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AN INSIDERS SECRETSOF
HOW TO MAKE MONEY FROM RECYCLABLES
MONEY MAKERSTH
E
CRISIS &
OPPORTUNITY
FRANKKI OH
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The author draws upon his direct experiences in
making money from recyclables like waste papers,
scrap metals, old batteries and computer systems.
He revealed the secrets of makingmoneyas a
recyclables collector and how to go about to
materialize it. High profit margin of recyclables
attracted many collectors. Making more than
100% profit on each product is enviable, not to
mention some items that make many times over
its costs.
This comprehensive revelation of the guarded industryenables you to startmaking money upon learning the dos and dontsas a collector. Pictorial images
were used to describe and explain each product for an insight of its types and
categories of recyclables. Where the money is and how to do itwere explained
in detail. Recycling is a resilient industry in good and bad times.
Besides high profit margin of recyclables, some attractions includes cash basis
nature, low capital outlay, simple knowledge of buying and selling, commandon buying prices, no marketing expenses, doesnt require connections,
networking and existing customer base.
About the Author
Frankki Oh holds an MBA from The Birmingham Business Schoolin theUnited Kingdom. Employment blues in the corporate has discouraged him in
earned income. His wide experiences in services, trading and manufacturingenhanced his skills to be his own boss. Burning the bridge to employment a
decade ago had brought him into the recycling business where he gains hisfreedom and financial independence. As an experienced recyclables collector,
he wrote this comprehensive andpractical guide to share his hands-onknowledgewith people who are keen tomake a living in hard times.
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MONEY MAKERS
CRISIS &
OPPORTUNITY
THE
FRANKKI OH
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Copyright 2009 See Chong, Oh
All Rights ReservedNo part of this book may be reproduced in any form or by anymeans without prior consent from the author.
Published by:See Chong, Oh
1 Jalan SB Indah 1/3Taman Sungei Besi Indah
43300 Seri KembanganSelangor Darul Ehsan
Malaysia
E-mail: [email protected]
ISBN 978-983-44781-0-0
The author and publisher of this book have used his best efforts in prepar-
ing this publication through his direct experiences, views, and opinions. Its
contents written by the author is to provide insight information and is notintended for use without independent substantiating investigation on the
part of users. The author and publisher make no warranty of any kind, ex-
pressed or implied, with regard to his documentation contained in this book.
He shall not be liable in any event for incidental or consequential damages
in connection with or arising out of, the application of his knowledge and
opinions.
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Contents
One My Story 1
Two Inside Recycling 11
Three Recycle Papers 21
Four Recycle Scrap Metals 31
Five Recycle Batteries & 55Computers
Six What Choices of 61Making a Living
Seven When to Start 71Positive Action
Eight Why Me 81
Nine Where The Money Is 91Ten How to Do It 107
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1
One
MY STORY
I came from an impoverished family where we live from
hands to mouths. My father was a taxi driver all his life. Having 7
children to feed is not easy. His diligent and tiredness in making
whatever little money he could, made us proud of him. My mother
on the other hand, never complains of her invaluable effort and
passion in couching, caring and upbringing of all of us. She is a
great mother we had. Despite hardship, my parents always madesure we have enough food, clothing and education. Their im-
mense effort in sacrificing for us is something we can never repay.
I completed secondary school in 1979 at the rebel-
lion age of 17. My parents were disappointed with my results
which will determine my future. Many months after graduat-
ing from school, I worked as a general clerk in an account-
ing firm, sorting, vouching and filing was my duties. Beinga Leo, those are not the work I wanted. A Leo is ambitious;
a low entry job with little pay doesnt suits him. Working
life had transformed me and I became conscious of the im-
portance of higher education in pursuit of better career.
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4
born in their own ways and would find it difficult to fit into the
existing companies culture. Coaching to change their paradigm
could be challenging.
String pullingremains an ideal way of being employed.
June 1996 I was string pulledas a Marketing Manager in a sub-sidiary of a conglomerate that pays a decent salary and perks.
As a greenhorn to the corporate world, I was set to learn the
companys culture and am prepared to be a good politician.
All the staff was on payroll in this company. The em-
ployed management team practices reserve culture. Informa-
tion was well guarded; it is only disseminated to few cronies.
Transparency is not for everyone in the team. For example, my
forecasted sales and marketing expenses never have a chance to
come back for revision and monitoring. My budgeted figures
could have been sabotaged. Non-transparency led me to work
on verbal figures given by the top. Despite the odds, I stayed put
for 3 years as the head of marketing department. I have never
been exposed to the companys business plans, annual approvedbudgets and management reports.
Office politicking is a routine business among seniors
and their immediate subordinates. The General Manager is
bounded by his cronies and apple polishers. Functional heads
were taking sides among peers. I took a neutral stance and later
realized that being impartial is a drawback. The string pullingthat
put me on the job must have unknowingly offended someonesenior who might have his private agenda. The General Manager
tried all means to get rid of me. Humiliation and overriding of
authority were the norm that caused frustration and demoral-
ization. My immediate superior was unsupportive. Every hour
there is an agony. My anticipated resignation had given way to
the General Managers plan. To be jobless in Asian Financial
Crisis is disastrous.Sluggish economy necessitates a company to operate
on basics by bringing the operation costs down. The fittest have
a better chance to survive turbulent times and poised for eco-
nomic recovery. Struggling companies required more efforts in
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timidations is the norm. Some banks farmed out their debt re-
covery to private collectors and they can be nasty at times.
Redundancy terminated my only source of income to
sustain my lifestyle, personal and family expenses and to keep
bankers at bay. Positive thinking, proactive and willingness towork cant deter my ability in making a living. If we cant work
for someone here, there are greener pastures out there. My dis-
appointed corporate life boosted my spirit of working for my-
self to gain the freedom and financial independence.
Living on credit kept the card balances in limbo. It
could get beyond your ability to repay. Interest alone kills. My
eagerness to be independent led me into trading of foodstuffs. I
clinched a deal that made me 15% commission for distribution
of fresh noodles to residential and food centers. Noodles were
another staple food among Asians and the potential appears en-
couraging. It is packed with the necessary sauces and cooking
instructions like instant noodles.
Noodles had been traditionally made by immense op-erators, ranging from cottages to factories. It is available in vari-
ous forms, styles and flavors. Any new products introduction is
construed as mere cosmetic changes. As a commodity, noodles
are price and quality sensitive. Better quality costs some 30%
more to produce, the restaurateurs and stall operators says no-
no. What they wanted is some economical stuff that made them
higher profits.To gain a shelf space in supermarkets is daunting for
greenhorns. Who need whom morewould be an appropriate
description of how they handle their suppliers. Supermarkets
are an ideal choice for vast geographical distribution of food
products to the residential. Some may try out new and unbrand-
ed products with their terms and conditions while others just
up their hand and sway goodbye. Small traders with unbrandedproducts are at the mercy of giant retailers. Their terms include
products that offer high profit, consignment stocks, return and
exchange of bad stocks. Some suppliers were being squeezed to
pay for indoor advertisement and promotional expenses.
MY STORY
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The approach works. They started to part whatever little infor-
mation and knowledge known to them. In the monetary driven
market, every dollar counts. Customers expected to be paid at
the right price. There is no room for barter trade.
My enthusiasm to learn and to cushion through finan-cial difficulty drew sympathy from those collectors. They began
coaching me the basics like how to collect, quantum of payment,
and how and where to convert it into cash. My initial cognitive
function is to learn the buying and selling prices of old newspa-
pers. How to buy and where to buy is the next process. Collec-
tors have been using the conventional hand length measurement
to derive at an amount for umpteen years. Hand method is the
length from the tip of a thumb to the tip of the fourth finger.
