Small scrap metal buying yard

Processors and smelters pay you for bulk sorted metal. Your suppliers are tradies, builders, farmers, small factories and households who sell to you.

You pay suppliers a price per kilo and sell to processors for more. Your margin depends on grading well, keeping stock turning over and keeping yard costs under control.

• Grading and identifying metals
• Pricing and negotiating
• Running a safe worksite
• Bookkeeping and compliance records

• Zoning, planning approval and EPA requirements for storing and handling metal waste vary by state and council, so confirm these before signing a lease
• Dealer licensing, seller ID checks, record keeping and cashless payment rules may apply in your state, so check with the regulator
• Public liability, property and stock insurance, plus workers compensation once you hire
• Workplace safety duties for machinery, forklifts, heavy loads and hazardous items, so check with your state work safety regulator
• Stolen goods risk, so keep clear records and refuse suspicious items
• Metal prices can fall quickly, leaving you with stock worth less than you paid, and a lease and wages still need covering

Startup costs are typically around $30,000 to $150,000, depending on your lease, scales, storage bins, equipment, insurance and the cash you hold to buy metal. These are estimates, so confirm your own costs first.

Monthly revenue is typically around $5,000 to $25,000, depending on how much metal you buy and sell, the grades you handle and metal prices. A lease and wages still need covering if prices fall.

Confirm zoning, planning approval and EPA requirements before signing a lease, as they vary by state and council. Check dealer licensing, seller ID checks, record keeping and cashless payment rules. Also check insurance and workplace safety duties with your regulator.