Your Hidden Waste Hauler Contract Problems: What they are and what you can do about them - Part 2

Most hauler contracts are written to ensure that haulers make money - and keep making more.

Typical hauler contracts:

1. Allow for unlimited price spikes 

2. Have inaccurate service levels

3. Charges you for additional fees

4. Makes it nearly impossible to cancel 

5. Has no provision for bad service

If your contract was not adjusted and has these default specifications, you will almost certainly pay more than you need to for your waste expenses.

Today, we’re going to talk about the last two contract specifications that cut into your bottom line.

Waste Contract is Nearly Impossible to Cancel 

What’s worse than a bad contract? Being completely stuck in it.

There are two aspects of contracts that make them difficult to exit. First, most contracts automatically renew for long terms - usually five years. So you may realize you want to change your contract, but it can be almost impossible to do so if you are in the middle of a five year term.

Second, contract termination is de-incentivized since it typically includes hefty associated fees. On rare occasions, it may be worth it for your company to terminate their contract and pay the fee so that they can hire a cheaper (or more reliable) hauler. These fees are usually equal to the past six months of charges, which is likely no small amount.

If you do chose to terminate, you have to send a termination letter within a very specific time frame prior to your contact renewing. Most of the time, this termination letter has to arrive at your hauler no more than 180-90 days prior to your contract renewing.

You must send a certified letter - not an email - specifying that you are terminating the contract and/or cancelling the auto-renewal clause.

Cancelling the auto-renewal clause allows you to create a contract with the same vendor with more favorable terms.

Has no provision for bad service

When there are service issues, you should be able to get them resolved quickly and promptly.

When a hauler misses a pick-up, it should be easy to get in touch with them to resolve it. If they’re leaving stacks of garbage around the dumpsters or make a mess every time they service them, the hauler should only need one request to service more conscientiously. But this isn’t often the case. 

Why pay someone for a service who is actually making your life (and your staff’s lives) more difficult? If you had multiple hauler problems with no resolution in sight, you need to know that you have an out if you need one. 

A thorough contract will include steps for resolution - and what will happen if you continue to be dissatisfied with service levels.

You Don’t Have to Overpay for Waste Services

By default, your haulers are going to let these things happen to your contract. But you don’t have to let them. You can solve current problems and prevent new ones from happening - all it takes is effort, and some persistence.

We help companies across the nation find waste solutions and implement changes on their behalf. Don’t be part of the 95% of companies that are overspending on their waste disposal! Drop us a line to learn how you can fix your contract.

Your Hidden Waste Hauler Contract Problems: What they are and what you can do about them - Part 1

Most waste hauler contracts have hidden problems. Why? Because your haulers don’t have incentive to help you save.

And unfortunately, many vendors in the waste industry are out to make more and more profits. So they’re willing to have you sign contracts that help them do exact that. And many of you have unwittingly signed them.

A typical contract will include the following expensive specifications:

1. Allow for unlimited price spikes 

2. Has inaccurate service levels

3. Charges you for additional fees

4. Makes it nearly impossible to cancel 

5. Has no provision for bad service

Most people simply don’t know that they can ask for additional contract language. They don’t know that they can ask that certain clauses be removed. They don’t know they can edit existing language. So they don’t.

And as a result, they overspend by 10-30% on their waste every month.

This article will help you start saving on your waste expenses by identifying some of the most common contract problems. We’ll go over 1-3 today, and 4 and 5 later in the week.

(Psst! Want to quickly know how good your contract really is? Download our free Waste Hauler Scorecard!)

Price Spikes Allowed On Contract

This is a good example of a contract problem that requires additional language in order to fix. If your contract does not include language that prohibits or limits price hikes, you will almost certainly get them.

Price spikes can occur 1-4 times a year, at rates of 10-15% each time. Most haulers will only increase prices once a year, but some will chose to do so more. And if your contract doesn’t expressly prohibit this there’s nothing to stop them from taking advantage of the opportunity.

If price spikes compound over time, you will pay more than you should. If this happens at multiple properties in a portfolio, you can overpay by thousands of dollars. Don’t let that happen to you.

Take a look in the notes section in one of your contracts. Does it have notes that limit or completely eliminate price hikes? If not, scan the rest of your contract for any similar denotations.

You can read more about these waste issues and others right here.

Inaccurate Service Levels

Service levels tend to be “off” for two main reasons.

First, 70% of companies in the US are paying for too many pick-ups. Why? Because haulers err on the side of too many pickups since more pickups mean more revenue. The more trips to your property that they make, the more they get paid.

So when they’re first evaluating for your needed service levels, they have financial incentive to over-estimate your real needs. Some haulers do this intentionally. Others err on the side of too many pick-ups because too few pick-ups are going to cause major problems quickly.

Second, most haulers don’t tend to re-evaluate your real needs over time. When was the last time your hauler said they should drop service down to twice a week? Or that if you switch out equipment, you could have fewer pickups?

You may have had the correct service levels when your contract began, but your needs may have changed. There may be unnoticed savings opportunities at one or more of your properties because your services have not been thoroughly evaluated in a long, long time - or ever. (This is one of the major reasons why 90% of companies are paying too much for their waste services.)

Haulers simply don’t have the financial motivation to proactively find the solutions that are right for you. They’re there to pick up trash, and they know that more pickups means more revenue.

To make sure you have the right services, find an independent waste consultant who will objectively evaluate every waste stream and find where you’re currently overspending.

Contract Includes Additional Fees

Most haulers will pass on the cost any number of administrative and overage charges to you. A lot companies pay these outright because they think they have to. You don’t.

But unless your contract specifically caps or eliminates these fees, you will need to pay them.

Look for these on your current hauler contract:

• Fuel/environment fees: This fee supposedly helps recoup the cost of gas, but is actually a huge profit center.

• Recycling recovery fee: Covers the fees incurred by hauler to transfer recyclable, but again, is typically a profit center.

• Minimum tonnage fees: Fee charged by the hauler (typically on roll-off or open-top accounts) when a container’s weight upon pickup is below a specific threshold. 

• Administrative fees:  typically charged if a client elects to receive paper invoices instead of electronic delivery of invoices.

• Regulatory Cost recovery fee:  Some haulers, (like Waste Management) will charge this fee to cover costs in other regions - not necessarily yours. They explain it like this:
  “This charge is not specifically tied to such costs to service your account, but instead helps us cover Waste Management’s enterprise-wide costs for host community fees, waste disposal taxes and similar charges to service all WM operating company customers in the United States and Canada, and to achieve an acceptable operating margin.” (From Waste Management, retrieved July 23, 2019.)
  The regulatory cost recovery fee is not “tied to . . . your account.” In other words, you’re helping cover their costs to service other companies. Why should you pay for what you don’t benefit from?

You can reduce or eliminate all of these fees; you don’t have to pay them.  But you have to do it prior to renewing a contract, or getting a new one. It’s extremely difficult to negotiate these fees in the middle of a contract.  

Your Hidden Waste Problems are Costing You

Too many companies don’t realize how prices hikes, inaccurate service levels, and ancillary fees are costing them.

Price hikes are built into the fabric of the vast majority of waste contracts. Inaccurate service levels go unnoticed in most contracts. Ancillary fees are paid without question.

Take the time you need to take to carefully review your contract or contracts. You are likely sitting on significant savings.

Have you ever thoroughly reviewed your contract? Ever heard of any of these waste issues? Let me know in the comments below!

Top 3 Ways Most Commercial Companies Overpay on Waste - and How to Stop!

How would you feel if your landlord let you know that they had been overcharging you by 10% on rent for the past 3 years? What if they apologized and made good on their promise to reimburse you the thousands of dollars you are owed?

There’s a certain similarity between this fictitious landlord and your waste haulers. Your waste haulers have almost certainly been charging you 10-30% more than necessary. But they’re probably going to be the very last people to admit this, and there’s no way they’re going to reimburse you.

So what can you do? Hold them accountable. Stop doing these three things:

• Not capping rate increases

• Getting too many pick-ups

• Not eliminating waste fees

These are issues we’ve fixed for many of our clients in the past 19 years, so we know that fixing these key issues will affect your bottom line positively.

Problem #1: No caps on rate increases on your waste hauler contract

Haulers, like all of us, like making profit. The problem is that most of them like doing it more than we think is fair. Haulers will raise their prices 1-4 times a year at a 10-15% increase each time! If you have multiple properties, this represents thousands of dollars in overspending.

Haulers can do this because there’s likely nothing in your current contract that limits these price hikes.

Solution: Attend to your contract. Pay attention to when your contract is up for renewal. Make sure that the “Notes” section on your contract includes price caps.

Different haulers will allow different rate caps. It depends on your region of the country and it often depends on how many competitors are in the area.

Problem # 2: Receiving Too Many Pick Ups from Your Waste Hauler.

70% of companies are getting too much service from their haulers. Why? Because haulers are compensated based on quantity of pick-ups. The more times they visit your locations, the more money they make.

So they tend to err on the side of too many pick-ups! We currently have the technology to monitor your fill levels to ensure you’re not receiving too much service. (This technology also lets us know if your hauler has missed service, and if you are due for reimbursement.)

Solution: Reduce the number of pick-ups at one of your locations. Test out how many you really need. Or, give us a call and let us do all the legwork!

Problem #3: Allowing ancillary fees on contracts.

Waste fees are fees like “administrative fees” or “waste cost recovery fees” that appear on your invoices. Most typical waste fees don’t have to be included on your contract.

And, like price hikes, if they’re not prohibited by your contract, there’s a good chance that you’ll get them on your invoices.

And we find that most waste hauling companies do exactly that.

Solution: Get all-inclusive, flat rates for your waste fees. When we negotiate client contracts, we include all fees and waste charges in one rate that is capped at a certain percentage growth. We allow the haulers to increase the flat rate at specific intervals in the contract term.

It’s fair to the haulers and it’s fair to our clients. The haulers can incrementally raise their prices to keep up with their own rising costs, but only within fair constraints. And our clients know exactly when and by how much their waste costs will rise, which really helps budgeting.

Solutions for Your Top Three Waste Problems

90% of companies have these waste problems at their locations - regardless of industry. These simply aren’t problems that most people are aware of.

But if you do the following, you will save yourself 10-30% on your waste expense every year:

• Cap price increases

• Reduce the number of pick-ups

• Eliminate ancillary fees

Doing these three simple things will help protect your bottom line and prevent future overspending.

Have you ever tried one of these solutions for your waste management?

Real Stories: Saving on Waste Expenses {Free Download}

Waste reviews are, unfortunately, not common practice in most industries. As a result, most companies overspend by 10-30% every month on too much service, inflated rates, and inefficient waste equipment.

We’ve compiled the most common waste issues in an easy-to-download document that is interspersed with our client’s take on our process. It’s the real deal, and will hopefully help you understand how other companies just like yours have saved.

Many of you have likely wondered: “Can a waste audit really help me? Will it save me money? Will it work?”

Who better to answer these questions than our clients! Throughout this document, they'll share their thoughts on the waste savings journey.

They represent different industries, and each had waste issues unique to them. But they all share one thing in common: they suspected they could be overspending on their waste expenses and they chose to do something about it.

In this whitepaper, you’ll learn how companies just like you found hidden waste savings opportunities.

We’ll show you the three steps companies took in their savings journey:

• “I could have hidden waste problems.”

• “WCI can find savings.”

• Savings achieved.

In the process, you'll learn what our waste review process was like for them, and how much they are saving or have saved as a result.

How We're Using Data to Help You Save Even More

We talk a lot around here about dumpsters, pickups, and service schedules.

If you’ve been following us for any length of time, you probably know that most US companies get too much service, and that most of them have no idea.

But what you may not know is that we now have a new way to quantify what we know by experience.

We’ve recently partnered with Compology, a company that collects data on dumpster usage. They’ve created special cameras to measure data from inside the dumpster. 

Why is this so important? Because our clients stand to save even more.

Compology’s dumpster cameras give us the following data:

• How many actual pickups vs expected pickups

• The average fullness at pickup.

• Recent pictures of fill levels

• Contamination stats

This information helps us know what your service needs actually are - and how/if the hauler is filling those needs.

It helps us ensure you’re paying for the right service levels. It makes sure you don’t pay for pickups that didn’t happen. And it keeps us up to speed on fluctuating service needs.

Without this data on waste expenses, you’re driving blind - and you’re probably paying for it. 

Like many of you, data drives the core of what we do: help people save on their waste expenses. 

When we want to get the whole picture of a company’s waste management process, we go to the invoices and contracts. These documents tell us the details of service: how often garbage is supposed to picked up, how often a particular location gets overage fees, what equipment is onsite. They also tell us who you’re working with to get trash service, and how long you’ve contracted with the service provider. 

All of this information helps us determine where you’re overspending. 

But this traditional date plus the new data we have access to increases your waste opportunities even more.

You can save by not paying for a missed pickup that would otherwise go unnoticed. You can save when the data shows us you only need twice a week service instead of three times a week.

Better data means better savings opportunities. 

How are you optimizing data in your business?

How to Renew Your Waste Hauler Contract

You should only renew your contract if you meet both of the following criteria. First, your contract may be about to expire. Most hauler contracts have a length of five years, then they automatically renew for another term. Most terms are a minimum of one year, but some contracts will renew for another five year term.

If you find yourself in the window of time prior to your contract renewing, you’re in luck! You have the freedom to evaluate whether there is better pricing or better service to be had.

Ensure your contract has these specifications, and you’ll maximize your savings opportunities.

Want to know exactly which clauses you should include in your contract?

Just give us your email address in the box below and we’ll send you a free PDF of our “Waste Contract Scorecard!”

You need to know for sure that your hauler has the best available pricing. You need to know that you are receiving the best price and the best service.

In this article, we will thoroughly examine the steps to renewing your waste hauler contract with your current vendor. (Looking to get a new contract?)

To get a new waste hauler contract with your current vendor, you’ll need to:

1. Cancel your auto-renewal clause.

2. Reach out to your sales accountant.

3. Create a new contract.

Carefully completing these steps will set you up for current savings and future opportunities.

Prior to Renewing a Waste Hauler Contract

Before you get a new contract with your current hauler, ask yourself these questions:

• Do I know for sure that no better pricing is available from other area haulers?

• Am I satisfied with the current vendor’s service record?

• Is the current hauler easy to work with?

If the answer to any of these questions is no, now is not the time to renew your contract! You need to know for sure that your current hauler is actually the best option for you.

