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Repair bench economics

Eleven hundred boxes a month go across our bench. It has never been a profit centre in its own right, and removing it would cost us considerably more than it earns.
Published
February 18, 2025
Written by
Marisol Veracruz-Haddad
Reading time
8 minutes

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Key takeaways

  • The bench contributes roughly $1,685 a month directly — modest for a full-time position and a corner of the building.
  • Its real value is that it lets grading be strict, because borderline boxes have a destination worth eight dollars rather than one.
  • It also lets us buy damaged accumulations that pure resellers must decline, which gets us access to the good boxes in the same load.
  • Repairable: joints, flaps, staples, corner tabs, sleeves and bases. Not repairable: crushed edges, delamination, moisture, odour.

The bench is one person, a pneumatic stapler, reinforced gummed tape, patch stock and a sleeve press. It processes roughly eleven hundred boxes a month. Looked at on its own, the margin is thin enough that a sensible accountant would question it.

The direct arithmetic

A representative month on the bench
LineQuantityRateValue
Boxes rehabilitated1,100——
Labour168 hoursLoaded cost−$4,700
Materials — tape, staples, patch stock——−$1,150
Value as 4A rejects if baled instead1,100≈ $1.05−$1,155 forgone
Value as 3A stock after repair1,100≈ $7.90+$8,690
Net contribution+$1,685

Positive, but modest — about fifteen hundred dollars a month for a full-time position and a corner of the building. On that basis alone you would probably not build it.

The indirect effects, which are larger

It lets grading be strict

This is the big one. A yard with no repair route has a quiet incentive to grade borderline boxes upward, because the alternative is baling them at a dollar. With a bench, a borderline box has a home that pays eight dollars — so the grader can call it honestly and nobody loses.

Grading discipline is the product. Anything that protects it is worth more than its own margin.

It changes what we can buy

We can offer money for damaged accumulations that pure resellers have to decline. That gets us access to whole loads — including the good boxes in them — that we would otherwise never see, because customers overwhelmingly prefer one collection to two.

It supplies the cutting table

Boxes that fail even at the bench get triaged for sound panels rather than going straight to the baler. That is where the six per cent fabrication share comes from, and fabricated parts are worth roughly forty times baled board.

The bench does not make money. It makes the rest of the building honest, and that is what we actually sell.
Marisol Veracruz-Haddad, yard manager

What it can and cannot fix

  • Repairable: opened manufacturer joints, split or missing flaps, failed staple lines, damaged corner tabs, surface punctures away from the vertical edges, sound base with worn body or the reverse.
  • Not repairable: crushed or rounded vertical edges, delamination, moisture above about twelve per cent, contamination or odour.

The dividing line is structural. Vertical edges and the bonds between plies carry the load; everything else is, literally, surface work.

Toll repair for customers

Customers with a consistent box frequently send their own containers in rather than buying replacements. At roughly two to four dollars a box against seven to eleven for used replacement stock, and twenty-one for new, it repays itself on the first trip after repair — provided the damage is on the repairable list.

We triage and report what is not repairable rather than quietly discarding it, because a customer who sent a hundred boxes and got seventy back deserves to know what happened to the other thirty.

Questions

Follow-ups on this post.

Can you repair our boxes rather than selling us yours?
Yes, in batches of fifty or more. Typically $1.90 to $4.25 a box against $7 to $11 for used replacement and about $21 for new. Send photographs of five or six typical boxes first and we will tell you what share is likely repairable.
How many extra trips does a repair buy?
Two to three on average. The bench returns a box to service; it does not reset it to new, and we would rather say that than imply otherwise.

Marisol Veracruz-Haddad · February 18, 2025 · Yard notes

Written at the ReGaylord reload yard, 3259 Fiberglass Rd, Kansas City, Kansas. If any of it is wrong, or you have better data, tell us — several of these posts exist in their current form because a customer argued with an earlier one.

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