Having an automatic term renewal clause in your contract can cost you thousands of dollars.
Suppose you have a location in Memphis, TN with a five year waste disposal and recycling contract. Let’s say your vendor’s service record has been mediocre, and their rates have just risen for a second time in a year (a common waste problem). The site manager has a vague idea that their contract may be expiring soon, but they are too busy to realize that they are already outside the window of time that would allow for termination.
As a result, they can’t find better pricing. They won’t ever know that they could have saved $1000 a month at that one location. They won’t ever know that there was another hauler just down the street with a better service record and more ideal service rates. And your company will have missed out on a $12,000 annual savings opportunity because no one knew about the automatic contract renewal, and no one was keeping track of the contract expiration date.
Instead, you’ll be stuck with your current contract that will likely allow rate hikes and require too many pick-ups. And you’ll be locked in for up to five years. (We limit our contract terms to three years so that we can review pricing options sooner.)
Eradicating the autorenewal clause on your contract can save you thousands of dollars. A professional waste audit and contract review will find every savings opportunity available to you. Can you afford not to have one?
We Track Waste Hauler Contract Specifics
Most hauler contracts are extremely difficult to exit. You are required to send a certified letter - not an email - within a very specific time frame, usually 60-180 days before your contract automatically renews. If your letter arrives one day early, or when day late, your contract will automatically renew for an additional term. This means that you won’t have the chance to find better pricing for another year, or several years (depending on your contract specifics).
This is exactly why we track contract expiration dates and will continually find better pricing options for you during our partnership.
As a waste ally, we help companies take advantage of every savings opportunity available to them. We know how to find the best pricing and the best service providers because we’ve worked with many of them for years. We cancel all automatic renewal clauses because it gives us time to ensure you’re paying the very best rates.
And if no better pricing is available, we will let the contract run month to month. This means that the pricing under your current contract will stay the same, you’ll just be able to get new service in a quicker time frame if good pricing becomes available.
For our clients, we revisit these locations annual to see if better pricing as become available, then coordinate with you as necessary.
Is your contract costing you? Find out for sure.