Cancel your auto-renewal clause.

Cancelling this clause will give you the time you need to create a new contract. If you don’t cancel this clause, your contract will almost certainly renew with your current terms. This is likely not ideal because your current contract probably guarantees you’ll overspend on your waste expenses. Most contracts don’t have clauses that limit price hikes, or ancillary fees. And they don’t typically include service provisions and term limits of 3 years. Have these specifics ensures you maximize your savings opportunities.

To make sure these clauses make it into your contract, you must cancel the auto-renewal clause so you have time to draw up a new one.

Reach out to your account manager.

You must also reach out to your account manager to let them know that you are creating a new contract with additional specifications and that you are cancelling the auto-renewal clause.

In our experience, it can be difficult to get in touch with your account manager. You may need to call the general customer service line to get in touch with them; they may not have a direct line (you may rightly be suspicious as to why that is). You will also want to follow up with an email that details what you are going to do. It is always critical to have this information in writing, so that if anything is later called into question you can point to your documentation.

Some account managers are not going to be pleased since they know your specifications will likely cut into possible profits. In the event that you encounter resistance, you may need to remind your hauler that you want to agree on a contract that is mutually beneficial - not just one sided. Assure them that they will still retain your business as long as the pricing is comparable to area service rates and quality of service remains high.

Set up a new waste contract.

In almost every contract we negotiate, we try to have the following clauses in the contract.

1. Language limiting price spikes. This is by far the biggest way you’ll save. Depending on which hauler you employ, they may agree to limiting raises in your rates to one or two a year, and capped by a certain percentage. It may require a bit of haggling, but in the long run this contract specification will can easily save you thousands of dollars at one location. Read more about contract problems and solutions here.

2. No auto renewal clause. Eradicating this clause will give you the time you need to evaluate the very best pricing and service options for your waste disposal needs. It gives you the freedom to review and change contract specifications before the same old (often expensive) stipulations automatically renew.

3. A service provision. If you’ve ever had service issues at any one of your sites, you probably understand why this clause is so critical. If your hauler fails to perform, you need an easy out of your contract.

4. Short terms. We highly recommend getting three year contract terms instead of five year terms. You need the freedom to review your market waste disposal options as frequently as possible so that you can take advantage of better pricing. Shorter terms allow you to do just that, thus saving you money.

5. Limited or eliminated ancillary clauses. There’s no law saying that fees have to appear on your invoices. We prefer to have them included in the rate since your base rates are hopefully already capped. It’s really hard for your hauler to bump up your fuel charge if your contract prohibits you from having one.

4 Reasons You Can Benefit From a Medical Waste Review

If you generate medical waste, you’re almost certainly paying more than you should for it’s disposal - just like most companies out there.

Check out the infographic below or click here to download this resource.

How to Turn Recurring Waste Cost Into Recurring Waste Savings

You can turn your recurring waste costs into recurring waste savings.

How? Delegate your waste management process to an independent reviewer.

Delegation is critical to your success as a leader. After all, as Eli Broad put it, “The inability to delegate is one of the biggest problems I see with managers at all levels.”

Delegation lets you pour more of your energy and time into big-impact priorities. For most people, trash simply does not fall into that category.

This is why one of the key components of our model intentional takes waste management off of your plate. You have better things to do. So do your staff.

Delegating the your waste management to a waste consultant means that you and your staff won’t have to:

• constantly review invoices for billing errors

• try to find new ways to save

• waste hours at a time with hauler customer service.

• get trapped in an ineffective contract.

Most companies in the US are doing exactly this, and they don’t realize there’s a better way. They don’t know what they don’t know. They also don’t realize how much capital they’re losing on a yearly basis because of poor quality contracts and service.

Leave waste management to the experts.

Covid hasn’t given more companies extra resources - it’s drained them. You and your staff may be up to your eyeballs in crises and are just trying to stay afloat.

You can protect your time by delegating things that aren’t urgent. And you can protect your resources by ensuring your waste management is always cost-effective and effective. When companies bring us on to review and monitor their waste management, we:

• Ensure they’re paying fair rates.

• Prevent future price hikes

• Periodically review less expensive service options

• Review invoices for errors.

• Ensure your service frequency and equipment is cost-effective

The result? You pay the best rates for the best service. And when things do go wrong (when service is missed, or when there are billing issues), we handle them on your behalf.

In fact, this is one of the things that our clients most appreciate about us. Customer service issues can be tiresome and frustrating. We know who to call and what to say in order to get your issues resolved quickly and fairly - and we’ve done it for the past 18 years.

You need a waste ally - someone who knows the industry and can show you where your savings opportunities are. You don’t need to have the time or expertise to do it yourself. You can delegate the entire process to a trusted industry expert.

Future Savings Opportunities are Never Missed.

After your initial review process is completed, we continue to periodically review your account for other savings opportunities.