Bigger hand measures more than their shorter counterparts.
Common Asian hand length is about 8 inches from tip-to-tip.
Standard length is more acceptable and those larger hands tend
to encounter problems in their collection. By offering higher
prices is a way to overcome adversities. Some preferred weigh-ing as a fair medium of measurement. Collectors have calculated
the weight of a hand length to derive at a price per hand, which-
ever mechanism comes to square. Insignificant amount of old
newspapers worth and the price similarity of both approaches
made it acceptable. Whichever methods used, the profit margin
for collectors should be at least 100% on costs to make it fea-
sible.I was coached by a few mastersover several days on
an ad hoc basis. Attractive profit margin and low capital outlay
enhanced my interest to hop on the bandwagon. I need a small
truck or a van for transportation, a cassette player and a loud-
speaker to play a recorded tape with the voice as loud as blasting
through the roof. The recorded tape contain the messages of
what Im buying, like old newspapers, books, magazines, scrapmetals, used batteries and computers. I started to make my
rounds in residential areas and found it amazing that the indus-
try doesnt call for the availability of customers to begin with.
The marketing aspect of collectors business is to get their mes-
MY STORY
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Two
INSIDE RECYCLING
Three ethnical races dominated the recycling in-
dustry in Malaysia. They are the Malay, Chinese and Indian.
Each race specializes in their respective niche areas. Of these
races, they spoke their own mother tongue among them-
selves. Many dialects were noticeable among the Chinese com-
munity but Cantonese is widely spoken. Mandarin is another
popular language of communication among the Chinese.Proficiency in additional languages and local dialects enhanc-
es ones career. It is especially obvious in cross cultural busi-
ness transactions. Hence, Malay language is the medium.
The scope of this book covers recyclables in its generic
term; recycle papers, scrap metals, auto batteries and computers.
The recycling chain consists of collectors, dealers and manufac-
turers. Collectors gather recyclables at source and convert it intocash with dealers, who in turn sell it in bulk to major buyers that
send those stocks to factories. Recycling is a simple trade that
involves buy low --- sell high, knowledge of identifying different
categories of products and its prices. There are a handful of re-
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ing remain an important concern. Paradigm shift of the masses
had occurred since the mid 1980s lethargic economy. To make
a living is tough then, supplementing income for the family is
the priority. Younger people are willing to take up recycling as
a business. The involvement of younger greenhorns improvedthe quantity of recyclables by utilizing trucks and vans to en-
hance their mobility. Their willingness to invest superseded the
pioneers, who used simple and costs effective mode of trans-
port such as bicycles, tricycles and motorcycles.
The recycling industry in Malaysia is monetary driven.
Most people expected some pecuniary means for their products.
Young and educated group tend to be easy going, while some
elderly are demanding. Some chose to donate directly to genu-
ine charitable organizations, while others would donate to the
commercialized charitable companies, believing that they are
doing a good deed. Recyclers are traders, just like any business-
men who buy and sell. Differences in pricing between custom-
ers happen as close as their own neighbors. Collectors workedindependently, their buying prices vary among themselves. Since
the prices of recyclables fluctuate, standard pricing is nowhere
to come by. The weighted average price of dealers seemed an
ideal benchmark of the industry. Collectors dictate the right
priceto buy. Ignorant of the masses, immaterial monetary val-
ue, the need of housekeeping and the uninformed households
added to the privilege of collectors. Nine out of ten householdswere easy going, Samaritans comprised of roughly 200:1 and
some 100:1 are fussy and demanding customers that treated
their waste as precious metal.
Residential waste of minute amount, perception of its
low value and convenience of collection service to their door
steps were some reasons for the existence of collectors. Used
papers, books, magazines and newspapers are heavy and cheap.Scrap irons is heavier and worth 2 times more than old news-
papers. Old newspapers increases by the day, thats why it is the
bread- and-butterfor collectors. Accumulated waste papers are
obstructive and its scent inhabits ants, mosquitoes, cockroaches
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ducing import substitution for their home countries. Cheap im-
port substitution caused job lost and failure of local companies
that are reluctant to follow.
The reading habit that embedded in us made the daily
newspapers an indispensable material. Most readers will feel up-set without it. Newspapers and magazines publishers printed
by the hundreds of thousands of copies every day. As the mag-
nitude of newspapers invaded their readers, its volume adds up
by the day. One months of accumulated old newspapers weighs
roughly 20kg. At RM0.23 a kilo, an annual accumulated amount
of 240kg fetches RM55.20.
When old newspapers were left to accumulate it became
obstructive and an eyesore for households. For terrace houses,
it is abandoned at the living halls, stores, car porches and back-
yards. While space constraint in high rise dwellers, their waste
papers are left in the living halls, stores and bedrooms. It is often
dumped at the same spot for it to accumulate that will become
nuisance later. Some households always kept their home cleanand tidy, small quantity of waste seemed uncomfortable. Fre-
quent housekeeping led to regular trash cast-offs, the amount is
usually little.
Individual household dont generate vast quantity of
old newspapers but the bit and pieces collected along the way
adds up. On a weekday, the average collection of old newspa-
pers, books and magazines comes to some 30kg each. You re-quire 15 customers to derive 450kg for the day and generate a
profit of RM58.50 or 130% on costs. On a weekend, 40kg is the
average. It requires 30 customers to accumulate the volume of
1,200kg that make you RM156.00 in profits. Collection during
weekend is much quicker. Any extra customers beyond expecta-
tion are a bonus. Collectors made a living by providing services
to the door steps that encouraged residential to dispose theirrecyclables.
Sympathizers and Samaritans are getting scarce by the
days. Some 98% of waste owners were easy going who just want-
ed to get rid of it, payment of a reasonable sum is sufficient to
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to instill fear about rising garbage and its consequences.
The job of educating public on national interest rested
with the government. Authorities put up three moderate recycle
bins allocated for papers, plastics and glasses in schools, shop-
ping centers, government buildings and public areas. Recyclerswere contracted to collect and manage the recyclableson a
regular basis. Urban hypermarkets also allocated spaces for the
convenient of shoppers. Commercialized charitable organiza-
tionsdont wish to miss out by putting up collection bins in ur-
ban residential areas. Most of these bins were filled with garbage
of negligible value. The masses have to be instilled with proper
disciplines to make the dream come true.
With the governments initiative in promoting recycling,
local municipals constructed collection booths in most urban
residential. Each built up of some 100 sq feet is too small for
rental to recyclers. The perfect idea of creating convenient col-
lection centers for the people was ruined by the old newspapers
collectors who provided collection and competitive prices to thedoor steps of residents. Frequent rounds made by collectors
caused the on-site collection unattractive. As a result, the mess
on the abandon sites became an eyesore.
There isnt many industries that conduct their business-
es on cash basis, near cash of say 30 days is considered pleasant.
Recyclers dealings are all cash from the top down. Collectors
bought in cash and convert it for cash too. Dealers requiredmounting cash to purchase their stocks from collectors, finan-
cial stamina is a must. Delayed payment to dealers will ensure no
forth coming supply. Dealers need to clear their stocks periodi-
cally to maintain a healthy cash flow to fund their purchases.
A collectors profession calls for guts and courage. The
perception of collectors as a job for the impoverished, unedu-
cated, drug addicts and jobless hinders white collar workers. Itdoesnt need fancy credentials but willingness to work is the key.
