Industrial Shredder: Renting vs Buying Pros and Cons

Did you know that the industrial shredder machines market is projected to reach $24.36 billion by ?

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Industrial shredders are powerful industrial equipment designed to shred large volumes of materials. This can include paper, plastic, wood, and metal into smaller pieces. These machines play a crucial role in reducing waste volume.

In this article, we will be exploring the renting vs buying pros and cons of industrial shredders. This will help you make an informed decision on which option is best for your business needs. Read on to learn more.

Renting Industrial Shredders

Renting industrial shredders is a popular option for businesses that have short-term or occasional shredding needs. Here are some of the pros and cons to consider when renting an industrial shredder:

Pros

Shredders can offer flexibility and cost-effectiveness depending on a company&#;s specific needs. Let&#;s delve into the advantages this option can provide.

Cost-effective

Renting an industrial shredder can be more cost-effective compared to buying one. This is especially true for businesses that only have occasional shredding needs.

Renting eliminates the need to purchase and maintain a machine. This can save money in the long term.

Flexibility

Renting provides flexibility as it allows companies to choose from various models depending on their specific needs. This also means they can upgrade or switch to a different model if their shredding needs change.

Maintenance and Repairs

When renting, the responsibility for maintenance and repairs falls on the rental company. This can save businesses time and money as they do not have to worry about these tasks.

No Depreciation Costs

With renting, businesses do not have to worry about the depreciation costs associated with owning machinery. Depreciation can significantly affect the value of a machine. This makes renting a more attractive option for those who wish to avoid this.

Updated Technology

Rental companies typically upgrade their inventory to the latest models. This means businesses can have access to the most advanced and efficient shredders. This is without taking on the full cost of buying these new machines.

Easy Budgeting

Renting allows businesses to know their exact costs for the rental period, helping them plan and stick to their budgets. This provides financial predictability, unlike owning a machine where unexpected repair costs may arise.

Cons

While renting industrial shredders has its advantages, some potential downsides should be considered. Here are a few cons to keep in mind:

Limited Control

Renting means businesses do not have complete control over the machine. This can be an issue if there are specific customization needs or if the rental company does not have the exact model required.

Higher Rental Costs

In some cases, renting may end up being more expensive in the long run compared to buying a machine. This is especially true for businesses with high shredding volumes or long-term shredding needs.

No Asset Ownership

With renting, businesses don&#;t gain asset ownership. This means the machine cannot be used as collateral for loans or sold off to recover some of the costs if the need arises.

Buying Industrial Shredders

Opting to buy an industrial shredding machine is a significant investment. It comes with its set of advantages and drawbacks. It&#;s crucial for businesses with consistent, high-volume shredding needs to weigh these factors carefully.

Pros

Buying an industrial shredder means owning the machine and having complete control over its use. Here are some pros:

Complete Control

Buying a machine gives businesses complete control over its use and maintenance. This can be beneficial for those with specific customization needs or who want to have the machine available at all times.

Lower Long-Term Costs

For businesses with high shredding volumes, buying a machine may prove to be more cost-effective in the long run. This eliminates ongoing rental costs. It also allows the company to use the machine for as long as needed without additional expenses.

Asset Ownership

Buying an industrial shredder means owning a valuable asset that can be used as collateral for loans or sold off if necessary. This provides businesses with financial flexibility. It can also be a source of additional revenue if the company decides to offer shredding services to other businesses.

Tax Benefits

Purchasing an industrial shredder can offer potential tax benefits. Businesses may be able to deduct the cost of the equipment as a business expense. This can reduce their taxable income.

No Rental Agreement Limitations

Purchasing a machine eliminates the restrictions that may come with a rental agreement. These can include limitations on usage hours, penalties for overuse, or stipulations about maintenance. This can provide businesses with more freedom and flexibility.

Cons

Buying an industrial shredder is not without its drawbacks. Here are some potential cons to consider:

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High Upfront Costs

The initial investment for buying a machine can be substantial and may not fit into every business&#;s budget. This can make it difficult for smaller businesses to purchase an industrial shredder.

Maintenance and Repair Costs

Owning a machine means being responsible for its maintenance and repair costs. This can add up over time, especially if the machine requires frequent repairs or replacement parts.

Depreciation

As with any machinery, owning an industrial shredder will result in depreciation. This reduces the value of the asset over time and can affect the company&#;s overall financial standing. This can also make it more challenging to sell the machine at a desirable price if the need arises.

Obsolete Technology

Unlike rental companies that regularly update their inventory, owning a shredder means potentially dealing with outdated technology as newer models come to market. This can impact the efficiency and productivity of the shredding process.

Storage Requirements

Industrial shredders are large, heavy pieces of equipment that require ample storage space. Owning a shredder means businesses need to allocate sufficient space for its storage and operation. This can be a challenge for businesses with limited space.

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Weighing Renting vs Buying Pros and Cons

Industrial shredder renting vs buying pros and cons should be carefully considered when making a decision. It ultimately comes down to a company&#;s specific needs, budget, and long-term goals.

Renting can be a more cost-effective option for those with occasional or short-term shredding needs. Buying may be better suited for businesses with high-volume shredding needs. It&#;s essential to carefully consider these factors before making a decision.

