the money makers_crisis & opportunity

8/2/2019 The Money Makers_Crisis & Opportunity

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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

THE MONEY MAKERS: CRISIS & OPPORTUNITY


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7

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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9

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

INSIDE RECYCLING


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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

INSIDE RECYCLING


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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



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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



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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



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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.



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-

WHAT CHOICES OF MAKING A LIVING


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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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74

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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77

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-

WHEN TO START POSITIVE ACTION


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80

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

WHY ME


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89

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


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


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.

WHERE THE MONEY IS


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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


Brass & StainlessSteel Damaged spray pumps

Scrap Zinc Damaged and corroded roof-ing sheets

Damaged and corroded drums

Printers


Aluminium PrintingPlates

Discards of useless printingplates

WHERE THE MONEY IS


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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.


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

HOW TO DO IT


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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.

HOW TO DO IT


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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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125

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

HOW TO DO IT


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128

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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131

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

HOW TO DO IT


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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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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


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


HOW TO DO IT


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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


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




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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

HOW TO DO IT


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146

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


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


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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149

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.

HOW TO DO IT


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151

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


1

1

1

1

3 35

10 - 15

10

15

HOW TO DO IT


60/60

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

HOW TO DO IT

the money makers_crisis & opportunity

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