Making the Connection

The recession hit Rockaway Recycling, Rockaway, N.J., hard. To remain in business, owner Thomas Buechel had to lay off all seven of his full-time employees. This episode also made it clear to Buechel that he needed to do things differently, he says.
 

Getting Tech-y
In response to the recession, Buechel heavily invested in technology to run and to promote Rockaway Recycling.

"When the market crashed in 2008, we changed our business model to connect with the customer more than before," Buechel says. "We have created an easy-to-use website that lists our prices.

He continues, "So many people think that this industry is going to avoid technology and that peddlers won't find out the prices of scrap; but, whether or not they call around to scrap yards or try different scrap yards out, they do find out the prices."

In addition to the website, Buechel also developed iScrap App, an application for iPhone and Android phones as well as a website that connects users with local scrap yards and provides access to their pricing information. "I was originally going to only use it at my scrap yard until I realized that so many scrap yards across the country would be able to benefit from connecting with their customers even more," Buechel says. (For more on iScrap App, scroll down to see "Mobile Connection")
 

He says, "From installing a computer system to help streamline material that goes in and out of the yard and advertising through our website and the iScrap App, we have been able to completely change things around."

Rockaway Recycling uses Scrap Dragon from Transact, St. Petersburg, Fla., to run the yard. The system incorporates cameras as well as signature and ID capture, and Rockaway will be adding an ATM next year to handle customer payments.

Buechel says these technology investments are designed to help Rockaway Recycling attract and retain customers. "While prices are all over the place, we want to make sure that we are always gaining new customers and rarely losing them, so when the economy turns down here and there, we are able to keep ourselves going," he adds.
 

Customer Centered
Rockaway Recycling's use of technology coupled with the staff's attention to customer service keeps customers coming back to his yard, Buechel says. "At Rockaway Recycling, my employees know all of our customers' names, call them sir, make sure that they know that we offer a bi-monthly newsletter to update them on prices and send out and hand out coupons, and we continue to strive to earn their business."

Customer service is a priority at Rockaway Recycling because 60 percent of the company's business is retail trade, Buechel says.

The staff at Rockaway helps to walk customers through the buying process and even shows them how to disassemble some products so that they can make more money, he says. "We are also careful to make certain our customers receive the correct weight and price. We have maintained our company motto, which is 'Fair weight, fair price,'" Buechel adds.

Rockaway Recycling does this by turning away customers whose material is heavily laden with dirt, he says. The company fulfills its end of the deal by having its scales calibrated every three to six months by the New Jersey Division of Customer Affairs Office of Weights and Measures and by cleaning its scales every other day. Pricing also is posted at every scale for customer reference, Buechel says.

"The beauty of this business is that it is subject to so many interpretations and techniques. Our primary goal is to continue to service our customer base with expertise." Buechel says that informing and educating Rockaway Recycling's customers to help them maximize their returns helps to differentiate his scrap yard from area competitors. He adds that the staff at Rockaway tries "to go the extra yard to make scrapping fun, profitable and beneficial for all involved."

Buechel adds, "A repeat customer is better than a new customer in my mind. We haven't lost many customers because of our service." Buechel describes his company's relationship with its customers as "crucial and integral to business."

To ensure repeat customers, Rockaway Recycling uses various mail promotions, such as the recent "Cash for Copper" card, which entitled customers to receive an additional 5 cents per pound on wire or copper pipe they sold to the company.

Rockaway Recycling also uses social media to keep connected with its customers. "Our social media is so strong compared to so many scrap yards that don't understand the importance of connecting with customers."

In addition to these digital tactics, Rockaway Recycling hosts customer appreciation days at its scrap yard, such as a recent breakfast and barbeque. The company donated $1 to St. Jude Children's Research Hospital for every item of food or every beverage consumed at the event. Buechel was expecting 300 to 400 customers at the November event. The company's July 4th customer appreciation day raised nearly $2,000 for the children's hospital.

This connection with the community also has helped Rockaway Recycling develop relationships with local trade associations, such as the New Jersey Electrical Contractors Association and the New Jersey Plumbing-Heating- Cooling Contractors Association.
 

Industrial Expansion
Buechel says he recognized the need to expand his business beyond retail trade in 2008. As Rockaway Recycling added industrial accounts, it also added scrap processing equipment. "For years, we only had down-stroke balers and a box truck, but in 2009 we started to expand," he says. "Over the last three years, my Yard Manager Jim Hoesly and I have added a heavy-processing business." Buechel adds, "Everything leaves our shop mill ready."

Rockaway has a container roll-off service that Buechel describes as "always busy" as well as box trucks that make local and long distance pickups of ferrous, nonferrous and electronic scrap. He credits Rockaway Recycling's roll-off business with helping the company survive the recession. "We did jobs just to get a couple of bucks. The business has blossomed since then."

He adds, "Being in the tri-state area is great. We have a lot of competition and a lot of scrap, and it always forces us to stay on our toes. We have been working hard to attract and keep as many customers as we can. We know that we cannot get every job and win every customer over, but we go to work each day looking to change something, gain new relationships and always stay positive."

Buechel says he plans to expand Rockaway Recycling's capabilities in the future, which will include handling catalytic converters and electronic scrap. "We want to conquer as many things that make sense without overextending ourselves."

He adds, "I like having a plan. I think things through from every angle, and I have never been hurt by jumping into things."
 

The author is managing editor of Recycling Today and can be contacted at dtoto@gie.net.