What to do with Scrap?

[mulefool]

I'd be interested in hearing how you guys deal with the scrap you generate. There's just so many slobberleathers, spur straps, bucking rolls, etc you can sell. So I still end up with alot more than I want. I have donated some to groups like the Boy Scouts. One I donated some to the prison. But I'd really like to sell it. How do you guys deal with yours?

[K-Man]

I use Hermann Oak exclusively. So I take mine to the local Tandy Leather Factory, and they purchase it at a per pound price.

[Cowboy Crafts Online]

I live about 30 miles away from a Boy Scout camp, so I give them most all my scraps. I have been keeping track of what I have given them this year and am going to write it off. One other thing I have done is back up my scraps and take them to local horse sales and have them auctioned off, but with the price of fuel it is easier to donate them to the boy scouts.

Ashley

[Go2Tex]

YES! Another burning question that I was about to ask. I have waaay too many boxes of real nice scrap that I'm paying a mover to haul it to Texas because I can't see tossing it out.

You could try selling some on Ebay, but that seems almost not worth the effort. There's already a lot on there and wasn't selling last time I looked.

I'll check with the local Tandy, though. I know he has bellies for sale. Haven't noticed any bins full of scrap. I just know somebody needs my scrap, though. I just know it........surely.... SOMEBODY?

[bruce johnson]

Coasters and key fobs!!

I bought my wife some coaster clicker dies. Anything that I don't use for conchos or carriers is used for that. The decent pieces are pressed with embossing plates with different rodeo silhouettes I have. Off grain or softer pieces are glued onto hair-on hide scraps and clicked. Sew around the edges, slick edges, and they are good to go. She bundles them in sets of 4 for $16 a set. I did the math once and by batching, she was making $25-30/hr.

She has made key fobs using a spur strap buckle end clicker die. To separate from the pack, she edge dyes a smaller leather concho, center punches through both, and adds a spare silver concho. She prices them according to the value of the concho.

Larger pieces I make into yokes for soft purses. I run the edges around the skiver, so they don't look clunky. I still have the meat in the middle to dig deep and lift up with my tooling. Since they are sewn down and normally a concho or two plus the handle hardware through them, they can be a little stretchier and get by. I use up chap scraps for the bodies this way too. I mostly do custom and awards orders, but it is kind of nice to take a day and make up some of this stuff to have "off-the-rack".

Bruce Johnson

[Cowboy Crafts Online]

One thing I just thought of was what do we define as scrap. I use up ever piece of the hide, I have very little left over, its just the junk that cannot be used. That is why I give it away I couldn't see anyone paying for it.

Ashley

[Go2Tex]

Well now there ya have it. But if all you have time for, ladies and gents, is building saddles, pretty darn soon you end up with a rather substantial pile of really good usable pieces of veg tan, which for lack of a better term, I'll just call "scrap", 'cause try as I may, I can't figure out how to stretch that 8"x3"x2"x.... odd shape into anything resembling a saddle part..... well, except for a latigo keeper and I only need so many of them on one saddle.

And yes, I have every intention of some rainy day, running all this nice, useable stuff through my hand crank, buying a clicker and some cookie cutters, (actually, I like your idea, Bruce, of the hydraulic press outfit), and cranking out some really nifty Christmas gifts.

On second thought.... actually, now that you mention it, my wife needs something to do besides gardening, house cleaning, waiting on me hand and foot, and er, other wifely duties. I should put her to work in the shop. It'll be good for her.... and the business. I could set her up with a table out on the county road and she could hawk her tomatoes, leather coasters and napkin rings!

Until then eh,...... where did I put that number for the Boy Scouts?

[Johanna]

Hey, carve practice pieces and make a ring for the shop so you have examples of a customers options. Or carve something pretty, put it in a frame and call it art. I double dog dare ya to put your wife to work without using extreme charm.