Financial constraints of folks who cant afford trucks opted for
simple and cheap manual transports like carts, trolleys, bicycles,
tricycles and motorcycles to carry their load. Their collection
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Three
RECYCLE PAPERS
Wood is the primary source for paper production. Mas-
sive deforestation leads to global warming, landslides, floods
and natural disasters. Most developed economies imposed strict
laws in harvesting and replanting of trees. On the other hand,
least developed and developing nations are chopping it down
like nobodys business. Invisible hands bring about the demandand supply factor of which if there were demands, people will
continue falling trees. Soaring demand creates an industry for
poacher too.
Papers had become part and parcel of our lives. Its
numerous uses for writing, printing and packaging has trans-
formed our lifestyle and enhances the publishing and packaging
industries. It also boosted records keeping, billing, correspon-dence and marketing. Like old newspapers, when it passed its
useful life, the news that it carries became obsolete. Outdated
records and marketing materials also contributes to the recycling
industry.
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Computer Forms
CPO is the abbreviation for Computer Printouts. It
is usually printed by dot matrix printers. Preprinted computer
forms like invoices, delivery orders and correspondence docu-
ments with logos, addresses, watermarks and security features
are disqualified. Carbonized computer forms also shares the
same fate. Those are considered as Black & Whiteat a lower
price. Large companies, financial institutions and government
organizations utilize more computer generated billings and cor-
respondence. To prevent outflow of sensitive information, the
CPO tends to be shredded. When crumbled, it is light. A well
packed large dustbin lining containing shredded papers weights
merely 3-4 kg. CPO fetches RM0.46 a kilo.
Pure White Papers
Loose Pure White Papers
Computer Forms- Dot Matrix Printouts Computer Forms c/w
Printed Lines
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Mixed White (B)
Colorful printing like posters and CD covers are classi-
fied as Mixed White (B). It fetches RM0.20 a kilo.
Old Newspapers
Newspapers are an effective printed media reaching the
masses all over the country. It carries daily news of all sorts. It
is most widely read and subscribed media by individuals, com-
panies and libraries. Catching up with daily news and reports is
an addiction. Its enormous quantity and heavy nature made it
bread-and-butterfor paper collectors. It fetches RM0.23 a kilo.
Colorful Poster
Colorful CD Covers
Stacks of Old NewspapersLoose Old Newspapers
RECYCLE PAPERS
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Mixed Papers
Mixed papers comprise of newsprints like telephone
directories, novels, books and flyers. Receipt books, delivery or-
ders and invoices that blended in various types of papers falls
under this category. It is made up of Black & White for the
original copy and various colored and newsprint duplicates for
internal use. Old unsorted files are another headache. Shredded
mixture made it difficult and time consuming to segregate. Its
low value at RM0.13 a kilo discourages separation.
Mixed Color Boxes
Mixed Color Sheets
Newsprint Flyers
Close-up View ofShredded Mixture Shredded Mixture
Old Unsorted Files
RECYCLE PAPERS
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Four
RECYCLE SCRAP METALS
There are immense metal usage in industries and ev-
eryday lives. Its generic origin like copper, brass, aluminium and
iron ore are being transformed into numerous applications and
designs to fit specific purposes. End of lives products were dis-
posed as scraps. In view of its enormous uses and relevance, I
cant possibly capture and summarize all. The following descrip-
tion of scraps doesnt meant to be exhaustive. It serves as a
useful guide for beginners. Magnets will work wonders to dif-
ferentiate iron and alloys. Items that stick to it got to be iron,
whereas, valuable metals dont.
Copper A1
Copper wires shall be cleared off its PVC housing. The
thickness in copper cable makes it heavy. Big processed copper
wires fetch RM15.00 a kilo.
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Transformers Coil Wires Electric Coil Wires
Unprocessed Coil WiresUnprocessed Coil Wires
Water HeaterCoil Copper Wires
Air-cond. CondensersAir-cond. Ducts
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Extra Profits from Processed Fine Copper Wires
1 Kg
Products Weight
Kg
Prices
RM
Total
RM
Burned CopperPVC Housing
Unprocessed Wires
Extra Profits (+56.6%)
0.4Burned
1.0
13.70-
3.50
5.48-
-----------5.48
-3.50
-----------1.98
======
Copper, Air-Cond. Condensers
An air-conditioner contains cooling condenser to pro-
vide cool air. The compressor has 1-2 pieces of condensers and
a smaller piece is attached to its blower. Air-conditioning ducts
is categorized as Burned Copper that coils around aluminium
strips of the condensers to provide ventilation. Manual separa-
tion of the light weight aluminium strips and burned copper
is daunting. Unprocessed air-conditioning condensers fetch
RM7.50 a kilo.
Air-cond. Compressor Air-cond. Blower
RECYCLE SCRAP METALS
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Aluminium, Sport Rims
Car enthusiasts tend to change their autos sport
rims design from time to time. Obsolete and damaged rims
also contributed to the recyclables. It fetches RM4.40 a kilo.
Aluminium, Engine Blocks
Wear and tear caused autos to replace newengines to
keep its lifeline. Workshops would salvage its aluminium engine
tops, gearboxes and pistons for sale to recyclers. Some importedused engines that are unsuitable for local models, past its useful
life or damaged will be dismantled for the recovery of its alu-
minium. Engine blocks of aluminium content fetch RM3.40 a
kilo.
Aluminium Angle
Aluminium Window Frame
Autos Sport Rims Motorcycles Sport Rims
RECYCLE SCRAP METALS
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Hard Disk Motorcycles Wheel Hub
Wall FanDoor Closer
CPUs AluminiumAutos Water Pumps
Autos PistonsAutos Starter
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Lead
Auto battery manufacturers used substantial amount
of lead in their production. It is also a main component for
soldering motor vehicles brass radiator and electrical and elec-tronics. Some fishing tackles and wheel balancers were made of
lead. Battery contains lead and sulphuric acid which is corrosive
and detrimental to health. Dismantling for its lead that fetches a
little extra in value just doesnt worth compromising. It shall be
treated as a whole. Lead fetches RM3.30 a kilo.
Air-conditioners
End of life air-conditioners is usually scrapped and
landed up in the scrap yards. A unit that consists of compressorand blower can be broken down into its respective category of
recyclables. It contained some higher value items like burned
copper, copper condenser, brass and motor coils. Scrap zinc,
hard plastics and some fine copper wires made up the rest. An
air-conditioner as a whole fetches RM2.20 a kilo.
Fishing Tackles
Wheel Balancers
Air-cond. Compressorand Blower
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Fluorescent Ballast
Box Fan Exhaust Fan
Washing Machines Motor Washing Machines Motor
Air-cond. Compressors Motor Refrigerators Motor
RECYCLE SCRAP METALS
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Drums Autos Oil Filters
Industrial Zinc Sheets Residential Zinc Sheets
Fencing Wires
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Five
RECYCLE BATTERIES & COMPUTERS
Old Batteries
Short battery life necessitates a change. Optimized bat-
teries cant be repaired and it brings good news to recyclers. A
battery contains hazardous lead and sulphuric acid. It is advis-
able to dispose as a whole. Batteries for autos, trucks, generators
and forklifts fetch RM1.60 a kilo. Smaller motorcycle and alarm
batteries get RM1.30 a kilo.
Batteries: 60s, 70s, 70ZsBatteries: 100s, 120s, 150s
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Old Computers
Advances in IT technology rendered computer sys-
tems obsolete. Cheaper desktops and notebooks with speedy
processing, storage capacity and software applications necessi-
tate a change. Conventional monitors of 14 and 15 inches fetch
RM20.00 a unit and a complete CPU Box gets RM14.00 each.
Printed Circuit Boards
PCBs contain copper, lead and some precious metals.
