The 4th Bin update!!
Another apology for the long time in posting. So lets get right to the updates:
* Since inception in Aug 2009, The 4th Bin has collected approximately 30 tons worth of e-waste and has recycled or reused about 26 tons. The other 4 tons are sitting in our storage facility being evaluated for potential reuse, being prepared for donation to non-profit organizations or waiting to be purchased from our ebay store.
* Several months ago, we made the strategic decision to completely align ourselves with the e-Steward initiative (www.e-stewards.org). Among other things, the e-Steward initiative prohibits the disposal of toxic waste in landfills, enforces international waste treaties that prohibit the export of hazardous waste to developing countries, protect workers against toxic exposure and prohibit prison labor (protecting any sensitive data on harddrives). For full details on the e-Steward initiative, visit their website at www.e-stewards.org.
* In keeping with our decision to align ourselves with the e-Steward Initiative, we have partnered with WeRecycle! LLC (www.werecycle.com). WeRecycle’s commitment to ethical processing of electronic waste supports The 4th Bin’s position. And having a local partner (Mt. Vernon, NY) helps keep our trucking costs down.
* Since the start of fulltime operations in January of this year, we are now picking up and collecting e-waste one to two full days per week. Our goal, of course, is to fill up our calendar (6 to 7 days a week). We’re well on our way. The success of January’s “Winter” campaign and April’s “Spring Cleaning” campaign show that we can do it. Alone,the two campaigns generated over 500 individual pickups (business AND residents). The pickups were done in Feb and May. In total, we’ve gone to over 1000 businesses and residents to collect e-waste.
Next post is coming soon. I’m gong to address the most popular question that I get asked - “why do you charge to pick up my garbage”?
Free e-waste pickup in NYC
Happy New Year to everyone!! Lets hope the coming year is better than the previous few years. At The 4th Bin, we’ve decided to start it off with some positive programs.
First is our “Cell Phones for Food” campaign. We have partnered with City Harvest, one of the premier non-profits in NYC, to assist with their mission. This is a first step in following our mandate of giving back to our local communities. For those not familiar with City Harvest, their mission is to “end hunger in communities throughout New York City”. They do this by collecting excess food from all segments of the food industry and redistributing it to nearly 600 community programs throughout the city. As a non-profit, they rely very heavily on contributions. The 4th Bin’s “Cell Phones for Food” campaign collects cell phones, generates value for the phone and donates a portion of the proceeds directly to City Harvest. We’re proud to not only help save the environment but also to help feed the hungry.
Second is our January Free E-waste Pickup campaign. We are currently accepting requests to pick up electronic waste from businesses and residents of New York City. We accept almost all types of e-waste. From mid-January until the end of Febuary, we will be driving through the city and picking up anything from anyone that has requested a pickup - for free. What’s better than someone coming to your door and picking up your stuff with no cost to you?
You can get info for either program by visiting our website - http://www.4thbin.com.
Have a happy new year!!
-md
What about TVs…and other stuff!
I apologize for the hiatus in posting. I’ve been distracted by turkey, a crashed computer (yes, I will be recycling my old computer through The 4th Bin) and a few sleepless nights (a 3 month old baby will do that).
My last post pretty much summed up where we are currently sending computer related equipment. While this solution allows us to meet the highest recycling standards, we will continue to negotiate with other organizations that follow these standards in the hopes of coming to better financial arrangements. Remember - The 4th Bin makes it’s money on the back-end - not by charging you, our clients, to pick up your e-waste. Therefore, we need to maximize the potential value of collected equipment.
Anyway, having a reliable outlet for computer equipment has allowed me to focus on two very important issues. First, how to handle TVs. Second, marketing (see my next post).
Ah…TVs. Along with CRT monitors, TVs pose one of the biggest issues to the recycling industry. Tube TVs (and CRT monitors) have become outdated as a result of the flat screen plasma and LCD versions. As prices on the new equipment decrease, demand for the old equipment also decreases. As a result, no one wants the old tube TVs. Therefore, no resale value. And little value (pennies on the dollar) in components that are extracted from processing. As a result, many TVs are dumped and end up in landfills. And the bigger problem is that these TVs contain some of the more dangerous, toxic chemicals.
Clearly, dumping and “landfilling” are not an option. So what will happen with a TV given to the 4th Bin? I can, without a doubt, say that they will be processed responsibly. At this point, I cannot tell you exactly who will be doing it. All waste management companies will charge The 4th Bin a fee to recycle a TV. The cost to process the TV outweighs any value on the extracted components. And since our mission is to make e-waste recycling simple and inexpensive for the consumer, we are forced to aggressively negotiate the best deal. And that is what we are currently doing. We are in discussions with several top tier recycling companies with the hopes of negotiating the lowest possible cost to recycle these TVs.
For now, all TVs are stored in The 4th Bin’s storage facility while we work out this issue. Fortunately, we haven’t begun targeting, and marketing to, the residential community and have not taken in many TVs. We are simply being proactive.
