Collecting scrap metal and selling it to scrap yards can be lucrative and help put extra cash in your pocket. However, it does come with a bit of a learning curve. As a scrapper, you need to understand how to get the best deal at a scrap yard. It is important to remember that while every scrap yard is different, from their personnel to accepted scrap metals, there are several things you can do to prepare for your visit to the scrap yard.
Keep reading to learn more about five ways to get the best deal at a scrap yard.
1. Understand how scrap prices are determined
Getting the best price for your scrap metal is important, especially if you have large quantities of metals to sell. To get the best price, it is critical that you understand how scrap metal prices are determined.
While you may think that scrap yards determine their own prices, they largely do not. The price of scrap metals are constantly changing, which means there is no fixed price. For example, the price of gold fluctuates based on supply, demand and investor behavior. The same goes for scrap metals so, if the demand for a metal decreases, so does the value.
One of the main factors that scrap yards take into account when determining the price of scrap metals is the current market price. However, that is not the only factor that influences the price.
Additional factors that influence the price of scrap metal at scrap yards
- Quality of the scrap metal
- Quantity of the scrap metal
- Supply and demand
- Time of year
- Location
Developing an understanding of how prices are determined and the market will also help you make an informed decision on what scrap metals to collect. For example, during the winter months construction and demolition are slow, so some metals are not in high demand. It may be worth waiting until the spring to make a trip to the scrap yard.
To see our latest scrap metal prices, click here:
2. Understand that most prices are fixed
While it’s not impossible to negotiate from time to time – especially if you’re bringing a significant quantity of scrap to the scrap yard – the employees who work the scales are generally locked in to the posted payout rates. While we all want to get the most money for our scrap, getting aggressive with the staff rarely helps get you what you want.
Sometimes scrap yards may create special rates for regular scrappers who bring in large quantities of material but you shouldn’t count on it. Payouts are usually set both to make the facility money but also to attract customers. That means the recycling company is likely already paying out what they can while still staying profitable.
Scrap yards are businesses and just like any other business they rely on customers. For that reason, they can be willing and eager to compete for your business, even though they may not show it. This is especially the case if you have a consistent supply of materials to sell in favorable quantities. As the seller, it is in your best interest to not only have an inventory of your materials but to keep track of how much metal you take to a scrap yard per week, month or year and how much material that is for them. This will strengthen your ability to negotiate the price.
3. Get to know your scrap yard
Relationships and information are the keys to success at scrap yards.
Getting to know your scrap yard, from the people who work there to logistics, can be critical in getting the best deal. Build a relationship with the owner, managers and general workers so that you can ask questions and get meaningful answers. Think of them as potential business partners that you need to be successful, but who also need you. It is important to ask your scrap yard questions like, what is in high demand or what quantities of specific metals they are looking for. There is nothing worse than taking your scrap metals to the yard to realize that they are only interested in buying a material you don’t currently have.
Once you have an established relationship and even before, you can always call ahead to know what to bring and what the prices are.
4. Organize your metals
Organizing your scrap metals is a great way to help you get the best deal. You will want to organize and separate your metals into categories. For example, putting all the copper in one bucket and aluminum in another. This will help you get the highest return on your time invested. It is a win-win as it makes it easier to unload and weigh your scrap metals, which saves you time and increases the amount of money you could receive for your metals.
It is also recommended that you disassemble valuable metals that could be hiding within household, construction or manufacturing items, especially electronics. Electronics often have a wide variety of different metals within them that can be separated to yield a higher return on investment.
Keep in mind that if you fail to separate your metals or disassemble metals from items, the scrap yard will likely pay based on the lowest valued metal.
5. Collect Non-Ferrous Metals
There are two types of metals, ferrous and non-ferrous, that may be accepted at scrap yards. Ferrous metals contain iron, while non-ferrous metals do not. Non-ferrous metals, such as copper, aluminum, brass, and stainless steel, are typically in higher demand and thus more valuable than ferrous metals.
The easiest way to know if your metal is ferrous or non-ferrous is to use a magnet. Ferrous metals are typically magnetic, while non-ferrous metals are not.
Langley Recycling can help you turn your unwanted scrap metal into cash. To get the best deal, you want to go to the best scrap yard. Contact us to find out more about scrap metal recycling or to ask about scrap metal demand and pricing.
