I am a Seller, how does the ScrapCATapp application help me?

• ScrapCATapp provides the Seller with an independent, accurate, 3rd party appraisal of their converters before a Buyer ever looks at them. This gives you, the Seller, a benchmark value for your converters and a basis from which to evaluate a Buyer’s offer.

• In order to get the Seller, the highest possible value for their converters, ScrapCATapp provides an on-line Marketplace where Buyers from around the world can view and bid on their converters. This Marketplace exposes you to Buyers that would normally know about, or bid, on your units.

• ScrapCATapp eliminates the Seller's risk of being paid. ScrapCATapp will, if requested by the Seller, assume the role of a third party intermediary via our Escrow Service. You only ship your converters after the Buyer has paid.

• The transparency of ScrapCATapp helps Sellers modify the behavior of unscrupulous Buyers. This occurs because the ScrapCATapp site provides you the opportunity to rate the Buyer after each transaction.

What do I need to get started with ScrapCATapp?

• The only things you will need are:

  1. A handheld Tablet computer (We use Samsung 9” & 10” tablets).
  2. A ScrapCATapp inventory photo stand.
  3. A wifi connection at your yard or place of inventory.
  4. People that we can train. (Training can be accomplished in about 1 hour.)

What will it cost me to get started on the ScrapCATapp system?

• You will need to buy the equipment to inventory your converters into the system. The initial cost for the equipment is $500. This includes a high quality Samsung tablet and a ScrapCATapp inventory photo stand.

  (Please note: ScrapCATapp will buy this equipment back from you at a future date if you decide not to stay on the system.)

• ScrapCATapp is currently completely free of charge to both the Buyers and the Sellers. In the 1st quarter of 2018 we expect to introduce a small per unit user fee to the Sellers. We may follow this with a small bidding fee to the Buyers. But at this time, the service is 100% free.

How easy is it to use the ScrapCATapp system?

• It is VERY easy. Most operators are fully functional on the system with less than 1 hour of training.

Not all of my employees speak English well, is that a problem?

• No. Our ScrapCATapp Inventory System uses colors and icons which we have found ESL employees are able to easily identify and understand very quickly.

Will using ScrapCATapp take up a lot of my employee’s time?

• No. With the right operational set-up, an employee can enter 40 converters into the ScrapCATapp system in about 15 minutes.

Does the ScrapCATapp platform help eliminate converter theft?

• Yes. Once a converter is inventoried into the ScrapCATapp system, theft of converters becomes very difficult. And if they are stolen, the theft is quickly and easily discoverable.

I like my current buyer, can I still use him?

• Absolutely!

  Your converters belong to you. You have the right to sell them to whomever you wish. The intention of our platform is for you to have the ability to inventory your converters so you have a benchmark 3rd party appraisal and access to a variety of Buyers via our Marketplace. This gives you the knowledge to verify that your current buyer is treating you properly.

  Remember the words of Ronald Reagan to Mikael Gorbachov: “Trust, but verify”.

I sell directly to the refinery now. I removed the middleman. Why would I need ScrapCATapp?

• We are not fans of the way most Sellers currently sell their converters to refineries on an Assay basis. We believe most Sellers are currently assuming tremendous amounts of risk when selling on an assay basis because an assay based sale puts smelters/refineries in a position of having very little accountability to the Sellers.

  ScrapCATapp management has over 20 years of experience as converter collectors dealing directly with refineries. While the refineries will push the idea that you are cutting out the middleman – here is what they will not tell you.

  Selling directly to a refinery is the riskiest option for most Sellers because they (YOU!) are now assuming ALL OF THE RISK in the transaction.

  Having voiced our concerns about selling converters on an assay basis, it is still a very viable way to sell your converters - if done properly. If you, as a Seller, decide you want to sell your converters on an assay basis, ScrapCATapp gives you the protection to make sure it is done properly.

  Let’s walk through the process of selling converters on an assay basis, together.

  1. You send your converters to a refinery (thinking you are cutting out the middleman).

  2. The smelter/refinery processes your converters and pays you what they determine the value of your converters to be. (In short, you are handing them your wallet and asking them to count your money for you.)

  3. First thing to consider, mistakes happen all of the time, even in large smelter/refinery companies. What happens if the smelter/refinery miscounts your material (your money)? (If they tell you they do not make mistakes, please run away from that transaction!)

  4. Second thing to consider, does your company have the capability of knowing when the smelter/refinery has made a mistake? How would you know if the smelter/refinery miscounted your money?

  5. Third thing to consider, even if you have historical data, how can you prove any errors by the smelter/refinery in the event of a lower than average valuation of your converter load?

  Still think going to a smelter/refinery without some type of protection is a good idea?

  Using ScrapCATapp provides Sellers with several key items of knowledge that allows them to enter into an assay sales transaction with protection and confidence.

You sound down on selling on an assay basis.

