I'd like to get back to the topic, as I think many are interested in an 'answer' (although several of the posts here make it pretty clear there is no simple one - but, then, that is just life and business!)
Dave86 said:
I looked into refining and decided it wasn't for me, at this time anyway.
Dave86, I couldn't agree with you more. My situation is more of a 'no where to process', but then I even went so far as to try it a bit (out in the parking lot...) and quickly found that the most dangerous mix was ME and chemicals - of any sort!
So, I focused my time and effort on my core business - what I knew I could make happen myself, and also on building my TEAM around me that could do the other things I would need. Now, don't take that sentence lightly - it is one of the things I see that many people don't do and that is their crucial point of failure.
No one person can do it all - I don't care who you are (or even who you think you are...), we all need a support system around us to survive (the nice thing is that anyone that could actually prove this wrong would never be reading this post as there is no way to get on the internet without support! :shock:
Anyway, building a TEAM is important.
Just yesterday, a guy came to me with 50 lbs of motherboards (old Pentium style). He showed me a bottle of pins he has picked out, thinking he will process them himself (don't we all start that way?). After I spoke with him a bit, it was clear that he knew nothing of the method, and had no support for doing it - and the worst thing was, he didn't WANT any help or advise (I was going to recommend the forum to him, but he told me he already "knew" what to do....). I offered him $150 for the bottle (about 5 lbs of pins, with several bits of 'trash' in there - I estimated there would be about $200 - $300 of gold and hopefully more, then after I paid to ship it to a refiner and they take out 20% - 25%, I would get my money back and likely a small profit. He told me that he was just going to process it......
We talked about the other boards that I buy and he told me he had a "backyard full of that stuff", yet, again, was hesitant to sell, though he admitted that he really needed some cash - ??????
My point here is that without a TEAM, this guy has now become a HOARDER and has started to "love" his piles of trash! With a team in place (i.e., you already know where and what you are going to sell L O N G before you buy it, so you don't get caught up in hoarding garbage.
Taking the time to think about what you are getting into with computers (btw, there is a LOT of scrap metal and plastic to deal with - you MUST have an answer to that as it piles up very, very quickly!) and how you are going to get out of it is really important.
Dave86 said:
I'm talking about just scrapping computers and doing no other processing - simply seperating them into their different components.
The 'technical' terms is "E-WASTE DISMANTLER", and it is become a real 'fad' (1. because it is simple to do and 2. because it is rather fun, I think!)
This is what we are doing here and it is paying the bills (which answers your 'is it profitable' question - though it must be clear by all the folks on the forum that do it there must be some profit in it...). What you need is a BUSINESS PLAN, which will tell you, up front, if it is profitable or not. This is simple enough to do, just make an outline that asks a lot of questions, then answer them. You have already started that, but as several pointed out in this thread, you need to take a small sample and find out answers for yourself.
For us, we focused on the question "Can BUYING ewaste can be profitable?", and built our business model around it. The questions we ask in building this model were based more on "How much time, money and effort does it take to go around, collecting all the 'free' stuff from dozens of houses per week?" and "What is the MINIMUM that we would be willing to go pick up and at what distance?", etc.
We found that simply paying folks to bring it to us was much more cost effective (in gas and drive time) and that we could do other things in the time it took to drive there and back (like tear down a dozen computers or something), being a LOT more productive overall. Of course, on a small scale (which is what most people seem to want, though I don't know if it is possible to keep the interest up as you get small piles of stuff everywhere {there's that hoarding again...} and it just never seems enough to sell.....) going around to all those houses and picking up their trash may work for some.
Here's a super-sharp tip, from one of the LARGE donation centers that I work with.
The lady in charge told me that they used to go around, door to door, collecting all the 'donation' stuff until they tried a central donation location and found that the quality of items went WAY up, and their overall profit margin skyrocketed.
Just think about it....
I know for our business, we found the exact same thing, and it didn't take long to see it! On the few times we tried going to people's houses, all they have is TRASH, but when we 'force' them to bring it to us, they only bring the GOOD stuff. And, lately, we have only been focusing on the MOST VALUABLE stuff, which has brought us a lot more profit, and a lot less work (just like someone said about 'work less, make more' - I've found it to always be true - and I'm not ashamed to admit I prefer that lifestyle!)
