In this post, we’re going to talk about the last three ways most people overpay their waste and recycling disposal services. It’s a wide-spread problem, but there are simple solutions.
You’re making your waste hauler rich by not:
Evaluating service levels
Knowing market rates
Having a waste ally
Let’s take a deep dive into each of these categories so that you can understand how you’re overspending - and stop!
Not evaluating waste disposal service levels
You’re making your hauler rich because you’re paying for services that you don’t need.
Your hauler is paid to pick up your trash, not to help you pay fair rates. It’s not that they’re out to get you necessarily - they just want to increase profits like most companies. Unfortunately, you literally pay the price as a result.
One of the major ways companies are overspending is by having inaccurate service levels. Your current services may not be serving your real needs.
You may be paying for 5 pick-ups a week when you only actually need 2. Or, alternatively, your dumpsters are too big.
To find the solution that is right for you, you need to find out:
How full your containers are when serviced
The equipment history for all sites
Pricing options for larger dumpsters
Pricing options for less frequent service
Whether the materials in these containers can be recycled
Whether the hauler frequently misses pick ups
If there is a history of overage fees
All of these things need to be taken into consideration so that you can pay for the service you need at a fair price point.
Knowing waste market rates
You’re making your hauler rich because you don’t know what “normal” or average waste disposal pricing is in your area. You don’t realize, for instance, the company across the street is paying half of what you’re paying for waste services. And your haulers sure as heck isn’t going to volunteer that information.
Market rates means the going rate of waste and recycling services in your area.
We wish there were uniform rates throughout the country, but this just isn’t the case. A “good” rate in Virginia may be an astronomically “bad” rate in Idaho.
Your average market rates depend on:
The number of haulers in your area. More haulers generally means more competition, which means better rates.
Your geographic location. Most Southeast states tend to have much cheaper rates than the west coast states, for instance.
Consumer tolerance for price hikes. As you know by now, price hikes generally happen 1-4 times a year, at a 10% increase each time. If consumers push back on these, or they simply aren’t common practice, they’ll occur with less frequency.
Your market rates can also be affected by other factors like fuel and equipment prices.
An important note: Keep in mind that market rates are average rates, but not the required rate. We find most of our savings for clients through capping price spikes, eliminating ancillary fees, and implementing ideal service levels. The “market rate” can almost always be improved by an independent auditor. We know how to work within industry constraints to find every savings opportunity available to you!
Market Rates and Accountability Measures
Haulers know you’re not likely to consult with the restaurant across the street when you set up your service contract. They know that you’re not going to ask that restaurant what their disposal rate is, or how often they get price spikes. They also know that you don’t know what other area haulers are charging, and so you can’t know if they’re overcharging you.
When was the last time your vendors volunteered this kind of information? Never, right? This is exactly what allows price gouging to happen. If you’re in the dark about hauler pricing, how can you tell what is fair?
Not having a waste ally
You’re making your hauler rich because you don’t have a waste ally. You don’t have someone who will find billing discrepancies and fight for billing credits on your behalf - so your staff’s time and resources are taken up. Waste hauler invoices are incorrect 10% of the time. Are you catching those mistakes?
What you don’t know is costing you. You’re likely being charged at rates that are too high because your contract ensures that your rates will steadily increase, unchecked. You have equipment on site that you don’t need because your haulers don’t care that your dumpsters are half full when they’re serviced. You’re paying too much for your service, because you only need pick-ups three times a week instead of five.
How much longer will you overspend?
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