Recovery of the prized items requires tech-yes. Acid basedrecovery technique called for availability of specific high acid
concentrates which is not easy to get in some countries. Dis-
posal of used waste acid is a headache. Therefore, some less de-
veloped nations has become electronic dumpsites for advanced
economies. It fetches RM15.00 a kilo.
Motorcycle Battery
Alarm Battery
Computer Monitor CPU Box
RECYCLE BATTERIES & COMPUTERS
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CPU Processors
Tiny amount of Gold is embedded in computer circuit-
ry. Its obvious present is the gold coated CPU processors pins
and its hidden interconnected circuitry. High gold prices attract
many invisible hands in the recovery business. They source their
supplies from local electronic producers and import substitutionto achieve economies of scale. Some scrap dealers are unknowl-
edgeable in electronic waste that causes difficulty in finding one
to buy your stocks. Check through trade directories and internet
to find electronic waste recyclers in or near your neighborhood.
Few traders in this niche industry cause its prices to vary consid-
erably among collectors.
Printed Circuit Boards
Printed Circuit Boards
Light Gold Coated Pins, GreenRM0.50/Piece Light Gold Coated Pins, Black
RM1.00/Piece
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Six
WHAT CHOICES OF MAKING A LIVING
The fundamental of the need to work may be de-
scribed plainly as to put food on the table, to provide decent
clothing and to pull a shelter over. Making a living is a means
of generating income to satisfy individual and family needs and
to sustain existing lifestyle. Some may venture into businesses
while risk avoiders tend to be complacent with the safe haven
of employment. To be your own boss, an entrepreneur requiresguts, courage, skills, know-how, capital, technology, networks,
business acumen, etc. Owner-operator type of setup is usually
small and their capital deficiency called for an all rounder. Mon-
ey as the necessary evil is a powerful tool to make things happen
and the difference between the haves and have-notsare distant.
To secure a loan for a new start-up is tough. Bankers want your
track records to study your business feasibility, potential and todetermine the degree of risks they are willing to undertake. De-
spite the odds, collateral remain primary.
White collar jobs are not meant for the less educated.
Since education is a hindrance for cozy jobs in offices, they
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office as an alternative of keeping costs low. Costs advantage is
the key to success.
Professionals like Accountant, Architect, Doctor, Engi-
neer and Lawyer are the dream of most people. Its a profession
that required brilliant mind, years of tertiary education, trainingand practices to qualify. Their strict entrance prerequisites only
cater for the top cream. These programs need good examination
results, financial capability and the will to excel. Qualifiers are
bounded by the rules and regulations of their respective schools
and local regulators. Compliance with the professional code of
ethics is a must.
Financial services like banking and insurance are a major
industry that requires massive startup working capital, security
deposits and the approval of relevant authorities. Its sensitivity
and the impact on economy called for it to be regulated. These
companies are owned by a few conglomerates. Even some top
notch CEOs are working under payroll.
Consultancy is a proprietary business like technical, en-gineering, IT, research, medical, etc. It is meant for professionals
with specialized know-how and skills that the industry lacks.
Most people with some education and have the ability
to solicit sales for insurance companies can be agents. Its merely
representative nature. Insurance companies often provide train-
ing and retraining to their agents to enhance their competence.
The business may be conducted at ones pace; time and contactsis the essential ingredient.
Trading which involves buying and selling for a profit
is peanut. It is an alternative business for those who are handi-
capped in manufacturing and services. Buy low, sell cheap and
offer choice of varieties is the rules of the game.
An effective producer specializes in the area they are
good at. Auto manufacturers for example, specialize in assem-bly, innovation and product developments. It takes thousands
of components to assemble an auto and it requires concerted
effort of thousands of parts vendors to complement one an-
other. The task alone is tedious and complicated. On the sup-
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A candidates potential cant be totally gauged at the point of
interview. Their judgments may go wrong at times. New recruits
are usually required to serve under probation which is seen as a
cushion for the company to correct their mistake. Its easier to
make recruitment than to get rid of undesirable staff. Labor lawis a hindrance.
Education credentials and experience are the key de-
terminants in arriving at a market value of financial packages.
New recruits in the corporate often start lower. It is to prevent
unpleasant sentiments among peers. Exception to the rule is
often seen with candidates of incomparable specialism. Some
corporate evaluate their staff twice a year as a yardstick to deter-
mine increment, bonus, promotion, retraining, etc. Head of de-
partments are intermediaries in evaluation interviews and make
necessary recommendations to the top. People tend to perceive
their greatness and handling the contrary discussion is sensitive,
which may steer undesirable feelings. Someone at the top may
overrule suggestions.Manufacturing is best handled by people with inside
knowledge and skills. Production know-how gained while on
the job is beneficial. Joint-venture with experts is an alternative
but the risks of over dependence can be disastrous. Startup in
the area that you are good at enhances your chance of success.
If manufacturing and services are not your options,
trading is an alternative. Its simple buying and selling attractspeople from all walks of lives. Petty traders are making a liv-
ing on owner-operator basis and major trading houses are large
enough to employ staff by the thousands. Traders usually repre-
sent their principals in distribution of goods and services. Major
trading houses in FMCG tied-up with reputable manufacturers
for mass distribution across boundaries. Their huge market net-
works and financial muscle made them attractive.Recyclers transactions were done on cash basis. Collec-
tors were those that we often seen on the street trying to buy,
collect or pick-up some recyclables. One may work as a collector
with minimal startup capital. The primary criteria are the will-
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Seven
WHEN TO START POSITIVE ACTION
Collection of recyclables seems easy. Its perception as
A laborious job is left by impoverished collectors who pick-up
old corrugated cartons and plastic discards at shop fronts, al-
leys, garbage bins, dumpsters and landfills. These small-timers
are making a living the hard way by collecting free discards in ex-
change for some money to support themselves. Being poor and
shabby, they depend on sympathizers and Samaritans for freerecyclables. They often go places in pursuit of excellence. Con-
straints of their old bicycles and trolleys deterred their carrying
capacity. Hence, they need to make frequent trips from collec-
tion points to dealers where they unload and repeat the process
again. This job is time consuming, every minute counts.
A new collector shall equip himself with some inside
knowledge of recycling, trading process and necessary tools.Small capital outlay to acquire a truck or van, weighing scale,
trolley, cassette player and loudspeaker are all he needs. An in-
expensive old junk that is roadworthy serves its purpose. The
costs of maintenance could be high but it eased hire-purchase
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ucts reformulation and ingredients substitution for savings in
production costs is imperative. Other cost-down includes freeze
in recruitment, perks, annual salary increment and bonuses. Job
cuts are an extreme measure often employed in a downturn.
High flyers were at risk of being axed in economic slow-down. Poor turnover and surging debts was usually associated
with weak economy; it asserts pressure on the companies bot-
tom line. Younger staff with lower salary is a better substitution.
Lucky few may get paid for their dismissal, while the chances of
high flyers beingtorturedis the norm. Most income earners
dont anticipate losing their jobs, but when it happens, its a bit-
ter pill to swallow. No one is indispensable, anything can happen
in the course of employment. Specialized personnel with unique
skills and know-how are less vulnerable. The approach of who
need whom moreapplies.
The Asian Financial Crisis in 1997 caused the freefall of
stock markets across Asia. Currencies of some emerging Asian
economies plunged by the seconds that resulted in financialcatastrophe. Battered countries include South Korea, The Phil-
ippines, Thailand, Indonesia and Malaysia. Currencies crunch
given rise to liquidity chaos. Emerging Asian tigers were ripped
apart. Financial systems in these countries are struggling to keep
up. Some resorted to IMFs rescue and Malaysia opted for fixed
exchange rate mechanismto stabilize her economy.
