Waste balers are an important part of the recycling industry, but they can also help businesses in other sectors lower their carbon footprint through proper trash management.
Balers speed up waste segregation, transportation and handling processes by making them more streamlined. They also reduce labour, space and storage requirements, especially in an industrial or commercial setting. A business can choose whether to invest in industrial balers or lease them, but which is better for its unique needs?
The answer could be either. Both options have their own pros and cons, which should be weighed against the company’s budget, usage patterns, labour resources and other factors.
Option 1 – Leasing a Baler
- Leasing costs are significantly lower than buying up-front, and many agents offer attractive pricing or payment options.
- Companies can try out a various balers and then invest in those offering the maximum long-term benefits for their business.
- When new technology hits the market, companies that lease balers can update their equipment with less time, effort and expense.
- Leasing a baler makes it easier to plan operational expenses and maintain a budget. This cost may also be 100% tax-deductible.
- The responsibility for equipment maintenance and repair lies with the leasing agent, reducing the company’s costs even further.
- Over a long period of use, the cost of leasing waste balers is much higher than the investment required for buying them upfront.
- Leasing companies may not have a large variety of balers in stock, causing problems for businesses looking for a certain model or brand.
- Most agents require a minimum operating lease period, leading to wastage of money and space if balers are not needed for that long.
- Equipment bought upfront can be sold if the business no longer needs it, but money spent on leasing balers cannot be recovered.
- Repairs and maintenance could be delayed, especially if the leasing company hasn’t specified its responsibilities in the agreement.
Option 2 – Buying a Baler
- Buying a baler is more cost-effective in the long run, particularly for companies involved in waste management and recycling.
- Businesses are not restricted to models or brands available with a leasing company, and can order a specific model if it isn’t in stock.
- There are no complicated agreements or contracts involved in an upfront purchase, and tax incentives are available as well.
- While upgrading balers, the business can recover part of its investment by selling old equipment that’s no longer in use.
- Companies can choose when and how to conduct modification, maintenance or repair work on waste balers they own.
- Upfront costs are higher while buying a baler, which can make it difficult to plan and stick to a budget.
- Cost restrictions may not allow companies to explore features or functionality that could really help their business.
- Broken down or outdated balers may not sell, and the business may not be able to invest in better technology as a result.
- The owner is completely responsible for the repair and upkeep of balers, especially after the warranty period has ended.
Whether you’re trying to boost your business recycling efforts or offering advice to another, keep the establishment’s profits and needs in mind. The buy vs. lease decision will become much easier that way!
Erich Lawson is passionate about saving environment by effective recycling. He has written a wide array of articles on how modern recycling equipments can be used by industries to reduce monthly garbage bills and increase recycling revenue. You can learn more about environment savings techniques by visiting Northern California Compactors, Inc blog.