Your Hidden Waste Hauler Contract Problems: What they are and what you can do about them - Part 2

Most hauler contracts are written to ensure that haulers make money - and keep making more.

Typical hauler contracts:

1. Allow for unlimited price spikes 

2. Have inaccurate service levels

3. Charges you for additional fees

4. Makes it nearly impossible to cancel 

5. Has no provision for bad service

If your contract was not adjusted and has these default specifications, you will almost certainly pay more than you need to for your waste expenses.

Today, we’re going to talk about the last two contract specifications that cut into your bottom line.

Waste Contract is Nearly Impossible to Cancel 

What’s worse than a bad contract? Being completely stuck in it.

There are two aspects of contracts that make them difficult to exit. First, most contracts automatically renew for long terms - usually five years. So you may realize you want to change your contract, but it can be almost impossible to do so if you are in the middle of a five year term.

Second, contract termination is de-incentivized since it typically includes hefty associated fees. On rare occasions, it may be worth it for your company to terminate their contract and pay the fee so that they can hire a cheaper (or more reliable) hauler. These fees are usually equal to the past six months of charges, which is likely no small amount.

If you do chose to terminate, you have to send a termination letter within a very specific time frame prior to your contact renewing. Most of the time, this termination letter has to arrive at your hauler no more than 180-90 days prior to your contract renewing.

You must send a certified letter - not an email - specifying that you are terminating the contract and/or cancelling the auto-renewal clause.

Cancelling the auto-renewal clause allows you to create a contract with the same vendor with more favorable terms.

Has no provision for bad service

When there are service issues, you should be able to get them resolved quickly and promptly.

When a hauler misses a pick-up, it should be easy to get in touch with them to resolve it. If they’re leaving stacks of garbage around the dumpsters or make a mess every time they service them, the hauler should only need one request to service more conscientiously. But this isn’t often the case. 

Why pay someone for a service who is actually making your life (and your staff’s lives) more difficult? If you had multiple hauler problems with no resolution in sight, you need to know that you have an out if you need one. 

A thorough contract will include steps for resolution - and what will happen if you continue to be dissatisfied with service levels.

You Don’t Have to Overpay for Waste Services

By default, your haulers are going to let these things happen to your contract. But you don’t have to let them. You can solve current problems and prevent new ones from happening - all it takes is effort, and some persistence.

We help companies across the nation find waste solutions and implement changes on their behalf. Don’t be part of the 95% of companies that are overspending on their waste disposal! Drop us a line to learn how you can fix your contract.

Your Hidden Waste Hauler Contract Problems: What they are and what you can do about them - Part 1

Most waste hauler contracts have hidden problems. Why? Because your haulers don’t have incentive to help you save.

And unfortunately, many vendors in the waste industry are out to make more and more profits. So they’re willing to have you sign contracts that help them do exact that. And many of you have unwittingly signed them.

A typical contract will include the following expensive specifications:

1. Allow for unlimited price spikes 

2. Has inaccurate service levels

3. Charges you for additional fees

4. Makes it nearly impossible to cancel 

5. Has no provision for bad service

Most people simply don’t know that they can ask for additional contract language. They don’t know that they can ask that certain clauses be removed. They don’t know they can edit existing language. So they don’t.

And as a result, they overspend by 10-30% on their waste every month.

This article will help you start saving on your waste expenses by identifying some of the most common contract problems. We’ll go over 1-3 today, and 4 and 5 later in the week.

(Psst! Want to quickly know how good your contract really is? Download our free Waste Hauler Scorecard!)

Price Spikes Allowed On Contract

This is a good example of a contract problem that requires additional language in order to fix. If your contract does not include language that prohibits or limits price hikes, you will almost certainly get them.

Price spikes can occur 1-4 times a year, at rates of 10-15% each time. Most haulers will only increase prices once a year, but some will chose to do so more. And if your contract doesn’t expressly prohibit this there’s nothing to stop them from taking advantage of the opportunity.

If price spikes compound over time, you will pay more than you should. If this happens at multiple properties in a portfolio, you can overpay by thousands of dollars. Don’t let that happen to you.

Take a look in the notes section in one of your contracts. Does it have notes that limit or completely eliminate price hikes? If not, scan the rest of your contract for any similar denotations.

You can read more about these waste issues and others right here.

Inaccurate Service Levels

Service levels tend to be “off” for two main reasons.

First, 70% of companies in the US are paying for too many pick-ups. Why? Because haulers err on the side of too many pickups since more pickups mean more revenue. The more trips to your property that they make, the more they get paid.

So when they’re first evaluating for your needed service levels, they have financial incentive to over-estimate your real needs. Some haulers do this intentionally. Others err on the side of too many pick-ups because too few pick-ups are going to cause major problems quickly.

Second, most haulers don’t tend to re-evaluate your real needs over time. When was the last time your hauler said they should drop service down to twice a week? Or that if you switch out equipment, you could have fewer pickups?

You may have had the correct service levels when your contract began, but your needs may have changed. There may be unnoticed savings opportunities at one or more of your properties because your services have not been thoroughly evaluated in a long, long time - or ever. (This is one of the major reasons why 90% of companies are paying too much for their waste services.)

Haulers simply don’t have the financial motivation to proactively find the solutions that are right for you. They’re there to pick up trash, and they know that more pickups means more revenue.

