Scrap business is a ideal business to start in India for those who have limited knowledge or were not able to complete their education well on time . Cardboard scrap business is a segment of the entire scrap business . In the scrap business you can buy any scrap material like iron , cardboard ,paper , steel , aluminium , copper , silver etc and those are resold to big industries for recycling and making new products.
Indeed scrap business is a profitable venture , if you check earning of a small retailer who purchases scrap from local households and resell it to industries , it does make good profit on each ton of material he provides to the industries.
If you want to start your own scrap business and want to work in the segment of cardboard scrap then in this article , you can know more about how you can start it within the investment of Rs 35000 only.
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Scrap Business Profile
Scrap business works on a concept of finding the cleanest scrap and sorting the beneficial out and then reselling it to industries or buyers or scrap which are ready to buy such scrap at good cost. For scrap business , their must be a shop or a godown where the owner can store the scrap bought from household or small vendors and a big carriage vehicle with which they can transport the cardboad material to industries.
Scrap business depends on the categories of goods taken , the cost of such scrap and the reselling price of such scrap . For low investment individuals , it will be easy to start with reselling of cardboard material and for higher investment , investment in silver, copper or iron can be done in tons.
Online vs Offline Scrap Business Growth
Online scrap selling is a new concept where small retail outlets or startups are coming with an idea of booking scrap from household through mobile applications and then storing it . The startup owners book scrap online and make payment to the seller through digital gateway systems .
The seller of the scrap get it picked from this location and is able to reach the scrap business owner any time through the mobile application . Where offline scrap collection is a traditional concept where still some scrap buyers hire some small scrap collectors to purchase scrap from households by asking them personally for buying the scrap and making payment in cash .
Profit on Sale of Scrap
The return on sale of scrap depends on the quantity of scrap collected and bought and sold. Generally industries in the paper work or cardboard manufacturing ask for bulk quantity of cardboard , for say they require 10k tons to 1 lakh tonnes in a single transaction to recycle cardboard scrap.
The profit can be estimated in the following way :
- Buying from local households : 1 ton Cardboard @ Rs 12 = Total Cost= 12000
- Selling Price of 1 ton to industrialist of cardboard = @Rs 13 Total Selling price = Rs 13000
- Total profit in Single transaction = Rs 1000 .
Actual Buying Cost of Cardboard
The buying cost of cardboard also matters on how the business will grow or not . If your cost is higher than the industry average buying price of cardboard , then you will end up making losses in the lot. While if you make a good quantity at lowest prices, then you can make good profits int your purchase with making the lowest investment .
The buying cost can be obtained from the nearby scrap dealers or wholesale cardboard or paper scrap buyers which provide the day basis prices of scrap through Whatsapp messages.
You can approach to any of the local recycling plant or bulk scrap buyers to know the rates of buying scrap .
Finding Online Buyers for Cardboard Scrap
With finding small and marginal cardboard scrap sellers , you can also look out for scrap buyers online , which provide their bulk deal for buying a particular quantity of cardboard scrap. For contacting bulk scrap buyers , you can use the following directories which can contact your direct to the scrap buyers:
- Ayron Mart
- India Mart
- Just Dial
- Exporters India
- com
Initial Investment for buying Local Cardboard Scrap
For beginners ,those who do not know much about the local scrap vendors , reselling scrap cardboard or buying scrap from public ,they can start with a minimum of Rs 12000 where the rent would be separate. The business is ideal to do from a big godown either rented or owned.
In order to pay rent of Rs 15000 and to make profit of 15000 per month from cardboard scrap business , it is essential to buy atleast stock of 1.5 lakh . Some labour salaries are also to be included while calculation for big scrap business , while a small retail scrap buying shop can be started within investment of Rs 50000.
Reselling to local Cardboard Scrap Buyers
For those who donot want to make higher investment in stock of cardboard boxes or coruggated boxes scrap , they can also make profits by reselling on daily or weekly basis to small retail cardboard scrap buyers or local scrap vendors.
