Are you wondering about whether it is worth fully purchasing new Waste Management Equipment for your Business? Is the cost of these new Waste Management Equipment going to adversely affect your Business and its Goals?
There is no doubt about the fact that waste management is an important aspect of the day-to-day running of any Business. How your Business disposes of its trash and how you manage the waste from your Business can have a significant impact on your production costs and overall Business Goals.
According to a 2019 report by the World Bank, waste generation across the World is set to rise by 70% to 3.4 billion tons in 2050. This means most businesses will have to channel more funds into effective and better waste management plans.
You can choose to buy waste management equipment. However, waste management equipment does not come cheaply. Unless you are a multimillion-dollar company with adequate funds, you have to go beyond your Business budget to fully buy a new waste-compactor or a waste-baler.
These facts inevitably leave us with the more reasonable option – Renting Waste Management Equipment.
Whether you are planning to simply cut on costs or if you are looking for a budget-friendly waste management strategy, it is always a wise idea to rent waste management equipment rather than fully buying it!
In this guide, we will explore some compelling reasons why you should consider renting waste management equipment. We will also discuss the process of how you can choose the right waste management equipment for your Business needs.
Here’s an outline of what you will learn from this article:
- Step by step guide on how to select the right waste management equipment to rent
- Reasons why renting waste management equipment will save your business more money compared to fully buying them
- Understanding your waste and recycling bills and avoiding huge upfront costs
Step by step guide on how to select the right Waste Management and Recycling Equipment to Rent
Selecting the right waste management equipment to rent is not as simple as walking into a hardware store and buying whatever you want. You will have to carry out carefully planned research to figure out what is essential for your waste management needs.
Unfortunately, many businesses do not focus on the selection process and instead, they end up renting tools and equipment that they actually do not need.
Do not fall for this trap!
You can choose to be different by carrying out comprehensive research to determine which equipment you will actually need. Here is a short step-by-step guide on how to go about it.
1. Identify the type of waste your business produces
Start by identifying the type of waste your business generates to make it simpler for you to choose the right waste management equipment. Once you have identified this matter, you will be able to select the right type and capacity of the equipment you need to manage the waste.
We can classify commercial waste into several categories, but the most common include the following types:
Recyclable waste includes materials like paper, glass bottles, jars, plastic products, and metal containers. The ideal equipment for compacting and processing recyclable waste is a baler machine.
Mixed waste/Wet waste
Mixed and wet waste includes leftover food, vegetable, and fruit peels, eggshells, used paper towels, contaminated tissue, and disposable medical supplies.
Since mixed waste may contain hazardous materials, renting a self-contained compactor can help with the safe disposal of these potentially harmful materials.
Dry waste includes materials like wood, plastic, cardboard, mixed paper, and metal cans. The ideal equipment to rent for your dry waste is a stationary compactor.
2. Know the different types of waste management equipment you might need
From balers to compactors, waste management equipment comes in various types and forms. Understanding these various waste management equipment that is available to you and their capabilities can make it easy for you to choose the right one for your needs.
Here is a short description of the various waste management machinery that are available today:
A baler machine is a piece of equipment used for compacting and recycling waste materials. It works by transforming freeform waste into blocks of recyclable materials for easy processing.
The two main types of waste compactors include self-contained and stationary compactors.
Self-contained compactors consist of two compartments for crushing mixed and wet waste. A stationary compactor is fixed in one place and it is ideal for dry waste.
An auger is a unique type of compactor that uses a screw-like mechanism for pressing commercial waste. The rotating screw mechanism also breaks down large pieces of waste for easier disposal and processing.
3. Know the different types of waste management equipment you might need
Sometimes the cost of renting waste management machinery can be almost the same as buying a new one. With this in mind, it is always good to shop around and compare prices before renting any equipment. Alternatively, you can consult experienced waste management experts for guidance.
Reasons why Renting Waste Management Equipment will save your business more money
Determining whether to rent or to buy waste management equipment for your Business can be a tough decision to make. However, the benefits of renting waste management equipment are too many to be ignored. If you want to avoid huge upfront fees, then do not think twice about renting your next equipment.
Here are the top reasons why you should consider renting waste management equipment:
1. Conserve your working capital and keep your business afloat
Here’s the point. Buying waste-management equipment, no matter how large or small, can be a costly affair. Reports show that investing in waste management equipment is one of the top 7 expenses businesses waste money on.
Moreover, most machinery used for waste disposal does not come cheaply. If you decide to buy it, then it means you have to part with huge amounts of money, upfront.
Renting, on the other hand, is less capital expense. This means your valuable Business funds won’t be tied up in any particular equipment. If you want to conserve your working capital, your business is better off hiring waste-management equipment rather than buying it.
2. Avoid hidden costs and save on waste disposal
You might not know this, but most haulers not only charge exorbitant fees but also add several hidden costs to their waste management services. Some haulers go to the extent of requiring customers to buy waste-management equipment from them.
