Just like any other business, whether it be full time or part time, scrapping metals for cash takes work, time and and of course money. If your a someone who does this on a daily basis, in order to be most profitable, you have to know how to curb your cost in order to keep your profit margins high enough to stay in business. Though the cost to scrap doesn’t change much, the cost for scrap does. These fluctuating prices will stop you in your tracks day 1 if you don’t have a proper plan in place.
The Cost To Scrap
Location, Location, Location. No, this isn’t a real estate course, but the truth still holds. With the price of fuel, diesel and gas, being what it is, your your fuel consumption can make you or break you. Unfortunately, most of us who scrap for metals drive large trucks, with maximum haul capacity. The bigger the haul, the bigger the payday right? Not necessarily, it is the time in between hauls, and the distance to the hauls that make the difference. Try to keep your scrapping locations and within a relative radius of one another. If your going to scrap in an industrial area, find multiple industrial parks, or refineries within a 15-20 mile radius to work. Going beyond that might make overall fuel consumption eat into the majority of your profits. Also, if you are going through neighborhoods to look for junked washers and dryers, or other small industrial goods, try to make sure you know the pick up schedule prior venturing out, this will save time and money.
Lastly, if you are scrapping for metals that need breaking down, choose one day a week for breakdown. In other words, if you specialize in home goods for scrapping, take your hauls back to your garage, find as much as you can. Spend 1 specific day breaking down your find, and 1 specific day to go to the yard to sell it. This organizes your time and maximizes your profitability. It keeps you from making multiple trips during the week which can be costly.