Instability in exchange rate and the continuous cur-rency depreciation caused fear and difficulty in daily business
transactions. Imported products cost more by the days. Tender
for projects were scarce and if there is any, indicative prices are
the norm to safeguard suppliers. Liquidity melt-down triggers
downfall in turnover and surging bad debts that put companies
out of shape. High leverage, plunging sales, low receivables,
soaring bad debts, low bottom line and tight working capitalwere the culprits that caused many companies to go under. The
collapsed financial systems hinder many companies desperate
need for funding. Prudent management is the key to survival.
Financial institutions was battered by poor receivables and esca-
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do will keep ones job easier.
A conservative boss may not subscribe to a star
performers amazing sales results. Consistent surge in sales
could trigger the complacent staff to dismal. Extra sales need
additional resources to fulfill. It asserts pressure on supportingunits to comply. To put in place additional resources to cope with
increasing sales could be daunting. Infrastructure expansions
require extra financing, equipment, instrumentation, human
resources, training, warehousing, etc. Tedious sanction of capital
expenditure needs justification upon justification to get through.
The red tape takes time to get the right person to support, justify
and to approve it. Unadventurous bosses would not sail along. It
is frustrating.
Companies will pursue cost-down strategy in bad
times. Slow sales, surging bad debts and high operating costs
kill. Optimization of resources is a way of reducing expenses.
Downsizing and mergers and acquisitions involve job cuts.
Retrenchment and voluntary separation scheme are somecommon redundancies. Some high flyers who earned fat
paychecks may not be eligible for the golden hand shake. The
strategy of how to get a person to leave voluntarily saves the
company a fortune. Assertion of more pressure, increasing
workload and responsibilities, transfers and humiliation are some
tactics in use. Companies in troubled waters may conveniently
vanish. Cost-down exerciseneeds all organs of the company
to commit and work towards overall reduction in operational
expenses. No stones shall be left unturned. Briefing on the com-
panys health status has to be carried out from the head down. A
secretarys means of cost-down is to reuse, recycle stationeries,
reduce talk-time on telecommunication and increase productiv-
ity. Marketing people are to work extra hard in soliciting sales,improve collection and to reduce overall travelling expenses
like mileage claims, hotel accommodations and entertainment.
Production people requires to reduce wastages, recycle and re-
use non conforming finished products and raw materials, re-
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conditions can force one into submission. Contracted sales,
increasing debts and declining bottom line doesnt justify the
experienced and expensive staff. Fewer sales and management
issues need less people to execute the operations. Some companies
exploits their senior personnel by pinching at their mistakesand non-compliance to Standard Operating Proceduresas an
excuse to force them into submission which would otherwise
not an issue in booming times. Hence who need whom more
applies. Voluntary resignation saves the company a bomb.
Employment guarantees the stability of income at the
end of month to satisfy financial obligations. Its a difficult
decision for income earners to quit the safe haven to venture
beyond employment. Income earners tend to go through
the FAQs of what ifs prior to burning the bridge to the
business world. Too much worry into the uncertainty hinders
their decision and hesitation to quit despite paying the price of
patience, tolerance and sacrifices.
Asian Financial Crisis in 1997 had brought aboutthe collapse of companies in affected countries. Some Asian
tigers were tamed by their financial catastrophe that demanded
IMFs rescue. Many companies failed by the day that pushed
unemployment rate through the roof. Some corporate owners
were being displaced as well. A Thai prominent corporate
high flyer had resorted to peddling burgers for a living. Fresh
graduates, redundant professional and other jobless cashed intothe hawkers business in hard times. Lethargic economy called
for change of mindset to overcome adversities.
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Eight
WHY ME
All of us need to work in one form or another by trad-
ing our time and expertise to an organization in exchange for a
financial consideration known as salary. It is a means of making
a living to satisfy basic needs like food, clothing, shelter and
lifestyle. Women who stayed-in works within the household to
keep the environment conducive and comfortable, cooking for
the family, up-bringing of children, etc. Retirees and aging folksalso tend to keep themselves busy. Those who live from hand
to mouth would find that their paychecks were hardly enough.
People with parsimony character are careful and prudent in han-
dling money. They could save some of their earnings for invest-
ment.
A boss make a living working for himself, answerable to
no one, pockets all proceed and bear all liabilities. Self-employed,small and medium enterprises and conglomerate commanders
work too. Their functions are to ensure overall efficiencies, bot-
tom line and the rice bowl of their staff. Large companies with
wide interests beyond the watchful eyes of its owners recruited
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Every organization practices their culture and politics.
Big companies that employed substantial workforce are prone
to active politics. Transparency is not easy to come by. New re-
cruits need to identify the existing culture and find a way to fit
in. Reserved management culture is more evident in a companywhere all were on payroll. Seniors wanted to be looked up by
their bosses in the HQ. Presentation of reserved annual budget
and easily achievable target is a norm. It is to show HQ that their
management capability is beyond doubt. Preparation of high
objective is strongly discouraged. In case of unexpected surge
in turnover and profits, the management practices creative ac-
counting in finding ways to hide some of the fats for rainy days.
Provision accounts are a way of allocating the extras for future
use. It knocks off profits to the desired level. If the sanctioned
fund is not used up, the money remains intact. When written
back, it adds on to the bottom line of the year of adjustment.
Corporate lives are not in favor of lone ranger who is compe-
tent and working too fast. Team spirit and knowing the ways toblend into the rotten bunch is the rules of the game.
Global Financial Crunch 2008 caused catastrophic li-
quidity among banking giants in the developed economies.
Stocks freefall had devalued companies and lessen their worth.
Governments of respective countries worked out rescue pack-
ages in the billions of dollars to prevent their collapse. Sub-
prime mortgages in the United States triggered this financialtsunami that swept across all continents. The contagious effect
of liquidity brought down trade worldwide. Low demand for
Made in Chinaproducts had caused redundancies in China by
the millions. Limping liquidity brought about declining demand
for goods and services. Fewer sales called for trimming of man-
ufacturing facilities. Redundancies initiated by bankruptcies and
downsizing are looming. In a situation of low trade activities,jobs are difficult to come by. Japanese companies used to offer
life time jobs no longer practice it anymore. The safe havens of
income earners are threatened in hard times.
Asian Financial Crisis in the 2nd half of 1997 came
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will find it harder to find one.
Its pleasant to be employed with an easy job and a de-
cent paycheck in booming economy. Fewer vacancies are avail-
able in hard times. Employers were more selective and stretched
their money longer. Ability to cling on to existing job made usproud. No one wish to be jobless in economic slump because
the financial lifeline will go flat too. Job hunting takes time and
money and it can be frustrating. Those that lived from paycheck
to paycheck cant afford to be redundant. Financial obligations
are going to make the situation worst. Bankers debt recovery
machineries are a nuisance in our lives.
Making a living has no boundary. We should be proud
of the money earned from hard work and sacrifices. As a Chi-
nese proverb suggest: Irrespective the color of cats, the one
that catches a mouse is a good cat. Collection of recyclables
is no longer dominated by those rough guys, old folks, illiter-
ate and drug addicts. It has gone through the evolution where
greenhorns of 20 some-things, self-employed and the educatedworked as collectors. The beauty of this business is due to little
capital requirement and simple knowledge of trading. Its attrac-
tiveness includes high profit margin, command on buying prices,
cash basis, no need of existing customer base, no networking,
no marketing expenses, freedom and financial independence.