To make sure you have the right services, find an independent waste consultant who will objectively evaluate every waste stream and find where you’re currently overspending.

Contract Includes Additional Fees

Most haulers will pass on the cost any number of administrative and overage charges to you. A lot companies pay these outright because they think they have to. You don’t.

But unless your contract specifically caps or eliminates these fees, you will need to pay them.

Look for these on your current hauler contract:

• Fuel/environment fees: This fee supposedly helps recoup the cost of gas, but is actually a huge profit center.

• Recycling recovery fee: Covers the fees incurred by hauler to transfer recyclable, but again, is typically a profit center.

• Minimum tonnage fees: Fee charged by the hauler (typically on roll-off or open-top accounts) when a container’s weight upon pickup is below a specific threshold. 

• Administrative fees:  typically charged if a client elects to receive paper invoices instead of electronic delivery of invoices.

• Regulatory Cost recovery fee:  Some haulers, (like Waste Management) will charge this fee to cover costs in other regions - not necessarily yours. They explain it like this:
  “This charge is not specifically tied to such costs to service your account, but instead helps us cover Waste Management’s enterprise-wide costs for host community fees, waste disposal taxes and similar charges to service all WM operating company customers in the United States and Canada, and to achieve an acceptable operating margin.” (From Waste Management, retrieved July 23, 2019.)
  The regulatory cost recovery fee is not “tied to . . . your account.” In other words, you’re helping cover their costs to service other companies. Why should you pay for what you don’t benefit from?

You can reduce or eliminate all of these fees; you don’t have to pay them.  But you have to do it prior to renewing a contract, or getting a new one. It’s extremely difficult to negotiate these fees in the middle of a contract.  

Your Hidden Waste Problems are Costing You

Too many companies don’t realize how prices hikes, inaccurate service levels, and ancillary fees are costing them.

Price hikes are built into the fabric of the vast majority of waste contracts. Inaccurate service levels go unnoticed in most contracts. Ancillary fees are paid without question.

Take the time you need to take to carefully review your contract or contracts. You are likely sitting on significant savings.

Have you ever thoroughly reviewed your contract? Ever heard of any of these waste issues? Let me know in the comments below!

Want to save on your waste? Watch this free video!

You want to save on your waste spend.

But it can be really intimidating to know where to start. What should you evaluate first? How should you prepare the site? What kind of team do you need in place?

We cover all that and more in our course, The Waste Review Blueprint.

Today, we’re making the first video of this course completely free! Click below to watch!

What did you learn from this video? Let us know in the comments below.

What we don't do { + Infographic}

We hold a unique niche in the industry, so there can be confusion about who we are and what we do.

To that end, here are a few examples of what we don’t do!

Our Top 3 Most Helpful Videos on YouTube

Combined, these videos have a total of 725 views on YouTube! We’ve included them all in one spot for your convenience.

The first video includes the 7 mistakes you may be making on your waste spend that is padding your hauler’s picket. This video has the most common errors companies don’t realize they’re making.

This video is one we made in our early days! In it, Tyler, our CEO, discusses the basic components of waste disposal costs. Most businesses don’t know what these are and learning about them will help you understand where you can save.

Medical waste disposal is often overpriced. In this video, Tyler talks about what it is and why some companies pay more than they need to on it.

The Top 7 Resources for Cutting Waste Expenses

There are lots of resources for you to help you reduce your waste and recycling expenses.

But the internet is a pretty big place so we’ve collected the very best resources for you below and summarized them.

Below, you’ll learn how to find and identify ways you can save on your commercial waste management expenses.

Tips for Cutting Waste Removal Costs at the Office - This article covers some of the more detailed questions you should be asking yourself that could lead to savings. Some of these questions include:

• Have you right-sized your schedule and containers?

• Are there options to change providers?

• Do you qualify for regional or national savings?

10 Ways to Reduce Your Waste Management Costs - Here, you’ll learn some tricks of the trade to reduce your waste disposal output by reducing waste volume separating recycling waste from regular trash, garbage, or by-product refuse.

10 Ways to Cut Business Waste Disposal Costs - This blog post has specific actions to take to evaluate whether your current waste management process is truly efficient - and cost effective.

6 Ways Your Business can Cut Commercial Waste Management Costs - Learn a few additional ways to reduce your waste expenses. This is a short, concise guide that can help you quickly identify overlooked savings opportunities.

Stop Wasting! 7 Steps to Cut Costs, Reduce Waste - This one says it’s specific to Florida businesses, but don’t be deterred. The vast majority of tips discussed here are applicable to you regardless of where you live.

7 Tips for Reducing and Managing Waste on Commercial Properties - Did you know that going green and saving money can go hand it hand? This article lays out exactly how to assess your current waste management system, and how to solve hidden waste problems.

How to Save Money on Commercial Waste Management Costs - This post has some innovative ideas for reducing your waste expenses, including sharing waste costs with other businesses!

Which of these was most helpful to you? Leave a comment in the space below!

Your Hidden Waste Hauler Contract Problems: What they are and what you can do about them - Part 2

Most hauler contracts are written to ensure that haulers make money - and keep making more.

Typical hauler contracts:

1. Allow for unlimited price spikes 

2. Have inaccurate service levels

3. Charges you for additional fees

4. Makes it nearly impossible to cancel 

5. Has no provision for bad service

If your contract was not adjusted and has these default specifications, you will almost certainly pay more than you need to for your waste expenses.

Today, we’re going to talk about the last two contract specifications that cut into your bottom line.

Waste Contract is Nearly Impossible to Cancel 

What’s worse than a bad contract? Being completely stuck in it.

There are two aspects of contracts that make them difficult to exit. First, most contracts automatically renew for long terms - usually five years. So you may realize you want to change your contract, but it can be almost impossible to do so if you are in the middle of a five year term.

Second, contract termination is de-incentivized since it typically includes hefty associated fees. On rare occasions, it may be worth it for your company to terminate their contract and pay the fee so that they can hire a cheaper (or more reliable) hauler. These fees are usually equal to the past six months of charges, which is likely no small amount.

If you do chose to terminate, you have to send a termination letter within a very specific time frame prior to your contact renewing. Most of the time, this termination letter has to arrive at your hauler no more than 180-90 days prior to your contract renewing.

You must send a certified letter - not an email - specifying that you are terminating the contract and/or cancelling the auto-renewal clause.

Cancelling the auto-renewal clause allows you to create a contract with the same vendor with more favorable terms.

Has no provision for bad service

When there are service issues, you should be able to get them resolved quickly and promptly.

When a hauler misses a pick-up, it should be easy to get in touch with them to resolve it. If they’re leaving stacks of garbage around the dumpsters or make a mess every time they service them, the hauler should only need one request to service more conscientiously. But this isn’t often the case. 

Why pay someone for a service who is actually making your life (and your staff’s lives) more difficult? If you had multiple hauler problems with no resolution in sight, you need to know that you have an out if you need one. 

A thorough contract will include steps for resolution - and what will happen if you continue to be dissatisfied with service levels.

You Don’t Have to Overpay for Waste Services

By default, your haulers are going to let these things happen to your contract. But you don’t have to let them. You can solve current problems and prevent new ones from happening - all it takes is effort, and some persistence.

We help companies across the nation find waste solutions and implement changes on their behalf. Don’t be part of the 95% of companies that are overspending on their waste disposal! Drop us a line to learn how you can fix your contract.

Your Hidden Waste Hauler Contract Problems: What they are and what you can do about them - Part 1

Most waste hauler contracts have hidden problems. Why? Because your haulers don’t have incentive to help you save.

And unfortunately, many vendors in the waste industry are out to make more and more profits. So they’re willing to have you sign contracts that help them do exact that. And many of you have unwittingly signed them.

A typical contract will include the following expensive specifications:

1. Allow for unlimited price spikes 

2. Has inaccurate service levels

3. Charges you for additional fees

4. Makes it nearly impossible to cancel 

5. Has no provision for bad service

Most people simply don’t know that they can ask for additional contract language. They don’t know that they can ask that certain clauses be removed. They don’t know they can edit existing language. So they don’t.

And as a result, they overspend by 10-30% on their waste every month.

This article will help you start saving on your waste expenses by identifying some of the most common contract problems. We’ll go over 1-3 today, and 4 and 5 later in the week.

(Psst! Want to quickly know how good your contract really is? Download our free Waste Hauler Scorecard!)

Price Spikes Allowed On Contract

This is a good example of a contract problem that requires additional language in order to fix. If your contract does not include language that prohibits or limits price hikes, you will almost certainly get them.

Price spikes can occur 1-4 times a year, at rates of 10-15% each time. Most haulers will only increase prices once a year, but some will chose to do so more. And if your contract doesn’t expressly prohibit this there’s nothing to stop them from taking advantage of the opportunity.

If price spikes compound over time, you will pay more than you should. If this happens at multiple properties in a portfolio, you can overpay by thousands of dollars. Don’t let that happen to you.

Take a look in the notes section in one of your contracts. Does it have notes that limit or completely eliminate price hikes? If not, scan the rest of your contract for any similar denotations.

You can read more about these waste issues and others right here.

Inaccurate Service Levels

Service levels tend to be “off” for two main reasons.

First, 70% of companies in the US are paying for too many pick-ups. Why? Because haulers err on the side of too many pickups since more pickups mean more revenue. The more trips to your property that they make, the more they get paid.

So when they’re first evaluating for your needed service levels, they have financial incentive to over-estimate your real needs. Some haulers do this intentionally. Others err on the side of too many pick-ups because too few pick-ups are going to cause major problems quickly.

Second, most haulers don’t tend to re-evaluate your real needs over time. When was the last time your hauler said they should drop service down to twice a week? Or that if you switch out equipment, you could have fewer pickups?

You may have had the correct service levels when your contract began, but your needs may have changed. There may be unnoticed savings opportunities at one or more of your properties because your services have not been thoroughly evaluated in a long, long time - or ever. (This is one of the major reasons why 90% of companies are paying too much for their waste services.)

Haulers simply don’t have the financial motivation to proactively find the solutions that are right for you. They’re there to pick up trash, and they know that more pickups means more revenue.

To make sure you have the right services, find an independent waste consultant who will objectively evaluate every waste stream and find where you’re currently overspending.

Contract Includes Additional Fees

Most haulers will pass on the cost any number of administrative and overage charges to you. A lot companies pay these outright because they think they have to. You don’t.

But unless your contract specifically caps or eliminates these fees, you will need to pay them.

Look for these on your current hauler contract:

• Fuel/environment fees: This fee supposedly helps recoup the cost of gas, but is actually a huge profit center.

