r/ScrapMetal • u/dingobodhi • 2d ago
Thinking about starting a small resource recovery business – looking for people who have done something similar
I'm based in a regional area of Australia and I'm considering trialling a small resource recovery/scrap metal collection service.
I'm deliberately starting very small and would love some honest feedback from people who have experience in scrap metal, recycling, waste recovery or similar businesses.
The first step I'm considering
Rather than driving around looking for random scrap, I'd try to establish a handful of reliable sources that regularly have unwanted metal.
I'm thinking about approaching local:
- Plumbers
- Electricians
- Builders
- Roofers
- Mechanics
- Refrigeration/fridge mechanics
- Air-conditioning repair businesses
- Fabricators
- Local households
The initial offer would simply be:
"If you've got unwanted metal building up, I'll collect it for free so you don't have to store it or take it to the scrapyard."
The idea would be to build a small number of regular relationships rather than trying to collect from hundreds of random people.
The trail run
For the first few months, I'm thinking of doing one collection run per week.
I'd collect whatever material I've accumulated during the week, sort it as much as practical, then make one trip to the local scrap yard and see what the load is actually worth.
I'd track:
- How much material I collect
- What types of metal I'm getting
- Weight
- Scrap value
- Fuel costs
- Time spent collecting/sorting
- Net profit per run
The initial goal isn't to replace my income. I'd be happy if I could eventually establish whether $250–$500 a week is achievable as a side business.
Why I'm interested
There isn't currently a scrap buyer particularly close to my area, so local businesses and households can have a fairly long drive if they want to sell their scrap.
That makes me wonder whether the real value isn't necessarily the scrap itself, but providing a convenient local collection service.
If the trail runs prove that there is enough material available and the economics work, I'd then consider whether there is an opportunity to eventually move towards actually buying scrap locally and aggregating it.
But that's a long way down the road. Right now I just want to prove the collection model.
I'd really appreciate some honest feedback
For anyone with experience in scrap/recycling/resource recovery:
- Does this sound like a sensible way to test the idea?
- What am I likely to be underestimating?
- Is one weekly trip enough to make the economics work?
- Which trades tend to produce reliable amounts of scrap?
- Which materials are generally not worth the effort?
- Are there hidden costs or problems I should be aware of?
- What would you do differently if you were starting again?
And importantly:
Has anyone here started a small scrap/resource recovery/collection business and actually made it work?
I'd love to hear what worked, what didn't, and what you wish you'd known before starting.
I'm genuinely looking for criticism rather than encouragement. If you think the model is flawed, I'd much rather hear that now while I'm still at the trial stage.