Do you know how to negotiate for the best price of your scrap metal? Well, once you have collected scrap metal, you will need to know how to manipulate buyers so as to give you the money that you are looking for!
There are three areas that any experienced scrap metal vendor can manipulate so as to get the best pricing out of scrap metals. Knowing these areas are not only to a starting scrap metal business, but also an already developed scrap metal dealer.
These areas are:
Always buy or Sell Scrap Metal in bulk
When dealing with scrap metal, quantity is of a great essence. The first question that you ask when you go into a scrap yard is either how much do you want to buy or how much are you willing to sell. Greater quantities lead to better pricing and therefore greater value for money. Because this applies even in scrap yards, you will always get better pricing for bulk.
Now that you know that selling in bulk will earn you better returns, it is best that you should save your scrap metals up until there is a huge quantity to be sold. In that manner, when you approach a seller, he will definitely be interested in buying and offering much higher rates than the usual due to the vastness of the heist.
Any scrap metal collection business wishing to take advantage of bulk buying and selling must have a place which they store their scrap metal. This place should be well secured as there are many thieves that may wish to take advantage of the bulk!
Play With The Market Prices
Another better way of doing things is by playing with the market prices. After lots of research and years of study, it has been concluded that scrap metal prices often drop slightly during the summer seasons and increase in winter. This is common mostly in areas with extreme weather conditions such as very cold winters or very hot summers.
The reason behind this drop and increase in prices is because during winter, scrap metal collectors are prevented from salvaging and collecting scrap metal by the weather. As a result, the supply of scrap metal drops leading to an increase in prices.
A scrap metal dealer who is able to collect and hold on to his metal for just a few months in wait for winter will most likely benefit more than the one who salvages and immediately sells out his metals. However, if you are dealing with scrap metal markets with high volatility where prices jump and lower without reasons; holding on to your scrap metal heist may not work to your advantage.
Play With The Scrap Metal Yards
If you have a consistent scrap metal business which always provides metals throughout the year, many scrap metal yards would want to be associated with your business. Many scrap metal yards will compete to be associated with a full time scrap metal collector and will therefore enable such a business to squeeze the scrap yards for better prices.
The ability to play with scrap metal yards such that they offer you more for your business depends with how much scrap metal you are collecting and how consistent you are with your scrap collection. The best way to play with the yards is to start off by becoming very steady at scrap metal collection. Once you are steady, identify good scrap metal yards which also offer good treatments to their customers. Let the yards know how much metal you collect in a week and what you desire for payment from your metal.
Develop a steady and constant relationship with a scrap yard before raising your business demands for higher payments for scrap metal. A good scrap yard will be responsive to your demands and will consider the amount of scrap metal that you bring in. If they are not responsive, take your business to another scrap metal yard and perhaps, you will be lucky to have better prices for your scrap metal. If all else fails, then, be satisfied with the prices as they are offered, choose upon the best priced scrap metal yard and take your scrap metals to that yard.
Some book recommendation to improve your daily negotiation skills
Click on the image to go Amazon and read a review and some comments on the books from people who read them.