Every auto recycler finds the amount he or she feels is worth their time; mine might be $25, yours might be $10. The key is to harvest a model that makes sense, brings in the most money and expands the markets servicing
remanufacturers. — Benny Cunningham
back to the recycler to purchase more vehicles will provide the most value to the recycler. “This is an emerging business space being redefined by efforts of companies such as Cunningham’s Automotive Commodity Exchange, other additional opportunities that are being created. New doors are being opened daily for the recycler.”
Understanding the importance of treating the commodity program as a separate revenue with a manager in charge of that division and KPI’s that measure its performance will help to reduce the “sur- prises” that both the auto recycler and the consolida- tor don’t want.
“Both sides lose when you treat it like cores,” said Cunningham. “You as the recycler thought that you
were sending 100% commodi- ties because you don’t under- stand the machine. In reality you were only sending 50%. The consolidator thought they were getting what they needed and in reality they didn’t. The biggest disappointment for the auto recycler is between what they thought they shipped and what they actually shipped. “Often recyclers feel like they’ve been cheated, because they don’t understand what they
are shipping. This can only be overcome through education.” Cunningham says that for the commodi- ties program to be fully successful and marketed well several things must happen. First of all, the owner must buy in to the program. Not only buy in, but “put blinders on for six months.” He encourages the owner to ask for documentation for check-ins. Secondly, the owner must be committed to the pro- gram for a period of time and do an overall evaluation of the program.
July-August 2015 | Automotive Recycling 57
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