Building a business case for a waste baler

Recycling is very much on the radar of the masses in the UK. As mounting environmental pressures – on businesses of all shapes and sizes – continue to rise, there has never been such a keen eye on companies to be ‘green’. 

And it isn’t just the levels of plastic waste which are under scrutiny – businesses are now being held accountable for all waste materials produced, including cardboard and paper that can easily be sorted for recycling.

And that’s where balers come in. Put simply, these machines reduce the volume of excess packaging waste. By pressing recyclable materials into manageable bales, companies can safely handle and store sensible amounts of these, while enabling ease of transportation from a site.

Here, we take a look at why an investment in a waste baler doesn’t have to break the bank, and how you can make the procurement process as easy as possible.

Investing in the future 

An outright purchase of baling equipment naturally requires an upfront cost but, on average, a return will be seen in less than 18 months. 

With our baler prices ranging from £2700 – £14,000, there is something available to suit organisations of all shapes and sizes, and with varying budgets. 

In situations where customers prefer to hire machinery instead, we offer fully maintained rental options too. And with hire agreements starting from as little as £18+VAT per week, savings can be experienced within the first month. 

Sound too good to be true? It isn’t.

It’s correct that the numbers will vary from firm to firm – as every organisation’s waste handling scenario is different. But looking at sample business cases will make it easier to build your own. 

Below are a couple of examples to consider.  

Scenario 1:

Logistics firm Company ABC produces clean polythene and general waste. Currently, this waste is co-mingled in one skip, which is collected by an external waste management contractor on a weekly basis, before being transferred to a materials recycling facility. 

Current waste collection costs = 1 x £360 skip lift per week

Or 52 x £360 / 12 = £1,560 per month 

By separating the clean polythene from the general waste, the number of skip lifts per month will be halved.

Monthly saving = £720 per month

If hiring a suitable baler for £199.33 per month: 

£720 – £199.33 rental = £520.67 saving per month

OR

If purchasing the baler outright for £7,000:

£7,000 / £720 per month savings = payback period in less than 10 months

This is before any material rebate figures are included within the calculation. Neat polythene bales can generate anything from £55-150 per tonne, depending on commodity market values at a specific point in time. Such revenue yield would dramatically accelerate the payback period to an even more enticing figure. 

Scenario 2:

A rubber manufacturer handling 60 tonnes of materials per week is left with a vast amount of packaging waste, including cardboard and plastic film. 

Current cardboard collection costs = 1 x £171 skip lift per month

This expenditure can be avoided entirely if the cardboard is baled for recycling instead. With a mill size baler, the team can produce 2-3 bales per week, giving the potential to yield a revenue of approximately £50 per week, or £200 per month (based on a conservative rebate figure of £35 per tonne, however, the market constantly fluctuates and the commodity value has been known to both rise above and fall below this amount). 

Net monthly benefit = £200 revenue + £171 skip lift savings = £371 per month

If hiring a mill size baler for £199.33 per month: 

£371 – £256 = £115 net saving per month.*

What’s right for you

If opting to purchase your baler outright, the advice is to complete meticulous due diligence to ensure that your baler is built to last. Ideally this will include a package complete with operator training, customer service support and ongoing maintenance expertise – for maximum machine optimisation. Availability of cost-effective spare parts is also important, and ease-of-maintenance will avoid costly downtime. 

The best way to verify what your ‘deal’ will truly look like is to ask these questions at the start, watch the machine in action and better yet, speak to existing clients for their organisations’ personal experiences.

Don’t forget, if you prefer, you can spread the cost of your investment with a rental agreement, to benefit from the same great technology, plus inclusive routine servicing and maintenance support, all for one affordable monthly payment. 

Whichever route you choose, factor these figures into your business case to help clarify the payback period you can expect. 

To discuss your waste baling requirements in detail, receive help in building a business case or to simply begin the conversation about improving your approach to recycling, please contact Riverside Waste Machinery.

For more information on Building a business case for a waste baler talk to Riverside Waste Machinery Ltd