Overhead costs loom large over every business. Reducing expenses is especially top of mind during times of high inflation, rising energy prices, and market unpredictability. No one can fault a business owner looking to trim services where possible.
But in the urgency to slash spending, it can be tempting to write off certain operational costs as “non-essential.” Your data security services should never fall into that category. That includes secure document shredding and hard drive destruction.
While devoting money to data defense and disposal may not be as immediately gratifying as removing a line item on a balance sheet, the ROI on prevention shows up in many ways. That’s even truer when you partner with an NAID AAA certified shredding service like Steel City Shredding.
Because of our expansive operational footprint in Pennsylvania, Ohio, and West Virginia, we can deliver the right combination of affordability and value for your paper shredding and e-waste disposal needs.
Understanding the Levels of Threat
Bring up the word “mindset” and you might get an eye roll, but your mindset about data security will determine how much money you will ultimately spend.
Some business owners operate with the mindset of “It will never happen to me” and shrug off shredding and e-waste services. Others may contract with a shredding service but cut it off when budget gets tight. The cost reduction is more important to them than data protection.
But if you add up the storage costs, employee time dedicated to DIY shredding, and purchases of office shredders or other equipment, you aren’t saving as much as you think.
There is also the financial fallout if a data breach actually occurs. The costs of restoring security and company operations post-breach will far exceed any budget dedicated to a secure shredding service. So saving money on the front end is not worth it if you’re getting burned on the back end.
Costs of Responding to a Data Breach
Just like a cybersecurity breach, a physical data breach through improper document and e-waste disposal affects every aspect of your business.
Operational Downtime Losses
If your company experiences a data breach, there is no such thing as business as usual.
Many of your vital operations, including web and digital operations, may come to a halt while you address the breach. This leads to lost revenue or missed opportunities. Studies have shown that the average cost of downtime comes to $5,600 per minute.
That loss alone would heartily outpace what you would spend on a one-time document purge or scheduled paper shredding service.
If the revenue isn’t coming in, your business can quickly fall into the red and lose the hard-earned liquidity you’ve built up.
Threat Response Expenses
If you’re a medium-to-large-sized business, you likely have an information security team in place. However, your costs will certainly rise as the result of a data breach because of the time and resources devoted to investigating and resolving it.
If you’re a small business, you might need to hire outside help to contain and handle the data breach. This will require you to take a much larger bite out of your cash reserves or available credit. Again, a secure document and e-waste disposal service is a fraction of these types of costs.
Legal Fees
Every industry has its regulations. Data protection laws like HIPAA in healthcare, GLBA in finance, FERPA in education, and FACTA for credit bureaus place many compliance obligations upon businesses of all types.
If a business experiences a breach and is found to violate regulatory requirements, it could face fines, legal action, and lawsuits from customers.
Notifying & Reimbursing Customers
Businesses are ethically and legally required to inform customers when their data has been exposed or stolen. Whether it’s mailed letters, emails, or a combination of the two, customer communications incur additional costs.
If a data breach affects transactions or services rendered, a company often devotes extra funds to compensate customers.
Rising Insurance Premiums
Depending on the level of insurance you may or may not have, your provider may raise your premiums based on the incident and any claims you may file. You may also have to pay a deductible or face higher rates when you renew coverage in the future.
Reputational Damage
A data breach is a black mark on your name. Customers and prospects may eye you with suspicion. Competitors will seek to capitalize on your weakened state. Regulatory agencies or consumer reporting outlets can remove accreditations or lower your ratings.
Security Magazine reports that 66% of consumers lose trust in a company that experiences a data breach.
To mitigate the loss of credibility, you may have to hire a public relations firm, contract with an advertising agency to run a campaign to shift the narrative, or invest in reputational management services.
Final Tally on Data Breach Costs
According to an IBM report, the global average cost of a data breach is $4.88 million.
Most small businesses do not have the available capital to defray the costs of responding to a breach. In the event it happens, the business may be forced to borrow on credit, trapping it in a cycle of debt that’s difficult to recover from.
That’s why it’s important to avoid tunnel vision when it comes to data security. Most businesses have some form of cybersecurity, but far fewer consider the importance of an NAID AAA certified shredding service. It should be part of your “moat” that surrounds the sensitive data you process every day.
Old paper files and electronics at the end of their lifecycle are often viewed as less vulnerable because they’re not immediately available to data thieves such as online hackers. The paper documents and devices are designated as trash, and once they’re out of sight and out of mind, no one feels responsible for them.
This creates a false sense of security, and the more lax the environment, the greater the threat. Data thieves come in all shapes and sizes, and not all of them are hackers with laptops. It could be a disgruntled employee. It could be corporate espionage. It could be criminal elements who look for targets of opportunity. Again, small business owners may tell themselves that they’re too small, too insignificant, and too low profile to be targeted for a physical data breach.
Yet it’s exactly that type of business profile that’s appealing to data thieves, because it often doesn’t have the protections and redundancies in place that larger companies do.
H3: The Real Value of a NAID AAA Certified Shredding Service
Smart businesses invest in risk mitigation, and an NAID AAA certified shredding service like Steel City Shredding can prevent data breaches from internal and external actors. All it takes is a few stolen documents or decommissioned electronic devices, and you can face a serious breach of sensitive data.
As discussed in the previous section, all the consequences of a physical data breach can hit a small business from all angles. A minor investment in secure paper shredding services will help you avoid major disruptions.
- No costly downtime due to a breach, you can keep operations humming
- No outside help needed to contain and resolve the breach
- No expensive fines, legal fees, or lawsuits because you’re maintaining regulatory compliance
- No budget allocated to breach notification or crisis communications
- No reputational damage
- No dealing with skyrocketing insurance premiums
We’ve covered a lot of defensive capabilities that accompany NAID AAA certified shredding service. But there’s also extra value added that you may not have considered.
Reduces Storage Costs
Commercial real estate isn’t getting any cheaper, especially after the rise of Work From Home (WFH) accommodations resulting from the COVID-19 pandemic. Many businesses chose not to renew their office leases, which affected the market as a whole. Storing old paper documents and files can eat up valuable office space that’s already puts a drain on the budget.
It’s also costing you. For example, if your company has a 200 square foot storage room, that’s $7,000 devoted to paper that’s just sitting there. Let’s say that 20-30% of those documents are eligible for shredding. That’s an immediate cost savings.
Or, if your business opts for offsite storage, you know that charges can add up fast. Many warehouse and storage providers charge minimum monthly fees, even for smaller storage volumes. The typical business pays more than $19 a year to store one box of records offsite, if you factor storage, pickup, and delivery.
For the minimal cost of secure paper shredding service, you can offset those costs, allowing you to gain valuable space on-site, reduce your offsite storage, and possibly even move to a smaller location.
Improves Employee Productivity
Leaving paper shredding and e-waste disposal to team members presents a security risk. It also erodes morale. No office administrator, executive assistant, or team member wants to spend time on the tedious task of manually shredding documents when they already have a full plate. It’s the first thing that gets put off, which leads to more clutter and risk of exposure.
Contracting with an NAID AAA certified shredding service like Steel City Shredding eases the burden on your team. Whether you choose a one-time purge or scheduled paper shredding service, you’ll pay an affordable fee and we’ll come to you with our mobile shredding trucks and securely shred your documents at your location. You don’t have to deal with all the nuances, because our certified shredding specialists handle the process. Plus, you can witness the secure destruction of paper, hard drives, and e-waste on the CCTV camera mounted on the side of our mobile shredding truck.
Instead of a chore, paper shredding becomes a seamless part of your routine.
Supports Compliance
Regulatory compliance comes with many demands, so by partnering with Steel City Shredding, you can check off an important box on your information security requirements. It’s a validation point for regulatory agencies, auditors, and compliance programs.
A secure paper shredding service can also help you generate new revenue. If you’re up for a government contract or important private sector partnership, you may need to provide documentation that you have robust digital and physical data protection infrastructure in place.
It’s often part of questionnaires that accompany RFPs for potential clients, since another company or entity doesn’t want to do business with a potential vendor who presents a liability.
An existing relationship with an NAID AAA certified shredding service signals your commitment to data security and ability to operate in a higher-stakes environment that comes with larger contracts and opportunities.
Advances Sustainability Goals
Steel City Shredding can help your business be a good steward of the environment. We’re proud that 100% of our shredded paper is sustainably recycled.
We also recycle all eligible hard drives and e-waste, which is converted into useful paper products. Metals and materials from e-waste are melted down and reused for future electronics.
Unrecycled paper contributes to emissions and e-waste is especially toxic to the environment, so recycling is a net positive for a cleaner future.
Steel City Shredding Pricing
Affordability starts with transparency at Steel City Shredding.
When we provide a quote, you’ll find the costs for all services clearly marked with no hidden fees. If you look at any of our reviews, customers consistently reference this transparency.
“We had a wonderful experience with this company. They provided excellent customer service via phone, email, and in person. The process on the invoice was the same as what was quoted, no extra charges. I will highly recommend them to anyone needing shredding in the future.”
– Jessica C.
It’s a breath of fresh air to deal with a team who is professional, prompt, and courteous. We know that time is money for your business and we’re not ones to waste either.
Steel City Shredding can also scale our NAID AAA certified shredding services based on your needs.
A one-time purge works well for periodic file clean-outs, office relocations, or year-end purges.
A scheduled shredding service is best for businesses that process higher volumes of paper and e-waste. Plus, when you enter into a service agreement, you can lock in your price for two years.
As we’ve illustrated, Steel City Shredding offers the best mix of affordability and long-term value for your data security, making it well worth the investment compared to other alternatives. Call 412-496-1240 to learn more or request a quote now.