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Shredding Service Cost and Revenue

AXO Shredders now a Shred-Tech Company
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AXO Shredders Ltd has prepared a pro-forma financial plan that would represent a typical start up operation. It should be noted, however, that this business plan should be used as a starting point only.

Assumptions will vary from region to region, and operator to operator, depending upon the geography, the business climate, the competitive environment, etc. Some operators start off with a couple of key clients and require little ongoing marketing, while others may decide on an intensive marketing campaign in order to build the business quickly.

Some operators may be production orientated and spend time working the truck, while others may be sales and marketing orientated and spend their time selling. The mobile shredding companies that grow quickest have a constant focus on sales, develop relationships with companies that can help promote their service or can provide sales lead information and who have a well designed website and simple, clear marketing brochures.

AXO is able to offer considerable advice in this area and can also offer marketing brochures and website design assistance. We recommend that you do your own financial plan and have it reviewed by your financial advisor. AXO Shredders personnel will be happy to comment on your ideas. The primary assumptions that have been made when constructing the business pro forma are listed below:


  1. The venture begins shredding services upon receipt of vehicle.
  2. Volumes gradually increase as sales efforts mature and as shareholder moves to full time sales (After 6 months)
  3. Growth projected at one vehicle/ year
  4. Rated capacity is 1000kgs/hour. This is the capacity of the AXO WM408-16Mobile Document Shredding Truck. The AXO WM608-16 Mobile Document Shredding Truck has a greater throughput capability. Further details regarding both vehicles can be supplied on request.



  1. Please verify billing rates with your own market research
  2. Revenue from sale of paper is not included in figures, the value of the shredded paper can vary from location to location.
  3. Large purge jobs are not included in these figures. Some of these jobs can be £5,000 or more. With active selling one of these jobs can be expected at least every 6 months



  1. Lease rate based on five-year standard lease with 20% deposit. A greater deposit will reduce monthly lease payment.
  2. Estimated monthly lease payment is £1,932.00
  3. Labour assumes one-man operation, 250 days/year at £9.00 / hour. At the start the shareholder(s) operate the vehicle, then move on to selling full time.
  4. Administration assistant can also perform telemarketing, however after the first six months the main selling effort will come from the shareholder(s).
  5. Diesel fuel 0.93 p/litre
  6. Telephone, fax and office supplies are estimates
  7. Professional services include accounting and company incorporation costs
  8. New uniforms are purchased every 6 months
  9. Premises rental represents the rental of a small industrial space office. Note that the business could be run from home for the first 6-12 months depending on circumstances.



  1. Working capital reserves and bank overdraft cover cash flow deficit during start up phase
  2. Please make your own research and substitute in figures that apply to your situation


* Nothing within this document constitutes a business performance guarantee by AXO Shredders, or an offer by AXO Shredders, or part of any other contract with AXO Shredders. This document is based on assumptions that may or may not apply in your market, and we encourage you to perform your own investigations and obtain your own independent financial advice.
Shred-Tech Asia Co., Ltd. Shred-Tech Corp. Shred-Tech® Australasia
home icon 789/52 Moo 1, Nong-Kham, Sriracha, Chonburi,Thailand 20230 home icon 295 Pinebush Rd.Cambridge, Ontario Canada N1T 1B2 home icon PO Box 620, South Yarra,Victoria 3141 Australia
tel icon+66 3834 8250 email icon tel icon+1 (519) 621-3560 email icon tel icon+61 0498 730 684 email icon


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