7 Fatal Mistakes Manufacturers make with their Recyclable Metal Program that costs them Thousands in Net Profit
#1 Not Selling in Highest Paying Markets
- Specific Foundries in higher demand Markets can pay as much as 40% more for the same alloy than generic mills in low paying markets.
#2 Relying on Published Prices vs Actual Mill Price
- Actual Mill Prices paid to metal recyclers can be significantly higher than published pricing.
#3 Failure to Provide a Container Tracking System
-a serial numbered receipt must be provided for each container removed from facility.
- serial numbered receipt must be included in every Reporting Platform
#4 Failure to Properly Segregate
-proper segregation significantly reduces a Metal Recyclers labor cost.
-segregated material can go Mill Direct and command significant premiums.
-specific Alloys can be shipped to Specialty Foundries that can offer premiums of up to 40% for the same material.
#5 Failure to protect Metal from Theft
-a significant amount of Metal Theft comes from the inside. Employees know what this material is worth and can harbor an entitlement mentality that causes them to help themselves to Scrap Metal that belongs to the company.
-Alloys must be protected by utilizing Anti-theft Containers, Surveillance Cameras and signage.
#6 Being FORCED to Sell in a Significantly Down Market
-there are months when it is devastating to sell specific Alloys.
-the average Metal Recycler pays you today's price and your material sits on their yard waiting for the upswing. The Recycler then earns an obscene profit. We will teach you HOW and WHEN to sell Specialty Alloys.
#7 Relying on Convenience Instead of Profit Driven Partnerships
-many relationships with Scrap Providers are based upon personal relationships from long ago at the ground floor level.
We chose to build a Relationship of Profitability at the Corporate Level reporting directly to Controllers, Material Managers, Owners and Facility Directors.
Scrap Metal is Valuable-Treat it that way!!