When I first started scrapping, I was so convinced that breaking everything down was the best way to make more money. The thought of optimization wasn't part of the equation at that point. I would strip every thing down to the last tiny wire, squeezing every last drop of money out of each load of scrap, and then I would sell it as soon as I had a chance. It wasn't a bad way to do things...But I was trying to optimize my scrap, not optimize my time, so I was never really reaching my full earning potential.
In a standard engineering problem, every single dynamic is accounted for in some sense and then optimized using efficient computer algorithms. I don't have that kind of time or resources, so I just do the best with what I know! Lets take stripping wire by hand for example. That may or may not be worth it depending on how fast you are at it, and how much wire, what length of wire, ect.
Sometimes it's not always better to tear materials apart. For example, I used to strip the copper out of microwave transformers and motors. I got wise after but only a few trips to the scrap yard. Take for example a microwave transformers weighting in at close to 15 pounds. At 25 cents per pound, that nets me $3.75.
If I break them apart, I will usually get maybe one pound of copper and 14 pounds of steel. So 3.00 + 14*.8 + 10 minutes = $4.15
As you can see, If I did this for an hour, I would be "making" no more than about a dollar per hour. All of that was calculation with numbers I pulled out of thin air, but that doesn't make the process I used to come to my conclusion any less valid.
But some may be saying, "Well why not just make the extra few dollars; I have nothing better to do with my time then take this stuff apart" Firstly, there are so many other ways to make money scrapping, so there is always something more useful to do. Secondly, let me answer that question with another question, "If you were to save all of those transformers for a whole year... What would they be worth then? "
I know that If I hold onto all of those microwave transformers, I can easily get 1500 pounds/100 transformers in a year. If I call up my yard and say, "I have 1500 pounds of chunky copper breakage, there is no way I'm only getting $.25 per pound," I'll be getting $.30 or $.34 per pound! If I had broken each one of those 100 transformers down and sold each as separate copper and steel, I would have made 100 transformes *$4.15 or $415. If I sold a big stash of 1500 pounds of copper breakage (100 transformers) for $.30 per pound I get 1500*$.30 = $450..... So by doing nothing and just collecting larger quantities, I am making more money.
This type of efficiency has proven very fruitful for me in the last year and a half. I saved lots of scrap copper and such, which durring the recession was worth a mere fraction of it's value today. I plan on sticking with this type of workflow, seeing as analysts don't see the price of copper dropping below 3.50 any time soon!
And with that optimistic outlook on the fruitfulness of the future let me say Good Luck Scrapping This Week Everybody AND Happy Thanksgiving!
If you missed my last post on Commonly Neglected Alloys, please check it out!
Sounds like a plan. My grand pappy use to scrap steel mostly and would go for that stuff sure we were strong as ox and could lump that stuff but he had a commercial grade single axle and could make trips to the scrap yard with ease using that equipment. Your way is logical in the sense you can assemble all your material use a truck only one day and not have the added expense of a truck maintence and worse INSURANCE! If I were as you I would go for that which would make sense to break down and the hard stuff let them break it down. Sometimes you need to use air hammers to break down parts they can chip down easily and get to the core take off the easy stuff if there are a few strands left so what as long as you get the bulk of the treasure the soft copper. Prices will rise our USD is lower in value flip inflation is gonna kick out ass soon.
ReplyDeleteGood God, what a run-on mumbo jumbo rsponse.
ReplyDeleteOnly used about 3 periods in the whole paragraph. He must be high.
ReplyDeleteIt may have been a run on paragraph, but he kind of has a point.
ReplyDeleteIf there is a treasure that is easy to get to and will get you a higher price then split it out. If it is going to take a bunch of work, leave it for someone else.