How To Make Money In The Salvage Business
What is a salvage business? A salvage business can be a recycling business or a junkyard . It is the business of recovering and sorting unwanted or unused electronic devices, antiques, clothing, construction material, equipment, vehicles, machinery, or general merchandise. This could be cell phones, computers, laptops, printers, or any other electronic device that has either lost its value or is no longer useful. Some scrappers will focus on military vehicles, police vehicles, boats, and even airplanes. For example, cruise ships that become obsolete when new models are introduced, are sold to salvage yards.
A salvage business works on the premise that an item that might no longer have value to its owner, can be very valuable, sometimes after its been refurbished and often as is, to someone else. For example, an older model Apple phone might not be of interest to its current owner, especially since Apple is frequently updating its phones, but for a college student in a developing country, that older Apple iPhone can be an exciting find.
Many entrepreneurs who work in the salvage business focus on exporting their merchandise to developing countries.
There are many sources for salvage merchandise, such as insurance companies who have paid a claim on damaged merchandise and are now seeking to recover as much as they can of what they paid on the insurance claim. Other sources for salvage merchandise are national retailers, such as department stores, that seek to sell their damaged returns in the form of store return pallets. Government agencies can also be great sources for damaged merchandise, since they seek to replace used and older equipment with newer models, and often need to sell their assets to cover the cost of new equipment.
You can make money in the salvage business by purchasing slightly damaged merchandise, such as clothing or electronics, refurbishing the merchandise, and then selling the merchandise to customers who are willing to buy refurbished merchandise for the benefit of paying less than for comparable brand new merchandise. You should always disclose to your customers if you are selling refurbished merchandise.
You can also sell unrepairable merchandise, vehicles, and equipment, as parts. Junkyards can be good customers for vehicles that are beyond repair, since they might be able to use the parts from the car or truck.
The Automotive Recyclers Association (ARA) can be a good source of information for those looking to get into the auto salvage business.
You can also make money by focusing on salvage vehicles, repairing them, and then selling them to end users who are willing to save money by purchasing salvaged vehicles. It is crucial that you are familiar with all of the laws and regulations that can apply to the buying and selling of salvage merchandise, vehicles, electronics, and assets.
You can find many sales channels for salvage merchandise, such as eBay, flea markets, your own store, or exporters. If you are looking to buy an existing junk yard business, you can find listings at: