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Running an IBC yard — what we wish we knew when we started

August 22, 2022·12 min read·By Devon Marks
businessoperationsreflection

We started in 2022 with a borrowed forklift, eighteen totes, and a hose. Three years in, we’ve washed, refurbished, and resold something like 14,000 bottles. Here are the lessons I’d give to anyone thinking about getting into this business. None of them are profound. All of them I learned by doing it the wrong way first.

1. Pickup geometry is the moat

The hardest part of the business is sourcing empty bottles in usable condition at a defensible cost. Brokers can list inventory online without owning it; what they can’t do is show up to a customer’s yard with a flatbed and load 30 totes in two hours. That logistical capability is the durable competitive advantage of a regional yard. We’ve invested in it heavily, and customer relationships built around dependable pickup are what keep the inbound stream flowing.

2. Wash bay design eats more capex than expected

Our first wash bay was a pressure washer and a tarp. It worked for six months and we processed maybe 800 bottles through it. The cumulative time spent on inefficient workflow — loading, draining, moving wet bottles, hand-checking everything — was probably 30% of total labor hours. The second wash bay, designed properly with a conveyor approach, two-stage detergent, and automated rinse, paid for itself in 11 months even excluding the water-recycling story.

3. Tags matter more than you’d expect

The per-tote tagging system we ended up with adds maybe 90 seconds per bottle to the workflow. Worth every second. It’s the difference between “trust us” and “here’s the documentation.” Auditors love it. Customers feel safer. And it lets us do internal quality control we couldn’t otherwise do.

4. Local relationships > online reach

Most of our inbound and outbound is from customers within 100 miles. The website matters — people find us through it — but the people who sustain the business are local relationships. A grower in Ottawa County, a brewery in Cuyahoga, a chemical distributor in Erie County. The pace of business in this region rewards showing up.

5. Sustainability is a real product feature, not just marketing

We thought the carbon-savings angle was something to put on the about page. Turns out a non-trivial fraction of our customers actually choose us over a cheaper broker because the carbon math is documented. Procurement teams at mid-size manufacturers are increasingly required to source recycled inputs and document scope-3 emissions. A documented circular-economy supplier is genuinely valuable to them.

6. The market for food-grade is bigger than expected

We assumed food-grade would be 15–20% of revenue. It’s closer to 40%. Honey, syrups, dairy ingredients, brewing inputs — the small-batch food economy in the Midwest has been growing for a decade and the demand for properly documented food-grade bulk containers grew with it. We expanded Grade A capacity twice in two years.

7. Email beats phone

Counterintuitive but true for our operation. Phone calls are sequential; email is parallel. Two people can email us at the same time, both get answered inside four hours, neither feels neglected. Phone calls force one customer to wait while another talks. We don’t list a number on the website and we get fewer customer complaints about responsiveness than yards that do. Different operations may need phones; ours doesn’t.

8. The bottles tell stories

This one is just nice. Every bottle that comes through the yard has a history — what it carried, where it traveled, who handled it. We have bottles from a brewery that closed during the pandemic. We have bottles from a fruit processor that started as a roadside stand in the 1980s. We have bottles from a fertilizer co-op that’s been operating since the Eisenhower administration. Each bottle is going to do another decade of work after we’re done with it. That’s a satisfying thing to be part of.

Questions on this one? Email info@ibctankscleveland.com. We answer everything inside one business day — usually inside four hours.

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