The year 2015 is a milestone for catalytic converters. They were first installed on cars back in 1975, which means that they have been around for 40 years. And this year, the number of converters available for recycling will reach a high-water mark, with an estimated 15 million cars heading to American junkyards this year.
Do you sense an opportunity here? If not, you should. This could be the best time ever to start a business collecting catalytic converters and sending them to Specialty Metals Smelters and Refiners to be recycled. One thing for certain is that someone will be cashing in on the platinum, palladium, rhodium, cerium, manganese, and nickel that all those scrapped converters contain. If you are motivated to get a piece of the action, that someone could be you.
Would starting a company to collect and recycle catalytic converters be a good career choice for you? Here are some steps that can help you decide.
Explore Sources of Scrapped Catalytic Converters in Your Region
Scrapped units most often come from junkyards, muffler shops, repair shops or car dealerships. You can learn a lot if you drop by those businesses and ask what kind of converters they can sell you, in what quantities, and for what price.
Be aware that you will probably hear that those businesses are already selling their used units to a recycling company. If so, ask for the name of that recycling company and how much it is paying for each scrapped unit. That information is important for you to have as you plan a recycling enterprise of your own. If you can find a way to pay more per converter than your competition does, you will be on your way to starting a profitable recycling company.
Your visits to possible sources will offer you other important information too. If you discover that your biggest potential source of scrapped converters is an automotive dealership group that can sell you scrapped converters from Japanese cars, for example, you might decide to focus on Japanese units as you start your business.
Study Catalytic Converters for Sale on eBay
This is the place where you can learn a lot, fast. If you search for “scrapped catalytic converter” on eBay, you will find that many are up for sale; you can review them online and learn what they look like, where they come from, and how they are priced.
When I visited recently, for example, I found scrapped GM catalytic converters for sale in the bidding range of $15 to $80, with Japanese units selling generally for slightly more. That is important information for you to have as you plan your company.
Call Specialty Metals Smelters and Refiners and Crunch Some Numbers
If you call us at 800-426-2344, we will be happy to explain how we can recycle catalytic converters for you and how much you can expect to receive from us for each unit that you send to us. (Please note that we are only able to accept shipments of 500 or more catalytic converters for recycling.)
At this point in your research, you will have a clearer vision of what your initial investment in your own company will be and how profitable you might become. Your vision for your company might be something like this . . .
“I plan to specialize in buying scrapped Japanese catalytic converters for no more than $25 per unit; each of those units should contain about $40 worth of platinum and other precious metals, so I can realize a profit of about $15 for each converter that I send to Specialty Metals Smelters and Refiners to be recycled. In order to buy 500 units to start my business, I will therefore need to make an initial investment of about $12,500; my return on that investment will be a profit of $7,500.”
Why Not Just Buy Converters on eBay and Recycle Them?
The fact is, you could start a recycling business by buying scrapped catalytic converters on eBay and sending them to us to be recycled. The problem is that you can expect to pay about $10 to have each of them shipped to you from eBay sellers, and that expense can quickly eat into your profit margin.
Whatever your plan turns out to be, we will be happy to offer advice. Please call us at 800-426-2344 to learn more.
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Non-Automotive Catalytic Converters Contain Precious Metals Too
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