• Recycling recovery fee: Covers the fees incurred by hauler to transfer recyclable, but again, is typically a profit center.

• Minimum tonnage fees: Fee charged by the hauler (typically on roll-off or open-top accounts) when a container’s weight upon pickup is below a specific threshold. 

• Administrative fees:  typically charged if a client elects to receive paper invoices instead of electronic delivery of invoices.

• Regulatory Cost recovery fee:  Some haulers, (like Waste Management) will charge this fee to cover costs in other regions - not necessarily yours. They explain it like this:
  “This charge is not specifically tied to such costs to service your account, but instead helps us cover Waste Management’s enterprise-wide costs for host community fees, waste disposal taxes and similar charges to service all WM operating company customers in the United States and Canada, and to achieve an acceptable operating margin.” (From Waste Management, retrieved July 23, 2019.)
  The regulatory cost recovery fee is not “tied to . . . your account.” In other words, you’re helping cover their costs to service other companies. Why should you pay for what you don’t benefit from?

You can reduce or eliminate all of these fees; you don’t have to pay them.  But you have to do it prior to renewing a contract, or getting a new one. It’s extremely difficult to negotiate these fees in the middle of a contract.  

Your Hidden Waste Problems are Costing You

Too many companies don’t realize how prices hikes, inaccurate service levels, and ancillary fees are costing them.

Price hikes are built into the fabric of the vast majority of waste contracts. Inaccurate service levels go unnoticed in most contracts. Ancillary fees are paid without question.

Take the time you need to take to carefully review your contract or contracts. You are likely sitting on significant savings.

Have you ever thoroughly reviewed your contract? Ever heard of any of these waste issues? Let me know in the comments below!

5 Easy Waste Tips That Will Reduce Your Waste Expenses

If you take the time to do even one of these steps, you’ll save money on your waste expense in the long run.

Most companies have waste problems they just don’t know about. Their contracts are poor quality, their equipment is inefficient, and their service levels are inaccurate.

But the tips below will address each of these issues and help you stop overspending.

1. Track your contract expiration date.

2. Eliminate your auto-renewal clause.

3. See if you can lower your service levels.

4. Ask your hauler for pricing options on other equipment.

5. Get a waste review.

The little extra bit of time it will take to put these tips into action can translate into thousands of dollars in savings.

Track your contract expiration date.

Most companies don’t know when their contract expires and they let their contract renew under the same terms they currently have. You should only allow this to happen if you know for a fact that your contract terms are stellar (spoiler alert: most aren’t).

If you don’t know your contract expiration date, you won’t have time to evaluate your services. You won’t have time to see if other haulers have less expensive prices. And you won’t save what you could have saved.

Eliminate your auto-renewal clause.

This tip goes hand in hand with the one above. You need to know when your current terms of service expire, but you also need to cancel your auto-renewal clause.

Most contracts have this clause. It allows your services to renew for another contract term. But, as we mentioned above, most contract terms aren’t great. They’re costing you. If your contract renews, they’ll keep costing you - sometimes for an additional five year term!

When you cancel your auto-renewal clause, you don’t have to renew services with your current waste disposal provider. You can, but only if you are assured that your bottom line is protected and that your contract will include all the clauses it needs to do so.

See if you can lower your service levels.

We estimate that 70% of companies get too much service. The reason is simple - the more you get garbage service, the more you get charged.

If your dumpsters are half empty when they are serviced, you’re getting too many pick-ups. See if you can reduce your service days, or the number of pick-ups. This is one of the easiest ways to start saving almost immediately.

If you get charged $100 for each pick up, and you get service four times a week, you’re paying $400 each week. But you may only actually need two of those pick-ups. That’s $200 a month ($2400 a year!) that you could be saving!

Making this change can easily save you thousands of dollars in the long run.

Ask your hauler for pricing options on other equipment.

If you have the space capability, you may be able to get larger dumpsters. This can translate into fewer pickups, thus saving you on waste expenses.

Ask your hauler what kinds of equipment options they offer, and then ask your representative to come up with quotes for different service levels on each. You may very likely pay less for smaller dumpsters or fewer pickups, but the exact amount will differ based on what you hauler charges for pickups and equipment.

Get a waste review.

A waste review is a thorough analysis of every waste stream at every location in your portfolio. It’s typically completed by an independent waste reviewer, someone who is not affiliated with the haulers and is thus more naturally aligned with your interests.

As experts in the waste industry, our zero risk audit can only help you save. This review has a 90% success rate and it’ll find where you’re overspending and show you the exact steps to take in order to protect your bottom line.

Top 3 Commercial Waste Disposal Problems - and Their Solutions!

Business owners who don’t routinely examine their waste expenses typically pay 10-30% more than those who don’t.

You have better ways to allocate resources.

Today, we’re tackling the top three commercial problems that contribute to this overspending. If you can fix these three things, you may actually save on your waste disposal expenses.

These three problems are:

• Not capping rate increases

• Getting too many pick-ups

• Not eliminating waste fees

These are issues we’ve fixed for many of our clients in the past 19 years, so we know that fixing these key issues will affect your bottom line positively.

Problem #1: No caps on rate increases on your waste hauler contract

Your waste hauler contract will include specifications about what you will be charged for services. Most hauler contracts will include this information on the first page of the contract.

