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We are an eco-friendly company. To that end we recycle as many products and items possible. At times the recycling process comes at an expense to us, yet it is the right thing to do.

When t comes to scrapping metal, we have a couple of options; a) take to a recycle center and sell it for a small fee, b) take it to the transfer station with the balance of the junk and trash and let them ultimately recycle it.

Let’s drill down into each option, explore the pros and cons of the two (2) options.

Recycle Directly

On the surface, this is the preferred option. It potentially provides some additional revenue.  The revenue varies weekly, if not daily as the price for scrap metal fluctuates constantly. This week we got paid $70/ton of scrap metal.  We had considerably less than 1 ton and received about $12 for our efforts. Truthfully I barely broken even on the exchange.

The scrap yard was about a ten mile round trip journey from the customer’s home.  Time spent in transit, handling, and going to the cashier was about 40 minutes.  That however was for 2 people, thus about 1 ½ hours of labor was spent.

There were a few other things that offset the expenses. The truck was empty as we headed off to the next customer. I would have paid a small fee for disposal at the transfer station.

From a purely business perspective the ROI was in my opinion less than the lost opportunity of getting to the next location faster.

Regardless, recycling was a good option that day. Had the value of steel been less, the answer would have been different.

Take to “Dump” (Transfer Station)

Ultimately the scrap metal is going to be recycled.  The crews at the transfer station will separate the scrap metal from the trash.  They will hold onto to it and sell a larger volume to the same scrap yard. They also have the advantage of watching the market and sell it at a more advantageous time and price.

Admittedly we pay dump fees based upon either volume or weight of the materials we throw away.  Small amounts of scrap have little or no appreciable impact on our disposal costs. This small fee is off set by the potential additional handling, mileage, and lost time.

Typically we deal in small quantities of scrap metal.  Warehousing it becomes impractical as we would then have additional storage fees and additional handling fees. These fees would ultimately be reflected in the fees we charge our customer.

 

The Bottom Line

We always advise our customers that it is up to  our discretion for the ultimate handling and disposal of scrap metal.  Ultimately it meets the same fate, RECYCLING. That can’t be a wrong solution.

 

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