The growth of the industry in conjunction with the decline of paper prices in the later portion of 2008 has developed an ever competitive shredding market.
Gone are the days of easy money and overnight success, here are the days of fierce competition and lucrative business opportunities.
In order to stay ahead of the competition shredding service providers must take a proactive approach to developing effective business models.
Alternative service solutions, competitive advantages, trust and ongoing operational evaluations must be integrated in order for the models to be successful.
Marginal players in the shredding industry need to provide alternative service solutions to customers in order to remain competitive.
The alternatives should be tailored to different customer needs in relation to the pre-existing business and the direction of the market.
A shredding service provider should integrate simplified and relevant services, such as, electronic file destruction applications.
New technologies have caused a shift away from paper files and toward electronic document storage.
Introducing alternative service solutions which control digital content (such as, hard drives or diskettes), can help prepare a paper based company for the future.
Electronic file destruction can be incorporated into a pre-existing paper shredding service with collection containers which effectively collects hard drives, paper and disks simultaneously.
This enables shredding companies to tap into other file destruction markets, maintain current customers and target new ones.
Once alternative service solutions have been launched a company needs to determine what its competitive advantages are and how to leverage them.
This can be accomplished by evaluating where the business is currently and where it hopes to be in the future.
Determine what sets the company apart from its competitors, such as, green service or products, warranties or well equipped sales teams.
Container alternatives such as those listed above should not incur additional charges on top of container investments.
Shredding consoles should come equipped with five year warranties, custom sell sheets, contain a minimum of 35% recycled content and be 100% recyclable with no additional charge.
Once consoles meeting such criteria are integrated into a shredding service they can be used to the advantage of the company as a whole.
Competitive advantages are vital to a successful shredding business and pivotal to the reception of such advantages is trust.
Identity theft has risen over 600% in the last decade, thus, consumers require assurance that their confidential files are in safe, reliable and competent hands.
There are several ways in which an onsite shredding business can develop trust with customers, such as, offering secure fixed facilities equipped with gates, surveillance cameras and visitor log books.
A mobile shredding service could offer a confidentiality policy complete with a certificate of destruction and testimonials for completed jobs.
Another key to a successful shredding business is the ongoing evaluation of industry trends and technological advancements.
Determine how to use them to improve business, sales and operational efficiencies.
For example, a company should assess current transportation strategies in relation to others on the market.
Measure what the cost breakouts and miles driven are and what kind of customer feedback is being received.
This will determine what the company's productivity and performance is and how new technologies can improve such.
One way in which a company could increase its productivity in collection is by utilizing a one key solution on secure document containers.
This would enable collectors to gather information more efficiently without stopping to sort through numerous keys for each container.
In conclusion, while competition may be getting fiercer within the industry there is still great potential for businesses to thrive.
The right combination of alternative service solutions, competitive advantages, trust and ongoing operational evaluations can ensure that a shredding business remains successful.