How to Renegotiate Your Waste Hauler Contract: Part 2
You’ve done it! You’ve evaluated your waste hauler contract and gathered all the necessary information, so now you’re ready for the next step: the renegotiation process. A successful renegotiation process will significantly reduce your current waste problems and prevent most future ones from occurring.
This process can be lengthy, but this post will give you an idea about what to expect and how to prepare. You’ll need to:
Expect Resistance
Contact Your Sales Rep
Negotiate Fair Terms
Sign a New Contract
Let’s take a look at each of these below!
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Waste Haulers Like It When You Overspend on Waste Services
Haulers really like that they get the better end of the stick most of the time.They like that they can raise prices whenever they want. They like that it’s hard for you to get out of your contract. They like that they can get away with charging you extra fees for no reason at all.
So they’re not going to be thrilled you got smart all of a sudden and want to shake things up.
Most haulers will do everything they can to keep the status quo. They’re going to make it hard for you to change course and get a contract that is fair.
But be encouraged - if you know your contract and market rates(LINK), you’ll be in a much better position to renegotiate.
Prepare yourself for a fight, but also be prepared to compromise.
Contact Your Waste Hauler Sales Representative
Once you have all the necessary information, get in touch with your waste hauler sales representative via a phone call. You’ll want to follow up with an email. In both pieces of communication, you’ll want to outline roughly the same points.
What exactly you say will vary based on the situation you’re in. But consider using the email template (to be edited based on your exact situation) below as a guide for what to ground to cover in your email (and phone call!).
Dear Sir,
We have contracted with you the past two years for waste removal services at (your address. While we have appreciated the consistency of service, the price hikes have been increasingly difficult to cope with, not to mention unexpected.
That said, we would like to renegotiate our contract with you. We propose that a new one include:
Capping price increases at 5%
Term of 3 years
No cancellation fees
Removal of the auto renewal clause
We have been in touch with several area haulers, all of whom can provide the same levels of service, but at a much lower price point.
We think the changes listed above would create a contract that is in the best interest of all involved. We’d like it to be effect at the end of next of month.
Please consider this letter as notice of our cancellation of auto-renewal as well.
Please contact me directly so that we can discuss the details of this matter.
Signed,
Tony Stark
This lets your hauler know the reasons for your dissatisfaction, and how you would like to resolve the issues. It’s polite, but it’s firm.
It tells the hauler you mean business - and that you’ve done your homework.
See all of our resources on how to stop overspending!
Negotiate Fair Hauler Contract Terms
This letter will result in one of two things. The hauler will either listen, or they won’t.
If they aren’t going to listen, you’ll have to wait until your contract expires to get favorable terms.
But if they are willing to listen, he may be open to new contract terms. He may come back with a different set of terms, or agree to part of your suggested terms. If this happens, you’ll want to carefully evaluate the offer. Don’t back down just because you’re tired of the process - make sure you and your company are getting the best terms possible!
Sign a New Waste Hauler Contract
Once you settle on terms and know which hauler you will employ, you’ll need to let your current hauler know that you intend to terminate your current contract. (If yours auto-renews and you know you want to terminate the contract, you will need to send notification of the cancellation of auto-renewal as soon as you know you have found an alternate waste vendor.)
Your new hauler will give you a new contract to sign, which will replace the old one. Make sure that there is no gap of time between when the old one starts and the new one begins! You don’t want to have garbage piling up while you wait for your new service.
You will also want to coordinate removal of the dumpsters with your old provider. Your new waste hauler will provide their own dumpsters.
Renegotiating Your Hauler Contract is a Critical Part of Your Waste Expense Reduction Strategy
By preparing mentally and managing your expectations, you can have a successful contract renegotiation. You can have a waste contract that has terms that are fair to you, and one that prohibits the hauler from charging nonsense fees! All it takes is some research and persistent effort.
Want to learn more about how we evaluate and fix our clients waste worries? Or how you can stop overspending on waste disposal? There are solutions to your waste worries!