• Not at all. Selling on an assay basis is fine, if that is the way you want to go. What we are not fond of is selling units on an assay basis - as it is currently being done in the industry. In the current arrangement, the seller is assuming ALL of the risk, with only the “promise” of a better deal at the end.

So I can I use ScrapCATapp to sell my converters on an assay basis and/or a $ per unit basis?

• Absolutely!

  We want what is best for you. The benefit of ScrapCATapp is that it gives you the freedom and protection whether you chose to sell your converters on an assay basis or on a per unit basis. Both of these options are available on the ScrapCATapp online Marketplace.

Any Sellers using the system I can call as a reference?

• Absolutely!

  Contact us with your email address and cell phone number and we will direct some references your way.

Does ScrapCATapp Buy or Sell units?

• No. ScrapCATapp has no financial interest in the transaction between Buyers and Sellers other than future disclosed listing/viewing fees. ScrapCATapp is not involved in any pricing discussions nor does ScrapCATapp get involved in the terms of the sale between Buyers and Sellers.

• ScrapCATapp has no desire to get between the converter Buyer and the converter Seller. ScrapCATapp’s intention is to stand alongside both the Buyer and the Seller to facilitate a fair and smooth transaction.

• ScrapCATapp exists to Maximize Sellers Value and Minimize Buyers Risk.

How does ScrapCATapp help the Converter Buyer?

• ScrapCATapp provides a global marketplace for converter Buyers and Sellers to conduct transactions. Our unique platform enables Buyers to connect with numerous Sellers that, due to existing relationships and/or geographic limitations, would not normally be accessible.

• ScrapCATapp’s website and Buyer Tools provides converter Buyers with a low cost, easy to use system that replaces the old, wasteful, business model that requires Buyers to physically drive to Seller’s facilities and personally inspect each converter.

• ScrapCATapp provides Buyers a simple way to verify that they have received the units that they purchased. ScrapCATapp has an uncomplicated, easy to use, Audit function that allows the Buyer to quickly validate that the converters they bid and paid for, are actually the converters they received.

• The transparency of the ScrapCATapp helps Buyers modify the behavior of bad Sellers. This is accomplished because the ScrapCATapp site provides the Buyer the opportunity to rate the Seller after each transaction.

• ScrapCATapp offers an Escrow and 3rd party audit service. This service for the Buyer completely eliminates the risk of the Buyer receiving converters that are different than the converters that they had purchased. This is accomplished through ScrapCATapp’s Escrow service. In this service, ScrapCATapp assumes the role of a third party intermediary. Buyers deposit money equal to the transaction value with ScrapCATapp. ScrapCATapp will hold the Buyer’s money until the Seller's units are received and validated by ScrapCATapp and/or approved by the Buyer. Only then will the funds be released to the Seller.

How does ScrapCATapp help a Converter Buying Organization?

• ScrapCATapp allows Buying Organizations to be more efficient, productive, and ultimately, more profitable. Using the ScrapCATapp system, Buying operations can be centralized, eliminating the expense of satellite branches, trucks and an army of Buyers. In addition, ScrapCATapp allows Buying organizations to track purchases from beginning to end-giving the Buying Organization the ability to accurately assess, manage, and control their current Buyer network.

What do I need to get started using ScrapCATapp?

• As a buyer on the system all you need is computer, an internet connection and an active ScrapCATapp account.

Is the ScrapCATapp system easy to use?

• Very easy. What makes the system particularly attractive to Buyers is that a Buyer gets a chance to see every unit he is bidding on and its “fullness” content, as represented by the Seller.

• The ScrapCATapp system allows the Buyer to view and bid on units from anywhere at any time and with minimal cost and effort.

• Current ScrapCATapp Buyers are able to grade/price over 500 units per hour. A Buyer can be drinking coffee at his desk in New York - while grading and bidding on units in Arizona.

What is using ScrapCATapp going to cost me?

• There is not up-front cost of equipment for the Buyer to purchase.

• ScrapCATapp is currently completely free of charge to both the Buyers and the Sellers. In the 1st quarter of 2018 we expect to introduce a per unit user fee to the Sellers. We may follow this with a small bidding fee to the Buyers. But at this time, the service is 100% free.

How can ScrapCATapp protect me in a catalytic converter purchase transaction?

• The ScrapCATapp system allows you to see and grade all of the converters before you actually bid/buy them.

• The ScrapCATapp allows the Buyer to take advantage of our Escrow service. The ScrapCATapp process allows the Buyer to elect Escrow service as a condition of the bid. This prevents any money going to the Seller until the Buyer has had a chance to inspect and approve the units purchased.

• The ScrapCATapp platform has an audit function that allows the Buyer to quickly and easily verify what the Buyer purchased and received is what the Seller offered for sale.

• The ScrapCATapp rating system allows Buyers and Sellers to rate each other after every transaction.

