Quality Cart

13 Sep Why High Quality Bins Matter for Document Destruction Companies

The old adage: “You get what you pay for” has been around what seems like forever now. Nevertheless, how many of us consider this when making purchasing decisions for our business? What cost-saving choices are justified and which ones turn around and have a negative impact on a business?

As a business in the document destruction industry, or in any industry for that matter, you want to ensure you are continuously working to increase your bottom line. Ensuring you are not sinking your budget into low-grade products is important. Opting for document destruction carts manufactured overseas with lower-grade plastics may be affordable; however, they could be decreasing your bottom line.

On the surface, products manufactured in China can appear as a great cost saving solution. Problems can arise though as standards and regulations differ from those of the American National Standards guidelines. In order to achieve such a competitive price point, savings must be made somewhere in the manufacturing process – often this comes from using inferior raw materials. This results in quality control issues for companies manufacturing goods in China.

Inferior plastic bins, typically those produced in China, can have a significantly shorter lifespan then products produced domestically. What does this mean to you and your company? How do you justify the initial upfront cost of a higher quality product investment over a cheaper product?

 

High Quality at 5 years Warranty Low Quality at 3 years Warranty ($15 less)
$80 * 56 carts = $4480 $65 * 56 carts = $3640
Monthly Services = 672 customers services per year Monthly Services = 672 customers services per year
3360 Services over 5 years 2016 Services over 3 years
$4880/3360 = COGS: $1.33/cart  $3640/2016 = COGS: $1.81 /cart

 

Short term spend = long term gain. This results in a cost savings of 47 cents per cart over the warranty period of the container ($1.81-$1.33=$0.47). This also includes an additional 2 years of services minimum with the high quality option.

All Source manufactures North American high quality injection molded document destruction containers made with 100% virgin plastic resin  Having carts made from High Density Polyethylene (HDPE), is a crucial factor for quality as this offers excellent impact resistance, a lightweight, low moisture absorption, and a high tensile strength. Additionally, HDPE is also non-toxic and non-staining.

The upfront costs savings is a gamble. Will you receive a product that will survive the demands of your business and survive through the warranty period? Probably not. The purchase of a high quality cart is easy to justify when you work out the cost of the cart over the warranty period, while also receiving a far superior product to represent your business.