Most novice entrepreneurs often do not pay attention to promising areas of business where competition has not yet reached its peak. But those who at one time solved the problem of how to open a scrap metal collection point are making great money today. In addition, to create your own small business of this kind, you do not need large investments.
The location of the point in the city has practically no significance here. Whether it’s the outskirts or the center, things will go equally well. The income will be the least if you open in a village or village, but the most if it is a large industrial city where metal is highly valued. And best of all is the port. The fact is that in such places there are a lot of sales points at an affordable price.
Either way, it's pretty unusual way open your own business. Indeed, in most cases, an entrepreneur sells a product or service and receives money in return. In the case of metal acceptance, the opposite happens: we pay to have scrap sold to us. Perhaps this is the key factor. The fact is that the price of any type of metal - be it cast iron or steel - does not have a constant value. In summer it’s one figure, in winter it’s completely different.
For a business to be successful, it needs to be clearly thought out and a special plan drawn up. Most "entrepreneurs" do not register a metal collection point. And they do it in vain. Such a business is rightfully considered illegal, and you can get a fine. Therefore, the first thing we recommend is to go get a license. Fortunately, doing this is quite simple and quick, and also not too expensive with material point vision. It should be noted that the license for scrap metal in the regions major cities issued without any problems or unnecessary formalities.
First of all, of course, you will have to spend money on a license. It is mandatory to provide the necessary package of documents, which includes the following list:
Of course, it is equally important to decide starting capital, but, as noted above, this does not require large initial investments.
For the first time, $2000 will be enough. The payback period for these funds directly depends on the activity in a particular city, in most cases it is 1-3 months, sometimes more.
At the very beginning, it is not necessary to buy equipment; you can lease or use alternative option– purchasing used scales, presses, etc. This will save money, but after that you will need to buy new units.
If the business is illegal, then the fine can amount to about 50,000 rubles (in the best case) or 100,000 in the worst case. In addition, various kinds of sanctions will tarnish the reputation, and this, in turn, is fraught with consequences and frequent audits by the tax and other services. Moreover, it will be quite difficult to pass the inspection without first paying a certain amount of money.
In no case should you let things take their course, because, as practice shows, such a business quickly collapses. You need to actively take part in its development - and within a month or two a positive result will be visible. But you should always remember the risk, since metal prices depend on economic situation in the country can either increase or decrease sharply.
However, accepting scrap metal in Moscow is a profitable business, but you need to remember the small details on which the business is built. This refers to the acquisition of the necessary specialized equipment that will make working with metal more productive. This includes the following machines and units:
But creating a collection point and purchasing necessary equipment- that's still half the battle. Next, you need to actively develop your business. In order not to endure the constant supervision of the tax service, it is advisable to open an LLC and obtain a license, as has already been said.
A lot can be said about the cost of scrap. But you need to understand that in each region and city this is a separate figure. However, it can be said about approximate price one ton of metal. Thus, today for one ton of ferrous scrap you can get about 10,000 rubles, plus or minus 1000. As for non-ferrous metals, the cost is much higher and reaches $5,000 per ton.
Over the past few years, the business of accepting aluminum cans has also gained profitability. Most modern processing enterprises receive the used product and make it into a product that is in demand among consumers. You can set a limit on the minimum weight of scrap accepted.
We need to say a few words about annual revenue, which, again, directly depends on activity in the region. It can be around $22,000–$27,000 per year. This is provided that a 10-ton vehicle will make 2-3 trips per month. The profit from one such trip is about $500 per black scrap.
It should be noted that the more conveniently located the reception point, the more you can earn per month. Black scrap can be accepted for about 5 cents per kilogram, and sold for 2-3 times more expensive. The starting price for tin can be set at 2.5-3 cents. As for non-ferrous metals, it is difficult to say anything, since much depends directly on the material, so it can be either 1 or 20 dollars per kilogram.
In general, you need to sell at 3 times the price at which the purchase was made. This allows you not only to quickly pay for such a business, but also to earn good money.
Sometimes it makes sense to accept large equipment that is being taken out of service. These could be refrigerators, washing machines, gas stoves and much more. This is quite profitable and interesting, since this technology includes copper, aluminum and steel. The cost per kilogram should start at 5 cents. Although on initial stages you can set 4.0-4.5 per kg.
