lostinlodos wrote:
The reality is nobody is going to let you walk in and see the financial breakdown day one. I’ve been scraping for more than two decades. It took about 5 years before someone told me what they sold something for upstream.
The easiest (but expensive) way to find actual values is to sign up with a large industry service like Argus to get the top level source rate and the bottom level consumer rate.
Source, as I’ve used it before above, is basically a cleaned resource that is above 95%-98% pure. Stock is anything below that down to about 50-ish percent.
Feed is anything still salvageable below 50%
And shred is waste that isn’t really worth recovery.
Shred without a metal attached is usually is used to refer to crap that is simply added in low grade steel melts. Placing the metal before it, other than steel, is more specific. Such as nickel shred which is used in electronics as the alloy for plated pins. Brass shred is melted and can be used as costume jewellery and bells, buttons etc. Aluminium shred gets turned into railings and siding. A shred melt creates a new alloy melt that won’t deter from the basic properties of the named metals. And these are just random examples.
Aluminium furniture is also made from AL shred. Etc
So take the listings from something like Argus as your target spread. Then you can take a commercial commodities index to watch the prices for the future. And adjust based on those three numbers.
This was the same answer that I got from some guys that work at a local yard, but they wouldn't tell me specifically what service. At least this confirms that the services do exist. The other service I found was The American Metals Market. Thank you.
The only other industry I have had any insight to as far as commodity markets was lumber, and that was just the information that I learned through freight sales since the office I was in shipped so much of it. I'm glad I wasn't too far off then.
These questions just boil down to time for me. I respect the amount of effort that goes into an idea, and it needs to be the right idea if I'm going to spends months of my time doing actual research. And if I decide to run with it I'm going to do as much of it I can myself before paying someone to look over my results. Things like workflow, productivity, estimating time and labor costs, learning all of the equipment, sorting & processing methods: I'm sure I can probably figure all of that out --- and pay someone to fix my mistakes.
The idea to start small with a scrap collection service makes sense. The insanity to the pipe dream vision here really boils down to who in their right mind would spend the money or even bother? We're talking about making money off of garbage... Let's call it what it is.
But where do I, or should I really try to fit in within the supply chain? That's rhetorical. (Going back to the Levels system post.)
It only makes any sense to me if I could find a reliable supplier. Even if I'm only covering my expenses and making a small profit per ton or just breaking even, the logic was, it would keep me from eating through funds to keep the business afloat. Then there's the question of purchasing from the public. And purchasing from the general public alone, I'm assuming, won't keep a yard afloat (will it?), and isn't a reliable source of income whatsoever.
I'm trying to figure out where the calculated risks come in? Can I even use the words calculated risk and insanity in the same sentence? My logic said to find a reliable supplier, roll the dice, and pray to God that the married couple down the block dispose of their old desktop sometime in the next 5 years and give it to me. Maybe they'll drop a cell phone that isn't under warranty? --- It seemed like a great idea.
I think to the average person, once "precious metals" are substituted with "trash", this sounds like a completely ignorant idea altogether.