How does ScrapCATapp allow me to expand my business?

• Let’s look at your current options to expand your converter buying operations. You can open more warehouses, hire and train more buyers, buy more vehicles, etc. These are expensive options that only add to the cost of acquiring converters. Higher converter acquisition costs makes a Buyer less competitive in the marketplace.

  In contrast, the ScrapCATapp platform gives a Buyer all of the benefits of having an experienced Buyer grading and bidding a potential customers converters at a fraction of the current cost of acquiring those units.

  As an example, let’s say you are a Buyer in New York and there is a Seller in Oregon that has 500 units for sale on ScrapCATapp. Although ScrapCATapp is not currently charging to view those units, let’s assume at some point in the future ScrapCATapp charges .20 per unit to the Buyer. It would then cost the Buyer in New York, $100 to view, bid, and purchase those units in Oregon. $100 is a fraction of what it would cost that buyer to physically travel to Oregon and view, inspect, and purchase those units.

How else does ScrapCATapp help me as a Buyer?

• One of the crucial ways ScrapCATapp helps Buyers is by weeding out the unscrupulous Buyers that cause legitimate Buyers daily headaches. This is done by the system itself.

  How so?

  Unscrupulous Buyers will invoke practices of grading or pricing manipulation in order to win over a customer. Every legitimate Buyer has had to deal with these practices. Sadly, because Sellers lack grading knowledge and there is no standardization of industry converter grades, Sellers are easily victimized by these unscrupulous Buyers.

  The ScrapCATapp platform stops this practice dead in its tracks. At some point, we believe, converter Sellers are going to view the ScrapCATapp platform as a ‘badge of honor’ for legitimate Buyers.

Does the ScrapCATapp platform help me manage my current Buyer group?

• Absolutely! In fact, we believe the ScrapCATapp platform provides Buying Organizations a unique way to train and monitor their Buyers. When Buyers use the system to buy Converters, the Organization will be able to see exactly what their Buyers paid for each specific LOT of converters.

  In addition, if the Buyer utilizes the ScrapCATApp grading pad, the organization can see exactly what that Buyer paid for a specific, pictured, inventoried, numbered converter. Companies will be able to match the Buyers converters to a specific LOT so they can validate the margins that Buyer is delivering to the company.

I only buy converters based on assay. How would ScrapCATapp help me?

• The ScrapCATapp system works for both assay based Buyers and per unit based buyers.

  One of the biggest problems for assay based Buyers is trying to convince a Seller to send them 1,000 units without paying for them up front. Understandably, Sellers are reluctant to turn over tens of thousands of dollars of converters in the hope of making a few more bucks on an assay basis.

  With ScrapCATapp, every assay Buyer will be able to view the units the Seller is offering for sale. This helps the Assay Buyer because now they can determine an approximate value of the Seller’s units and offer the Seller a reasonable non-refundable pre-payment on the Seller’s converters. By offering the Seller a reasonable non-refundable pre-payment for their converters, the Seller’s resistance to trying an assay based transaction is minimized.

How does the Seller grade the units going into the ScrapCATapp system?

• The Seller does not grade the converter. The Seller merely inventories the unit with a picture, an inventory number, and a “fullness” indication. If the converter is empty, ¼, ½ or ¾ full – the Seller will note this in writing on the converter and it will be encoded into the system upon entering the converter into the ScrapCATapp system. The Buyer will be able see both of these while reviewing and grading the converters. The Buyer’s grade and price the units based on their own unique grading system.

What if the Seller grades a unit as “full” when it is actually “empty” when I receive it?

• This issues, while rare, will happen on occasion. ScrapCATapp deals with this issue during the Buyer audit process (see FAQ #6). If the Buyer finds a unit where the “fullness” is mis-graded by the Seller, the Buyer makes note of it and puts in a claim to ScrapCATapp, and the Seller, to have the difference deducted from the Buyer’s purchase price.

• Buyers are urged to be reasonable in this determination. More often than not, the discrepancies in the “fullness” grades go in favor of the Buyer. We have seen, on several occassions, where a Seller determined the “fullness” grade to be a ½ or empty, when in fact it was full.

• In short, people are human. They will make mistakes, but those mistakes will be both “in their favor” and “against them”. In the end, we have found, for honest sellers, these mistakes seems to balance out.

Does ScrapCATapp Buy or Sell units?

• No. ScrapCATapp has no financial interest in the transaction between Buyers and Sellers other than future disclosed listing/viewing fees. ScrapCATapp is not involved in any pricing discussions nor does ScrapCATapp get involved in the terms of the sale between Buyers and Sellers.

• ScrapCATapp has no desire to get between the converter Buyer and the converter Seller. ScrapCATapp’s intention is to stand alongside both the Buyer and the Seller to facilitate a fair and smooth transaction.

• ScrapCATapp exists to Maximize Sellers Value and Minimize Buyers Risk.