Dave86 said:
Do you have any information on the range of values of computers? I.e. from X amount to Y amount?
Although you have been given very good advice and reasoning about why it is impossible to give a 'figure', I have done some consulting with others in the field (that do this on a much bigger scale than we do - I'm always looking for mentors that have been there, done that before me....) and they gave me a figure that seems to work pretty well as a 'benchmark' to start backtracking and basing my offers on when I buy. What they found, on average, with pre-2000 computers (some say to go back even a bit further - I like to just say the "white case" ones...), the TOTAL value of EVERYTHING in them (from the scrap metal to the plastic, gold and every other possible recoverable) is $12, which is BEFORE taking out any sort of expense (including the chemical, labor, transport, etc.) You are welcome to use that figure, though as everyone has told you, it varies wildly and rapidly on any particular computer (for example, those that have several PCI cards in them vs. those with none). This number is based on a LARGE number of computers with a vast array of configurations - i.e., YOUR MILEAGE WILL VARY!
As for what to pay for any one computer, we found that a price PER POUND has done wonders for us. It not only eliminates the question about "well, MY computer is so special and it has this, this, this, blah, blah, blah....." (because, if it has "more" it will WEIGH more..), it also eliminates having to deal with folks that have only one computer (or our worst enemy, someone with only ONE "broken" laptop or cell phone they want to sell for big$$$$$!) - what time wasters! We came up with a solution that works for us, estimating the time it takes to tear a computer apart, what is likely inside, what a 'typical' computer weighs and what we will be able to sell the parts for, etc. (yes, a bit of a spreadsheet and business plan!).
We created a webpage that goes out and grabs our buyers pricing as well as the current price of gold and silver, then through a special formula (grabbed some numbers from the air and started massaging them until it worked out....), our "buy price" now is based on many factors and changes constantly (which makes it difficult to quote prices on the phone - another thing that 'time wasters' don't like, which is good for our business!)
Those with big loads see that we are serious about moving their product, and are willing to give them the best price possible at any time. We have one guy that just brings in a pickup truck load of stuff and says "Give me $1/lb for the lot", even though he has a big mix of boards. The first time he came, we looked through the load, piece by piece (which took nearly two hours...) and found that to be a very good average. He knows his business and was looking for a good partner to buy from him - he found one!
One last thought on the 'yah-yah' garbage going on in this thread - the only way any business grows is by COMPETITION, which is, typically, wrought from previous employees and/or others that have viewed your success and tried to copy it. Sometimes, that puts the original company out of business, but, as I see it, that only happens because the original company forgot to continue to GROW and EXPAND their thinking (and/or services, etc.). This includes the folks we are selling our parts to - we constantly look for other buyers and if they don't keep up, we will go with the highest bidder (or at least try them once - recently we have given two other buyers a chance to win our business and we look forward to them proving it was a good decision!)
Anyone that doesn't embrace CHANGE is destined to failure.
We are a very typical example as we were facing company closure about a year ago. We looked at our business model, which had been working for many years, and saw that market conditions caused buyer changes, and our bottom line was nearly drained! We looked, long and hard, at how we might bring about something different and saw nothing in our current model that was very promising. So, we made a change and started dismantling computers (for years, we have thrown them away or donated them to charity - just getting rid of them as fast as possible!).
So far, it has worked well, as we are the 'only game in town' as far as buying ewaste.
Will someone else try to do it? Most likely. In fact, we look forward to it, as we believe our business model is strong and it would be near impossible to offer more than we do, which will continue to bring us the business, even though someone else may advertise more, etc. (which helps get the word out for us!) If we see they are taking business from us, then we just have to find a way to go grab some other 'piece of the pie' - embracing change...!
It all depends on how you face the world. You can do so with the LACK mentality ("there's not enough to go around") or with the PLENTY one ("there's more than enough, just what do I want to go grab"). I know which one I chose!