Scrap Metal Business Model

This past month I actually saw the future of the scrap metal business model. The business (scrap yards that is) has become so commoditized that it can no longer operate on the traditional model of buy low, sell high. Or, for example, have a $0.10 gross operating margin. Adios. Nada. Over.

The new model is % of profit. Meaning you make 1% - 3% net. You spend $40,000 on a container and make 2% profit. So the more you spend the more you make.

Scrap yards and brokers are now treating container loads of scrap metal as physical futures contracts. 

I will elaborate on this model in the next post.

ScrapMetal.org Traffic

On June 24, 2014 www.scrapmetal.org had 587 visitors and not one person signed up. It is the only scrap metal trading site online.

So you want to trade $1,000s of scrap but can't afford $10 to join? I can assure you the site will never be free. It is your loss.

We help members find buyers and supply all the time + a host of other services.

Go to alibaba.com and post for free where 99% of every member is fake and can't do a deal.

Yes, we are pissed off.

Get motivated!!!

Exporting Scrap Iron

One of our clients is interested in exporting Scrap Iron from Texas. If you want to learn more contact us at: comments at scrapmetal.org

www.ScraMetal.org Prices Updated

Scrap prices at www.scrapmetal.org have been updated.

Posted by: Marc R. Azous

Global Banking Issues - by Marc Azous

The real problem around the world is that most people do not have debit or credit cards as their bank or country do not allow the masses to have them. Therefore no online business can take place. I should also add most people do not have bank accounts in general.

Therefore they can't send or receive wire transfers. How do they expect business to get done???

Banks around the world need to move into the 21st century.

Scrap Metal Deals - Numbers Game

I used to think 1 out of every 100 people in scrap were real. Not it's about 1 in 250. I can no longer tell who is a real buyer - as they usually turn out to be traders or brokers. Suppliers - I have zero trust in til I see the scrap with my own eyes.

alibaba is the worst. 1 out of 1,000 people is capable of doing real business. 'trade key and 'ec robot' and 'ec plaza' are even worse. In 10+ years not one deal has ever happened there.

Great industry, bad people.

Calling - by Marc Azous

I just got a call from someone who claims they saw my company app. First, we do not have an app, second they did not introduce themselves first. If we do not know you we will not talk business until we do.