For more insights and advice, feel free to explore our other articles on our website. They&#;re packed with valuable information that can guide you through many scenarios.

Shredding machines have become prevalent in offices, yet organizations may be at risk when choosing to own shredding machines. When shredding their own documents, businesses risk confidential information being leaked. A cost analysis in this article will help organizations determine the true cost of owning a shredding machine and not having a secure and cost-effective document shredding service. Contact Blue-Pencil to see how we help clients operate efficiently and securely. In our analysis, we found that companies may be spending as much as 31% more than they need for paper shredding and information disposal.

Enjoy this short video that showcases how we help clients work effectively and securely in managing their document shredding and information security.

&#;We use Blue-Pencil for all of our secure shredding needs. Adam is always friendly and does a quick and efficient job! We would recommend them to anyone!&#;

&#; Janine Bass &#; More testimonials here!

Cost Factors for Owning a Shredding Machine

There are a number of cost factors in owning a shredding machine, particularly when organizations are seeking to limit their risks in exposing sensitive information and also effectively utilizing staff time. Here are the major factors in owning a shredding machine:

• Purchase price of shredder: can range from $200 &#; $11,000 (see here for Grand and Toy pricing)
• Life expectancy of shredder: based on varied usage this can range from 5-10 years or more
• Machine maintenance: labour and materials required to maintain an office shredder
• Employee time spent: the time an employee spends shredding and disposing of information
• Shredder paper containers: bins and plastic bags used to hold paper to be shredded and shredded paper

Check out the infographic below to learn more about the expected and unexpected costs of owning a paper shredder.

Knowing the different factors in owning an office shredder helps organizations determine the cost footprint of keeping their shredding processes in-house.

Cost Analysis of Owning a Paper Shredder

Organizations come in all shape and sizes and a cost analysis is a useful starting point for helping clients understand what they are paying for when opting to own a paper shredder. To see what your organization may be facing for costs of ownership, click here to make use of our cost calculator.

To provide a ballpark of what it would cost an organization to own a paper shredder we will be estimating some of the variables of cost identified above, along with other organizational factors that drive ownership costs.

• Time spent shredding per employee per day: the time spent by an employee shredding and disposing of paper is 2 minutes a day
• Average wage of employees: $28.37, based on Stats Can figures for full-time employees
• Average number of working days: based on 5 day work week and 4 weeks in a month, equating to 22 days per month
• Price of shredder: in the analysis we utilize $450 and $ which is the median price of a shredder for small and medium sized businesses
• Life expectancy: 5 years is the expected life span of a high end shredder while on the low end shreders may only last a year: equating to 60 months / 12 months
• Monthly maintenance: assuming $95 for materials and labour for the high end shredder

This chart summarizes the costs associated with different scenarios, meant to approximate small or large organizations.

Blue-Pencil Offers Cost Savings and Secure Information Disposal

With the significant costs identified for the organizations above, there is ample opportunity for cost savings and increased information security. In a previous article, we discussed the various cost models of procuring a paper shredding service provider. Blue-Pencil offers competitive pricing, allowing organizations to save when compared to these other pricing models that our competition uses:

• Flat Fee: $95 per collection unit
• Price Per Minute: $3.75 per minute
• Price Per Pound: Less than 5lbs = $0.59 per lb, 6-10lbs = $0.49 per lb, 11lb or more = $0.39 per lb

Based on these figures the large 100 person organization can save $ while the smaller company of 10 employees can save $610 dollars if they were to engage in a flat fee service at ($760/month for 8 bins of shredding and $95/month for 1 bin of shredding).

Cost reduction for small companies: ~31%
Cost reduction for large companies: ~38%

This means that these companies, based on the analysis and parameters provided, are spending 31% or more on their shredding machines and labour costs.

Shredding with Blue-Pencil also means contributing to a greener earth! At Blue-Pencil, we ensure shredded items are disposed of through waste-to-energy incineration instead of ending up in a landfill. To date, Blue-Pencil has saved over 345,000 trees!

Business, institutional, and residential clients continue to make Blue-Pencil their go-to provider in information destruction. Here is what a recent customer had to say about Blue-Pencil:

&#;Our company has utilized Blue-Pencil for the past 6 years for their secure shredding service.They are efficient, reliable and their teams from head office along with the service technicians are highly professional and a pleasure to communicate with. We would without hesitation, recommend their services: they will not disappoint.&#;  &#; Carolin

See here for more reviews.

Let Blue-Pencil help you unlock cost savings and the value of secure information management for your organization.

Must-Have Qualities That Blue-Pencil Offers In Information Destruction Service

Blue-Pencil is an experienced service provider in helping clients make their operation lean and competitive. Clients receive the best in class service through these areas of focus:
High standards in information destruction services with NAID AAA and Privacy+ certification
On-site or drop-off shredding for paper and electronic devices
Discrete, prompt, and friendly service
Flexible service plans to suit your needs and your industry
Training, resources, and support for your staff to become adept at information management

Sources:
http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/labr69g-eng.htm
https://answers.yahoo.com/question/index?qid=AAX09b2
https://www.grandandtoy.com/EN/search/pages/browse/Shredders-Shredding-Machines-Paper-Shredders/_/N-al5.aspx