Typical hauler contracts will not include language that caps price increases. Why? Because this is a key way that haulers make their profit. It’s not in their best interest to include this language.

Haulers will raise their prices 1-4 times a year at a 10-15% increase each time. This represents a significant threat to your bottom line.

Solution: When you contract is up for renewal (or when you get a different contract with a new vendor,) you will need to make sure that the “Notes” section on your contract includes price caps.

Below is a Waste Management contract, with the notes section highlighted. This contract does not have specifications about rate caps, but if it did this is where it would appear.

Different haulers will allow different rate caps. It depends on your region of the country and it often depends on how many competitors are in the area.

Problem # 2: Receiving Too Many Pick Ups from Your Waste Hauler.

70% of companies are getting too much service from their haulers. Why? Because haulers are compensated based on quantity of pick-ups. The more times they visit your locations, the more money they make.

Many haulers aren’t intentionally being dishonest when they set up your service for too many pick-ups. They simply don’t have the financial incentive to ensure the services you receive are truly efficient. They may estimate what they think you need based on typical service schedules for locations your size. But estimates are, by definition, not exact.

The hauler is unlike to do a thorough waste review to access your true needs. They aren’t going to look through your invoice history. They aren’t going to see if your current equipment is what you actually need. They’re simply going to give you a contract based on what your past needs have been, or based on their best estimate.

Solution: Have your waste services reviewed and reduce the number of pickups as necessary. Most companies here in the US have never had their waste needs evaluated by an independent professional. As a result, they are paying for too many pick-ups and they are robbing themselves of potential savings.

Problem #3: Allowing ancillary fees on contracts.

Waste fees are fees like “administrative fees” or “waste cost recovery fees” that appear on your invoices. Most typical waste fees don’t have to be included on your contract.

We find that when companies allow fees like these on their contracts, haulers tend to indiscriminately raise their charge rates. One month a company may be charged 5% for a fee, the next month they may be charged 6%. If your contract doesn’t cap these increases, the company can charge whatever they want for each category of fees.

And we find that most waste hauling companies do exactly that.

5 or 6% may not sound like much, but it can translate to thousands of dollars when you have multiple locations with years-long contracts.

Solution: We include all fees and waste charges in one flat rate that is capped at a certain percentage growth. In other words, we allow the haulers we select for our clients to increase the flat rate at specific intervals in the contract term. That way, the hauler can only raise his fees up to that percentage.

This solution is fair to the haulers, and it’s fair to our clients. The haulers are prevented from charging unfair rates and the clients don’t receive unplanned hikes.

This also allows the client to be able to budget accurately for the fiscal year. If they know when and by how much their rate will increase, they will know how much to allot for waste expenses with certainty.

Solutions for Your Top Three Waste Problems

90% of companies have these waste problems at their locations - regardless of industry. These simply aren’t problems that most people are aware of.

But if you do the following, you will save yourself 10-30% on your waste expense every year:

• Cap price increases

• Reduce the number of pick-ups

• Eliminate ancillary fees

Doing these three simple things will help protect your bottom line and prevent future overspending.

Have you ever tried one of these solutions for your waste management?

5 Reasons Why You Should Overspend on Waste {+ Infographic} - Part 2

Incredibly, there are reasons to keep overspending on your waste and recycling expenses. Most companies in the US are overspending on their disposal services, but there are some who may prefer it that way. Below, we’ll go over the last two reasons why.

1. You like having waste problems.

2. You like to ignore relevant data.

In this series, we’re exploring all the reasons you should keep overspending by 10-30% on your waste expenses. In this blog post (part 2 of a 2-part series), we’ll look at the last two reasons.

You like having waste and recycling disposal problems.

You may actually enjoy the surprise of waste problems. You may love it when your staff tells you your hauler has missed pick-ups at a particular location for the third time this month. You not have a problem with recurring issues because you may think this is normal.

Additionally, you may not have a problem devoting the time and energy needed to resolve these situations. You may have lots of spare time to call your hauler, wait on hold for 20 minutes and then have a customer service rep tell you that they can’t help and that you’ll need to get in touch with your account manager. You may have the expertise to know who to navigate hauler customer “service” departments, but most people don’t.

And, more importantly, they don’t have the time to waste. Do you?

You like to ignore relevant data.

Take a look below - these are the stats we’ve found after 18 years of service in the waste industry. Bottom line? Most companies are overspending, and they have no idea. Don’t be one of them.

If you have the resources to make your hauler rich, you should keep overspending on your waste expenses. If you don’t mind having inefficient waste and recycling services and equipment, you’ll almost certainly keep overspending. And if you don’t want to take advantage of professional expertise, you can keep paying more than you need to for expenses.

But if these reasons aren’t true of you - if you value your resources and your time - then you can chose to stop overspending on waste expenses.

Are there other reasons to keep overspending on waste? Let me know in the comments below!

5 Reasons Why You Should Overspend on Waste - Part 1

As strange as it sounds, there are in fact some solid reasons to overspend on waste.

But for the majority of companies nationwide (the actual number hovers in the 90% range), these reasons aren’t actually applicable. These reasons aren’t actually good reasons to overspend! Why would you chose not to save money? Most companies simply don’t realize they’re overspending.

There are 5 reasons why you should overspend on your waste and recycling disposal expenses.