Daily cash availability enabled financially strapped individuals to
rollover. It offers an opportunity to be a boss, answerable to noone and pocket all profits.
WHY ME
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Nine
WHERE THE MONEY IS
Recycle Papers
Papers of all sorts are available in companies, publish-
ers, printers, libraries, schools, hotels, supermarkets and shop
retailers and residential.
Companies
Categories Source of Materials
Pure White Changed of printers thatmade the pre-cuts inappropri-ate
Prolong stocking of white pa-pers that causes it to discolor
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Mixed Papers Colorful newsprints like tele-phone directories
Printers
Categories Source of Materials
Pure White Odd sizes of plain papers that
is inappropriateSorted from slug. The slugarea is discarded when thedocument is trimmed to its fi-nal page size. It holds printing,customized color bar informa-tion and other instructions in
the documents.
Black & White Sorted from test prints andslug
Mixed White (A) Sorted from slug
Mixed White (B) Sorted from slug
Mixed Color Trimmed from slug andexcesses of light packagingmaterials
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Old CorrugatedCartons
Discards of packaging materi-als
Residential
Categories Source of Materials
Pure White Derived from the
Mahjonggame but its scarce
Black & White Sorted text and exercise booksSorted companies brochuresand annual reportsStudents study materials and
writing papers
Mixed White (A) Discarded magazines
Old Newspapers Accumulation of subscription
copies
Recycle Scrap Metals
There are wide varieties of scrap metals. It ranged fromlow end scrap irons to expensive copper. Numerous scraps of
different composition are obtainable from electrical contractors,
air-conditioning contractors, civil contractors, auto workshops,
farms, printers, industrial, and restaurants and residential.
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Scrap Irons Replacement of auto parts,dismantled engine and gearboxes.
Scrap Zinc Used oil filters
Old Batteries Replacement of flat batteries
Farms
Categories Source of Materials
Brass & StainlessSteel Damaged spray pumps
Scrap Zinc Damaged and corroded roof-ing sheets
Damaged and corroded drums
Printers
Categories Source of Materials
Aluminium PrintingPlates
Discards of useless printingplates
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Scrap Irons Old bicycles, trays, chairs,cabinets, refrigerators, washingmachines, kitchen utensils, gas
cookers, auto parts, air-condi-tioners, clothes hangers, bedframes, aquarium stands, tablelegs, electrical appliances, etc.
Recycle Batteries
Auto batteries wear out over time. Each replacement
brings about another piece for recycling. Large batteries were
used in automotives, trucks, generators and forklifts. Motorcy-
cles and security alarm systems accommodate smaller units.
Categories Source of Materials
Large Batteries Can be sourced from resi-dential, auto workshops,transporters and factories thatowned trucks and forklifts.
Small Batteries Available from residential andmotorcycle workshops
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Ten
HOW TO DO IT
On that night in April 2001, the conception of me asa recyclable collector began. Its cash basis, high profit margin
and freedom for being my own boss are appealing. I had gone
through the life cycle of scrap prices over 8 years. The scraps
prices have ascent beyond its own record before Beijing Olym-
pic in August 2008. When the slump sets in after the Olympic
Games, again Im dealing with historical low prices. Global fi-
nancial crisis 2008 hampered demand for secondary fibers andscrap metals. Its timing coincided with game over of Beijing
Olympic. Hence, it is easier to recall the onset of prices plunge
of recyclables.
Recycling is resilient in good and hard times. Reading
is a favorite past time for the educated. Its a means to catch-up
with news, gossips and personal developments. Common read-
ing materials are makeup of newspapers, magazines and books.Catching up with daily news is addictive of which some people
will feel uneasy without it. Reduced consumption of newspa-
pers leads to lower volume of recycle papers but it is still being
generated by the readers.
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Example of Profit Margins
Products Wt.
Kg
SellingPrice/Kg
RM
Amt.
RM
ProfitMargin
%
Profit
RM
Old Newspapers
General Aluminium
Burned Copper
100
100
100
0.23
3.30
13.70
23.00
330.00
1,370.00
50.0
20.0
5.0
11.50
66.00
68.50
The Basic Needs
Transport
Get a cheap and road worthy small truck or van totransport your collections is a prerequisite. There are people
who were hit hard by economic slump that are unable to keep
up with monthly hire-purchase repayments. Discharging their fi-
nancial obligations by getting someone to take over their vehicle
is a way of avoiding confrontation with bankers. This arrange-
ment is rational for financially strapped individuals who have
problems to come out with the small initial capital. Execution
of proper documentations is a necessity.
Bankers are not keen to finance old junks of more than
10 years. Its even tougher to get a loan during Global Financial
Crisis. The privileges of high financing, low interest and long
repayments never happens with old second-hands. I bought a
van 8 years ago at RM11,800 with 60% financing, 8% flat inter-
est rate payable over 3 years. A guarantor is called for to keep
the banker happy. Besides the 40% balance, an additional sum
of RM2,500 is required to cover registration, inspection, insur-
ance and road tax. It could be cheaper to put a new vehicle on
the road.
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Trolley
A two-wheelers tire trolley costs some RM80. Its a
daily tool to transport heavy items like old newspapers, books
and magazines from a household to your vehicle. We can makedo without it but to get the chores done is tiring. Solid wheels
trolley is good for rough use and its maintenance is little and
inexpensive. However, tire wheels trolley is lighter to handle. Its
soft tires are friendly to tiled flooring, easier to carry heavy stuff
down the stairs and to cross small uncovered drain. The made
in China replacement wheel costs RM25 each. Flat bedded 4
wheelers trolley is impractical for uneven surfaces.
Choice of Residential Niche
Residential comprises of individuals who lives over a
large geographical spread. They owned a bit of most recyclablesbut of minute quantities. This is the segment that gives us the
highest profit margin. Little and insignificant scraps diminishes
their bargaining power. Their housekeeping necessitates the
clearance of unwanted waste, be it old papers, scrap metals, elec-
trical appliances, auto batteries and old computer systems. Their
primary objective of housekeeping overrides the little value of
discards. Some Samaritans gives it away with compliments. Mostcustomers are not too particular about their tiny waste but there
are some black sheep who wish to exchange their recyclables for
the price of precious metal. Money can never be enough to
them. I used to offer them slightly extra, roundup to the near-
est dollar or just walk off. This fussy type is also fulfilling their
housekeeping objective. Selling for a higher worth is all they
wanted.Competition for quantities in the trade segment made
it more expensive that eroded the profit margin of collectors.
Their bargaining power enabled them being spoilt for choices.
Dealers tendered prices is competitive that disabled collectors
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vironment caters for all.
Bungalows
Upper middle class and the rich lived in these houses.
Its value, prestige and luxury are beyond reach for most people.
There are terrace type of semi-detached, rows of bungalows
and the prestigious scattered units. Its a lot easier to make our
rounds in the first and second types, whereas, the latter is time
consuming. The easy job of collecting from rows of houses
attracts many players. Many collectors in an area diminish the
amount of recyclables. The rich who lived in the scattered and
prestigious bungalows are skeptical in dealing with layman. Its
residents hardly deal with their discards and hence, the collec-
tors. Disposal of waste is done by their maids and house helpers.
In view of their storage spaces and to reduce interaction with
collectors, their recyclables accumulates. A good hit derived oldnewspapers in the hundreds of kilos.
Village Houses
Suburban new villages were organized into rows and
rows of bungalow type semi-wooden houses. Its area is usuallyseparated by fencing or optimized buildups that leaves narrow
roads for accessibility. It necessitates collectors to observe traf-
fic obstruction at all times. There are also village houses that are
scattered and haphazardly built. Their literacy level is compara-
tively low that doesnt contribute much to the collectors bottom
line.