This works in a way , that if any retail owner has collected scrap in a week of worth Rs 50000 , it can be sold in parts to 5 different scrap buyers on the weekend to receive the funds with profit. But because , it is a game of profit by selling to local sellers you will able to make limited profit only on this.
Getting inquiries for buying Cardboard Scrap Online
The best way to receive inquiries for scrap picking online from your city , district or state is by making an interface or a digital contact option for the sellers. By not hiring the local rack-pickers , you can hire few individuals who on inquiries from the general public can go and make pickups of the cardboard scrap from houses.
To receive inquiries you can use the following methods :
- Whatsapp Chat Support
- Telegram buying channel
- YouTube Channel
- Website
- Mobile Application .
Does Offline Scrap Collection model still works ?
Offline scrap model collection includes going to each and every house and asking for their scrap is a traditional way of obtaining scrap from public. It requires time and has limited coverage of areas. While it is a great methods to reduce cost of buying the scrap as you can charge different cost from different households but it will be a time consuming process.
With online model , you can specify a basic price for the scrap and make individual picks from the houses within a limited period . This will not only save time but will also help in quick transmission of information and enquirer.
How the reselling Cardboard Scrap business works ?
To start cardboard reselling whether on a small scale or a big scale , you need to follow these basics :
- Use a rented property or owned property as a godown .
- Start with a daily investment of Rs 10000
- Take inquiries online and offline for scrap buying
- Make stock of scrap in your godown
- When price increases sell the scrap to the buyer or industrialist of recycling .
This is how you can simply make profits without holding any specific knowledge of business. You can invest in limited money and can make huge money in scrap.
Monthly earning of a Retail Scrap buyer in India
For a small retail buyer of cardboard scrap average earning could be minimum around Rs 50000 to Rs 1 lakh . It totally depends on the fluctuations in price of cardboard . It is a requirement for scrap sellers to obtain GST registration to sell to industries which consider buying scrap from local vendors as they need to avail the input credit on their purchases.
For small retail scrap unit or a retail scrap buyer of cardboard scrap working with an investment of Rs 1 lakh a month , there is no need of obtaining any gst registration for scrap business.
Online Mobile Application for Cardboard Scrap Business
Some startups like Scrapwala.com or Scrap Uncle , moderate their business through use of a mobile application , where they receive inquiries from all over the country for buying scrap . While some mobile applications also provide an interface to directly contact to industry buyers or scrap .
For mobile application , you can hire a developer of mobile application to get your create a scrap obtaining mobile application . It can be crafted within an investment of Rs 35000 to Rs 50000.
Orders of purchases can be obtained and pickup timing along with payment options can be provided to the scrap seller on the mobile application itself.
Contract Cardboard Scrap Buying Business
For fixed price selling of cardboard scrap , you can also contact the industries to make contract with you for buying a particular quantity of scrap cardboard from you at particular intervals. This is considered as bulk buying scrap contracts.
Small retail buyers can contract with scrap vendors or small recycling units and big scrap collectors can contract to big scrap vendors or industries which require high investment . The contract can be made legally enforceable for completing the commitment on the agreement .
Cardboard Scrap Business Video
FAQ
Is it good to start cardboard scrap business in 2023 ?
Cardboard scrap business can be started in a very low investment and it is a great business to earn profits in short term.
What can be included in cardboard scrap material ?
The following items can be included in cardboard scrap business:
- Corrugated box scrap
- Candy box scrap
- Daily use boxes scrap
- Shop cardboard waste etc.
Average rental to start with to start cardboard scrap business ?
You can start this business with a rented godown of 15000 for start , while if you are experienced and have contacts ,thengoing with a rented space of Rs 25000 will also be good.
Does cardboard scrap business requires marketing ?
No , there is need of marketing or promotion in the scrap buying and selling business.