Two people will be enough for the normal functioning of the point. One of them will work as a receiver (takes the crowbar on the scales). You will also need a dismantler who will deal with electric motors and other scrap. Everything that the disassembler receives as a result of his work, he sells to the receiver for about half the real cost.
If we talk in simple words, then the disassembler’s salary directly depends on his work and on how much metal he hands over to the receiver. It should be noted that non-ferrous scrap metal must be accepted by staff at the following prices:
The receiver must hand over non-ferrous metal at its cost plus a markup of 30 cents per kilogram. If you consider that in a good situation you can accumulate 300-350 kg of non-ferrous metal per week, then this is an additional 300-400 dollars per month.
It’s one thing to figure out how to open a scrap metal collection point and do it, but quite another thing to make the business profitable. Achieve good results you can by hiring decent, hardworking and, most importantly, honest workers. The receiver must work 7-14 days without days off. In other words, the person must remain at the reception point all this time. Even at night you need to work, since, according to statistics, the most scrap is brought in at this time.
The replacement receiver comes only when the second one has handed over 10 tons of ferrous scrap metal. This arrangement is most optimal for the owner from a financial point of view. As for the receiver, in a couple of weeks he can earn about 300-350 dollars. After handing over the machine, you need to remember that a report on paper is required, as it is an indicator of the reliability and integrity of the working personnel. All this will allow you to create an effective and profitable business for scrap metal with good monthly revenue.
To begin with, you will need all the necessary documentation, a license, etc. Next, you need to buy special scales that will weigh about 1000 kg at a time. In addition, if you plan to accept non-ferrous scrap metal, you must purchase a weighing device with weights.
The next stage involves renting, and possibly purchasing, a site where the scrap will be stored. 400-600 m2 will be quite enough. After this, you need to find a high-quality and profitable point of sale. It is important to pay attention to the conditions under which scrap is accepted. Often, in places where wholesale scrap is purchased, 20-25% of the total weight is immediately deducted, citing the fact that it is garbage, dirt, and the like.
We hope that after reading this you no longer have any questions about how to open a scrap metal collection point and make a successful business out of it.
Everyone has long known that the business of collecting scrap metal provides an excellent opportunity to make money, but to do this, you must first find the scrap. Real businessmen are not looking for a specific type of metal; they collect absolutely everything that can be handed over to a collection point, but before that they extract scrap from the products and sort it.
Organizing a business with scrap metal is impossible without certain aspects, such as search, collection, sorting, storage and delivery.
To become a qualified scrap scavenger, you need to be physically fit and in good health to carry heavy loads. cast iron baths and other large spare parts. In addition, you need to have necessary tools and fixtures, as well as transport. Knowledge of how to properly collect scrap metal, types of metal and how it needs to be removed from devices is also indispensable.
Important! The metal collector must also navigate the intricacies of scrap delivery, for example, it is more profitable to hand over in winter, when the price per 1 kg is higher than in summer. This is explained by the fact that it is more difficult to extract metal under a layer of snow, the day is short and there is much less time for collection. Experienced collectors collect scrap metal in the spring and summer, store it throughout the year, and then dispose of it in the winter.
You can collect scrap in places where the activities do not violate the law. One of the exotic places is the beach. You can often see people there with metal detectors looking for lost earrings, rings and chains, and precious metals.
Sometimes collectors change tactics and simply post up advertisements saying that they will help get rid of unnecessary iron waste and will come and pick it up themselves. This, rightfully, can also be called one of the ways to collect scrap metal.
Scrap does not always lie on the surface; very often it needs to be removed from recycled metal objects.
Copper is the most expensive metal of all. It can be obtained by placing transformers, engines and other products in which it is supposed to be contained in a fire. It is not recommended to spray ash from such a fire in the garden; it contains toxic substances and should be taken to an official landfill.
Disassembly of motors and transformers can also be done using a grinder. This process will take several approaches. First of all, the end part of the motor winding is removed with a grinder, after which you can safely remove the winding from the stator in whole sections, and not in separate wires. After being removed from the grooves, it is cut across and easily removed from the core. Core plates are not accepted for scrap, but they are an excellent filler for concrete work.
