stop by periodically.

They will also have the added cost of this. If the yard rips them off and they don't make good money maybee they will come back as it is not worth it!

[vamped400]

I agree mick, i agree. now that the prices are up, it seems EVERYONE and their grandmother is scrapping metal. ive seen more houses with trailers full of metal then i have have before and on scrap days i see a lot more people heading to the yards. It also seems like there is a LOT more metal theft in the news. Ive still have had good luck with people giving me metal, though but my sources will dry up soon

[poundigity24]

you can always check the woods i scrap wqhenever my mom wants me to get the stuff out of my yard and I have made 400 since September just from the woods across from my house

[c4f5]

Mick, I have been doing this since cans were 15 cents and iron was $20 a ton. While the bigger paychecks are nice, I agrre with most of what you are sayin. Back in the day, it actually took skill and motivation to make money in this business. Now every Tom, D!ck & Harry thinks he is a proffesional scrapper. Kinda sad.

[parrothead]

We manufacture really really big stuff that the average consumer does not buy. However there are probably more and more foreign made parts sneaking their way into those caterpillars and such than we care to admit.

[TheMetalizer]

[QUOTE=Kris Kringle;8599]

Not going to give you hell but I think it's an indisputable fact that like some other enterprises, the price of entry into the field is very, very, low. Anybody with a pickup truck is pretty much already set up to become a new competitor. That's not to say that just anybody will be able to optimize their earning potential, but the point is, they don't have to, in order to take business away from the guys who are already practicing at a professional level.

You are Correct not just anybody will be able to optomize their earnings. But in the mean time also There is only so much scrap out there and the sources is Drying up quick its not like we in america have all the Manufacturing or {Jobs we once had} Actually What Does America Manufacture anymore? nothing I can think of Yeah we assemble Toyotas with the parts Toyota makes in Japan. I Think America has become a Service Country.

The United States of America, the greatest country on the planet, still manufactures over 45% more then China, and accounts for over 20% of the world's manufacturing...

So don't worry guys, we're still doing pretty good.

[KzScrapper]

I wonder if the tragic destruction in the south from the tornado's will impact prices? Hard to say if the material being cleaned up will be recycled, my guess is a lot of it will bringing somewhat of a surplus to the market.

[sjones99]

Im sure most of the scrap will just go thru the giant shredders they will have setup and just turned into garbage.

[Rusty Nuts]

Im sure most of the scrap will just go thru the giant shredders they will have setup and just turned into garbage.

That would be where a smart man should show up with some rented dumpsters and a plan.

[iScrap]

Ok I expect to Get Hell from this Thread. Yeah everyone is a scrap metal guru any Idiot can Do it Just ask anyone. I mean we even have people that actually worry about cutting electrical Prongs from Cords off Then we have people actually stripping Piano Cords for the little bit of copper, yeah it is going to get a lot worse.

If those things are meaningless to you, but not to others, then don't feel threatened. Like rca987 said every little bit helps.

[iScrap]

Fair enough Kris Kringle. Cheers.

[APA]

Looking back 5 years to 2011, I think we all want higher metal prices. Low prices hurt everyone.

[miked]

Looking back 5 years to 2011, I think we all want higher metal prices. Low prices hurt everyone.

It also cuts down on the competition allowing better run operations to prosper. Lower prices for commodities can result in lower retail prices for goods. Lower prices for commodities can and do cause pain for many. 73 Mike