Most start-up 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 decided the question of how to open a scrap metal collection point earn excellent money today. In addition, in order to create your own small business of such a plan, you do not need large investments.
Reception point location and business features
Here, the location of the item in the city does not matter much. Outskirts or centers - things will go equally well. The least income will be if you open in a village or village, but most of all, if it is a large industrial city where metal is highly valued. And best of all - the port. The fact is that in such places there are a lot of points of sale at an affordable price.
One way or another, this is a rather unusual way to open a business. Indeed, in most cases, an entrepreneur sells a product or service, and in return receives money. In the case of metal acceptance, the opposite is true: we pay for scrap to be sold to us. Perhaps this is the key factor. The fact is that the price of any type of metal - whether it is cast iron or steel - does not have a constant value. In the summer - this is one figure, in the winter - it is completely different.
How to open a scrap metal collection point: the most important
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 reception point. And they do it in vain. Such a business is rightfully considered illegal, and you can get a fine. Therefore, the first thing recommended is to go get a license. Fortunately, to do this is quite simple and quick, and also not too expensive from a material point of view. It should be noted that a license for scrap metal is issued to regions of large cities without any problems and unnecessary formalities.
First of all, of course, you have to spend money on a license. It is mandatory to provide the necessary package of documents, which includes the following list:
- passport and other equipment documentation;
- certificate or document confirming the qualifications of employees of the organization;
- receipt confirming payment of the license fee, etc.
Startup, or How much money is needed
Of course, it is no less important to determine the starting capital, but, as noted above, there will not be a large initial investment of funds.
For the first time, $ 2,000 will be enough. The payback period of 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, you don’t have to buy equipment, you can lease it or use an alternative option - purchase used balance, press, etc. This will save money, but after that you will need to buy new units.
If the business is illegal, then the fine may amount to about 50,000 rubles (at best) or 100,000 at worst. In addition, various kinds of sanctions will tarnish the reputation, and this, in turn, is fraught with consequences and frequent inspections by the tax and other services. Moreover, it will be quite difficult to pass the inspection without paying a predetermined amount of money.
The main thing is a serious approach to business
In no case do you need to let things go by themselves, because, as practice shows, such a business is quickly collapsing. It is necessary to take an active part in its development - and in a month or two a positive result will be visible.But you should always remember about the risk, since metal prices, depending on the economic situation in the country, can either increase or fall sharply.
Nevertheless, the reception of 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, which will make working with metal the most productive. These include the following machines and assemblies:
- a press that allows for packaging;
- reloader;
- a pair of dump trucks;
- Scales for scrap metal, etc.
But creating a reception center and buying the necessary equipment is 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 already mentioned.
Metal pricesl
You can talk a lot about the cost of scrap. But you need to understand that in each region and city is a separate figure. Nevertheless, we can say about the approximate price of one ton of metal. Thus, today for one ton of black scrap you can get about 10,000 rubles, plus or minus 1000. As for non-ferrous metals, the cost here is much higher and reaches $ 5,000 per ton.
Over the past few years, the business has also gained profit in accepting aluminum cans. Most modern processing enterprises capitalize the used product and make goods that are in demand by the consumer. You can put a limit on the minimum weight of scrap.
It is necessary to say a few words about annual revenue, which, again, directly depends on activity in the region. It can be about 22,000-27,000 dollars a year. This is provided that a 10-ton machine will make 2-3 walks a month. The profit from one such trip is about $ 500 for black scrap.
Setting the initial price for scrap
It should be noted that the more successfully the reception center is located, the more you can earn per month. Black scrap can be taken at about 5 cents per kilogram, and sold 2-3 times more expensive. The initial price for tin can be set 2.5-3 cents. As for non-ferrous metals, it is difficult to say something, since a lot depends directly on the material, so it can be 1, or 20 dollars per kilogram.
In general, you need to sell 3 times more expensive than the price at which the purchase was made. This allows not only quickly recouping such a business, but also making good money.
Sometimes it makes sense to take large-sized equipment, which is decommissioned. It can be refrigerators, washing machines, gas stoves and much more. This is quite profitable and interesting, since in such a technique there are copper, aluminum and steel. Cost per kilogram should start at 5 cents. Although in the initial stages, you can set 4.0-4.5 per kg.
Staff needed
Two people for the normal functioning of the item will be quite enough. One of them will work as a receiver (accepts scrap on the scales). You will also need a parser who will deal with electric motors and other scrap. Everything that the parser receives as a result of his work, he sells to the receiver for about half the real value.
In simple words, the salary of the dismantler directly depends on his work and on how much metal he will give to the receiver. It should be noted that the reception of non-ferrous scrap metal should be carried out by personnel at the following prices:
- copper scrap - 2.5-3.0 dollars / kg .;
- aluminum - 1 dollar and more;
- bronze - 1.2-1.5 per kg.
The receiver must hand over the non-ferrous metal at its cost plus a mark-up within 30 cents per kilogram. If you consider that with a good scenario a week you can save 300-350 kg of non-ferrous metal, then this is an additional 300-400 dollars per month.
Salary of reception staff
It’s one thing to understand how to open a scrap metal collection point, and to do it, and quite another to make a business profitable. Good results can be achieved by hiring decent, hardworking and, most importantly, honest workers. The receiver must work within 7-14 days without days off.In other words, a person must be at the reception point all this time. Even at night you need to work, because, according to statistics, at this time the most scrap is brought.
The changer of the receiver comes only when the second will hand over 10 tons of ferrous scrap metal. This alignment is most optimal for the owner from a material point of view. As for the receiver, in a couple of weeks he can earn about 300-350 dollars. After putting the machine in, you need to remember that a paper report is required, as it is an indicator of the reliability and integrity of the working staff. All this will allow you to create an effective and cost-effective scrap metal business with good monthly revenue.
Reception of scrap metal: business plan
First you need all the necessary documentation, a license, etc. Next, you need to buy special scales, which will weigh about 1000 kg at a time. In addition, if you plan to receive non-ferrous scrap metal, you must purchase a weighing device with weights.
The next step is the lease, and possibly the purchase of a site where the scrap will be stored. 400-600 m will be quite enough2. After that, you need to find a quality and profitable point of sale. It is important to pay attention to the conditions under which scrap is accepted. Often in places of bulk purchase of scrap, 20-25% of the total weight is immediately deducted, referring to the fact that it is garbage, dirt and the like.
We hope that after reading, you have no more questions left how to open a scrap metal collection point and make a successful business on it.