First thing I learned in a working shop- there is no such thing as scrap. You never know what you will need tomorrow or next week, if for nothing else than to slip behind something you need to pound a hole into. My new hubby ( a metal worker) threw away 3 large boxes of "scrap" that were in the basement because he thought all the odds and end leather pieces were junk. I nearly cried when I realized all my treasured "this and thats" were gone, even though I don't run a shop any more, I knew what 15 years had accumulated. I had already gotten rid of the utterly useless stuff...the three boxes were the keeper scrap, but there is no such thing as scrap. But, like we do, I started a new box, and it's collecting some here and there. Hair pieces, watch straps, wristbands, dog collars, key fobs, glasses cases, Christmas tree ornaments...there is, after all, no such thing as scrap- you are only limited by imagination.

Johanna

[mulefool]

While I kind of agree with the concept of "no such thing as scrap" and sure I can think of things to do with it, when I'm running behind on custom orders when is there the time to sit down and work on things I don't have an order for and am not sure will sell? "Sorry your custom saddle isn't done yet, I needed to make some coasters to get rid of all that darn scrap" LOL I guess I just generate it faster than I can keep up with it. I didn't know Tandy leather Factory would buy scrap. I've got Hermann Oak scrap so maybe I'll give them a call.

[Johanna]

If you can unplug children and grandchildren from their gadgets, they have fun working with "scrap". I discovered this by accident during an ice storm that left us without electricity for a few days a couple of years ago.

Johanna

[mulefool]

That's true. My granddaughter has made belts, bracelets, bookmarks and gosh knows what else for all her friends and family. She loves it. Maybe THAT'S who should be makin the coasters!

[Blake]

Scrap is a great subject as we are all infected with it.

I found that donating it to Church or Scout groups works well as it is deductable with a reasonable value on it.Sometimes I will donate a day or so to groups to get them kick started and that is also deductable so it is a win win situation for everyone.

I have a very treasured collection of Thank You items made from the scrap by the groups and that in its self is worth it.

Hey Go2Tex where are you moving to and where from? If you are close when you get here maybe we can meet up.

Kind Regards

Blake

[Art]

Hi Blake,

Youse guys better watch your deductabizing stuff. If you have a business then the scrap has already been expensed when purchased or when it was generated from a job. My salary is already expensed when I pay myself from the business so time is never deductable for any reason. The expenses are deductable so you can't donate them and claim them again, however they are income if you sell them. The only thing I get away with on Scouts is mileage and occasionally meals. However, you do not have to claim the value of the good will.

What the business makes is income and what it spends (including salary and taxes) is expenses and after that; well there ain't very much of after that so I'll draw that off of capitalization or retain it against capitalization so it's not taxed either way (capitalization was taxed before it went in).

Just don't give them stuff to bitch about because then they go back six years looking for it. They understand income and expenses and that donations are expenses, just let Sammy have his and play by the rules.

Been there and done that and don't need it happen again.

Art

Scrap is a great subject as we are all infected with it.

I found that donating it to Church or Scout groups works well as it is deductable with a reasonable value on it.Sometimes I will donate a day or so to groups to get them kick started and that is also deductable so it is a win win situation for everyone.

I have a very treasured collection of Thank You items made from the scrap by the groups and that in its self is worth it.

Hey Go2Tex where are you moving to and where from? If you are close when you get here maybe we can meet up.

Kind Regards

Blake

[MatthewD]

My 9 year old son is attempting to solve any scrap problem I might have, he has found that by watching Dad that he might learn out to do some tracing on leather but I am not ready to hand him a swivel knife just yet..

[Art]

Another thing about scrap. Don't let the dog get into it. Rawhide is ok, but veg tan or most other tans give them some problems. I don't know if it will kill them, but it can make them barf all over the floor. I keep it up off the floor but they can snatch a piece off the desk if you leave the room, mine takes it and hides it so she can work on it later; sneaky little b****.

Art

My 9 year old son is attempting to solve any scrap problem I might have, he has found that by watching Dad that he might learn out to do some tracing on leather but I am not ready to hand him a swivel knife just yet..

