Selling scrap metal to scrap yards or manufacturers is an excellent way to make some extra cash; in fact, some people make a living doing so. People can actually make more money selling scrap metal if they know how to. If you’d like to learn a few ways to increase your scrap metal profits, be sure to continue reading our list below.
Weigh Your Own Product and Ask To See the Yard’s Scale
Most (if not all) prices in the scrap metal industry are determined by the weight and quality of the metal. That said, there are some dishonest scrap yards around that will try to low-ball you or tell you that you have less than you actually do. You’re responsible for ensuring you’re making a fair transaction. You should always weigh your own scrap metal and compare it to the scrap yard’s number; it should be close if not exact. Pro tip: if the yard doesn’t want to show you their scale’s number, you probably shouldn’t sell to them because they’re obviously hiding something.
Stay on Top of the Demand
Much like the stock market, you can’t time the scrap metal market. You should, however, be aware of any major economic shifts that may affect the metal’s supply and demand. There could be major externalities such as natural disasters that affect a manufacturer’s ability to produce products. It’s basic economics—if the supply for a particular metal decreases, people are willing to pay more for the scarce product. In other words, if you can wait to sell your scrap metal until the supply decreases, you’ll likely make more money.
Know What You Have
Whether you’re selling to the scrap yard or you’re the owner of one, a lot of people don’t realize what scrap metal they have. Most metals can be put into one of two categories: ferrous or non-ferrous, and it’s vital that you understand the difference. In simple terms, ferrous metals are magnetic, and non-ferrous aren’t. In general, non-ferrous metals tend to be more valuable because they’re less common. If you don’t know what you have, you won’t know a good deal from a bad one.
To reiterate, these tips don’t matter if you’re the seller or the buyer. We wanted to ensure you’re increasing your scrap metal profits, and these tips will certainly guide you towards a more profitable future.