The Basics

Two leaders of Shred First LLC and its Shred School program outline some helpful product destruction hints.

The shredding of unwanted or counterfeit products, as well as entertainment media and electronic storage media, can be a lucrative addition to the services offered by a document destruction firm.

Although there is much to learn when entering this new sector, there are certainly ways document destruction companies can build upon their existing foundations to achieve success in these additional markets.

Many of the same procedures and types of equipment that enable secure shredders to handle files and documents can also enable them to handle music CDs, DVDs, storage media, hard drives and even overstock or counterfeit apparel or toys.

CALLING SECURITY

In a plant-based operation, the same facility that safeguards confidential documents and files should be well equipped to accept non-paper materials that must be protected. Among the necessary features of such a building:

An alarm monitored 24 hours per day;

An on-site security officer if possible; and

A locked-down facility with all visitors escorted.

An existing surveillance system may have to be upgraded to combat the more tempting theft targets posed by DVDs, apparel or consumer electronics. An upgraded surveillance system should capture as much of the process as possible from the time the materials enter the premises until they depart.

Shred First has an on-site security guard who uses a wand to search everyone entering and exiting the building.

The increased scrutiny can be necessary. Some of the same employees who would not be candidates to take home a piece of paper with someone’s Social Security number on it may be tempted when they see a perfectly fine DVD or pair of shoes. It’s much easier for them to be tempted by the instant value.

To meet NAID (National Association for Information Destruction) AAA certification requirements and those of many corporate audit procedures, a destruction company should keep evidence of destruction for a standard period of time, often 90 days. This could involve keeping paperwork and/or taped evidence of destruction.

In some cases, customers may request participation in the destruction process, either by witnessing the destruction in person or online or by sending a third-party auditor to the facility as a witness.

WORLD OF DESTRUCTION

The range of products that companies may wish to have destroyed is staggering. Our philosophy at Shred First is: "If it’s not environmentally hazardous or breathing, go for it."

Summer School

School may be out for many younger students by mid-July, but Shred First LLC, Spartanburg, S.C., holds its next Shred School July 10-12.

The three-day event at the company’s Spartanburg facility offers owners and employees of secure destruction companies the chance to learn about several different aspects of managing and operating a shredding company, including entering the product destruction field.

A primary topic covered during "classroom" sessions includes how to sell document destruction services, from researching prospective clients to making cold calls and conducting a needs analysis for potential customers. Sales planning and follow-up is further covered in sessions on writing proposals and handling objections to close a sale.

Competitive factors, such as financial planning, developing the right cost structure and evaluating the competition, are also addressed during the first two days of the school session. Equipment and operations are covered on the last day of class.

More information on Shred School can be obtained by contacting Ray Barry at Shred First at (864) 577-9645 or at ray@shredfirst.net.

The destruction of electronic storage media is a common customer request and a natural tie-in for document destruction companies. Such media can take many forms, including tapes, reels, microfiche, microfilm and discs.

For the most part, the shredding of such items does not require a large capital equipment expense to carry out proper destruction.

As with paper files, the customer can be very concerned that destruction is carried out properly, and the job—when carried out to the customer’s satisfaction—can be profitable.

Beyond office customers with electronic media, truly expanding one’s shredding universe can mean working with manufacturers, distributors, retailers and wholesalers to destroy a variety of unwanted merchandise.

Customers will go to great expense to ensure materials such as computer software, CDs, DVDs, toys, clothing and other branded products do not get into the wrong hands, which can include people who will resell them at deflated prices and at non-approved retail venues such as flea markets.

PROPERLY EQUIPPED

There can be more homework and more capital expenditures involved for destruction companies that truly wish to expand beyond paper documents.

For some product destruction jobs (as with paper), the specifications of the customer will dictate the equipment of choice.

Establishing what particle size(s) they are after can be crucial. If the customer is able to provide "before and after" examples in person or via electronic images, this can help determine what equipment is needed to tackle the job.

Ultimately, the shredding firm must provide the customer with an end product that is guaranteed not to be returned or reused in any way.

Depending on the task, we use a variety of shredders, grinders, saw-cut machines and hole punch machines—approximately 10 machines in operation overall.

END OF THE LINE

Document destruction firms benefit financially when the paper files they shred can be sold into a healthy paper recycling market.

In some cases, this same outcome can be gained from destroyed products. With the proper volume, a lot of what is destroyed can be recycled.

But, as with paper, one should have the price of the service cover all costs and produce a margin, while any recycling revenue one can gain on the back end is a welcome bonus.

At Shred First, we have secured markets for the shredded plastic that results from destroyed CDs, DVDs, cassettes and many other items.

Density can be a key in recycling: Packaging materials to maximize weight can make recycling worthwhile.

The viability of recycling can also depend on the fees charged vs. the expense to separate materials. In some cases, we end up landfilling material that could be recycled because the customer does not want to pay the extra separation charges. As a corporation, though, we always advocate for recycling as the best option.

If material is disposed of, be sure of local landfill policies (for instance, shredded televisions or monitors are not allowed in many states).

As with recycling, in landfilling, density can again be key to minimizing expenses per pound. For high enough volumes, it can be worthwhile to consider baling the materials.

Incineration is a decreasing option in many parts of the country, as a lot of these facilities are closing. Where they are available, waste-to-energy plants allow "recycling" in the form of energy recovery to be sold to the customer. Sometimes clients prefer this to the landfill option.

In terms of making sure a given product destruction job makes financial sense, an investigation into recycling vs. disposal costs can be a vital part of providing a workable estimate.

The authors are president and vice president-sales of Shred First LLC, Spartanburg, S.C., and can be contacted at (864) 577-9645.

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