Walkup Flats
Moving your truck slowly with the loudspeaker blasting
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some sites allowed collectors on certain days of a week like Sat-
urday and Sunday. Fewer collectors in those areas ensure prom-
ising quantities.
How to Collect From High Rise Buildings?
Its always a problem collecting from flats. A loudspeak-
ers output cant reach beyond certain height that renders it inef-
fective. I have tried selected mail drops by stipulating my services
and the precise time and date of collection. To my amazement,
there are only a handfuls that responded on a Sunday where
collectibles are expected to mount. This may due to the little
value of recyclables that discourages their prompt action. Small
amount of collection at high rise buildings on weekends renders
it unattractive. Residents there will call up from time to time for
the collection service but their volume needs evaluation of its
feasibility of picking up solo. A viable way is to put up bannersaround the community on fixed time, date and the type of col-
lectibles.
Noise Insensitive Countries
Choose an area to set in motion. Blast your collectionmessages through the roof while moving your truck at about
5km/h passing rows upon rows of residential houses and be
alert for calling signals. A collectors business is a win-lose situ-
ation where it is always in favor of collectors. The price fluctua-
tion of recyclables needs insiders to catch-up on its volatility.
Domestic waste of little value and infrequent clearance led to
ignorant of the masses. Being uninformed and vulnerable, theyare at the mercy of collectors to pay them.
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Buying Papers from Residential
Common papers that a household owned are old news-
papers, magazines and school books. Unknowledgeable and ill
informed about the various categories of papers, they mixed upa bit of everything. All papers are the same to them. A pile of
old newspapers contains light packaging materials (mixed color),
flyers and unsorted mails (mixed papers), writing and photo-
copy papers (black & white), books (contents: black & white,
cover: mixed color), magazines (mixed white) and old corru-
gated cartons. The different categories of papers are meant for
large quantities and the pricey black & white. Collectors never
attempt to segregate the bit and pieces in front of customers.
The buying price for the mixture was treated as old newspapers
at RM0.10 a kilo. It can be off loaded as old newspapers at
RM0.23. It generates a profit margin of 130%.
Having known the impossibility of segregation to the
dot, paper dealers accept some form of impurities. Dealers mayrequest for separate weighing in the case of excessive mixture,
say 20%. In normal circumstances, you may off load your col-
lections at the rate of old newspapers, i.e. RM0.23 a kilo. Since
we may free our stocks at a higher price, its rational to offer
a flat rate to customers. This is how the industry is practicing.
Too calculative in differentiating every little recycle papers may
provoke the anger of customers. Its prudent to buy at the pricesof books and magazines in quantity. When the price of mixed
white for magazines at RM0.24, mixed color for book covers at
RM0.13, mixed papers for newsprints at RM0.13 and black &
white for books content at RM0.35, we are making more profits
by offering RM0.05 a kilo. To make extra profits necessitate your
sacrifices to separate the unsorted books and magazines into its
respective categories. The priority is to segregate pricey black &white from the rest.
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volume of excesses and returns enabled their direct dealing with
paper manufacturers. Packers were engaged for baling purposes
only.
Printers and retailing giants practiced tender system
for their cut-outs, test prints and old corrugated cartons. Theirhigh expectation and frequency of clearance is a daunting task
for small collectors. Dumpsters were provided for easy load-
ing and transport. Supermarkets old corrugated cartons need
daily clearance to make way for the next business day. The job
requires a packer to park his staff for sorting, arrangement and
loading. Its a tedious, time consuming and tied down job. It
involves working late into the night.
Costs and Benefits of Papers from Trade
Categories Selling PriceRM/Kg
Buying PriceRM/Kg
ProfitRM/Kg
Profit%
Pure WhiteComputer FormsBlack & White(Books)Mixed White:
A-MagazinesB-PostersOld Newspapers
Old CorrugatedCartonsMixed Colors-Book Covers-Light PackagingMaterialsMixed Papers(Newsprints)
Paper Corns
0.550.460.35
0.240.200.23
0.13
0.13
0.13
0.13
0.350.300.25
0.170.130.17
0.05
0.05
0.05
0.05
0.200.160.10
0.070.070.06
0.08
0.08
0.08
0.08
575340
415435
160
160
160
160
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certed urge of residents to clear their stuff will vaporize in thin
air.
The conventional way of collecting old newspapers
by hand length measurement is still in use by some collectors.
Its convenient and advantages to collectors. Restacking the oldnewspapers ensures its compactness that makes it heavier. Fold-
ed newspapers shall be opened or double stacked to its original
size. An average Asian hand length from tip to tip weighs some
12kg. At the price of RM1.20, it is equivalent to RM0.10 a kilo.
Magazines are heavy and a hand length is some 8kg. By double
stacking the magazines to the size of a newspaper it weighs
double. In effect, the actual payout is only RM0.075 a kilo that
generates 206% in profits.
Honesty is the best policy. Many children were request-
ed by their parents to sell discards. Pay them the right amount
for their stocks. Beware of hidden eyes to ensure that their kids
were not duped.
Greenhorns will encounter households sneak a lookwhile passing by. Most of the collectors messages sound quite
similar; their peek is to identify their regular collectors. Too
many sneak a look in an uncharted territory dont seem promis-
ing. There is a high tendency of too many rivals working in that
community. Avoiding this environment ensures better returns.
On the contrary, too many glances at a remote area signified that
collectors were scarce. They responded out of curiosity.Money is the necessary evil that never seems to be
enough. Customers always ask for more. Bridging is the rules
of the game that bring about an acceptance. Despite the agreed
rates, they will still request for roundup to the next dollar or
even more. If the quantity is justifiable, it is advisable to pay. A
hit is not easy to come by, if you dont, others will.
When the gate is opened for you to collect the recyclepapers, peek for other potential items that fit your collections.
While collecting old newspapers, it offered an opportunity to
collect other stuff simultaneously. Valuable waste like scrap
metals, old batteries and spoilt computer systems enhance your
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Some valuable scraps are deceitfulbut a magnet makes
wonders. Even experienced scrap dealers need it to avoid buy-
ing at a wrong price. The table on valuable residential scraps
described its buying rates, selling prices and profit margins. One
or two pieces of a households brass are difficult to weigh. Itis usually lumped with irons at RM0.30 a kilo. It needs a few
contributors to make up a kilo. By itself, the feather weight cant
justify to be paid as brass. A collector needs to accumulate the
bit and pieces for it to move the scale.
Scarce valuable residential scraps give collectors higher
profits. Field workers demanded at least 100% margin on costs
to cover operating expenses. Products like accumulated brass
items, batteries and computer systems made up the high margin
categories. Aluminium as a well known scrap doesnt generate
much income. People are knowledgeable about aluminium and
its anticipated price. Hence, profits from aluminium based prod-
ucts ranged from 47% to 110%.
Residents wouldnt bother to separate iron frame fromthe brass radiator. In the process of collection, it shall be pur-
chased as a piece with the iron frame intact. The rule of averages
is applied to compensate for cheap irons that weigh some 30%.
Its final content bring down profit margin to about 100%.
How to Make Extra Money from Scraps
Coilsare the unprocessed valuable scraps like copper
and aluminium embedded in an object. You may pass on the
dismantling chores to dealers at RM1.30 a kilo. Demanufactur-
ing is a means of value addedby separating the products into its
respective categories. By doing nothing, you are making a profit
of 120% to 333%. Households may not have the necessarytools, knowledge and skills to rip it. Moreover, finding a buyer
for some feather weight valuables is discouraging. A damaged
air-conditioner contained a motor, scrap irons, copper condens-
ers, burned copper, brass and fine copper wires. Simple tools
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134
The maths of demanufacturing a 36kg air-conditioning
compressor generated an extra profit of RM12.78 or 16.1%.