• We track all contract expiration dates. Prior to your contract’s expiration, we evaluate your market to see if other less expensive haulers are available.

• We renegotiate expiring contracts. We ensure that you get the best terms available to you. We know exactly what should - and should not - be in a new contract, and we make sure that’s exactly what you get.

• We handle the negotiate process for new contracts. If a better, less expensive vendor becomes available at the right time, we handle all the negotiations and make sure you get the ideal contract terms.

So on top of the 10-30% reduction in waste expenses every month, companies can continue to expect support to solve and prevent future waste disposal problems.

Put waste savings on auto-pilot.

Having a waste ally allows you to find waste savings automatically. During the initial audit period, we require minimal documents and interaction with your team.

Our thorough review happens entirely off-site, and we continually review your account for more savings opportunities.

The entire process maximizes your resources. We protect your time and your investment in the review process, and our results are reliable - 90% of companies we work with see a reduction in waste expenses.

What questions do you have about putting your waste savings on auto-pilot?

"How often do haulers increase their rates?" (Copy)

If your contract doesn’t include rate caps, it’s not a matter of when and if you will receive price increases, it’s a matter of when, how much and how egregious the price increase will be.  

You can expect your hauler to increase prices up to two times each year, by as much as 15% each time. In the worst cases, we’ve seen up to four prices hikes in one year. Most haulers will only increase your rates once a year, but if there’s nothing stopping them from increasing more frequently, chances are they will.

Take the screenshot below, for example. This Republic customer’s rates increased by 200% over the past two years.

They were paying $275.42 for service. Now they’re paying almost $300 more - $573.15. That’s a 200% increase at a single location! If this increase occurred in a portfolio of many locations, this client would in effect be overpaying by thousands - something they could have prevented by just a few additional lines on their contract.

This is why we’re so intent on solving every contract issue you have. When we lock in your in your price, we eliminate the possibility that this will happen to you. Your staff will be able to budget with confidence for the entire term of your contract since your rate increases will be capped. And we’ll be there to hold the hauler accountable if they “forget” the price cap.

Are Some Price Spikes Legitimate?

As time passes, the cost of providing services increases. Fuel prices tend to rise over time, disposal charges at the landfill increase, as do the price of dumpster and garbage trucks. It’s reasonable for your hauler to increase prices to match the cost of doing service. But price spikes often go beyond these allowances.

How do we know? We know how haulers calculate their costs. To service your locations, your hauler incurs the following charges. We would expect for them to pass on some of the cost of these fees, but we find that they typically pass on the majority of them - and how much is added in on top of that.

Disposal cost to drop off waste materials at disposal facility. Waste disposal facilities (landfills) charge for the garbage they receive. Haulers must pay this fee, and this fee can be passed onto you in its entirety.

Cost of hauler equipment. Dumpsters, garbage trucks, and compactors are expensive to make and they can be extremely expensive to service. The trash haulers isn’t gentle on equipment. Dumpsters lose tops. Dumpster container bottoms become rusted. Compactor parts stop working. Since most companies rent the dumpsters or compactors from their waste hauler company, the haulers have to buy the equipment and service it.

Cost for servicing account. It’s expensive for haulers to drive their trucks to and from your locations. Haulers have to take into account employee compensation, the fuel charges, and the cost of maintaining the trucks. Haulers will typically divide up the number of locations they have to service to figure out how much to charge each customer.

This means you aren’t necessarily charged exactly what it takes to get from your location to another; it’s presumably divided up equally among those who are on the same route. However, it must be said, there’s no external oversight on this. Most companies trust that their haulers are accurately and fairly charging them.

Haulers should make a profit doing what they do - it’s important work! But they don’t need to overcharge simply because they can. 

Want to know more about how you’re overspending?

Get premier access to our on-demand webinar. Fill out the information below and we’ll redirect you to the video so that you can start watching immediately!

"How do I Renegotiate my Waste Hauler Contract?"

Prior to a renegotiation, you need to:

• Know what a good contract has in it, 

• Evaluate your own contract, 

• Decide what you want to change, 

• Know what market rates for services are. 

Set yourself up for success, and spend some time gathering some critical waste disposal information. 

See all of our resources on how to stop overspending!

Before you Begin the Renegotiation Process

You’ll need to know what your current contract length is. If your contract is a almost up, consider including some service or pricing addendum in the next contract. It’s much easier to negotiate a renewing contract than a current one. (This is also why those of you with month-to-month contracts actually have the best shot at renegotiating!)

And it’s also important to keep in mind that it’s incredibly difficult to renegotiate a contract that has quite a bit of time left in it. It’s not impossible, but it’s not something that we recommend doing. Haulers are simply not as likely to agree to new terms simply because you want them - there has to be some benefit in it for them as well. And since you’ve already signed a contract with them, they know they can just tell you “no” and go on their merry way. 

However, if your contract is about to expire, you have some leverage. The haulers know that if they don’t give you at least some of what you want, you’ll likely switch to a different provider. So they have incentive to bend a little more than they would otherwise. 

