A junk shop and scrap business at home is pretty much a straightforward buy-and-sell industry that few people give much thought to because the traded goods are dirty and unpleasant. However, from a different perspective, it is a lucrative business that makes a lot of money with just a minimum starting capital investment for both junk shop owners and garbage collectors.
You might be shocked to learn that a junk shop business meets your requirements if you’re seeking for a promising venture that is resistant to current trends and fads while still supporting the growing movement to protect the environment. Although it may not be glamorous, countless individuals have made millions in this unassuming industry.
A junk shop is a business that trades in used goods in developed nations. However, because most items sold to junk shop in the Philippines are not frequently usable, scrap trading provides the majority of the income.
How do junk shops work?
Here are some tips on knowing how do junk shop work. To get you started if you want to transform your waste into cash, start taking down notes the following:
1. Investing Expenses
A junk shop requires a minimum initial capital investment of about 100,000 pesos. This sum can be used for obtaining business registrations and licenses, space rental, equipment purchases, pick-up truck repairs, and other expenses. The funds may also be used for manpower, you can start paying them the minimum wage in the meantime, and as a revolving fund.
However, if you are still learning the ins and outs of the business, you can start it alone or with a partner to reduce personnel costs. To avoid having to rent a location, you might get started in your garage or a vacant lot, otherwise start to prepare your rental deposit.
2. Locate potential clients
Make sure you can cater to potential clients before starting any business. They are referred to as recycling agents in the junk shop industry. The garbage is sorted and segregated. These are the customers to whom the junk shop owner will sell these items.
Along with getting the initial financial commitment, you should take the time to hunt for potential recycling agents. You should understand how to haggle for the best price as the owner of a rubbish shop.
3. Look for an appropriate site.
The amount of lot space you’ll require will depend on the type of operation. It will only need about 25 square meters if you simply set up a buying station and move the stock elsewhere. However, in this instance, the materials must be transported by delivery vehicle. A business space of no less than 100 square meters is required to establish a junk shop business. Make sure the location you choose is accessible to those who are going to supply your inventory, does not flood, and is zoned appropriately.
Sharp metals and artifacts in a junk shop might be dangerous if they are placed in a crowded area. If you have a large space, you can set it up in your garage. To ensure that no stray children are playing there, make sure it is gated.
You must also consider your purchasing funds, which you will spend to purchase stuff from garbage collectors. Aside from that, you also need the following:
a. Weighing scale;
b. Pushing carts
c. Tools (such as pliers, a steel saw, a hammer, and a screwdriver)
d. Automobile (optional)
4. Dealing with scavengers
Scavengers are another term for retailers. They can be workers at surrounding businesses or locals from the community nearby. Examine and sort the materials when they arrive. Next, weigh each item to determine its price. As soon as possible, move the scrap materials to your storage area.
Ensure you have a strategy for dealing with walk-in clients or scavengers if you want your business to run effectively. It is important to thoroughly scrutinize each item.
5. Accounting of business
All monetary transactions should be meticulously recorded so that you can assess your financial situation. Keeping a journal of all cash-in and cash-out transactions is a good idea. Implementing daily accounting to track the purchases and expenses for each day is a necessary part of running a business.
The starting fund, which must be maintained and renewed at the start of each working day, shall begin with a predetermined amount on the first day of operation. The cashier shall count the fund which shall be the pre-determined amount as indicated, at the beginning of each working day. The cashier must compile a list of every purchase made throughout the course of each working day and record it in a log book.
6. Registering your junk shop business
The most crucial phase of launching a new company is this. To be sure that your company will operate lawfully, you should register it with the appropriate organization. You will need to apply for a TIN and obtain a license to operate.
7. Marketing your junk shop business
In order to sell business, finding stores and potential customers requires constant effort. Don’t just wait around for people to buy or sell scrap from your shop. You can go out and search for businesses that have trash and scrap items. You can advertise the scrap items at your junk shop on social media to increase sales.
What to sell in junk shop
There are tons of recycling materials that you can sell in your junk shop. The following are just some items:
1. Selling cans of aluminum
When you consider recycling, selling aluminum cans is usually the first thing that springs to mind.
2. Sell Your Boxes, Cardboard
You can earn money by selling both new and secondhand cardboard boxes.
3. Metal scrap
We immediately think of steel mills when we think about scrap metal. The majority of metal objects, including those found in automobiles, bicycles, appliances, cans, filing cabinets, barbecue grills, etc., can actually be recycled for cash.
If you believe it will not work, your first instinct should not be to toss it away. When it comes to recycling electronics, you can’t just keep all your old electronics together and throw them away. Find the nearest junk shop and take your outdated electronics there. They’ll pay you money in exchange for the device, and it’s ad: What is the best way to properly dispose of electronic waste at home?
