You’ll notice that we talk about the right waste recycling equipment a lot on our website, and when we’re helping our customers to make good decisions about buying recycling equipment. It seems obvious that everyone would always want to buy the right equipment, doesn’t it? But we’ve learned from our customers over the years that knowing what right really means can be a challenge. Making a significant investment in large capital equipment with a long useful life can be complex enough for any business. In a volatile marketplace such as recycling, where changing government regulations and fluctuating commodity prices can stand things on their heads overnight, it can be an intimidating prospect.
A guide to buying the right waste recycling equipment
To help our customers overcome the challenges and make the best buying decisions, we decided to pull together a dozen factors that we’ve seen used to make good buying decisions into one handy guide. Our goal is to enable you to consider all the relevant issues that lead to buying the right equipment before you sign the deal.
We’ve defined the right equipment as “the equipment that will contribute the most profit to your recycling business over its useful life”. There are really only two ways recycling equipment can contribute to your profits: It either has to deliver cost savings or enable increased revenue. Ideally it would do both, but that’s not always possible.
As well as the obvious up-front questions such as “will the equipment really perform as promised?” and “what is the lowest purchase price to achieve that performance?” we believe you need to consider long-term factors as well. For example, recycling equipment can use a lot of electricity, making your hydro bill one of your largest operating costs. What could happen to the cost of electricity over the next ten years? How might it compare to the market price of the recycled materials you’ll be selling then? How should this be factored into your buying decision?
Things to consider if you’re new to the recycling business
If you’re new to the recycling business, how will you evaluate the available quantities of feed stock of the materials you’re thinking of recycling? How much growth might there be in the market for selling your output over the next five to 10 years? If the feed stock or sales channels suddenly dry up, could you easily switch to recycling other materials with the same equipment? Please see our recent blog post for the top six things you should consider if you’re thinking about getting into the recycling business.
While none of us can be sure about the answers to the longer-term questions, we believe it’s essential to consider them in your decision making. Then you can be sure that you really are buying the right recycling equipment – the equipment that will contribute the most profit to your business over its useful life.
To find out what factors you should consider when purchasing your next recycling machine, we invite you to contact us.