How to Build a Salvage Yard
So many people are used to seeing squalid junkyards as little more than movie sets an trashy places on the outskirts of town. Yet for automobile experts, the salvage yard is often the best source to go for good deals and rare car parts. While it may not look pretty, starting a salvage yard can be a profitable business model as long as you take steps to not scare off customers while simultaneously protecting your investment.
Other People Are Reading
Things You'll Need
- Fencing
- Barbed wire
- Log book
- Map
- Tow truck
- Warning signs
- Car parts guide
- Cars
Instructions
-
-
1
Map the potential property. Either hire a surveyor or gather county maps of the property you intend to use as a salvage yard. Having maps on hand will allow you to guide customers in the future and organize the space for maximum efficiency.
-
2
Fence off the area. Like most stores, a big part of running a proper salvage yard is keeping your product from being carried out without your knowledge. Surround the entire area with a tall chain-link fence and some form of barbed top. Some form of barbed wire will likely be necessary, but it would be wise to make it as unobtrusive as possible. The goal is not to scare off customers. Have at least two large gates and one door in the fence to allow easy access for cars and customers.
-
-
3
Seed your sales floor. Making an initial investment in product can help prime the pump and bring attention to your salvage yard. People are unlikely to donate or bring cars to your salvage yard unless you are recognizable as such to the community. Purchase the cars that no one else wants at police auctions, the schedule for which can often be found on municipal government websites.
-
4
Protect your investment. While the popular image of junkyards typically revolve around junkyard dogs, you probably don't want to intimidate people once they are inside your fences. The goal is to have impermeable borders without making outsiders feel as if they will be attacked upon entry. Having a single employee always walking around can be enough to deter thieves. The addition of security cameras at gates and corners will prove a strong deterrent to many.
-
5
Carefully log incoming materials. People come to salvage yards to find rare parts that they are unable to find elsewhere. Being able to point them to the source of those parts will prove invaluable. No matter how junky the cars being brought in, be sure to carefully log each one. In addition, mark its resting location on a map of the property. Having a map that can be passed out to customers will prove invaluable in meeting your customer's needs.
-
6
Keeping a pricing guide on hand. Because you are not purchasing your car parts from a supplier, the ability to fix a proper sales price is contingent entirely on your knowledge. If you have a computer, keep several links to online part sellers always on hand (see Resources). Request free catalogs from car part manufactures whenever possible. Subscribe to "Cars & Parts" magazine and keep careful track of what is in demand.
-
7
Protect customers and yourself with warning material. Because customers will often be removing parts they desire from cars themselves, the potential for minor injury at a salvage yard is high. Keep warning signs posted by the entrance urging customers to be cautious and affirming that they are acting under their own volition while in your salvage yard. Keep a first aid kit on hand at all times in case of emergencies.
-
8
Keep data on outflow. Track outgoing components in the same book that you record incoming materials. This way you will know when the component a customer seeks has already been removed from a car.
-
9
Diversify into towing. Having a tow-truck will allow you to pick up junked cars. This will greatly increase your stock, as it will put the impetus for getting new cars on you, rather than the customer who is unlikely to put out the effort to bring a car to you.
-
1
Tips & Warnings
Motion-activated floodlights are another unobtrusive but effective deterrent.