Then again, we may see our TV inventory increase dramatically in the near future. Our marketing team is in the process of announcing the new free e-waste pickup campaign for both organizations and residents (scheduled to begin in January 2010). As I said…see my next post for the marketing plans.
-md
Our e-waste has a destination
Ok…so if you’ve read my previous posts, you know that our company philosophy is to reuse as much of the collected equipment as possible. Whatever has resale value will be resold via our ebay store, directly to our facebook fans/twitter followers or indirectly through our downstream partners. Whatever has no value is scrap and needs a destination. Until last week, we didn’t have a destination - so we held on to it in our storage facility.
As I’ve mentioned, I want total transparency in our business so that you can understand how, and why, we make certain decisions. With that being said, I can’t tell you where the scrap is going. Not that I don’t want to. But I’m being restricted from publicizing the relationships due to “exclusivity” clauses in a specific contract. What I can say is this - our corporate goals are always to make the collection of e-waste simple and inexpensive, make sure that the equipment is being dealt with ethically and responsibly and to give back to our local communities. The arrangement that we have in place right now hits the last two points.
Our plans are to deliver the “scrap” to a non-profit organization whose mission is to create work opportunities for people in need. This organization has a contract in place with a large computer manufacturer/distributor (I don’t know industry stats but I would guess that they’re probably the largest) where the non-profit will be the front end for the manufacturer’s e-waste recycling program. Simplified, the manufacturer plans to say that you don’t need to ship your e-waste to them - the non-profit is the local drop-off point so take your stuff directly to them. The manufacturer has a downstream relationship with a recycler/processing company and the non-profit delivers all e-waste directly to the recycler. Everyone here is legit and is following the highest standards (the manufacturer would never risk aligning themselves with a shady player).
The problem is that the manufacturer will not let anyone jump on the bandwagon - all for them, none for you. This e-waste recycling program is just for them to promote and no one is allowed to say that they work with the non-profit. I can take my e-waste to the non-profit - they won’t turn it away. I’m just not allowed to publicize that I have any working relationship with them or they will be in breach of contract. The manufacturer’s lawyers provide little leeway for the non-profit to work outside of the exclusive relationship. Gotta love big business!! The sad part is that our business model can greatly help the non-profit. Cross-promotions between us would increase the volume that we bring in and, even better, really help them meet their mission of creating working opportunities (more volume means more people needed to work on the equipment).
The bottom line is that we have a reliable, ethical and responsible downstream outlet for the e-waste and we’re giving back. I just can’t publicize it. But, if you really want to know, I’m sure I can tell you who it is if you contact me. Feel free to reach out to me via info@4thbin.com
-md
You have my stuff - now what?
Ok. So now we can finally start talking about what goes on behind the scenes. We’ll also touch on the business side of things…politics will come later.
When we first conceptualized the business side of The 4th Bin, we thought it would be pretty simple. Some stuff we collect will be functional and someone will need or want it. That fits perfectly into our “reuse” concept (see my previous post). The other stuff will be scrap and we’ll hand it off to a waste management company for processing and extracting of materials (metals, plastics, etc). Those extracted materials will be sold to the manufacturers on a secondary market to be used in future parts. After everyone gets their piece, we will make a few pennies on the dollar. That’s the simplified version and, as I’m learning, it’s not that simple.
Let me first explain what type of equipment we get. I’ll put it into buckets to keep things fairly clear and simple.
Bucket 1: Stuff in relatively high demand when sold as used or refurbished. These items are typically in working condition and require little or no time and money on our end to refurbish.
Bucket 2: Stuff we’re “iffy” about. Anything that falls into this bucket requires a pretty detailed evaluation. Time is definitely put in. And, in some cases, money. We will plug in machines to test that they work and, in the case of computers, test each individual component (motherboard, processor, RAM, hard drive, etc). If a component is not working, and we can replace it without taking a financial loss on the overall machine, we will replace it.
Bucket 3: Pure scrap. This is for the items that do not work or have no demand as used or refurbished. Typically, it’s broken or really old stuff.
So where can it go once we’ve determined where it falls?
The stuff that has high demand and value (Bucket 1 and the most of the reusable stuff in Bucket 2) will go to our ebay store or will be offered for sale directly to our Facebook fans and Twitter followers. There is also the possibility of international sales (these are all forms direct sales). As I like to say, I’m not a computer or parts distributor so I’m not worried about selling things at “market value”. Considering it’s e-waste, I want to sell it for fair value and make sure that it gets a new home.
Some of the stuff in Bucket 2 can go to a downstream partner who can also sell it either domestically or internationally (indirect sales).
The pure scrap (all of Bucket 3 and some stuff from Bucket 2) will need to be processed for extracting materials.
Wait…did I say “international sales”. Doesn’t that mean exporting your stuff? Doesn’t export mean your stuff will wind up in a landfill somewhere in a third world country (or China) and end up polluting the environment - just what you didn’t want to happen? My answer is yes, it’s export. No, export does not equal landfill.