1. You can afford to make your waste hauler rich

2. You love inefficiency.

3. You don’t like to delegate to experts.

4. You like having waste problems.

5. You like to ignore relevant data.

In this series, we’ll explore all the reasons you should keep overspending by 10-30% on your waste expenses. In this blog post (part 1 of a 2-part series), we’ll look at reasons 1-3.

You can afford to make your waste hauler rich

You may be one of the few companies out there who has excess funds. You may be flush with extra revenue, so how much you pay for waste services at all of your locations isn’t of concern to you. You may not have to worry about budget forecasts or balancing the books at the end of the month.

And if you do have excess funds, you may have already decided to allocate them to overpriced waste expenses. You can afford to spend whatever the waste companies charge you. (An aside: most hauler contracts are designed to allow indiscriminate price hikes, so most companies pay more than they should for expenses incurred over the term of their contract.)

Or, you may just enjoy overspending. Maybe you like the idea of helping your chosen waste vendor become rich. You may like helping them increase profits by paying extraneous fees. You may enjoy the sudden price hikes that add to their bottom line.

But chances are, this isn’t true.

You love waste service and equipment inefficiency.

You may love knowing that you’re likely one of the 70% of companies who are being over-serviced by their trash vendor. You may enjoy getting too many pick-ups every week at your locations. After all, who doesn’t love paying for services they don’t need?

These extra pick-up only benefit one person - and it’s not you. Your hauler is likely incentivized to make additional pickups because more pickups almost always mean more revenue. When was the last time you heard of a hauler voluntarily reducing their service frequency?

Additionally, you may like leaving equipment inefficiency to chance. You may be satisfied with inefficient waste and service levels. (50% of companies have too much or too little waste equipment.) You may prefer not to have an expert review your current waste management process for redundant equipment or ineffective waste equipment.

You don’t like to delegate to experts.

You may think you have the resources to complete your own waste review. And some people are able to complete a cursory review on their own! But most CEOs and COOs don’t have the expertise it takes to do their own waste analysis. Waste reviews are not simple processes to complete. It can be difficult to know where to begin, what exactly to assess, and how to assess your current process in general.

And if they do have the expertise, it’s likely they don’t have the time. We provide our clients the two things they need most - a professional waste assessment or review, but with very little demand for their time. (Our reviews are almost always 100% remote). We’ve been doing waste reviews for the past 18 years, and we know how to find your hidden waste problems and solve them - for good!

You can keep overspending on waste . . . but you don’t have to.

We provide our clients the two things they need most - a professional waste assessment or review, but with very little demand for their time. If you don’t mind having inefficient waste and recycling services and equipment, you’ll almost certainly keep overspending. And if you don’t want to take advantage of professional expertise, you can keep paying more than you need to for expenses.

But if these reasons aren’t true of you - if you value your resources and your time - then you can chose to stop overspending on waste expenses.

Are there other reasons to keep overspending on waste? Let me know in the comments below!

5 Reasons Why You Should Overspend on Waste - Part 1

As strange as it sounds, there are in fact some solid reasons to overspend on waste.

But for the majority of companies nationwide (the actual number hovers in the 90% range), these reasons aren’t actually applicable. These reasons aren’t actually good reasons to overspend! Why would you chose not to save money? Most companies simply don’t realize they’re overspending.

There are 5 reasons why you should overspend on your waste and recycling disposal expenses.

1. You can afford to make your waste hauler rich

2. You love inefficiency.

3. You don’t like to delegate to experts.

4. You like having waste problems.

5. You like to ignore relevant data.

In this series, we’ll explore all the reasons you should keep overspending by 10-30% on your waste expenses. In this blog post (part 1 of a 2-part series), we’ll look at reasons 1-3.

You can afford to make your waste hauler rich

You may be one of the few companies out there who has excess funds. You may be flush with extra revenue, so how much you pay for waste services at all of your locations isn’t of concern to you. You may not have to worry about budget forecasts or balancing the books at the end of the month.

And if you do have excess funds, you may have already decided to allocate them to overpriced waste expenses. You can afford to spend whatever the waste companies charge you. (An aside: most hauler contracts are designed to allow indiscriminate price hikes, so most companies pay more than they should for expenses incurred over the term of their contract.)

Or, you may just enjoy overspending. Maybe you like the idea of helping your chosen waste vendor become rich. You may like helping them increase profits by paying extraneous fees. You may enjoy the sudden price hikes that add to their bottom line.

But chances are, this isn’t true.

You love waste service and equipment inefficiency.

You may love knowing that you’re likely one of the 70% of companies who are being over-serviced by their trash vendor. You may enjoy getting too many pick-ups every week at your locations. After all, who doesn’t love paying for services they don’t need?

These extra pick-up only benefit one person - and it’s not you. Your hauler is likely incentivized to make additional pickups because more pickups almost always mean more revenue. When was the last time you heard of a hauler voluntarily reducing their service frequency?

Additionally, you may like leaving equipment inefficiency to chance. You may be satisfied with inefficient waste and service levels. (50% of companies have too much or too little waste equipment.) You may prefer not to have an expert review your current waste management process for redundant equipment or ineffective waste equipment.

You don’t like to delegate to experts.

You may think you have the resources to complete your own waste review. And some people are able to complete a cursory review on their own! But most CEOs and COOs don’t have the expertise it takes to do their own waste analysis. Waste reviews are not simple processes to complete. It can be difficult to know where to begin, what exactly to assess, and how to assess your current process in general.

