b"12 Auto Recyclers ToolBoxTaking complete ownership of your convertersBy Chrysten Newton market value affect your converter val-and Ryan Carrafielloues. of PMR Inc. If your buyer is I n todays rapidly changing worldusually giving you and economy, it is important toa can average of understand that with the right infor- $135 per unit for a mation, there is always a profit to bemixed box (as a made with converters. Unfortunately,truck salvage yard), we often see profit ending up in theand both Platinum wrong hands. Automotive recyclersand Palladium miss out on higher converter returnsincreased signifi-because they heavily rely on core buy- cantly since the last ers to inform and educate them on theirtime you sold, that own material. is an indicator that The reality is, automotive recyclersyour grading data, including a detailedyour can average should automatically repeatedly lose out on higher converterreport indicating the exact amount ofincrease selling in that higher marketreturns by allowing core buyers to dic- grading categories (aftermarket, DPF,if all other factors remain constant. If tate their counts and averages. As aFoil, beads and ceramic), as well as ayou dont know your averages or if you fullness count, you are never aware ofare given inaccurate information, it's result, the question is: How do I edu- such an inaccuracy.hard for you to know if you are beingSince implementing cate myself and take ownership of myHaving access to proper instrumentstreated fairly. Auto-Quote, our own material to validate what Im beingto help you evaluate material in yourPartsTrader sales went told?possession, or material you plan to pur- Take the wheel!The answer is two-fold: know yourchase, is critical. Working with aMany recyclers ask, why should Ifrom $1,200 to nearly converter counts and averages as, it willbuyer/processor able to provide accurateembrace change or make changes when$12,000 in one month!greatly assist you in understanding yourunit counts and accountability for yourI can hang on to what's right in front of material and allow you to navigatematerial makes it easier to validateme? The response is simple: change is toward best-selling practices. In addi- returns and profits. More advanced pro- an agent for good when it stimulates a tion, understand converter pricing as itcessors also enable you to track your par- growth mindset. Constant education is a direct reflection of the live PGMtial percentages, such as full versus par- allows businesses to be adaptable. It market to help you validate price fluctu- tially full converter units in your lot. helps them survive in highly volatile ations and assessments.If you are confident that your cur- markets. Finding new ways to stay rent buyer/processor is accuratelyahead of the curve is extremely impor-Proper tracking reporting on your material and provid- tant. Every dollar counts and every Proper tracking; knowing youring you with transparent data, the nextprofit stream is important. Stop allowing counts and averages.thing to consider is the precious metalbuyers to come into your yard and tell A majority of automotive recyclersmarket. you what you have. Your converters are rarely keep track of their converters.yours and should be managed by you Having an ongoing and running countMarket awareness alone. of units pulled (and possibly bought) isMarket awareness; being cognizant absolute key for not only qualifying buy- of your precious metals. ers but for calculating canaverages.The PGM market determines whatChrysten Newton - Chrysten has Detailed unit counts allow you to calcu- your converters are valued at. It alsobeen a member of the PMR team for late your can average per material typeover 5 years, during which she has from your given returns.clues you in on how to compare prices.accumulated massive knowledge and As an automotive recycler, knowing theexpertise within the converter recycling precious metal composition in your con- industry. - Having started her career Know your counts verters is essential.rightoutofuniversitywithaback-When you know your counts, yougroundinbusinessandnance, will be able to validate inconsistencies.Converters procured from a truckChrysten utilized her skillset to help strengthen core busi-salvage yard are largely Platinum basedness functions and later completed graduate-level stud-For example, if your buyer is countingwith 30-40% Palladium and no Rho- ies in marketing, with goals to strengthen brand aware-all aftermarket units in his can-averagedium. Converters obtained from a lateness. -www.www.pmrcc.com calculation as 1 unit, the result would bemodel yard have a higher compositionRyan Carrafiello- PMR - Ryan skewed. Their statistics would depict anof Palladium and Rhodium and littlejoined the PMR team over 5 years ago incorrect average price per unit. BuyersPlatinum. Yards purchasing older modeland has been successfully servicing typically do this to present a higher thanvehicles will generate converters hold- converterrecyclerseversince.With normal price per unit to win a bid. Ining higher levels of Palladium. Thisyears of experience as a core buyer, reality, the true can average they are pay- Ryandemonstratesanextensive ing is much lower than your materialknowledge will help you follow the cor- knowledge of converters which enables rect precious metal prices and will allowhimtobetterserveclients.-standard. If you do not have access toyou to better understand how changes inwww.pmrcc.com/en/"