1 Unit 1 HP Air-Cond. Compressor
Weight: 36 Kg
Categories WeightKg
PricesRM
TotalRM
Coils
Scrap Irons
Copper Condensers
Burned Copper
Brass
Fine Copper Wires
Prices as at 31-3-2009
14.5
13.0
4.7
2.0
0.327
0.083
1.30
0.55
7.50
13.70
9.30
3.50
18.85
7.15
35.25
27.40
3.04
0.29
--------
91.98
====
Sell as a whole 36 Kg x RM2.20 79.20
Extra Profit @ 16.1% 12.78
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137
A 9.5kg air-conditioning blower generated an extra
profit of RM4.46 or 21.3%.
1 Unit Air-Cond. Blower
Weight: 9.5 Kg
Categories WeightKg
PricesRM
TotalRM
Hard Plastics
Copper Condensers
Coils
Burned Copper
Prices as at 31-3-2009
4.5
2.2
1.4
0.448
0.20
7.50
1.30
13.70
0.90
16.50
1.82
6.14
--------
25.36
====
Sell as a whole 9.5 Kg x RM2.20 20.90
Extra Profit @ 21.3% 4.46
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140
A 2.5kg table fan with aluminium housing generated an
extra profit of RM0.87 or 26.8%.
1 Unit Table Fan with Aluminium Housing
Weight: 2.5 Kg
Categories WeightKg
PricesRM
TotalRM
Scrap Irons
Plastics
Burned Copper
General Aluminium
Fine Copper Wires
Prices as at 31-3-2009
1.4
0.600
0.162
0.137
0.131
0.55
0.35
13.70
3.40
3.50
0.77
0.21
2.22
0.46
0.46
--------
4.12
====
Sell as a whole 2.5 Kg x RM1.30 3.25
Extra Profit @ 26.8% 0.87
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143
Battery series from 70Z to 150s were used to commis-
sion trucks, trailers and heavy machineries. Owners frequent
handling of batteries enhanced their knowledge in its resale val-
ue but was not well informed on its price fluctuation. A decent
offer encourages their acceptance. On the contrary, individualcar owners are ignorant and uninformed. They probably replace
new batteries once in some 18-24 months. Despite low offers, it
remains undisputed.
Competitive forces of collectors buying old batteries
from workshops had escalated its prices that diminished the
margins to paper-thin. Despite low profit of some 10%, their
quantities attracts collectors. High volume somehow compen-
sated for low returns. If you are not prepared to make less,
workshop is not your cup of tea.
Profits from Workshop Batteries
Series Ave.Wt.Kg
SellingPriceRM/Kg
Amt.RM
BuyingPriceRM/Kg
Amt.RM
ProfitRM %
40s
55s
60s
66s
70s
70Zs
100s
120s
150s
9.0
13.0
12.0
15.0
17.0
24.0
28.0
33.0
42.0
1.60
1.60
1.60
1.60
1.60
1.60
1.60
1.60
1.60
14.40
20.80
19.20
24.00
27.20
38.40
44.80
52.80
67.20
1.44
1.44
1.44
1.44
1.44
1.44
1.44
1.44
1.44
12.96
18.72
17.28
21.60
24.48
34.56
40.32
47.52
60.48
1.44
2.08
1.92
2.40
2.72
3.84
4.48
5.28
6.72
10.0
10.0
10.0
10.0
10.0
10.0
10.0
10.0
10.0
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An 8kg CPU Box without processor generated an extra
profit of RM3.80 or 27.1%. PCBs value at RM15 a kilo gener-
ates more proceeds for a larger motherboard in this light weight
system.
1 Unit CPU Box without Processor
Weight: 8 Kg
Categories WeightKg
PricesRM
TotalRM
Scrap ZincPower SupplyPCBHard DiskCD & Floppy DisksHard Plastics
Prices as at 31-3-2009
5.01.0
0.7640.5000.5000.200
0.301.80
15.005.001.000.20
1.501.80
11.462.500.500.04
--------
17.80====
Sell as a whole 1 Unit x RM14.00 14.00
Extra Profit @ 27.1% 3.80
Buying from Restaurants and Coffee Shops
These outlets serve food and drinks. They collect and
accumulate drink cans that customers left behind. There are
four types of drink containers such as aluminium can, metal
can, plastic and glass bottle. All drink cans and condensed milk
containers they accumulated contain some leftovers that stench.
I avoided these customers because having to pay high prices for
the privilege of enjoying the unpleasant smell. A trucks open
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How to Make RM100 on Weekday
What it takes for you to make RM100 on weekday is
500kg of old newspapers, 50kg of scraps and 2 pieces of batter-
ies, any extra is bonus for the day.
What It Takes To Make RM100
Products Details Amt.RM
CostsRM
ProfitRM
Old Newspapers,Books & Maga-zines
Old Batteries
Scrap Irons
Old Newspapers,Books & Maga-zines
500Kg x RM0.23
2 pieces of 60s,24Kg x RM1.60
50Kg x RM0.55
OR
770Kg x RM0.23
115.00
38.40
27.50
177.10
50.00
10.00
15.00
77.00
65.00
28.40
12.50
--------105.90
=====
100.10
=====
How to Make RM250 on Weekend
There is more people at home on weekends and holi-
days that enhances your collections. The frequency of getting a
hit is quicker that makes the 1.5 times extra a reality. 1 cu/ft ofsolid iron weigh 222.5kg. You need to collect 10 pieces x 10kg
of iron rods to make up 100kg or a few old bicycles and some
junks.
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Market Prices of Bulky Stuff
How Much Working Capital You Need?
Besides your initial outlay, the costs of daily residen-
tial purchases are little. With RM100.00 in small denominations
and some coins, you are on. This small working capital can buy
about 1 tonne of old newspapers that generates you a profit of
RM130.00. There isnt any fixed and hard rule on the sum to
work on. Bigger sum gives you confidence in case of contin-
gency. It may due to your trucks breakdown or impromptu saleof a big customer. Financial constraints hampered your ability
to go far because the limited sum can only buy tiny amount of
recyclables. You may work within your neighborhood and make
frequent trips to the dealers to convert your stocks. Increased
frequency of stocks turnover generated soaring profits that en-
larged your working capital. You require extra funds to buy in
volume from trade customers. Often, arrangement will be madethat allowed you time to prepare for the amount. A brief explo-
ration on their stocks such as type of goods and volume lets you
plan ahead. If you are buying 100kg of copper, the purchase
sum is about RM1,300.00 and 1 tonne of old newspapers only
Products Units Market Prices
RM
Television
Refrigerator
Semi-auto Washing
Machine
Automatic Washing
Machine
Prices as at 31-3-2009
1
1
1
1
3 35
10 - 15
10
15
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Auto parts like alternator, starter and air-conditioning
compressor contained copper and aluminium that fetches a
higher worth as coils. Reconditioning collectors could offer few
hundred percent extra in term of size, brand and prestige. These
collectors buy from auto workshops and scrap yards. They canbe seen loitering from shop to shop in search for their supplies.
Scrap yards bought washing machines and refrigerators
for its motors and parts at low prices. They purchased spoilt
TVs too. Dismantling for its valuable contents fetch little. Some
repair centers buy junks at a higher price, restore and resell it as
second hand to make a profit.
Exchange rate as at 30-6-2009
US$1 : RM3.50
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