Help a math potato out

[nutxo]

The company I work for gets 100's of empty propane tanks a month. Today I suggested we get and evacuator to get rid of the empties instead of paying a company to do it. They never listen but a half hour later I got called into the office and they wanted more info. Mind you this isn't just about money. The empties count against us as producer of hazardous waste and empty tank is the same as a full tank as far as the state is concerned.

Anyways.

We probably get 200 empties a month.

We pay 5.00 plus 8.5% tax to get rid of each tank.

The machine cost $832.00 plus $19.45 shipping. It comes with 40 tags and one filter (a $153.27 value). The filter must be replaced every 40 tanks. The replacement filter a cost of $136.18 and $17.09 shipping for a total of $153.27.

How long would it be before the machine paid for itself and what would the savings be for the first and second year?

 

[IronWing]

Explain the significance of the tags please and also how much tags will cost after the first batch

 

[lxskllr]

I just figured the cost of the filter alone, and if I understand right, it costs $3.83/tank just in filters, as opposed to $5.43/tank to send them off. That's only material cost, and doesn't count labor. Unless your business is very small, it almost doesn't seem worth it.

 

[IronWing]

It would take under three months (at 200 tanks per month) to recoup the capital costs but, as lxskllr points out, that doesn't count your company's labor.

Vendor scenario:
How long does it take to prep a tank for vendor to evacuate?
What is the hourly rate of the person doing this?

Do it yourself scenario:
How long does it take to evacuate a tank using the device you propose?
What is the hourly rate of the person doing this?

At $15/hour for labor, if it takes longer than 6 minutes per tank additional labor to evacuate a tank yourself then you lose money.

If you do it in-house, is there an additional regulatory burden (more paperwork) that the vendor is currently handling?

 

[skull]

That $1.60 a tank savings at 2400 tanks a year is $3840 after the machine is paid for. Yeah then labor and electricity. Unless you can get the filters cheaper in bulk probably not worth it.

 

[nutxo]

It would take under three months (at 200 tanks per month) to recoup the capital costs but, as lxskllr points out, that doesn't count your company's labor.

Vendor scenario:
How long does it take to prep a tank for vendor to evacuate?
What is the hourly rate of the person doing this?

Do it yourself scenario:
How long does it take to evacuate a tank using the device you propose?
What is the hourly rate of the person doing this?

Labor is free. So the time and labor aren't relevant.

Like I said above the weight saving is a huge consideration but Ive got that figured out.

I thought i deleted the part about the tags,. they aren't part of the equation though sorry

 

[IronWing]

Weight savings? We need more info about the operation apparently.

 

[nutxo]

That $1.60 a tank savings at 2400 tanks a year is $3840 after the machine is paid for. Yeah then labor and electricity. Unless you can get the filters cheaper in bulk probably not worth it.

My worker is blind and I use the full tanks to heat the building. The device is manual so no power is needed.

 

[nutxo]

Weight savings? We need more info about the operation apparently.

Hazmat generators are classified as a large, medium or small generator. The more you generate the more stringent the oversight. An empty tank sent to a recovery company counts the same as a full tank. An evacuated recycled tank counts as zero.

 

[skull]

My worker is blind and I use the full tanks to heat the building. The device is manual so no power is needed.

Sounds like a better investment would be a real heater with a real propane tank.

 

[zinfamous]

Explain the significance of the tags please and also how much tags will cost after the first batch

I'm guessing the cost of 40 tags = $153.27-136.18 because of "value" of free 40 tags * 1 filter - cost of single filter replacement?

 

[ctbaars]

I get a crossover at about 470/480 tanks.
But like others say, there are so many other factors that may come into play that we don't know about.
Sometimes the convenience is worth it. Labor is not free, time is not free, space is not free, peace of mind is not free ... even if it doesn't cost money.

 

[tynopik]

My worker is blind and I use the full tanks to heat the building. The device is manual so no power is needed.

it would be tons cheaper to install a heatpump