The export issue is a tricky one - and a long one. I’ll dedicate an entire post to the topic of “export” and how keeping e-waste here in the US is not an easy decision.
But now you’re starting to see some of the issues that we face when we determine where your stuff will go - and how it’s not as simple as we thought. Stay tuned!!
-md
What’s my agenda?
In my first post, I mentioned existing and emerging legislation, politics, various organizations taking differing opinions on the issues and the business side of e-waste management. Before I start explaining what I’m learning about each topic (in future posts), I think it’s important let everyone know where I stand and what my agenda is.
First, let me explain my background and motivations for being in this business. I’ve spent nearly 20 years in the IT business and have done everything from crawling under desks as a helpdesk guy to running IT Departments for mid-size organizations. Over the course of my career, I’ve touched tens of thousands of computers. Eventually, I began to wonder what really happens to all of that equipment.
At one point, I tried to get rid of 30 or so computers and monitors. They were all about 3 years old and in perfect working condition - they simply weren’t powerful enough to run the business applications so we upgraded. I wanted to do the right thing and give them to charity or recycle them. Charities didn’t want them (even charities can be picky about the age of a machine) and recyclers wanted to charge an arm and a leg to take them off my hands. I was shocked and frustrated. I couldn’t give them away so my only choice was to pay a hefty fee to get rid of computers that we’ve already paid for. I ended up pushing the problem aside and storing them in my storage room until I had the time to deal with the issue (which was eventually passed on to my successor).
Fast forward several years to The 4th Bin. The ownership of The 4th Bin (including myself) are all IT people with similar experiences. There’s not a single trucker, professional environmentalist, waste management person, recycler (you get the point) among us. We don’t know anything about the behind the scenes of the e-waste and green movement. We’re techies and all we know is that, collectively, we touched hundreds of thousands of computers that need to be dealt with. And it needs to be handled responsibly and ethically.
So our (my) agenda is simple - create a profitable business (The 4th Bin) where we:
- rescue all forms of e-waste such as computers, laptops, monitors, printers and cell phones.
- ethically and responsibly recycle, or reuse, the equipment.
- partner with, and give back to, our local communities.
Those 3 points were pulled directly from our website and we stand by those goals and that agenda.
One very important company (and personal) position to note is that we believe that the best form of recycling is reuse. We believe that there is nothing more environmentally friendly than taking an already existing piece of equipment and moving it from one place to another. Extracting materials (metals, plastics, etc.) for reuse, commonly thought of as “recycling”, requires crunching, smelting and other processing. At the very least, processing requires energy (among other things needed to break down the components) and it will have a greater environmental impact than simply reusing existing equipment. So reuse is our top priority.
One more thing to note. We are running a “for profit” business. After all, I need to pay rent and feed my family and can’t continue to work for free (yes…working for free right now). But “for profit” doesn’t mean greedy or unscrupulous. We’re not looking to take advantage of the system or look for loopholes to make us millions. We’re ABSOLUTELY looking to do the right thing. And we’re putting our money where our mouths are. We’re setting up partnerships with non-profit organizations (such as our already existing partnership with City Harvest (www.cityharvest.org)) where we give them a portion of our proceeds.
With all of that being said, we have no political position or organizational affiliation. We’re in the early stages of formulating our opinions and position within the industry. All we want to do is follow the agenda that I listed above.
Sorry for the long post. I’ll try to keep it shorter in the future.
-md
Electronic Waste - Navigating the rules and the politics a.k.a. “where does my stuff go”
The green movement is firmly upon us. And, as with any hot topic, there’s existing and emerging legislation, politics on all sides of the issue, organizations that will take specific “interpretations” of the rules to support a specific side, media coverage and (lets not forget) big business. This blog is meant to share my experiences as I try to learn, and navigate, the electronic waste (e-waste) business.
But before I do that, let me explain the reasons why I’m doing this. I’m in the process of starting an e-waste collection/recycling business in New York City (The 4th Bin - www.4thbin.com). As I’m learning, it’s a treacherous process where a misstep can get you audited, fined, arrested and, worst of all, exposed in the media. This is my attempt to create transparency so that everyone can fully understand our thought process as we work our way through the issues and determine which direction to take. I’m hoping that it will also dispel some of the misinformation that’s out there. Oh…and it will answer the question “where does my stuff go when I give it to The 4th Bin”.
Here’s my quick disclaimer. I’m a novice right now. I’m learning. And the posts are not fact. It’s my opinion and/or my experiences. So I will not always cite specific sources and, I admit, I will be wrong. I will make corrections as I discover the right information. Also, I welcome any and all opinions and corrections as long as it’s constructive or positive. The blogs will be open for comments but only as long as the comments are civil. Disagreements are ok, but I will not tolerate bashing of anyone’s opinions, nationality, race, etc.
