How to Maximize Scrap Metal Profits
Businesses and individuals alike often forget about all the metal they have that they’re not using, which they could scrap for extra money. Whether you’re a scrap metal business, or simply an individual looking to get the most for your metal, you deserve top dollar. Keep reading to learn how to maximize scrap metal profits.
Call the scrapyard beforehand
Though most scrapyards won’t turn away business, sometimes they have to if there’s an influx of people trying to sell their metal, so it’s a good idea to call before you load your vehicle up. You also should call beforehand to get the scrapyard’s prices over the phone. While the price of scrap metal is largely influenced by market and index prices, that doesn’t mean that each scrapyard is following that trend.
Develop a relationship with the owner
You won’t be able to get on the owner’s good side right away. However, as you continue to bring business to the same scrapyard, the owner will begin to recognize you. Leverage your relationship and develop a friendly business rapport with the crew and owner. By developing a trustworthy relationship with the yard’s owner, they’ll be much more inclined to give you the best price because they know you’ll return with more business. Not to mention, both individuals and businesses like consistency, and if they know they can count on specific people, they’ll reward you for your stability.
Be conscious of what you have
Know what types of metals you have before bringing them to a scrapyard. Most of your scrap metal will be of ferrous materials, as it’s the most common material for several applications. That said, ferrous metals are also the least valuable because they’re readily available. But don’t let that discourage you; if you save the materials and bring them to the yard in one large offering, you’ll still take home a hefty amount of earnings.
However, if you have nonferrous materials, such as copper, aluminum, and tin, they’re much more valuable in the scrapping industry. That said, you also may have more room for negotiation if you want to ask for a little more; however, keep the market and indexes in mind. Most scrapyard owners won’t go any higher than the market because they’ll lose money if they do—unless of course there’s a surge in market demand.
Separate the materials based on types
Most scrapyards aren’t going to take the time to sort the metal for you at the time of weighing, so you should sort your metals prior to your arrival. Separating the scrap metal based on its type—or at the very least by ferrous versus nonferrous—will significantly increase your earnings. For example, you should organize aluminum materials with other aluminum, and steel with steel, and so on. The scrapyard workers will like you more because they won’t have to sort your materials much, if at all, once they add your bundles to the yard.
Weigh your materials yourself first
After sorting the materials, but before bringing your metal to the scrapyard, you should do your best to weigh it at your home or business first. By taking the time to weigh your materials first, you should be able to have an idea of what the scrapyard will offer you. It’s always better to go into a deal knowing what you have and how much you have. For instance, if this is your first time at a particular scrapyard, you’ll want to double-check their integrity. By weighing your materials first, you’ll ensure they’re giving you an accurate and fair offer.
Pro tip: Make sure they let you see the scale. Unfortunately, some scrapyard workers won’t let customers see the scale results, which is a tell-tale sign that something shady is going on. Instead, we would suggest you take your materials elsewhere because we value integrity, and we believe every business should run with integrity in mind.
Maintain the condition as much as possible
Condition doesn’t matter––it’s a common misconception that many individuals and businesses have about the scrap metal industry. We’re here to tell you that condition most certainly matters. The biggest issue many scrapyards encounter is rusty materials. Rust can contaminate other materials it comes into contact with, and even after the metals melt, rust can reappear. If rust is present on your metals, scrapyards will give you a reduced amount for two reasons.
The first reason we discussed, as rust can affect the rest of the metals in a collection. Second, rusted materials weigh less than solid materials, and since most scrapyards make their offers based on weight, you’ll receive a reduced amount. That said, do your best to keep metals you plan to scrap out of harm’s way and store them in dry places. If rust develops, you can try to slow its progress with rust preventatives, but you may be better off cutting the rusted portion off.
The scrapyard equipment matters
Whether you own a scrapyard or you’re a customer of one, the yard should have adequate equipment. Scrapyard equipment, such as magnets, scales, and granulators, help you get an accurate offer. If you’re considering selling your scrap metal to an old scrapyard with little to no updated equipment, you might want to reconsider where you do business. A very common (and valuable) material to scrap is copper wire, and good scrapyards would know that. So if you own a scrapyard, you should make sure you have a copper wire granulator.
Everyone’s day job looks a little different. Some of you might be a CPA or a plumber. However, a lot of individuals get their main source of income through scrapyards. Whether you own the scrapyard or you’re an employee, there’s money to be made in the scrap industry with the help of industrial equipment. Additionally, there’s plenty of income to go around for individuals. So if you have some extra metal lying around, we hope after reading this blog you know how to maximize scrap metal profits.
In need of scrapyard equipment? Contact Moley Magnetics Today.
Here at Moley Magnetics, we equip scrapyards with high-quality equipment to do their best work. We offer premium magnets, motors, attachments, and copper wire granulators for sale, and so much more. Moley Magnetics aims to provide excellent service with integrity in mind. We want the best for our customers, and we are proud to offer high-quality products. Contact us today for more information.