Important! A favorable time for searching for scrap is spring weekends (especially the time after the traditional clean-up day). It is at this time that everyone tries to get rid of unnecessary trash and garbage, without burdening themselves with searching for iron parts in it to hand over.
You can also collect scrap metal from old power poles if you know how to do it. Concrete pillars contain tens of kilograms steel reinforcement. To do this, however, you need good physical training and a sledgehammer, with the help of which the pillars are broken.
In order to know how to collect metal, you need to determine its exact location.
Popular budget model is JJ-Connect Adventure, its advantage lies in the cost, which quickly pays for itself, and the presence of the basic functions necessary for searching. However, in case of bad weather conditions the electronics malfunction, and the depth that the device detects is small.
A metal detector cannot cope with searching in open spaces of water, and in this case, search magnets are collected as scrap metal.
There are two types of magnets:
In order to use a magnet, you just need to lower it into the water and float along the river, attracting iron parts to you. You can attract weights from 80 to 600 kg, while the weight of the magnet itself ranges between 1 and 6 kg.
It should be remembered that on land we look for scrap metal with a metal detector, and on water with a magnet.
Do without cutting tools and devices for transporting scrap over short distances are very difficult, they must be in the arsenal of every collector.
The most important collection device is the vehicle. On it, the collected scrap is delivered to the collection point.
It could be:
Collectors do not always have their own transport or the opportunity to purchase a truck. However, you shouldn’t give up your “iron” hobby or business; in this case, just call the collection point and they will send your car. The profit from the rental will be slightly less than planned, but it will still be there.
Do not start collecting scrap unless you know safety precautions. Otherwise, such an activity will incur losses for you and, first of all, for your health.
Basic safety rules include:
The final point in the scrap business is the collection point. Here too you should be extremely careful. Often reception centers provide free services by estimating the cost of raw materials, however, it should be remembered that nothing comes for free. If you then look at the cost per 1 kg, you will notice that the price will be lower than at other collection points.
Delivery, sorting, dismantling or cutting - these are all services provided by collection points, using which you reduce your profit.
AND Thus, we can state that the crisis, which hit metal sellers so severely, finally receded, and this happened in the spring of 2010. It was then that metal prices returned to pre-crisis levels. This immediately affected the activity of entrepreneurs - those who fled from this market segment soon returned, taking with them fresh hunters of fortune along the way. Some skeptics argue that this is a deceptive surge and is mainly due to the fact that construction intensifies in the spring and nothing more. This market is supposedly still far from real pre-crisis stability. However, I’ll figure it out msya.
As you know, the expectations of forecasters and other analysts greatly influence the real market itself. It changes in one direction or another, depending on whether an optimistic or pessimistic mood prevails in predictions about the near future. That's what happened this time too. Waiting for construction projects to emerge from hibernation, entrepreneurs jointly “raised” prices for scrap ferrous metal. Prices rose as follows: from 7 to 11 thousand rubles per ton... And the transportation of ferrous scrap itself increased by more than 50 percent. Purchase prices are rising! They (prices) in the European part of Russia today amount to 6 thousand rubles per ton. According to experts, this is the minimum figure at which you can even earn money - that is, the crisis has passed.
In the non-ferrous metal scrap segment, everything is much more better prices were stable even during the crisis, but even after the crisis they are only growing.
Experts draw the attention of entrepreneurs to a new benefit - scrap aluminum cans. Their current share in the entire volume of aluminum scrap is as much as 7%, and this is significant. If earlier it was unprofitable to deal with aluminum cans, now this is one of the tidbits, and all because from the scrap of these cans they have learned to make products with a higher added value than before. So it’s worth taking a serious look at this market segment.
Business "on aluminum cans“This is a newfangled thing, it is simple and clear. Here is this primitive structure:
1) You buy and place special containers for cans in strategic places (option: place your sorter at the garbage plant, which selects the necessary banks);
2) then pack (bag) the collected cans,
3) transport it to the enterprise yourself.
The margin you receive as a result is 20%.
What is necessary?