To avoid these hidden costs and save more on waste management services, it is advisable that you rent your own waste management equipment. Renting gives you the freedom to choose your preferred service provider. This means you don’t have to stick to one hauler if you are not happy with their charges.
Besides, rental prices are normally fixed over a specified period, which means you will be in control of and be able to accurately forecast what you will be paying, from the beginning of your rental arrangement.
3. Overcome budget limits and reduce your hauling bills
Buying waste-management equipment means you have to set limits on your Business budget. The reason for enforcing budget limits is to prevent losses and ensure that your business remains viable in the market even after investing so much capital on waste management equipment.
Did you know that you can overcome budget limits by renting your equipment instead of buying it?
To avoid the restrictions and inconveniences of having to follow a tight budget, you should rent your waste-management equipment. This will save you thousands of dollars in the long term.
4. Swap your rented equipment at any time for a more updated one
All types of waste-management equipment, no matter how pricey they are, are susceptible to the effects of normal wear & tear and depreciation. This means that there is no guarantee that your newly-bought bailer machine or compactor will stay shiny forever.
When you rent any waste and recycling equipment, you can swap it at will if it begins to lose its shine or if it gets damaged. This arrangement is included in most rental agreements to make sure that clients can keep up with the latest and best equipment.
Fully purchasing your own waste management equipment will mean that you will have to keep using it for a long time and in the future, this could imply having to stick to outdated technology unless you plan to upgrade your equipment at that point, which will then turn out to be an even more costly process for your Business.
5. Enjoy tax benefits and channel the savings elsewhere
The IRS allows business owners to claim deductions on any business expenses. In simpler terms, rental payments are a deductible expense.
Since renting waste and recycling equipment is an expense, you can claim tax deductions and divert the savings elsewhere to boost your business operations. This gives you financial flexibility in the long run.
In contrast, purchased equipment does not attract this kind of tax reprieve. Instead, you will end up paying depreciated tax rates over the lifetime of the equipment.
“In a world where everyone is wise, only the one who is wiser than others deserves the title wise.” – Mehmet Murat Ildan
6. Avoid transport and installation costs
When you decide to buy a new piece of waste management equipment, you will have to worry about safely transporting it to your business site. You will also have to hire a professional to install the equipment for you and handle all the logistics. This will simply add to your Business overheads and will be significant cost-intensive in the long run.
You can avoid these unnecessary costs and expenses by simply renting your waste and recycling equipment. Renting waste equipment eliminates having to deal with storage, freight, and installation charges since these issues are the responsibility of the rental company.
7. Increase your borrowing power by extending your credit lines
Did you know that paying your equipment rental payments on time can help build your credit score?
Your ability to pay on time is one of the many factors that creditors consider before issuing loans. Timely rental payments against your rented waste management equipment can extend your credit lines and increase your borrowing power by up to 35%.
Your business’ financial standing will remain strong in the eyes of banks and other lenders since most of them do not consider rental expenses as a liability.
8. Gain flexible options as you focus on growing your business
Renting waste and recycling equipment provides the ultimate flexibility. Firstly, it allows you to pay only for what you can afford. The service provider will give you an offer that fits your budget, meaning you will not have to pay more than you can afford to.
Then again, you can decide to renew or terminate your rental agreement at any time as long as this does not violate the terms of the agreement.
With all these flexible options at your disposal, you can now focus on growing your business to greater heights.
9. Sharpen your competitive edge over your business competitors
Renting waste equipment puts you at par with the big companies. You do not have to rely on old, outdated machines when you can access bigger, and better machines at a reasonable rate. Having the latest equipment allows you to compete against big competitors.
Moreover, renting equipment allows you to save more and build your financial muscle since you do not have to spend thousands of dollars in fully buying the machinery.
10. Eliminate the costs and responsibility of repairs and maintenance
Finally, by renting waste management equipment, you eliminate maintenance costs. It is the responsibility of the rental company to service, repair, and maintain their waste and recycling equipment.
In contrast, buyers have to worry about repair and maintenance costs for their equipment, and they must include this in their budgets.
Understand your waste and recycling bills and avoid huge upfront fees
One of the reasons why property managers end up paying haulers over the roof for waste disposal is a lack of understanding of the subject. Haulers can be cunning sometimes and act out of self-interest and they may convince you to buy waste management equipment from them that you don’t necessarily need.
Hopefully, you understand by now that buying waste management equipment can be very expensive. You may have to dig deeper into your pockets to pay the huge upfront fees that come with buying waste management machinery.
Once you understand how waste and recycling bills work, you will notice that you do not need to fully buy waste-management equipment.
You only need to rent the equipment you want and channel the remaining funds to other business activities. You can even use the money to upgrade your property. The choice is yours.
Waste Control Inc can help you evaluate your waste services and bills. We can also help you determine what equipment you need to rent for your waste management needs. Not only that! We can also help you negotiate the amount you should be paying for waste equipment rental.
Now that you have the right information, run away with it.