And if they do have the expertise, it’s likely they don’t have the time. We provide our clients the two things they need most - a professional waste assessment or review, but with very little demand for their time. (Our reviews are almost always 100% remote). We’ve been doing waste reviews for the past 18 years, and we know how to find your hidden waste problems and solve them - for good!

You can keep overspending on waste . . . but you don’t have to.

We provide our clients the two things they need most - a professional waste assessment or review, but with very little demand for their time. If you don’t mind having inefficient waste and recycling services and equipment, you’ll almost certainly keep overspending. And if you don’t want to take advantage of professional expertise, you can keep paying more than you need to for expenses.

But if these reasons aren’t true of you - if you value your resources and your time - then you can chose to stop overspending on waste expenses.

Are there other reasons to keep overspending on waste? Let me know in the comments below!

How to Overspend on Your Dumpsters This Month

Most companies in the US are overspending on their dumpsters and they’re all doing it in the following ways:

1. Getting too much service.

2. Not having the right dumpsters sizes.

3. Not having the right number of dumpsters.

These are the waste disposal problems we routinely fix for clients and we know just how much money and time can be saved by addressing each of these issues.

Getting too much waste disposal service.

There’s a good chance - it hovers around 70% - that you’re getting too much waste service. You’re getting pickups four times a week, when you only need two. Or you’re getting service everyday and you only need it three times a week.

There’s a simple reason this over-servicing occurs: the more service you get, the more your hauler gets paid. They’re incentivized to overestimate your real waste needs - not to save you money.

Once simple way to tell if you need to reduce service is by observing how full your dumpsters are when they’re serviced. If they’re less than half full, you need to reduce your service days.

Making this change will likely save you hundreds of dollars over the next year - and the effect will be multiplied across every location you implement this cost-cutting measure.

Not having the right size dumpsters.

Larger dumpsters can save you by further reducing the number of needed pick-ups. Alternatively, smaller dumpsters may reduce the rent you pay for their use.

The right size of dumpsters is critical, and there are a number of factors that can help you determine which size to use. Ask your hauler to give you quotes for:

• larger dumpsters with less service

• smaller dumpsters with more service

• smaller dumpsters with less service

You’ll need to have a pretty good idea of your trash output to know what will actually work in your favor, so it’s recommended to first reduce your service days, as we mentioned in the first tip, then adjust your dumpster sizes accordingly.

Not having the right number of dumpsters.

You’ll need to simultaneously evaluate the right number of dumpsters as well as the correct size.

You may be somewhat limited by space constraints as to how many dumpsters you can have, but it is worth exploring the possibility in order to ensure you are paying what you should for waste disposal expenses.

When you ask your hauler for quotes, be sure to ask for a varying amount of sizes.

With all of this information, you’ll be able to make the best decision for the locations in your portfolio, and you’ll likely save yourself thousands of dollars in the process.

5 Easy Waste Tips That Will Reduce Your Waste Expenses

If you take the time to do even one of these steps, you’ll save money on your waste expense in the long run.

Most companies have waste problems they just don’t know about. Their contracts are poor quality, their equipment is inefficient, and their service levels are inaccurate.

But the tips below will address each of these issues and help you stop overspending.

1. Track your contract expiration date.

2. Eliminate your auto-renewal clause.

3. See if you can lower your service levels.

4. Ask your hauler for pricing options on other equipment.

5. Get a waste review.

The little extra bit of time it will take to put these tips into action can translate into thousands of dollars in savings.

Track your contract expiration date.

Most companies don’t know when their contract expires and they let their contract renew under the same terms they currently have. You should only allow this to happen if you know for a fact that your contract terms are stellar (spoiler alert: most aren’t).

If you don’t know your contract expiration date, you won’t have time to evaluate your services. You won’t have time to see if other haulers have less expensive prices. And you won’t save what you could have saved.

Eliminate your auto-renewal clause.

This tip goes hand in hand with the one above. You need to know when your current terms of service expire, but you also need to cancel your auto-renewal clause.

Most contracts have this clause. It allows your services to renew for another contract term. But, as we mentioned above, most contract terms aren’t great. They’re costing you. If your contract renews, they’ll keep costing you - sometimes for an additional five year term!

When you cancel your auto-renewal clause, you don’t have to renew services with your current waste disposal provider. You can, but only if you are assured that your bottom line is protected and that your contract will include all the clauses it needs to do so.

See if you can lower your service levels.

We estimate that 70% of companies get too much service. The reason is simple - the more you get garbage service, the more you get charged.

If your dumpsters are half empty when they are serviced, you’re getting too many pick-ups. See if you can reduce your service days, or the number of pick-ups. This is one of the easiest ways to start saving almost immediately.

If you get charged $100 for each pick up, and you get service four times a week, you’re paying $400 each week. But you may only actually need two of those pick-ups. That’s $200 a month ($2400 a year!) that you could be saving!

Making this change can easily save you thousands of dollars in the long run.

Ask your hauler for pricing options on other equipment.

If you have the space capability, you may be able to get larger dumpsters. This can translate into fewer pickups, thus saving you on waste expenses.

Ask your hauler what kinds of equipment options they offer, and then ask your representative to come up with quotes for different service levels on each. You may very likely pay less for smaller dumpsters or fewer pickups, but the exact amount will differ based on what you hauler charges for pickups and equipment.

