Common Mistakes Made In The Scrap Metal Industry And How To Avoid Them
Scrapping metal is big business. If you have never been into scrap removal, you probably have no idea how much money there is to be made. You see people in pickup trucks with trailers loaded with old appliances and car parts, and you wonder why they are bothering with that. We’ll tell you why. Because one good load can make several hundred dollars. Multiply that by a few loads a month and you soon see that scrap removal delivers a steady source of income with a minimal amount of investment capital.
It takes time and experience to learn how to make good money with scrapping. You will make your share of scrapping mistakes. You will show up at the metal yard with what you think is a great haul and walk away with far less money than you expected. Scrapping mistakes are expected. Once you learn your way around the industry, you will know how to avoid them. Below we are going to give you a few tips to help you get started.
Watch the market
Scrap metal prices change often. There are times when the prices are way up and times when they are way down. You are wise to hold your load until you can get a good price for it. Call for prices before you go.
Like any other business, there are good guys and not so good guys. Ask around. If a scrap yard has a bad reputation, there is probably a good reason. However, be smart. Know your metal, prices, and keep a sharp eye. You can always walk away. Be smart enough to know that your competition may not be telling you the whole story. Be your own judge.
Separate your metal
This is very important. If you separate your copper, steel, stainless steel, aluminum, and iron, you will be able to sell each load at the best rate for that metal. If you throw it all together, the scrap yard will not take the time to separate it for you. They will give you a lesser price for the entire load.
Strip your copper
This is another critical factor in getting top dollar for your product. If you do not strip the wire, you may think you have a huge amount (by weight) only to find out that what you thought was a copper wire was actually data wire or insulated wire. This will bring a lot less money. It cost very little to get a wire stripper. This is an investment that will pay for itself quickly.
Spend some time at the scrap yard. Ask questions. Get online and do your homework. Each state has their own laws about scrapping. Scraping automobiles are very profitable. If someone has a junk car they want to be moved off of their property, you can usually make a deal to move the car if you get to keep it. While there is a lot of money in scrapping the car, there are rules to follow. For example, you must drain and remove the gas tank before scrapping the car.
There are laws about the selling of many items. For example, unless you are the HVAC dealer (with paperwork to back you up) most states will not allow you to scrap an HVAC unit.
There are also restrictions on how a person can be paid for their scrap metal. Some items are paid for with cash Other items must be paid by check and mailed to you. Take the time to get to know your business before you begin. There is profit in knowledge and that holds especially true for the scrap metal industry.