This is easy: On any given day the precious metal price is only one of several factors that Buyers consider when pricing Units and bidding LOTs.

The one thing Scott and I have learned over the last two years is this: The price that Buyers pay for the converters is not always linked to the price of the Metals!

Christopher brings up a good point about converter prices NOT always being linked to the prices of the underlying metals. It is something we have been watching closely.

Almost every Seller asks us “when” they should sell. We have come to realize that the “how” you sell is equally important.

The setting of a timeline for selling, for example, every week, month, quarter, etc. is the “when” part of the selling decision.

What few people consider is the “how” part of the selling decision.

No, when we are talking about the “how” Sellers should sell converters – we are talking about a structured process that guides them to get the highest and best outcome when selling their converters. In short, Sellers should have a process that tells them “when” to sell converters and process that shows them “how” to sell converters.

We find is that most Sellers don’t give the “how” to sell converters a second thought, yet it is just as important – if not more important – than the “when” you sell converters.

First, let’s give you some background that explains Christopher’s comment on converter prices not always being linked to the current price of the Platinum Group Metals.

We used to think that the value of a scrap catalytic converter was exclusively driven by two factors.

Through the transactions on ScrapCATapp.com, we have discovered that just these two factors, do not determine how Buyers buy Scrap catalytic converters.

I also use to believe that converter prices were driven, exclusively by the precious metals in the unit and the current price of those metals.

After multiple transactions on our site, Scott and I finally realized that our assumptions – which, by the way, are the same assumptions used by every converter Buyer and Seller in the industry – were wrong!

Maybe “wrong” is a bit too strong. Let’s just say that those assumptions put a lot of emphasis on the quantity of metals and metal prices, but grossly underestimate the value “other” factors have in determining the price a Buyer offers for a scrap catalytic converter.

It was the hard data we were getting back from scrap converter transactions conducted on our website.

As you know, our platform, ScrapCATapp.com, is the Premier Online Auction/Marketplace for Scrap Catalytic Converter Sales. It is where Buyers and Sellers of scrap converters go to buy and sell catalytic converters.

Exactly.

As a marketplace, we see both the buy and sell side of a scrap converter transaction, and as transactions were being conducted on our site, we were seeing Buyers offer prices for scrap converters that we had a really hard time understanding.

The prices Buyers offered to the Seller were often much higher than we anticipated.

Well, realistically, no. We have both run our own large scrap converter collection businesses and we both have over 30 years of experience as scrap converter Buyers…

In fact, between the two of us, we have probably purchased over 15,000,000 converters valued at over $1 Billion!

Scott and I would see these Bids coming from Buyers that were much greater than we expected.

We would even text each other……”Did you see the bids for LOT WXYZ?” because we could not understand what was going on.

As we were tracking the transactions, we noticed something fascinating.

What was fascinating was that no one Buyer dominated the site. Sometimes a Buyer would be the top bid on one LOT and then the low bid on another LOT – when both LOTs were posted at the same time!

Typically in any commodity market, if one company is a strong Buyer, it is usually because they have some underlying competitive advantages that make them a strong Buyer.

What we were seeing was a Buyer winning a LOT bid by 5% and the same Buyer losing a similar LOT bid by 15% - on the same day on very similar Units!

We thought it might be a regional thing, but we did not see regional location having much impact on the success of the Buyer’s Bids.

We have been tracking this for almost 2 years and done almost $50,000,000 in converter transactions – and we have come to one startling conclusion.

It does not matter the size of the company, or whether they buy on a unit basis or by assay,

On any given day – any Buyer can be the top bidder on any particular LOT of scrap converters.

We finally concluded that you just never know what a particular Buyer sees in a LOT or what factors they take into consideration when they make a bid on a LOT of scrap converters.