How Dealer Payout Percentages Actually Work

Not every buyer pays the same percentage of melt value. Your margin model should adapt by channel.

Common payout bands

• 60% to 75%: higher-risk walk-in buying models
• 75% to 88%: standard local and online buyers
• 88% to 95%: high-volume or direct-refinery channels

Your calculator should expose three values

1. Melt Value (100% theoretical)
2. Estimated Payout (dealer offer)
3. Margin (difference retained)

Practical tip

When volume increases and test confidence is high, many operators tighten margin to improve conversion.

Track accepted offers over time and tie that history to market volatility.