The times are tough and scrap metal business may just prove rewarding for any person who is brave enough to venture into it. Many people saw a scrap metal trade as a dirty and dangerous job. This is not the case anymore because the returns from the trade have continued to soar, perhaps due to the high prices of metals
Do you want to start a trade in scrap metals? Here are some steps that you will need to follow:
Step One: Know the types of scrap metal
As an entrepreneur in scrap metal business, you will be needed to recognize first and foremost the types of scrap metals available. There are ferrous and none ferrous types of scrap metals. Non-ferrous metals are aluminum, stainless steel and copper among others while the ferrous scrap metals can include products such as stoves, fridges and other products made of iron.
Step Two: Know The Scrap yards In Your Town
If you are going to be a successful scrap metal vendor, you need to know the scrap yards around you. There are many ways you can find scrap metal dealers around your home area by checking them out in the local yellow pages internet searches.
When you build relationships with local scrap metal yards and other dealers, you are able to quickly gain knowledge on scrap metal grading, pricing and be able to know rising opportunities in the market. Know what the other dealers are charging for scrap metal, how much they are selling them and to whom is scrap metal being sold.
Whether they are your competitors in the market, it is advisable to have a close relationship with them. To get closer to scrap metal dealers in your area, you should make personal visits, attend seminars and look for other ways of enhancing relationships between you and them.
Step Three: Understand How Scrap Metal Pricing Is Done
Different types of scrap metal come under different pricing plans. It is important to note that nonferrous metals are scarce, but are higher in demand than ferrous metals. As a result, the pricing of nonferrous metals is higher than that of ferrous metals.
Scrap metal prices are highly fluid. They keep changing with the daily flow of the market’s demand and supply curves. As a result, you need to always be updated on the scrap metal market trends and prices by subscribing to online sources such as metalprices.com.
Step Four: Buy a Vehicle for Scrap metal Collection
Once you know the pricing and a few metal yards that you can take your metal to, the next big thing will be to consider transportation. Any serious starting scrap metal business owner needs to have a pickup or truck dedicated to collecting scrap metal. You will also need to have cargo nets or tie down straps for the purposes of securing scrap metal once it is collected.
Step Five: Have Protective Equipment
The dangers posed by scrap metals cannot be underrated. If you are ever going to successfully operate a scrap metal business, you will need to have protective gear such as safety shoes, gloves, reflective vest, first aid kit and safety glasses. These are but a few of the basic elements needed for operation of a scrap metal business. You may also need other advanced equipment such as a welding mask and hearing protection gear.
Even as you collect scrap metal, you need to be aware that some types of metal can contain potentially harmful effects to your health, especially old vehicles, old air conditioning units and other metals that may have toxic substances.
There are also some basic tools of the trade such as a magnet that when in your possession, will help you in identification of ferrous metals. Hammers, pocket knife, wire cutters, pliers and drills are among other useful tools that you need to have in your possession.
Step Six: Determine the Places from Which You Will Collect Metal
Scrap metal collection is not an easy job. It needs determination combined with a will to succeed. For you to start a scrap metal collection business, you will have to be patient and hardworking. You will need to know where your best chances for finding scrap lies and have collection routes. Your collection route may be small businesses, repair shops, plumbing sites, industrial areas, residential places and so on. Even though collection is done on foot, have periodic scrap pick-up points.
Another way that you can get scrap metal is through carrying out advertisements on scrap pickup such that those with scrap metal in the area may volunteer them to you either freely or for a given amount of money. You can also attend garage sales in search for metal items such as old brass lamps.