Small scrap yard buying from the public

Individuals, contractors, plumbers, electricians and auto repair shops sell to you. Larger recyclers and metal buyers pay you for sorted loads.

You buy metal at one price per weight and sell sorted bulk loads at a higher price. Margins depend on sorting quality, volume and market prices.

• Identifying and grading metals
• Running a scale and paying fairly
• Record keeping and ID checks
• Managing a safe yard

• Zoning, environmental and fire rules for yards, which can be strict, so check with your municipality and province before leasing
• Dealer licensing and rules on recording seller ID and payment methods, which differ by province and city
• Stolen goods risk, since police may inspect your records
• Commercial general liability and property insurance, plus WCB or WSIB coverage once you hire (rules differ by province)
• Stormwater runoff, oils and fluids from vehicles and appliances, which may need handling rules
• Metal price swings and slow winter periods

Startup costs are typically around $15,000 to $70,000, depending on your yard or unit, scale and storage bins. Check zoning, environmental and fire rules before leasing, as they can be strict.

Check zoning, environmental and fire rules with your municipality and province before leasing. Also check dealer licensing and rules on recording seller ID and payment methods, which differ by province and city, plus stormwater runoff and handling of oils and fluids.

Monthly revenue is typically estimated at around $6,000 to $30,000, depending on volumes and metal prices. Metal price swings and slow winter periods can affect income.