In some of the previous posts, we saw in brief and in detail about the best places to scavenge for scrap metals, best practices in starting and running a scrap metal dealership business, safety and security aspects of running a scrap metal business, the factors influencing the prices of scrap metals and more.
In this post, we will go further in detail and touch up on the topic of negotiating the prices of scrap metals. In all the previous posts, we have been constantly laying emphasis on cutting down the costs that you incur in hunting scrap metals, and increase the profit of your business. Falling in the same line will be our tips and tricks or the best practices to negotiate scrap metal prices. As we know, the prices of scrap metals such as the price of steel scrap, scrap brass price, price of stainless steel and others vary from one another. Besides there are also several other factors such as the location of the scrap metal yards, the type of metal and the quantity of metal that determine the price of scrap metals. So turn the prices of scrap metals to your advantage, here are some points you can check out to increase profit while selling scrap metals in salvage yards.
As far as negotiating the price of scrap metals is concerned, there are basically four parameters you, as a scrap metal dealer, must consider manipulating. So for all of you aspiring scrap metal dealers out there, it is the time for you to refrain from asking the most common question – what is the price of scrap meta – and build up confidence to negotiate the scrap metal yards for the best prices. Check out the practices below.
Sounds too technical, right? Well, it is actually not. It is a general scene in a salvage yard that when a scrap metal dealer enters the yard to sell his or her scrap metals, the first question people at the salvage yard ask is the volume of scrap metal the dealer has; and you know very well that the more volume of scrap metal you have, the higher your payment will be. All you have to do is manipulate on the quantity of the scrap metal you intend to sell. For instance, in the place of a bucketful of brass or any other metal, try selling a barrel full of metals. The brass recycling prices or the price of any other metal that you intend to sell a barrel-full will soar high. However, it is not mandatory that the barrel needs to be full. A barrel that is half full with metals such as brass will weigh like up to three-fourth of a ton. So the next time you approach the scrap metal yard dealer, people there will be happy to learn you’re coming with close to a ton of scrap metals, and will in most cases be ready to pay you a percentage or so extra.
Analyze the Price Trends in the Market
It is a known fact that the prices of the metal fluctuate according to seasons. In general, scrap metal prices increase slightly during winters and decrease during summers. One of the primary reasons why the price of metals decrease in the winters is because of the cold temperature that deters scrappers and collectors from scavenging scrap metals. So, if you can manage to pause for a while from selling the metal, you can make profit by selling them in the winter. However, one thing you need to remember is that this technique can be applied only in places and regions where there is no drastic and frequent rise and fall of scrap metal prices.
Rapport and Relationship
This particular practice will take some time to get fully implemented and reap the required benefits. Patience and perseverance do matter in this case, and is up to you to build rapport and relationship with the people at scrap yards. Regardless of whether you are a professional scrap metal dealer or doing this as a hobby, all you have to do is begin by becoming a regular customer at t salvage yard of your preference. Keep bringing in scrap metals at regular intervals, and show them you have stuff and caliber. Introduce yourself to the owner or the concerned people at the scrap yards, and do remember to save your scrap yard tickets. Once you gain recognition in the scrap yard as a regular comer, have a conversation with the concerned authorities at the scrap metal yards regarding the increase in price of metals you intend to sell. Ask them if they are willing to give ‘special’ considerations to you if you manage to bring in more scrap dealers to the scrap yards. In situations like this, the key is to be open, frank and honest. As you become more open and build rapport with the people at the scrap yard, chances are likely that you will be given special considerations while selling scrap metals.
These were some of the tips and tricks or the best practices to negotiate for the best scrap metal prices. Follow them, and you can see your business soaring new heights this year.