Experience with a scrap metal business?

by a searcher from Stanford University - Graduate School of Business

4 years ago

Does anyone have experience with a scrap metal business? E.g. a business which places bins in industrial facilities, collects scraps, picks up the bins, sells the scraps, and then provides a cut back to the industrial facility?

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professional from University of Mississippi

^Searchfunder member‌, ^Searchfunder member‌.. Saw both of you had similar posts on the scrap metal business. Sorry in advance if you are going after the same bid. Thought you all may benefit from connecting.

1 year ago | like reply | 0 likes

searcher from Stanford University - Graduate School of Business

Jory - I have some experience with the scrap metal recycling business having owned one through a restructuring in the past. Industry insiders love saying you make money on the buy not on the sell. The industrial part of the business is definitely better than the scrap yard business as you have a more reliable source of supply. But there is GDP cyclicality in supply and you are very much a price taker on the demand side. Even at the time recycling machinery was getting cheaper lowering barriers to entry. If you have a strong view on a commodities cycle it may be interesting but it generally would strike me as not a great industry for the ETA model.

4 years ago | like reply | 0 likes

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