Determine if your contract is month to month. If it is you have more leverage and should get pricing from 1-2 other waste haulers if possible to determine the market pricing in your area.

Know What a Good Contract Looks Like

Most people don’t really know what a good contract includes. A good contract is one that has terms that are fair to the client as well as the hauler. 

Good contracts:

• Limit price spikes

• Has accurate service levels

• Limits ancillary fees

• Is easy to cancel

• Has provisions for poor service

A contract that includes these things will actually prevent waste headaches before they start. If you have a haulers who keeps missing pick-ups, you’ll already have a penalty in place. If a hauler tries to raise prices above a certain percentage, you can point to your contract and kindly say, “Not today, amigo.”

In short, you’ll have immediate recourse for when things do go wrong. 

Download our free Waste Hauler Scorecard!

Know What You Want to Change About Your Current Contract

Make a list of things you want to change about your current contract. Some of these things may include:

• Service levels (the number of pick-ups made by the hauler per week)

• Term (the length of the contract)

• Price Increase Caps - language that limits or eradicates price hikes

• Fee Caps - language that limits or eliminates ancillary fees.

• Auto-renewal - cancelling your auto renewal puts you in the driver’s seat when it comes to whom you entrust your waste disposal.

Now, prioritize that list. You have to be prepared to not get everything you want - especially if you’re trying to renegotiate in the middle of a term. Having clear top priorities will help you let smaller issues go, if need be. 

Know the Waste Market Prices

Even if you’re not intending to switch haulers, it can be exceedingly helpful to have a few bids from other area haulers. Some bids may be higher than your current service fees, but some are bound to be lower. 

Knowing waste market prices will give you an additional bargaining chip. Unfortunately, a lot of times haulers are banking that you don’t know what other haulers charge. If you’re blind, you’re more likely to accept the prices they’re charging you. 

But if you know market prices, you’ll have a pretty good idea about what’s fair and, well, what isn’t. 

If you know what you don’t like about your contract, what a good contract includes, and what area haulers charge, you’ll be well armed to renegotiate your contract. 

Renegotiating Your Contract Is a Critical Part of Your Waste Expense Reduction Strategy

Your contract can play a huge part in protecting you and your bottom line from waste expense increases. Renegotiating your contract can be time consuming, but you’ll reap the benefits for years to come. 

Ignoring waste problems don’t make them go away, unfortunately. Strategizing about how to stop overspending on your waste disposal and coming up with a plan of attack can yield surprising savings - and peace of mind!

Take a step towards savings: schedule a free consult today.

How to Renew Your Waste Hauler Contract

You should only renew your contract if you meet both of the following criteria. First, your contract may be about to expire. Most hauler contracts have a length of five years, then they automatically renew for another term. Most terms are a minimum of one year, but some contracts will renew for another five year term. If you find yourself in the window of time prior to your contract renewing, you’re in luck! You have the freedom to evaluate whether there is better pricing or better service to be had.

Ensure your contract has these specifications, and you’ll maximize your savings opportunities. Want to know exactly which clauses you should include in your contract? Just give us your email address in the box below and we’ll send you a free PDF of our “Waste Contract Scorecard!”

Second, you need to know for sure that your hauler has the best available pricing. You need to know that you are receiving the best price and the best service.

In this article, we will thoroughly examine the steps to renewing your waste hauler contract with your current vendor. (Looking to get a new contract?)

To get a new waste hauler contract with your current vendor, you’ll need to:

1. Cancel your auto-renewal clause.

2. Reach out to your sales accountant.

3. Create a new contract.

In the next article, we’ll look at how to the next step of renegotiating your contract.

Carefully completing these steps will set you up for current savings and future opportunities.

Prior to Renewing a Waste Hauler Contract

Before you get a new contract with your current hauler, ask yourself these questions:

• Do I know for sure that no better pricing is available from other area haulers?

• Am I satisfied with the current vendor’s service record?

• Is the current hauler easy to work with?

If the answer to any of these questions is no, now is not the time to renew your contract! You need to know for sure that your current hauler is actually the best option for you.

Cancel your auto-renewal clause.

Cancelling this clause will give you the time you need to create a new contract. If you don’t cancel this clause, your contract will almost certainly renew with your current terms. This is likely not ideal because your current contract probably guarantees you’ll overspend on your waste expenses. Most contracts don’t have clauses that limit price hikes, or ancillary fees. And they don’t typically include service provisions and term limits of 3 years. Have these specifics ensures you maximize your savings opportunities.

To make sure these clauses make it into your contract, you must cancel the auto-renewal clause so you have time to draw up a new one.

Reach out to your account manager.

You must also reach out to your account manager to let them know that you are creating a new contract with additional specifications and that you are cancelling the auto-renewal clause.