Required:
1) platform,
2) a press for packaging lightweight scrap,
3) laboratory for analysis chemical composition metals,
4) trained personnel,
5) investments from one million dollars, including:
6) loader (cost 400 thousand dollars, but you can buy it cheaper!)
7) special scales,
8) dump truck park.
So, the market is crowded with small and tiny players - black, gray and white entrepreneurs collecting non-ferrous and non-ferrous metals. How can you be one of them? What is needed for this?
Starting a business means opening a “reception point” which looks like an ordinary stall. This “stall” is nevertheless a serious business with a monthly turnover of 5 to 10 thousand dollars and a profitability of 20 percent. You will buy scrap, “by the kilogram,” simply from private individuals.
The only “problem”: it is impossible to obtain legal permission for such activities through legal means... Even experts unanimously say so. Not to mention the players themselves, who always make statements that are more frank and closer to reality. However, many players in the ferrous and non-ferrous metals market simply ignore this problem (the problem of obtaining a license) - they work just fine “in the ferrous”.
The fact is that the legislation on this issue has not been worked out, the wording of the laws is vague, which makes it possible to “fish in troubled waters.”
The situation is such that it allows almost any person with an entrepreneurial spirit to promote a business in just a month...
The scrap metal business makes money because entrepreneurs, eager to simply make temporary money from the price difference, do not pay taxes and ignore legislation on both labor protection and production organization. Environmental safety requirements are ignored to no less extent - that is, almost completely. Those working without a license and registration face a fine provided for in Article 14.26 of the Code of Administrative Offenses of the Russian Federation. This is an amount from 50 to 100 thousand rubles. But these fines do not bother anyone...
However, region is different from region. And in some regions, things are much more civilized - almost everyone who works there has been working for a long time, under a license, and is always interested in the “origin” of the scrap that unshaven individuals bring them to the acceptance point...
However, with very rare exceptions, it is still almost impossible to find out the origin of the metal being handed over. Of course, we are not talking about such obvious things as torn off rails or wires removed from poles - only complete criminals take this, whom we will not classify as “businessmen” within the framework of this article. But there are ways to “make up” stolen metal so that it does not arouse suspicion among the receiver.
Based on the above, you can conclude: it is profitable to accept scrap ferrous and non-ferrous metals. The crisis that brought down this industry for exactly a year has passed. And if you are not afraid of the difficulties associated with obtaining a license (or are not afraid of the difficulties associated with working without it), then you can easily open your own “stall”.
(When preparing the material, figures published in the magazine "Enterprising people have earned, continue to earn, and will continue to earn a good penny from selling scrap metal until this type of recyclable material is completely exhausted. And even if something like this happens, it won’t be very, very soon.
The validity of this thesis is evidenced by the millions of tons of metal that surround us on all sides: refrigerators, gas stoves, washing machines, metal structures, communications, equipment.
And also - endless streams of “iron horses” on city streets, which sooner or later will turn into scrap metal - recyclable steel, cast iron, brass, aluminum, bronze.
As practice shows, you can earn 50,000-100,000 rubles a month by selling scrap metal without particularly straining. All you need is desire and some means of transportation. Any old Zhigul or Moskvich will do just fine, the purchase of which will cost you in the first month.
For example, let’s “disassemble” an old Soviet refrigerator. It contains about 60 kg of ferrous metal, 2-3 kg of aluminum and the same amount of copper. You can find out the current prices for ferrous and non-ferrous scrap metal (a popular scrap metal collection point in St. Petersburg). If we convert all this stuff into rubles, then handing over one refrigerator for scrap metal collection will bring about 2,500 rubles in net profit. But this is far from the limit.
But first things first. The “deposits” of potential and actual scrap metal are almost limitless. The main thing is to know how and where to find them.
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Where is scrap metal mined?
Friends, acquaintances, relatives.
If you are interested in making money selling scrap metal, first, to get into the topic, call your friends, acquaintances, and relatives. Chat with your neighbors in the garage, dacha, and even the stairwell.
You'll be amazed at how much unnecessary metal-containing junk they've accumulated over the decades. It will probably take you more than one day, or even a week, to take it all to the collection point.
Pick up what's lying around.
