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8. Facility needs analysis
8.1 Site placement
Proper site identification and selection will be essential to establish a strong commercial basis for the business. Site identification issues include:
- Bins need to be where people congregate and the initial target should be in high amenity areas. The siting of the bins could enhance proposed town centre redevelopments.
- Site placement decisions need to take into account streetscape issues, including distance from shop frontage, blocking visibility of shops and safety issues.
- Recycling bins should be co-located next to existing rubbish bins where possible, to improve convenience and encourage recycling (sorting) at source, reducing cost. Ideally, a colour coding system should be used to reduce contamination of recyclables.
- Bins must be re-evaluated regularly as continued success is based on foot traffic (at present, the siting at Botany seems to be more aligned to best advertising sites). For example, Foodstuffs noted that people may not consume much at the purchase location and so bins need to be sited where the recyclables are generated. Foodstuffs also noted that they do not, in the long term, want to become a recycling centre.
- Siting of large numbers of new bins will require council approval but this is not considered to be a significant issue.
- As car parking is at a premium, any commercial partner, such as Foodstuffs and local shops, will not want the bins to encroach on these areas.
- Bins must not smell and be difficult to vandalise and graffiti or they will quickly detract from their surroundings. If this occurs then it may mean bins need to be located in more 'controlled' areas.
8.2 Potential sites
Priority sites are those that have high visibility and high foot traffic and may include supermarkets, petrol stations, schools, universities, fitness centres, malls, town centres, road stopping sites and unmanned camping sites where large amounts of recyclables materials are generated.
There are a number of attractions for site owners in having the bins located on their premises. These include a share of the advertising revenue; a means to attract tourists and other recycling aware customers; a contribution to meeting Packaging Accord targets; and a positive public image as a good corporate citizen.
We have set out below a summary of the business potential of a number of selected sites that could be investigated further.
8.2.1 Petrol station forecourts
Example: Caltex have in the past provided the opportunity for rubbish bins to be relocated in their forecourts, the example being Jack Trash bins.
Features: The reason for supporting bins on forecourts is that the bins provide a convenient opportunity for users to dispose of rubbish responsibly while filling up their cars and purchasing other services and products.
Locations: All service stations with reasonably sized forecourts.
Advantages: Provides an opportunity for people to recycle and good advertising visibility.
Disadvantages: May be many competing advertising messages at these locations.
Cost: The various petrol stations may charge a location fee, share of the gross revenues or a combination.
Potential market: May be limited to a specific oil company as they could reasonably require exclusivity as part of providing support to the Initiative. Large potential as there are numerous service stations sites.
8.2.2 Quay Street
Example: Quay Street is a key pedestrian boulevard on the central Auckland waterfront.
Features: High levels of foot traffic and tourists. Close to retail outlets and a popular outdoor eating site in fine weather.
Locations: Near public seating and high foot traffic concentrations.
Advantages: Provides an opportunity for people to recycle and good advertising visibility.
Disadvantages: Moderate potential for vandalism and contamination. Siting bins in this area may be in conflict with Auckland City's existing contract with Adshel in regard to advertising on street furniture.
Cost: Council may be prepared to support the Initiative by providing the site free of charge. Otherwise may charge a location fee, share of gross revenues or a combination.
Potential market: Unlikely to be more than 10-15 bins but would provide excellent market presence for the scheme.
8.2.3 Manukau City sites
Example: Manukau City Council (MCC) would like to enhance the existing Botany programme and see bins rolled out in other major shopping areas, including Otara shopping centre, Mangere Town centre, Howick main street, Papatoetoe.
Features: High foot traffic and visibility where there is large scale packaged product consumption.
Locations: Main street areas and where people congregate in park areas.
Advantages: Defined and valuable demographic audience, moderate to high latent interest in recycling behaviour.
Disadvantages: Moderate potential for vandalism and contamination, possibility of conflicts with existing advertisers. Siting bins in these areas may also be in conflict with MCC's existing contract with Adshel in regard to advertising on street furniture.
Cost: MCC may make a small contribution (maximum of $15,000 if clear environmental benefits) towards establishing recycling bins. More likely that MCC do not charge a location fee or require a percentage of gross sales.
Potential market: MCC estimate that up to 12-16 bins would be needed to cover these four shopping areas.
8.2.4 Education campuses
Example: The AUT and University of Auckland campuses in the Auckland CBD area, otherwise known as the learning quarter.
Features: High density tertiary education precinct. And large scale packaged product consumption.
Locations: Quads, eating areas and peak foot traffic areas.
Advantages: Defined and valuable demographic audience, moderate to high latent interest in recycling behaviour, existing support base and communication framework through student organisations.
Disadvantages: Moderate potential for vandalism and contamination and a possibility of conflicts with existing advertisers.
Cost: Universities may be prepared to support the Initiative by providing the site free of charge. Otherwise may charge a location fee, share of gross revenues or a combination.
Potential market: There are three universities (University of Auckland, Auckland University of Technology and Massey University, Albany Campus) and two technical institutes (Manukau Institute of Technology and Unitec) in the Auckland region.
8.2.5 Beach areas
Examples: MCC have a need for about 40 bins on the beaches during summer. They see this as a real opportunity for these types of bins as at present MCC's wheelie bins need replacing.
Features: High usage during summer months with high foot traffic and significant consumption of packaged foods.
Locations: All beaches that have a high visitation during the summer months.
Advantages: MCC could support this programme by profiling them in their newsletters and other Council promotional activities.
Disadvantages: Bins may be too small give the peak periods of use, such as at the weekend. This may result in different sized bins being developed. Bins are only required for approximately six months of each year and unless a use can be found for the bins in the 'off season', the operator may incur expensive storage costs.
Cost: Funding would be available as currently MCC is paying a commercial rate to have bins on beaches during the summer months.
Potential market: Requirement for 40 bins from September-March of each year.
8.3 Equipment
We have assumed only minimal equipment will be purchased, such as repair tools. All bin handling would be sub-contracted out and other equipment, such as a vehicle and office equipment would be leased.
8.4 Personnel
The optimal arrangement is for this business opportunity to be operated by an existing bin operator where the overheads could be shared across a wider base than if it was run as a stand alone operation.
We have assumed that a manager, salesperson, maintenance supervisor and office assistant will be recruited. These could be based in one area, such as Auckland and over time, people in different centres, such as Wellington and Christchurch, could be added as the roll out proceeds.
We have also assumed that sub-contractors will be used in order to reduce fixed overheads and to maintain maximum coverage and flexibility.
