Short contract terms allow us to frequently reevaluate your current rates in comparison with available waste rates. It gives us the opportunity to help you take advantage of the best rates in your area as often as possible.
How long are most waste and recycling contracts?
Most waste and recycling service agreements or contracts are 5 years in length, though some are 3.
It may seem like a great idea to sign a 5 year contract. After all, who wants to think about trash arrangements more than they have to? It’s really convenient to sign a contract and not have to think about it for another 5 years. What’s not convenient are the savings opportunities that this contract all but guarantees you’ll miss.
How do long contract terms make me overpay?
5 year terms are too long because they can ensure that you pay for waste disposal and recycling services at a higher rate than other area companies. The rates that other area haulers charge will change - and possibly improve - in the time it takes your contract to expire. Do you want to miss this savings opportunity?
If you’re four years in to a five year contract, you won’t get the chance to employ a new area hauler who is charging a third less than your current vendor. We make sure this never happens.
With a waste ally on their side, our clients don’t have to worry about missed savings opportunities. We track every client contract expiration date, and are ready to renegotiate contracts or find other haulers as necessary. The vast majority of the contracts we negotiated have short terms of three years and typically have no auto-renewal clause of those terms.
This means that we can continue to review your area hauler options and renegotiate your waste hauler contracts continually in the future. Every three years, we will continue to evaluate your service rates and your haulers to ensure you are paying competitive prices.
We almost always will request pricing bids from area haulers, even if you are thrilled with your service. The reason for this is that even if you intend to stay with your hauler at a certain location, it’s much easier to get reduced pricing if we can prove that other area haulers are offering better pricing.
If you’re already under contract with a hauler and you are nearing the end of your contract, this is the perfect time to renegotiate your terms. Haulers are much more willing to acquiesce to your request for different terms if they know there’s a chance they might lose your business.
I have long waste contract terms. What can I do?
First, don’t worry. The vast majority of clients we work with have long contract terms. You have two options:
You can set calendar reminders to review your rates and cancel your auto-renewal clause. In order to have time to renegotiate your rates, you must cancel your automatic renewal clause. This clause is usually found in the second page of your contract and stipulates that unless you cancel the clause within a certain window of time (usually 90-180 days prior to expiration). Your contract will renew in its entirety, meaning price hikes and poor service will continue to occur for the next 5 years.
If you chose this option, you or your staff will need to have the time necessary to keep on top of this deadline, send the auto-renewal cancellation letter in a specific timeframe, follow up for receipt (you’d be amazed at how often haulers “forget” they’ve received these letters), and then send out bids for pricing.
This option is ideal for those who have a pretty good handle on a) what’s wrong with their hauler contract b) how to fix it. You’ll have to be comfortable renegotiating your own waste contract(s) and finding other area haulers to obtain bids from. (See the video above for some helpful tips!) It’s also ideal for those who have the staffing resources to bring the process to complete resolution.
You can sign up for a free consultation to learn more about our waste ally services. If you know you need expert help at untangling your waste management process and that you don’t have the time to find your savings opportunities, a discovery call is the next logical step for you. As waste allies, we excel at providing tailored, cost-cutting solutions to companies in almost every industry.