How much can you earn with an industrial shredder?
Earn Money With Your Industrial Shredder
- 1,000 lb. Bales get $150.00 per ton but also assuming cost of $10.00 per bale transport cost so net per ton is $140.00.
- 16.86 with 47504 baler produces only 150 lb bales max so the value at the mill is only $95.00 per ton as it has to be re-baled minus $10.00 per ton transportation cost, $85.00 lb.
- Amortization is based on street price with simple interest loan 60 month term 10% interest rate. Value is payment /126 for 6 hour days 5 days per week and payment/252 for 12 hours days 5 days per week.
- Labor cost is hourly rate plus taxes and benefits.
- 16 series shredders do not need a higher cost operator.
- Power consumption is computed using the rating of the combination of the shredder and baler in kW times hours of operation times $0.22 kW/hr electrical costs.
- Freight and Installation are not included as that is very variable, but negligible in the long term.
- Maintenance values are probably 50% too high because I do not have large scale quantitative numbers to use and the numbers we do have show very few issues. However, even at the rate included in the formula, it is 2/3 less than having a full time maintenance person which is common with the large Amerishred or Allegheny type units. This is important to point out for lifecycle costs--A qualified maintenance tech is going to be $45,000 to $60,000 per year times life of machine. An intimus product will cost $30k to $40k less per year to run. Over 10 years that is $300k to $400k in savings.
- Throughput is based on 90% of rating for larger units and 70% for the 16.86 as the bales have to be changed more often.
- The VZ 20 needs two operators that is why the labor is higher.
- The 14.87 unit is on here as a justification of self shredding rather than paying for service. The cost to run would be offset by eliminating blue bin service.