How to go about selling scrap

Hi Fudjj,

How do I go about setting up a business selling scrap.

Thanks

I have a buyer and supplier. Should I give the details of the supplier to the buyer. How do I provide pictures etc to buyer while safeguarding my interests.

Any help would be highly appreciated from salehoo community.

Thanks and regards

Hi PS, can you give a few more details, what sort of scrap are you talking about. I must confess the first thing that actually comes into my mind when I hear the word scrap, is usually scrap metal, though I am doubting that's what we're talking about here.

Just fill me in with a few more details so I can get a better idea of what's involved.

Regarding having a supplier and a buyer, it sounds like you find yourself in the position of a broker, one that essentially brokers the deal between supplier and buyer.

If you give the supplier details direct to your buyer, then the chances are they will do business with them directly, and you will end up with nothing.

I'll wait for some further details from you before I get too carried away with the advice lol.

Hello Fudjj,

Sorry was out whole afternoon. Yes I am looking for shredded iron and steel scrap, plus HMS 1 and 2.

HTH

Hi PS,

OK, it is scrap metal....quite a unique one for us here!

This one is difficult for me to get my head around. When you say you have a supplier and a buyer, who is who?

I mean is the supplier the one with the metal that they want to sell for scrap, or is the supplier the one actually looking for metal to buy?

The problem I am having is that most scrap metal dealers can easily be found, so people can usually go straight to them to sell their scrap for cash.

Of course that makes it pretty hard to carve out a brokerage because a broker is really only effective when they can provide deals or information that others can't find.

If you are talking about becoming a dealer, as in one that picks up from businesses and such and then delivers to the scarp yard, then that pretty straight forward.

You would need to approach businesses in your area and see if you could leave your bins there, 44 gallon drums or something, and of course have yourself a way of transporting the bins to the yard after dropping of new ones for the businesses.

Your best bet in that situation is to do a lot of door knocking to see if there are enough businesses available for you to make a business out of it for yourself.

I hope that was at least some help : )

Hi Fudjj,

I have been on my feet researching this subject. I was approached by a buyer who is a family friend to source shredded scrap for construction and building.

Like metal, iron, steel, Hms 1 and 2.

Still looking out for suppliers who are reliable.

Sorry took so long to reply.

Thanks for taking the time

Ahhh, OK, so essentially you are talking about sourcing second hand suitable for reuse. Interesting one really, that's all going to come down to the type of material they want as to where you would be able to source that.

I thought you were talking about scrap for melting down, that's a different ball-game altogether : )

I am a novice in this area and do not know the technical terms but am learning fast to be able to take advantage of this opportunity that has come my way.

Sorry I was not clear earlier, actually they are looking for shredded metal scrap which they will melt down and use to mould into other things.

OK, yep, then everything I first wrote is applicable. You would be best to got around to businesses with your own scrap bins and get the business to dump their scrap metal in there, then you have your supply.

Depends how competitive it is in your area, you may find that businesses are really happy to have somewhere to dump their scrap, but if you have strong competition, you may find that in order for the business to give you their scrap you will have to negotiate to give them a slice of your takings.

I would be sticking my noise in some doors and just checking to see how competitive the market is, and what sort of opportunities are there for you to get the scrap.

From there you can put all the other measures in place.

Thanks for the advice, I believe it is a very good idea. Will see what I can do and post later.

I am sure this will take some time though.

It is the type of business that will take some time and careful development, but you will reap the reward for the work if the market is open for you to take advantage.

Good luck.