[barra]

Most of my scrap is strapping so very little is scrap. I have bins with various width straps. If I want 3/4", I know exactly where to start rummaging. Largish scraps get turned into things like head/round knife holders, beer can coolers, carved with someones name or logo, horse brasses for decorations (it's a British over the fireplace thing). I have in the past gone crazy with wad punches and turned a piece of scrap into leather washers. to me nothing is scrap. I will use a small piece as glue spreaders, test peices on the stitcher or K6, experimental pieces if I am playing with stamping patterns, experimental dye test pieces, building up a tree to make a little channel for welts to sit in thus avoiding a lump, stropping boards. I even keep all my skiving scraps and the slivers of leather after edging a strap. These I feed into an old coffee grinder and eventually mix with PVA for odd leather dust applications. Soft leather scraps get turned into coin pouches, steering wheel covers, book marks.

Barra

[Go2Tex]

............well there ain't very much of after that so I'll draw that off of capitalization or retain it against capitalization so it's not taxed either way (capitalization was taxed before it went in)........

Art

Oh jeeze.... stop it. You're making my head hurt. My eyes glaze over everytime I read some article about taxes and business this and that. I understand income and I understand outgo. As long as I have more income than outgo and I don't try to deduct a trip to the Mustang Ranch as a business expense, I rather doubt Ol' Comrad Samski will be snooping around my underwear drawer for a little undeclared income..... besides, that ain't where I stash it anyhow. I do appreciate the correction on deducting the scrap. I hadn't considered that it was already written off.

Speaking of articles that make your eyes glaze over, did anyone understand that last one in the Journal about being your own employee? Can this guy make things complicated or what? If I'm my own employee, I'm gonna ask myself for a nice big raise and nice comfy office..... and eh....oh yeah, and a sweet young thang to take dictation.....

[Go2Tex]

Well, as they say, one man's scrap is another man's future key fob.

[K-Man]

Go2Tex:

The taxing and related issues can be a bit much to digest at times. That's why I keep in touch with my accountant and my attorney - to help me keep it all straight. :scratchhead: At least that's what I pay them to do....

[mulefool]

I started to read that article in the journal, too. Notice I said "started". Couldn't keep with it. Although I do like the idea of being an employee with a wage tied to how many hours I work. That'd be a new one for me.

[Art]

Hi Tex,

Sorry I got complicated. Capitalization is just the money you put up (that you already paid taxes on) to start your business. Never lose track of it because it is your money and none of it belongs to US. It is very handy for things like retaining earnings without paying taxes on them. Also a good little slush fund you can just "draw" against and not pay self-employment taxes.

I have the distinct fortune (or misfortune) of having a better half that has been in the CPA business for 35 years, overall it has been a real help, and it has to be done right for her professional ethics reasons. I showed her the article in LCSJ and while it didn't confuse her, she agreed with my impression that they were making this a lot harder than it really is. She says that things do get complex when you run a business that has really grown over the years as a sole proprietorship, but a business with 10 to 20 emplayees can be managed without a lot of fuss. Probably something most of us are not going to experience, it would take all the fun out of it.

Art

Oh jeeze.... stop it. You're making my head hurt. My eyes glaze over everytime I read some article about taxes and business this and that. I understand income and I understand outgo. As long as I have more income than outgo and I don't try to deduct a trip to the Mustang Ranch as a business expense, I rather doubt Ol' Comrad Samski will be snooping around my underwear drawer for a little undeclared income..... besides, that ain't where I stash it anyhow. I do appreciate the correction on deducting the scrap. I hadn't considered that it was already written off.

Speaking of articles that make your eyes glaze over, did anyone understand that last one in the Journal about being your own employee? Can this guy make things complicated or what? If I'm my own employee, I'm gonna ask myself for a nice big raise and nice comfy office..... and eh....oh yeah, and a sweet young thang to take dictation.....

[Go2Tex]

Yeah, I felt soooo much better after talking to a CPA this year. I was chasing my tail over a couple of record keeping/inventory issues that she was able to explain and I was then able to go back to doing what I do best, messing up leather and creating piles of scrap.