Maximizing Converter Returns: Understand and Evaluate Your Inventory Before Shipping

Maximizing Converter Returns: Understand and Evaluate Your Inventory Before Shipping

One of the universal truths in the catalytic converter processing industry is that scrap converters must be toll-refined. That’s because they contain platinum, palladium, and rhodium, three Platinum Group Metals (PGMs), that are in high demand globally. To determine the exact amount of each precious metal, assaying converters is necessary.

Working directly with a toll refiner is important to unlocking the full value of scrap converters. So why do business owners in the automotive recycling industry still rely on core buyers to price their units? Many claim that they lack the necessary volume to work with a toll refiner or can’t afford to wait for payment. If this applies to you, it’s important to know you’re potentially losing money, since core buyers take a cut of the profit from your material.

To maximize your returns, it’s important to partner with a toll refiner that offers buying and tracking tools and a fast turnaround time. This way, you can make informed decisions and get the most from your material.

Price and Secure Your Converters

Your processing partner should provide comprehensive tools to help you organize and understand your material. With instant pricing tools like PMR’s VIN/TRIM and photo grading, you receive market-based estimations for converter prices, allowing you to collect converters quickly and profitably.

Make sure your processing partner offers inventory control methods, like PMR’s Inventory Box tool. These tools can help you to keep a thorough inventory of your materials, complete with details about the material type and expected returns. With PMR’s Inventory Box, for example, you can finalize an inventory of 100 units in 20 minutes and get updated evaluations according to market developments.

Understanding your inventory helps you track your production patterns by allowing you to visualize which material types, locations, and sellers yield higher returns. This way, you can strategically plan when and how to purchase converters for maximum profitability.

Fast Payment Options

Ensure that you’re getting quick payment for your converters. Your processor should be offering advances and unique hedging options to get you paid faster. For instance, suppliers who’ve shipped a minimum of 3 lots with PMR can access up to 80% of the estimated value of their material once it’s been sent. And within 10-15 business days of receiving your material, we make a final settlement. We also include a full report to encourage transparency, so you’ll get a full statement outlining the precious metals recovered and the market price those metals were sold at. You can also request access to your count sheet that mirrors your pre-evaluation.

Processing Partner: The Key to Success

Working with a processor gives you all the information you need to take your recycling business to the next level. You’ll stay up to date with new buying tools, gain valuable insights to optimize your business, and capture a larger market share.

PMR has revolutionized the converter business on all fronts. With a minimum requirement of 100 OEM converters and a turnaround rate of 10-15 business days, we strive to empower our suppliers and make them successful recycling titans. We offer comprehensive buying tools, tailor-made solutions, and dedicated converter experts so that they can maximize their returns. Give us a call. Send us a box. See the difference toll refining makes.

For more information, visit our Resource Center or call a PMR Representative.

Published: March 27, 2020
Discover the true value of a personalized approach