recycling precious metals

There are several recyclers in the post cremation-recycling industry that are providing so-called “free processors” to crematories around the country. This offer includes a maintenance agreement as well as a time-based contract to send the recyclable metals to the recycler who provided the machine. The recycler then pays the crematory or donates to a charity an amount for the metals. These machines can range in value from $5,000 to $45,000. They work very well and can save the operator considerable time, especially at a busy facility. As long as the crematory sends the metal to the recycler, they can keep the machine. It almost sounds too good to be true.

Everyone has heard the phrase, “there is no such thing as a free lunch.” This statement could not be truer than in the “free machine” game being run by the recyclers today. What the crematories are not being told is that the value they are receiving for the metals is sometimes less than 15% of its actual value. One recycler pays a flat $150.00 per ounce of Dental material. The reality is that the material has an actual value of up to $1,200 per troy ounce…an 8-fold difference. The value of the material by weight is based on the demographics of the deceased, in addition to the volume of services performed. Each facility will produce different amounts, with different values. It is extremely important to track these values to ensure maximum value is being achieved on every lot turned in from each facility. For a crematory generating an average of 10 ounces per month, they would receive approximately $18,000 over the course of a year when taking the “free machine” vs $144,000 returned over the same period by the same facility without the “free machine”. Ask yourself, was the machine “free” after all?

The recyclers are in the business of recycling metals, not in the business of providing, operating, and maintaining expensive processors. They do it because the processors have become atm machines for their businesses that are funded by the crematories. For a business seeking to maximize value and returns, especially for material that is already generated in their facility, it is imperative to seek out a recycler that will pay you the value of the material you are sending them, period.

Many crematories have returned the free machines, only to find out that the returns they were now receiving allowed them the flexibility to purchase 10 machines if they wanted. Instead, they usually just purchase one and use the additional funds to reinvest in their business or to provide increased returns to the charity or foundation of their choice.

Don’t fall for the “free machine” trap. Call 800-323-9785 or visit today to see how you can pull your facility out of the trap, and help achieve maximum value for every piece of metal turned in.

By Jarret S. Niesse

COO – Precious Metal Refining Services, Inc.