As an experiment, take a walk early in the morning through the courtyards of your and neighboring neighborhoods. Very few people realize the value of scrap metal or simply have no desire to deal with it. That’s why they take out old stoves, refrigerators, dishes, curtain rods, plumbing fixtures and other unnecessary metal rubbish. This is usually done under the cover of darkness to avoid the eyes of neighbors. Therefore, morning is the most favorable time to pick up the metal that is lying under your feet.
Internet.
Advertisements constantly appear on the Internet from people who want to get rid of unnecessary things, but do not have the physical ability to do so. The assortment is still the same - old gas stoves, washing machines, refrigerators, televisions, folding sofas, bathtubs, for removal of which you need to order a car and loaders. Why not help them free their square meters from old, outdated junk, but how to make money from it yourself?
You can also take countermeasures - advertise on the Internet offering your garbage removal services. Rest assured, you won’t have to wait long for interested responses.
Dacha cooperatives.
Believe it or not, dachas are a real Klondike of scrap metal. According to the old Soviet habit, all the rubbish that got in the way of a city apartment was taken to the dachas and to this day. Half of the summer residents still have old refrigerators from the 60s and the same gas stoves. Some areas are simply clogged with unnecessary metal, and it is a big problem for the owners to remove it themselves.
Another interesting trend contributes to the accumulation of “dacha” metal: houses are increasingly being rebuilt and refurbished for permanent residence. Accordingly, communications and arsenal are updated household appliances. Naturally, a lot of scrap metal goes to waste. Taking a ride through dacha cooperatives to collect scrap metal is a win-win option.
Industrial zones.
Where scrap metal is always available in huge quantities is at enterprises located in industrial zones. However, there is one difficulty - how to agree and find arguments in favor of giving the hardware, old batteries or non-ferrous metal to you?
Most likely, we will have to take non-standard political, economic, and tactical moves. The problem will need to be solved depending on the circumstances on the spot. The question here is no longer about tens and hundreds of kilograms, but tons of scrap metal. Therefore the most correct option- to interest scrap metal owners financially.
Car service centers and garage cooperatives.
Repair and operation of automobiles is inevitably accompanied by the accumulation of used parts, components, and assemblies. Service station workers part with scrap metal easily and simply, and it’s also easy to negotiate with security guards in garages.
Regular visits to car service centers and garage cooperatives per month will yield at least 10 tons of ferrous and 300-400 kg of non-ferrous metal. This should also include used batteries - valuable recyclables that systematically accumulate at service stations and garages. But handing over non-ferrous metal is The best way earn good money.
Land and water bodies.
It is difficult to say exactly how much metal is buried in the ground. But there is an incredible amount of it. It is clear that it is impossible to guess where it is and search blindly. For this you will need a metal detector. This is not the cheapest purchase, but the device pays for itself quickly. They look for iron in ravines near populated areas, in fields and forests.
In Soviet times, except for the pioneers, few people were interested in scrap metal. Typically, waste from enterprises does not reach centralized landfills. Often they were simply dumped in forest plantations near cities. Therefore, persistence in searching will most likely result in the discovery of one or more similar burials, the subsequent development of which will yield tons of scrap metal.
To more accurately localize search areas, you can talk with representatives of the older generation. Someone will definitely remember something interesting and suggest something interesting.
But not only the earth is rich in scrap metal deposits. It is impossible for a person far from the topic to even imagine how much different iron rubbish has accumulated over the decades in coastal areas rivers, lakes, canals, reservoirs.
New horizons for searching opened up for scrap metal collectors with the advent of super-powerful neodymium magnets. To do this, you should purchase a special search magnet with a tearing force of 200-800 kg. It allows you to pull out from the layer of silt metal objects weighing tens of kilograms. The magnet is relatively inexpensive and can pay for itself even in one successful session of underwater “metal hunting.”
“Catching” scrap metal with a magnet becomes especially effective in places where bridges are being built across rivers, near piers and in reservoirs adjacent to industrial zones, transport enterprises, garage cooperatives, and other economic facilities.
We bring to your attention a video clip that depicts the process of delivering non-ferrous and ferrous scrap metal on a small scale:
