With the job market in a frenzy after the COVID-19 pandemic, many people are left searching for ways to make ends meet. People were laid off, while others decided to walk away from unsatisfactory work situations.
Metal scrapping can be a great way to make extra cash. But can you make a living off of it? The answer is yes! Some ‘scrappy’ individuals have decided to take matters into their own hands by becoming full-time metal scrappers.
This blog post will show you when and how to leap full-time scrapping. We’ll go over the basics of starting a scrap business and how to set yourself up for maximum profits.
How Can You Scrap Metal For a Living?
First, let’s go over when you should start full-time scrapping. For most people, metal scrapping is a side hustle that brings in extra money. You might have time to do it on the weekends or after your day job.
But what if you could make more money scrapping than you do at your day job? What if you could turn metal scrapping into a full-time gig?
Pros of Full-Time Scrapping
1. You love the hustle
An overwhelming percentage of the population dreads waking up in the morning to do a job they don’t enjoy. It leaves them feeling unfulfilled and unmotivated.
On the other hand, it doesn’t feel like work if you love what you do. If you’re passionate about metal scrapping and can’t imagine doing anything else, it might be time to think about full-time scrapping.
You’ll know you’ve got the scrap bug when you start finding excuses to scrap metal. Maybe you’ll begin scouring Craigslist for free scrap metal or driving around your neighborhood looking for curbside treasures.
If you’re thinking more about scrapping than your other hobbies, it might be time to turn it into a full-time gig.
2. You’re making more money scrapping than your day job
This one is a no-brainer. If you’re making more money scrapping metal than at your day job, you should consider full-time scrapping. But you don’t have to quit your day job immediately. You can start by setting aside a few weekly hours to focus on your scrap business.
Comparing hourly pay is the best way to get a clear picture of your earnings potential. You make a fixed salary of $20/hour at your day job. After taxes and other deductions, you take home about $16/hour.
Now, calculate how many hours per week you spend scrapping. Include any step in your process, from finding scrap metal to driving it to the junkyard. If it takes 5 hours per week to earn $200 from scrapping, that’s $40/hour.
Of course, there are also taxes to pay here, and the pay might be less steady. We’ll get into that later. Lastly, there is no cap on how much you can earn scrapping. Your 9-5 is limited by a fixed wage and 40 hours per week. But if you hustle, there’s no limit to how much money you can make scrapping.
3. You need time for yourself
Working a 9-5 is rough on your body, but it can also be harsh on your mental health. Constantly being away from your family, friends, and hobbies can take a toll.
Full-time scrapping will give you the freedom and flexibility to work on your schedule. You can take a break whenever you want and pick up extra hours when convenient. This is a huge perk that shouldn’t be underestimated. Full-time scrapping might be the answer if you’re unhappy with your current work situation.
However, it’s not all peaches and cream. Some weeks will be longer than others, but overall, you’ll have more control over your time.
4. You’ve got your finances in check
When you become self-employed, there are many financial unknowns. You might not receive a regular paycheck, making it challenging to budget and save for the future.
Before you leap to full-time scrapping, ensure your finances are in check. This means creating a budget and sticking to it. You should also have an emergency fund to cover unexpected expenses.
It’s also a good idea to have health insurance. If you don’t have employer-sponsored health insurance, you can get coverage through the Affordable Care Act or a private insurer. Finally, it would help if you never forgot about retirement savings. When you’re self-employed, you’re responsible for funding your retirement. You can do this through a traditional IRA or a Roth IRA.
If you’re unsure where to start, talk to a financial advisor. They can help you create a plan to reach your financial goals.
5. You’re mentally ready
Last but not least, you need to be mentally ready for full-time scrapping. Part of that means being okay with working alone most of the time. It also means having the self-discipline to stay focused and motivated.
You must hold yourself accountable, set goals, and track your progress. If you’re not meeting your goals, it’s up to you to make the necessary changes. Know that you’ll be dealing with customers regularly. If you’re not social, brushing up on your customer service skills might be good.
Cons Of Full-Time Scrapping
While the prospect of being independent and your boss is enticing, there are some things you should know before turning scrapping into your primary source of income. Here are a few tips and tricks to help you make the transition:
Inconsistent pay
As with any form of self-employment, your pay as a full-time scrapper will be inconsistent. You might have some good weeks where you bring in a lot of money and other weeks where you don’t make much.
Safety concerns
When working with scrap metal, safety concerns always exist. You need to be aware of the risks and take the necessary precautions, including wearing the proper safety gear and being careful when handling the metal.
Transportation issues
Transporting scrap metal can be challenging, especially if you don’t have a truck or van. You might need to rent a vehicle or find someone to help you transport the metal.
Weather concerns
Winter can be challenging for scrappers if you live in Northern climates. The weather can make it challenging to get around, and the days are shorter, which means less time to work. You might need other ways to supplement your income during the winter months for your first year or two.
That could include working part-time at a junkyard or doing odd jobs for friends and family. Eventually, you’ll qualify for winter unemployment benefits, which will help tide you over during the slow months.
Start A Scrapping Business
Full-time scrapping is different from the side hustle most people are used to. When you’re scrapping full-time, you’re running a business. This means you need to get the proper licenses and permits.
Taxes
You’ll need to keep track of your income and expenses for tax purposes. And, if you have employees, you’ll need to withhold taxes from their paychecks and pay your taxes quarterly.
Depending on your state, you must put aside money for state taxes. For this purpose, you should familiarize yourself with Excel, QuickBooks, or other accounting software. It will make it easier to track your finances and prepare your taxes.
As a small business owner, you’ll also be eligible for certain tax deductions. These could include the cost of your vehicle, office supplies, and more. Be sure to talk to a tax advisor to see what conclusions you qualify for.
Get insurance
As a business owner, you’re responsible for your health insurance. You’ll need to purchase your policy if you don’t have employer-sponsored health insurance.
Consider getting liability insurance to protect your business. It will cover you if someone is injured while on your property or if you damage someone’s property.
Insurance can be expensive, but it’s necessary for any business owner. If you’re unsure where to start, plenty of resources are available to help you get your business up and running. The Small Business Administration is a great place to start. They have a wealth of information on starting and running a small business.
Become a pricing expert.
There are many routes you can choose when scrapping metal. Maybe you buy from individuals and resell them to a junkyard. Or, you have another skill like welding, using the metal you scrap to create new products.
Regardless of your chosen route, it would help if you were a pricing expert. That means knowing the current prices for different metals and negotiating the best price possible. Prices fluctuate, so staying up-to-date on the latest prices is essential.
You might not get the best prices when you’re first starting. But, as you build relationships with buyers and learn about the market, you’ll be able to get better prices for your scrap metal. And the cheaper you buy your metal, the higher your profit margin.
The following section will focus on finding the best prices with the iScrap App.
Brush up on your marketing
Just like any other business, you need to market your scrap business. You can do this by handing out business cards, flyers, and door hangers in your neighborhood. If you own your truck or van, you can also advertise your business on the side.
If you’re creative, you can come up with other marketing ideas. For example, you could host a scrap metal drive or offer a referral discount. The key is to get your name out there and let people know you’re in business. The more people you can reach, the more scrap metal you’ll sell.
Finally, social media is a great way to market your business for free. Create a Facebook page and post pictures of your scrap metal for sale. You can also use Twitter, Instagram, and Snapchat to reach potential customers.
Using iScrap to Your Advantage
Now that you know the ins and outs of running a scrap business, it’s time to focus on making money. The best way to do that is by using the iScrap App. The iScrap App is the perfect tool for scrappers. It helps you:
- Find scrap yards near you
- Track metal prices
- Sell catalytic converters
- Get scrap car quotes
- And more!
When you use the iScrap App, you can be sure you’re getting the best prices for your scrap metal. That’s because the App is directly connected to scrap yards. You can see real-time prices and find the nearest yard paying those prices.
iScrap is also great for finding new customers. You can use the App to post pictures of the scrap metal you have for sale. Potential customers can then contact you directly to make a purchase. This sale might lead to a long-term relationship where you sell them scrap metal regularly.
If you’re ready to take your scrap business to the next level, the iScrap App is the perfect tool for you. With its help, you can find new customers, get the best prices, and make more money.
Bottom Line
Metal scrapping can be a great full-time job if you’re willing to work. It would help if you were comfortable negotiating, haggling, and self-employment. It would help if you also were mindful of the law and had good insurance.
Anybody can take control of their financial future by starting a scrap business. With hard work and dedication, you can make a good living. And with the help of the iScrap App, you can be sure you’re getting the best prices for your scrap metal. So what are you waiting for? Get started today!