In our experience, it can be difficult to get in touch with your account manager. You may need to call the general customer service line to get in touch with them; they may not have a direct line (you may rightly be suspicious as to why that is). You will also want to follow up with an email that details what you are going to do. It is always critical to have this information in writing, so that if anything is later called into question you can point to your documentation.

Some account managers are not going to be pleased since they know your specifications will likely cut into possible profits. In the event that you encounter resistance, you may need to remind your hauler that you want to agree on a contract that is mutually beneficial - not just one sided. Assure them that they will still retain your business as long as the pricing is comparable to area service rates and quality of service remains high.

Set up a new waste contract.

In almost every contract we negotiate, we try to have the following clauses in the contract.

1. Language limiting price spikes. This is by far the biggest way you’ll save. Depending on which hauler you employ, they may agree to limiting raises in your rates to one or two a year, and capped by a certain percentage. It may require a bit of haggling, but in the long run this contract specification will can easily save you thousands of dollars at one location. Read more about contract problems and solutions here.

2. No auto renewal clause. Eradicating this clause will give you the time you need to evaluate the very best pricing and service options for your waste disposal needs. It gives you the freedom to review and change contract specifications before the same old (often expensive) stipulations automatically renew.

3. A service provision. If you’ve ever had service issues at any one of your sites, you probably understand why this clause is so critical. If your hauler fails to perform, you need an easy out of your contract.

4. Short terms. We highly recommend getting three year contract terms instead of five year terms. You need the freedom to review your market waste disposal options as frequently as possible so that you can take advantage of better pricing. Shorter terms allow you to do just that, thus saving you money.

5. Limited or eliminated ancillary clauses. There’s no law saying that fees have to appear on your invoices. We prefer to have them included in the rate since your base rates are hopefully already capped. It’s really hard for your hauler to bump up your fuel charge if your contract prohibits you from having one.

How to Get a New Waste Contract

You may find yourself at the point of needing a new waste contract.

Maybe you have just had enough of your hauler and their terrible service. Maybe you’ve realized that you’re paying ridiculous rates. Maybe you’re sick and tired of battling the same issues over and over again.

Whatever the reason, you’re officially done and you want out.

You’ll need to:

• Consider whether you actually can cancel your waste contract.

• Cancel your auto-renewal clause

• Compare bids

• Let your current hauler know you are terminating service

Getting a new hauler can seem like a daunting process, but these step-by-step instructions below will show you exactly what to do. 

Consider whether you can cancel your waste contract.

Most waste hauler contracts have 3-5 year terms. To cancel without a incurring an exorbitant fee, you will need to be in the last 3-6 months of your contract.

If you find yourself in this position, congratulations! You ‘l be able to get a new waste hauler soon.

However, if you’re not nearing the end of your contract, you’ll need to carefully consider whether it’s worth terminating the contract and incurring the associated fee. Usually, this fee is the average of the past six months worth of invoices - which you have to pay all at once!

In some cases, it may actually be worth it for you to consider paying the termination fee. Ask yourself: is my staff spending too much of their time trying to rectify issues? Are my residents too fed up? What are the other ways that I’m incurring financial loss due to these continued issues?

Even if you can’t get out of your contract right away, definitely cancel the auto-renewal clause as we describe below. That will set you up for successfully ending your contract when your current contract permits.

Cancel your auto-renewal clause.

Most contracts will automatically renew for an additional term of 3-5 years. When this happens, you’ll be stuck with your current contract and the same hauler, which is likely not what you want.

Other contracts may only renew for a month-to-month with the same terms - you’ll need to check your contracts and see what yours specify.

You’ll need to send a letter (yes, through the mail) to notify your hauler of intent to cancel this clause. Make sure to send it certified mail so that you have proof of its delivery so the hauler can’t say they “lost” it.

It’s worth noting that once you cancel this clause, it doesn’t necessarily mean that you won’t get a new contract with the hauler. It just means that you have the freedom to look for another hauler to employ.

Compare Waste Hauler Bids

To find other area haulers, try googling “waste haulers near me.” Contact them and ask them to provide bids for servicing your locations. You’ll need to tell them:

• The number of locations you have

• The types of equipment at each site and their size 

• How frequently each site and equipment should get serviced

Most waste sales representatives will get back to you with estimates in under a week. 

You’ll want to go over your list of service issues or questions with the haulers and see what their responses are. Some may be a bit cagey about their service reliability. Others may not care to limit their price hikes. Asking questions will root out the bad apples.

Let the best vendor know that you’d like to employ them starting on a specific date.  Make sure to coordinate your waste schedule with your old and new waste vendors so that you don’t have a service gap! 

Your new vendor will then send you a new contract. Look over it carefully - does it include all the language it needs to? Does it prohibit price hikes or cap them at a specified, annual percentage? Does it eliminate or cap ancillary fees?

Since you have at least one other bid from an area hauler, you have a pretty good idea of the market rates for waste services. You can use this information transparently with the hauler you’re negotiating with. 

