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SHOULD YOU RENT OR BUY A WASTE BALER FOR YOUR COMPANY?
28 October 2020
If your company produces a significant amount of waste, then you’ve probably thought about investing in a cardboard or waste baler. We all know the significant savings associated with using a baler versus wheelie bins, but have you thought about the major advantages to renting a baler? The top three which come to mind – no capital investment, no depreciation and with LSM Ireland you have flexible rental options and that’s just the start!
RENTING A BALER
Financial Savings and Gains
In addition to savings on waste collection costs and reducing vehicle movements, in general renting a baler could actually help you make money! Overall, renting a waste baler is better for businesses’ bottom line. Compared to costs per week spent on bin collection, baler rental rates can be lower – while also saving you money by increasing efficiency, waste storage space and improving staff collection/sorting habits. In addition, renting a baler allows you to spread out the cost of your investment, keeping more cash in your business as working capital and allowing you more financial freedom. Operations like recycling companies often give cash rebates in exchange for baled waste such as cardboard and plastics. While prices fluctuate depending on location and market value, you could make substantial income per tonne of dry, baled cardboard, which means essentially, the returns from rebates far outweighs the cost of rental.
Choose a supplier who offers flexible rental packages that suit your business’ needs, providing you with extras such as training, delivery, a free waste audit and advice from experts is a must. A rental package will also allow you the freedom to upgrade your machine if you find your business growing, or to downgrade your machine if you find that your baler isn’t quite meeting your needs. The ease of upgrading or downgrading should be made simple for you.
While renting is a good option for some, there are still others who could benefit from purchasing a waste baler outright;
BUYING A BALER
Companies with enough capital to buy their own baler could prefer to take this path, as full ownership can provide peace of mind. This option also appeals to companies doing consistent, steady business where the type and amount of waste produced is not likely to increase or decrease in the future.
As with baler hire, owning a baler can provide you with a small source of income from selling baled recyclables for a profit. While the amount you can make here may vary, and it will take a bit longer to see a return on this when buying the machine outright, having a baler onsite will always be more cost-effective than not.
Owning your own machine can provide your business with stability and consistency. Less frequent upgrades and changes to your system can mean less time spent training staff on new machines, and staff familiarity with the machines can mean a decreased need for maintenance or support. In addition, while you may not have the same upgrade options as those who are renting, you can rest assured that your baler will retain an impressive residual value, meaning some of your initial investment can be recouped if you find you need to make a change.
BUY OR HIRE
If you are unsure, your supplier will show you various case studies to suit your specific industry highlighting the benefits. We have seen the rental market increase over the last number of years across various sectors, but when it comes to deciding whether to rent or buy a waste baler, you’ll need to assess your business’ priorities, needs, and financial goals before you can make the call. For most companies, renting a baler makes sense, particularly if this is your first time using a baler in your facility. It provides more flexibility, less of an investment up front, and could potentially pay for itself if you can sell bales to recycling companies.
If you’ve been going back and forth between renting or buying a baler, why not get some free, expert advice? Contact Jacintha at firstname.lastname@example.org to discuss your options and find the right one for you and your business.