For those of you who are not familiar with the scrap industry I would like you to imagine something: Think of an entire business model that can hide profits in cash and inventory, a group of millionaires undercover in old pick-ups, dirty coveralls, and a slang term for every analogous topic on the face of this planet. Every one of them strong in character, shrewd as the day is long, and stubborn as they come. Now consider that united they actually move the commodity markets in Copper, Aluminum, Zinc, Lead, and several other base metals. They are the true working class, mining above ground. Most of them are commendable for their steely work habits and a point of view that can only be described as sheer perseverance. Half of these men are honest, looking to buy and sell above board and looking to move material with reasonable profit margins while fostering long term relationships. These are the men who have built this industry into the colossus that it has become. The others, quite frankly, are crooked as coat hangers.
This 50% crookedness ratio is quite simply the weed growing in our industry. For every one ‘good’ scrap dealer you have one ‘bad’ dealer. This is the dealer carrying empty water barrels in the back of his truck, the dealer always getting back to you with shorted weights or material issues, or the dealer who makes sure to flash the wad of greasy tattered bills bulging in his front pocket. And please, if you ever hear a scrap dealer say “I don’t usually do this, but…” in any context whatsoever, pack up the kids and run. The only occasion a crooked dealer does something he doesn’t want to, or extends a ‘favour’ is A) He’s being pressured by a bigger dealer, or B) He’s being pressured by a bigger dealer. From his point of view the seller is very much a deer staring into headlights, with the dealer wondering how close he can get to hitting the seller without having them run.
When dealing with this type remember two things, one, that they will feign ignorance as to the value and material type, do not fall for this. They have made their living on how well they know the material, and they know the value intimately, or they wouldn’t be there. And two, they need you. The man with the gold is the one in control, and copper isn’t called poor man’s gold for no reason. And remember, however bad you think they might be treating you it isn’t their fault. The crooked dealer lives in his own personal hell of believing that every breathing life form on the planet is somehow out to get them. Every trip to his buyer or an interaction with another dealer is a high stress exercise in futility.
Unfortunately the negative 50% have blemished the rest of the industry, leaving it to the honest dealers to hack through the lies and negative perspectives like a machete wielding 1950’s jungle explorer. They are determined to uphold their reputations and develop integral business interests with their clients.
One positive aspect about this is that you can pretty much flip a coin with your scrap dealer, they’re either good or bad. Watch the weights, the prices, and keep them on their toes. The honest ones will have no problems with this. Request that full truck loads go over third party scales, or ask that they provide an inside scale for your own records. You are in control, they want your material, you are the customer. Yes we do have to make money, but we need to generate profits through good service and integrity, not one-off deals that leave the customer in the dark.