The hauler’s aren’t guaranteed your business until the new contract is signed, and you can go elsewhere, if necessary. So they have incentive to work with you!

Terminate the Old Service Provider

You will need to terminate per your contract specifications. Usually, you will need to send a certified letter to them informing them that you are terminating the contract and that they will need to remove their equipment by a certain date. 

You’ll need to make a note of when the new service provider is dropping off their equipment, and when the old service provide will remove theirs. You don’t want to have a gap in service or too many dumpsters at your site!

Set Yourself up for Success with a New Waste Hauler Contract!

Follow these steps carefully, and you’ll be able to get a new waste contract with a hauler who is fairly priced and reliable. You, your staff, and those you serve all deserve to have trash service that isn’t a constant issue or headache! You’re well on your way to eliminating this sometimes aggravating problem.

What persistent issues are you having with your waste hauler right now? Let me know in the comments below.

Utility and Telecom Audit [Free Download]

80% of companies across the US are overspending on their utility and telecom expenses.

Why be one of them?

In a time when most companies are scrambling to try to cut expenses, a telecom audit may be the perfect way for you to start saving on recurring expenses.

In this free download, you’ll learn:

• 4 reasons you’re a great candidate for an audit

• 4 hidden utility and telecom problems you likely have

• What a utility and telecom audit is

• How much you could save with a utility audit

We’ve distilled all of our industry knowledge into a few short sections for your convenience.

Free Access: Mini E-Course, "Your 5 Hidden Waste Problems"

When was the last time you heard someone complain about their waste contract? Probably never, right?

This is because most people don’t see the waste problems right under their own nose.

They don’t know they have hidden waste problems - and chances are that you’re one of them.

This is exactly why we created this free mini course. We spell out exactly what you should look for to save.

Check out the first video of the series below!

These issues can steal thousands of dollars from your bottom line, but they can absolutely be prevented.

This course is the first of its kind and is designed for busy professionals who want to save on their company’s waste expenses.

Why this free course is necessary

90% of companies nationwide are overspending on waste by 10-30% every month. Why? Because they don’t know how they’re overspending.

Not many people have the time or expertise to carefully review their waste and recycling contracts before they sign them. You have more important things to do during your day, right?

And even fewer people know what to look for on those contracts - and when they’re hiring a hauler, or renegotiating a current contract.

But there’s another reason these problems are hidden. It’s because most haulers are not going out of their way to charge fairly and set up honest contracts. Haulers are out to make a profit, and they will sometimes go to extremes to ensure they retain your business.

In the course, we talk about how having automatic renewal clauses makes it difficult for you to change vendors. We talk about how not capping price hikes will make you overpay. We talk about how you actually aren’t required to pay ancillary fees.

We take a behind the scenes look at how haulers try to pull fast ones. And we show you what you can do about it.

How this course is delivered

One section of this 7-part course is delivered to your email inbox every three days. At the end of the course, you’ll receive a link with access to all of the videos and additional PDFs so that you can easily and permanently access the course.

This course is:

• Easy. We break down concepts and make it clear how each problem can impact your bottom line.

• Convenient. We’ll email you once every three days, so you can view the videos at your convenience. No rush, and no deadlines.

• Completely free. We’ve distilled 18 years of waste experience in this course and you can access it all for free.

And if you sign up right now, we’ll include an additional free PDF with even more savings tips!

Click here to sign up >>

3 Steps to Getting an Airtight Contract (Infographic)

Why bother with making sure your valet contract is airtight?

Because you deserve to not overpay.

Unfortunately, the vast majority of valet contracts don’t include key clauses that prevent price hikes or poor service. If you don’t have those clauses, you’ll pay more than you need.

Take a look below to learn how to make sure your valet contract protects you and your resources.

5 Reasons You're the Perfect Candidate for a Utility Audit {Infographic}

Wanting to reduce your recurring expenses, but not sure how? A utility audit may be exactly what you need to start saving on your utilities!

Utility audits are a unique opportunity for a professional to review your utility expenses. When we do our audits, we thoroughly look over your invoices and contracts to find ways to save. We also evaluate tax brackets to ensure you’re paying what you should - and not paying for what you shouldn’t.

Below, you’ll find some helpful ways to evaluate if you’re a candidate for this kind of opportunity.

Free Download: Fix Your Waste Hauler Contract

Your waste hauler contract is likely your core issue when it comes to overspending on your waste contract.

Why?

It doesn’t prohibit what it should prohibit. It doesn’t limit price hikes. It doesn’t limit ancillary fees. It doesn’t limit the auto-renewal. All of which cost you.

Learn what clauses you should have in your contract today by downloading our free Waste Hauler Optimum Clause Worksheet.

This download will show you the clauses you should have in your contract to protect your bottom line. We’ve condensed 20+ years of experience in the waste industry into those concise document to help you take control of your waste expenses - for good!

It includes the same language that we make sure to include on our client’s contracts.

What questions can we answer for you about your waste contract? We’d love to hear!