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Junkshops: Making Cash from Trash Print E-mail
Written by Pinoy Entrepreneur, on 01-09-2008
If you've been trying to observe the nature of new small/medium businesses sprouting around, maybe you've noticed that among those are pan de pugon bakeshops, pawnshops, spas, restaurants and, yes, junk shops. New junk shops are opening in places where only "clean" businesses are only expected to open, and even where no businesses seem to open. When we recently received an email inquiring how to start a junkshop, it became clear that this "dirty business" makes clean money (while helping the environment at the same time). 

Why are junkshops sprouting? There should be some reason why junkshops are mushrooming everywhere. Maybe we've become extra concerned with our environment and are doing business through recycling. It could also mean the opposite -- maybe there's not much opportunity around. It's relatively easy (and capital-free) for members of the low-income group look for other's trash and sell it to the junkshops. Or maybe it's  because there's money in trash. According to greephils.com, the "Recyclables’ Collection Event (of the Earthday Network Philippines, the Philippine Business for the Environment [a non-profit organization, mind you], DENR, and many other organizations) has collected over three milion — P3,143,345.00 worth of recyclables (monetary equivalent) to be exact, from garbage."

How to start a junkshop business. The short email we received from Sarnel reads: "i would like to know more how to start a junk shop. please help on this. thanks and regards". I could imagine that the process is pretty much straightforward. Look for a good location. Register your business. Look for recycling centers or central junkshops where to sell, ask for the kinds of junk they buy and how much the buying price for each item. This is crucial in order to determine how much you're going to buy from others (add your costs and target profit). 

Be careful of "fencing". Fencing, as used here, is not one of the sports of Richard Gomez. It refers to the "act of any person who, with intent to gain for himself or for another, shall buy, receive, possess, keep, acquire, conceal, sell or dispose of, or shall buy and sell, or in any other manner deal in any article, item, object or anything of value which he knows, or should be known to him, to have been derived from the proceeds of the crime of robbery or theft." It's basically buying stolen materials. It is a criminal offense punished by law. We've handled a number of cases involving the theft of one of the more expensive junkshop items -- tanso (copper). For junk shop owners or operators, the most problematic part of this law is this -- mere possession of any good, article, item, object, or anything of value which has been the subject of robbery or thievery shall be prima facie evidence of fencing. In short, be careful with what you buy.

 

Published in : Topics, Business Opportunities

Users' Comments (1)
Posted by cheri duncan, on 04-02-2009,
May I add a comment on the topic "Junkshop". Recently the junkshops really is "sprouting". Almost all corners in the middle class areas has it. Even in residential areas many opened its shop using their backyards and garages. And because of this, competition is even harder. Also, this affected the supply and demand. The last quarter of 2008 was a difficult time, prices of scrap materials dropped drastically. Thus, affected all the small scale junkshops resulting to its closure. So, competition really healthy?
 

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