5. Money For Old Batteries
Does your car’s battery need to be replaced? In that case, you might exchange your old one for a little discount on a new one. If you have outdated batteries laying around your garage, you might be able to sell them for cash at auto part shops or junk shop.
Buying price of junk items
What is the going rate for a piece of trash? Here is how much some junk shop owners charge the garbage collectors for recyclables.
- Plastics (Php22 per kilo) (example: plastic bottles used to hold mineral water);
- Clean plastic bottles cost Php38 per kilogram;
- Paper document, Php11 per kilogram;
- Box or carton: Php6 per kilogram;
- For waste such as empty prescription boxes, cartolina, and intermediate pad waste costs Php2.50 per kilo;
- Magazine price is Php5 per kilogram;
- Cans of aluminum cost Php45 per kilo;
- Hard plastic, also referred to as sibak, costs Php14 per kilogram (like old toys, fabric softeners, and cooking oil canisters);
- Old newspaper, 10 pesos per kilogram;
- Gin bilog bottles made of glass cost Php2 for three pieces.
- Each long-neck bottle costs Php1.50.
- A kilo of broken glass costs Php1;
- Php11 per kilo for iron/yero;
- Php50 per kilo for CDs;
- Copper (from appliance wires) costs Php295 per kilo;
- E-waste from destroyed appliances is sold by the piece;
- An old refrigerator costs Php700;
- Php300 for old washing machines;
- Php80 for old electric fans;
- An old television costs Php120;
- A computer motherboard costs Php250 pesos per kilogram.
Another good tip is that more money can be made if you take apart the appliance yourself and sell the parts. For something you get for free, it may not seem like much, but it’s actually a pretty fantastic value. By the way, even styrofoam and other plastics may be recycled and turned into plastic pellets. The Philippines’ plastic manufacturers offer a Php3 per kilo incentive for this.
Nearly all types of plastics, entire or cracked glasses, metals, papers, and car batteries are purchased by junkyards. They purchase trash by the kilogram, with paper being the cheapest (costing between 50 cents and Php15 per kg) and batteries and some forms of metal being the most expensive (costing between 50 and 70 Php per kg). They then sell the trash at a price that is 100% higher than what they paid for it.
Advantages of starting your own junk shop at home
Due to its “scrappy” nature—it deals with rejects and filthy or soiled goods that are typically smelly—the junk shop business is a straightforward but lucrative industry that many people in the country would prefer to avoid. Due to garbage’s alleged role in the pollution that causes flooding in most areas, especially in our country, the campaign for environmental awareness, proper waste disposal, and recycling activities are currently very aggressive, making the junk shop industry very important and relevant. So here are some advantages of why becoming a junk shop owner in the country is a win-win situation for everyone.
Promoted environmental awareness
Starting this business today is just in time because it is one method to help the government encourage proper waste disposal. This means that aside from it generates income, you are also contributing to protecting the environment.
Recycling is the process of turning waste materials and goods into new, usable ones. Recycling aims to reduce pollution and waste production on a worldwide scale. We can contribute to environmental preservation and the protection of our natural resources by improving our sorting and material recovery practices. Reducing, reusing, and recycling waste helps to cut down on pollution and garbage by keeping useful products out of landfills. The production of the product and the production or collection of the raw materials will consume less energy and natural resources. Reducing their use, recycling, and repurposing them even inside our cozy homes is one way to deal with this.
Provides livelihood to several possible recycling agents
Owners and operators of junkyards likely had no idea that their operations contributed to a reduction in the amount of waste that accumulates in the neighborhood. It is a win-win situation that benefits both the owners and the scavengers, most likely. In an effort to find recyclables they can trade in for cash at the junk shop, the scavengers search their trash bags, and trash bins.
These scavengers have a chance to make a living thanks to the junk shop owner who buy scraps, and the neighborhood is relieved of a more significant waste problem as a result. It is believed that if only the number of people engaged in the junkshop industry increased, abandoned junks would not choke some places, hence preventing flooding.
Many people believe that a trash shop is a location where dirty and ruined items are simply discarded. However, for those who are open-minded, this can be a good source of income. This industry is still relevant today.
Particularly for those who put in a lot of effort, this type of business has great potential for making significant earnings. It’s critical to educate yourself about this industry to increase your chances of success. Beginning any business is difficult. A junk shop operation has the potential to be a lucrative venture. Try it out to find out how you can turn your waste into money.
Bria Homes is not only committed to sustainability but is also well-positioned to offer every Filipino family access to affordable homes or condominiums. By supporting them, you are not only providing yourself with a cozy and accessible home, but you are also helping to save our planet by supporting environmentally friendly and sustainable homes.