The Lure of Product Destruction

The Gaspard family started Security Mobile Shredding Inc. (SMS), Alexandria, La., in 1995. In the 16 years since, the business has evolved into what owner and President Sheree Gaspard likes to describe as an “extended-family and community-based” company, adding, “needless to say, the reality has far exceeded our original vision and expectations.”

The company’s name can be a little misleading, as SMS has been offering off-site destruction services all along. “Our off-site services developed hand-in-hand with our mobile destruction services,” Gaspard says.

Customer demand led SMS to expand into offering product destruction services, Gaspard says. “Initially, manufacturers in our area required these expanded services,” she explains, “and then two local municipalities approached us with the question, ‘What else besides documents can you shred?’”

Currently, product destruction averages 15 percent of SMS’ business, and Gaspard forecasts future growth. “It is a steady profit center for us, and if we advertise these services more aggressively, there’s more growth potential in product destruction,” she says.

Gaspard advises knowing the extent of your operation’s capabilities, including what your equipment is capable of, before taking on product destruction jobs to ensure a satisfied customer and a profitable job. “You’ve got to get it right when you commit to secure product destruction, and I strongly encourage conducting ‘test grinds’ of submitted material and customer endorsement of particle size and quality,” she suggests.

Gaspard offers additional suggestions for how secure destruction companies can expand into product destruction services in the Q&A that follows.

Secure Destruction Business (SDB): Despite its name, Security Mobile Shredding also has plant-based operations. Would it be difficult to offer product destruction services if you didn’t have a plant-based operation?

Sheree Gaspard: We are in a unique position because of the equipment that SMS utilizes. We are able to handle product destruction with our mobile trucks. The ability to change screen sizes with our Cresswood single-shaft shredder/grinders and then to process different materials using this technology allows us to offer “mobile destruction.” With some of our customers, on-site destruction is absolutely required. An example would be casinos and the secure destruction of poker chips. If we didn’t have the versatility to actually process this product on site under the watchful eye of the casino’s armed guards, we wouldn’t have these accounts.

SDB: How can mobile companies best go about offering product destruction?

Gaspard: My best advice is to know your limitations. If you take on “more than you can chew,” so to speak, you risk not delivering on your commitments and letting your customers down. A lot of shredding technology out there is capable of handling paper destruction but isn’t effective with other materials. Tackling secure product destruction jobs takes adaptable equipment and well-trained service personnel.

The ability to customize the particle size with a quick screen change, and the processing capability to completely destroy products like tee-shirts and poker chips with ease, while not threatening machine function or creating downtime, has put us in this business.

SDB: What advice do you have for document destruction firms that would like to get into product destruction but may be hesitating because they don’t know where to start?

Gaspard: As a starting point, know equipment capabilities and limitations. The last thing that you want to do is disappoint your customers; that makes for bad working relationships. Be aware that each product destruction challenge will require some cost-benefit analysis as well. For us, we determine if the job will be handled on site or if it must utilize the larger Cresswood shredder/grinder located at our off-site facility.

On the marketing side, approach manufacturers in your area. Many manufacturers literally have warehouses and railcars full of out-of-date or off-spec packaging materials, miss-printed labels and other stuff that must be securely destroyed. It’s a matter of protecting their brand integrity and avoiding counterfeiting.

We’ve found that marketing personnel are very receptive to a secure and cost-effective solution, since they are often responsible for product and packaging changes that doom this material in the first place.

SDB: What suggestions do you have for prospecting clients for product destruction services? Is it best to approach manufacturers directly, or are there other links in the distribution chain that represent opportunities?

Gaspard: I encourage the direct approach! Call manufacturers—you can start with shipping, packaging managers, facility and operations personnel. These are the individuals who are responsible for utilizing, storing and disposing of this material. They know the dimensions of the problem, how limited their options may be and they are motivated to engage safe and secure destruction services.

SDB: What factors do you need to consider when pricing a product destruction job?

Gaspard: Pricing and profitability for our company are determined by a) location (on site or off site), b) additional costs, such as the purchase of another screen if we don’t have the size required and c) time—does the customer require that the end product be returned, such as with our manufacturer of fishing lures, or recycled or whatever final disposition is necessary and required for NAID (National Association for Information Destruction) certification.

Another factor to consider: How can offering this product destruction service enhance our long-term relationship with this customer?

SDB: What should destruction firms look for in a recycler they may be considering for further processing or when marketing the material that is produced from a destruction job?

Gaspard: Research your area for accredited recyclers. Your specific recycling requirements will depend on your customer base. To meet NAID certification requirements, you must declare your outlets for all securely destroyed material. Customers also need to know the full life cycle of their confidential products as well as the shred from secure documents and media.  

Paper is our largest material by volume, and we work with Georgia-Pacific exclusively. We have access to very reputable metal recyclers in our area, but there are few plastics recyclers.

You just have to do your homework, be aware of certification standards as you plan, network with other businesses and build relationships. And always communicate the value of your diligence to your customers.

SDB: In your experience, can a company rely on product destruction accounts for repeat business, or are these jobs similar to purge jobs in that they may be a one-time event?

Gaspard: Product destruction is in the category of repeat business for our company.

When you consider that manufacturers are constantly changing labeling and product sizes, engineering and construction firms create and discard blueprints, school systems adopt new textbooks and companies replace signage, product destruction jobs are never done!

Many of our best product destruction accounts are service extensions. We initially handled document and information destruction for these firms and were then able to market expanded destruction solutions to solid customers.

Product destruction is less volatile, it is reliable work and it gives us another avenue for marketing in our region, as well.

Sheree Gaspard is owner and president of Security Mobile Shredding, Alexandria, La. She can be contacted at info@securitymobileshredding.com.