Having a waste hauler contract is not an obstacle; it’s an opportunity! Every client we’ve had in the past 18 years has had waste contracts in place.
We can help you if you have a contract because:
We’re expert contract re-negotiators.
We know how and when to break a contract if necessary
We carefully evaluate the options that are available to you. Could you save by switching haulers? Is your current hauler amenable to renegotiations? We find the choice that not only reduces your expenses but serves you well.
Our renegotiations work because we’re waste experts
It’s relatively rare that we recommend our clients change vendors during our initial audit phase.
For the majority of the clients we work with, we renegotiate the current waste hauler contracts. That means they keep their haulers, but they get better pricing and better terms.
Suppose you’re on year three of a five-year contract, and your pricing is abysmal. We do the research and find that 3 out of 4 haulers in your area offer less expensive pricing. We’d then present you with the options. We’d show you how much you could pay in the next few years if you switched. If you’re like most clients, you would likely chose the option that saved you the most money. (On rare occasions, we have had clients who have wonderful relationships with their haulers and chose to stick with them - even if they are losing money by doing so!)
Once we get your go-ahead, we would ask the vendor to draw up a three-year contract with better rates. (You can read more about how exactly we create airtight contracts here.) You get locked-in, equitable pricing. And the vendor is guaranteed your business for one year longer than you current contract. Everyone wins!
Contract renegotiations work - they save our clients money!
We use this process for most of our clients. Rhonda Cummons of Presbyterian Homes is a good example! Like many of you, she had waste contracts in place. But we were still able to reduce her gross waste expenses by 22%. We eradicated ancillary fees and adjusted service levels - and her waste spend dropped by $25,000 that year. (She saved $100,000 over the next four years).
How we know when to terminate a contract
You should only get a new waste hauler contract if you’re 100% certain that you will be terminating your service.
This means that one or more of the following is true for you:
You can no longer work with your hauler due to on-going service issues.
Your current contract is set to expire shortly, and you are getting a new hauler.
There are other haulers in the area who could provide comparable or less expensive service.
You will save more in the long run even though you’re incurring a termination fee.
We run the numbers for you, and then present you with the best cost-cutting solution. Every so often, this means that you should terminate your contract.
Termination fees can vary from vendor to vendor, but a typical termination fee is the average of the most recent 6 invoices x 6. So if you pay $1,000 a month, you’ll owe your hauler $6,000.
This may sound like a lot but for many companies, but this may actually be the less expensive option in the long run - especially if you’re about to hire a waste vendor with more cost-effective pricing.
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