Get a waste review.

A waste review is a thorough analysis of every waste stream at every location in your portfolio. It’s typically completed by an independent waste reviewer, someone who is not affiliated with the haulers and is thus more naturally aligned with your interests.

As experts in the waste industry, our zero risk audit can only help you save. This review has a 90% success rate and it’ll find where you’re overspending and show you the exact steps to take in order to protect your bottom line.

Top 3 Commercial Waste Disposal Problems - and Their Solutions!

Business owners who don’t routinely examine their waste expenses typically pay 10-30% more than those who don’t.

You have better ways to allocate resources.

Today, we’re tackling the top three commercial problems that contribute to this overspending. If you can fix these three things, you may actually save on your waste disposal expenses.

These three problems are:

• Not capping rate increases

• Getting too many pick-ups

• Not eliminating waste fees

These are issues we’ve fixed for many of our clients in the past 19 years, so we know that fixing these key issues will affect your bottom line positively.

Problem #1: No caps on rate increases on your waste hauler contract

Your waste hauler contract will include specifications about what you will be charged for services. Most hauler contracts will include this information on the first page of the contract.

Typical hauler contracts will not include language that caps price increases. Why? Because this is a key way that haulers make their profit. It’s not in their best interest to include this language.

Haulers will raise their prices 1-4 times a year at a 10-15% increase each time. This represents a significant threat to your bottom line.

Solution: When you contract is up for renewal (or when you get a different contract with a new vendor,) you will need to make sure that the “Notes” section on your contract includes price caps.

Below is a Waste Management contract, with the notes section highlighted. This contract does not have specifications about rate caps, but if it did this is where it would appear.

Different haulers will allow different rate caps. It depends on your region of the country and it often depends on how many competitors are in the area.

Problem # 2: Receiving Too Many Pick Ups from Your Waste Hauler.

70% of companies are getting too much service from their haulers. Why? Because haulers are compensated based on quantity of pick-ups. The more times they visit your locations, the more money they make.

Many haulers aren’t intentionally being dishonest when they set up your service for too many pick-ups. They simply don’t have the financial incentive to ensure the services you receive are truly efficient. They may estimate what they think you need based on typical service schedules for locations your size. But estimates are, by definition, not exact.

The hauler is unlike to do a thorough waste review to access your true needs. They aren’t going to look through your invoice history. They aren’t going to see if your current equipment is what you actually need. They’re simply going to give you a contract based on what your past needs have been, or based on their best estimate.

Solution: Have your waste services reviewed and reduce the number of pickups as necessary. Most companies here in the US have never had their waste needs evaluated by an independent professional. As a result, they are paying for too many pick-ups and they are robbing themselves of potential savings.

Problem #3: Allowing ancillary fees on contracts.

Waste fees are fees like “administrative fees” or “waste cost recovery fees” that appear on your invoices. Most typical waste fees don’t have to be included on your contract.

We find that when companies allow fees like these on their contracts, haulers tend to indiscriminately raise their charge rates. One month a company may be charged 5% for a fee, the next month they may be charged 6%. If your contract doesn’t cap these increases, the company can charge whatever they want for each category of fees.

And we find that most waste hauling companies do exactly that.

5 or 6% may not sound like much, but it can translate to thousands of dollars when you have multiple locations with years-long contracts.

Solution: We include all fees and waste charges in one flat rate that is capped at a certain percentage growth. In other words, we allow the haulers we select for our clients to increase the flat rate at specific intervals in the contract term. That way, the hauler can only raise his fees up to that percentage.

This solution is fair to the haulers, and it’s fair to our clients. The haulers are prevented from charging unfair rates and the clients don’t receive unplanned hikes.

This also allows the client to be able to budget accurately for the fiscal year. If they know when and by how much their rate will increase, they will know how much to allot for waste expenses with certainty.

Solutions for Your Top Three Waste Problems

90% of companies have these waste problems at their locations - regardless of industry. These simply aren’t problems that most people are aware of.

But if you do the following, you will save yourself 10-30% on your waste expense every year:

• Cap price increases

• Reduce the number of pick-ups

• Eliminate ancillary fees

Doing these three simple things will help protect your bottom line and prevent future overspending.

Have you ever tried one of these solutions for your waste management?

Your Hidden Waste Hauler Contract Problems: What they are and what you can do about them - Part 2

Most hauler contracts are written to ensure that haulers make money - and keep making more.

Typical hauler contracts:

1. Allow for unlimited price spikes 

2. Have inaccurate service levels

3. Charges you for additional fees

4. Makes it nearly impossible to cancel 

5. Has no provision for bad service

If your contract was not adjusted and has these default specifications, you will almost certainly pay more than you need to for your waste expenses.

Today, we’re going to talk about the last two contract specifications that cut into your bottom line.

Waste Contract is Nearly Impossible to Cancel 

What’s worse than a bad contract? Being completely stuck in it.

There are two aspects of contracts that make them difficult to exit. First, most contracts automatically renew for long terms - usually five years. So you may realize you want to change your contract, but it can be almost impossible to do so if you are in the middle of a five year term.

Second, contract termination is de-incentivized since it typically includes hefty associated fees. On rare occasions, it may be worth it for your company to terminate their contract and pay the fee so that they can hire a cheaper (or more reliable) hauler. These fees are usually equal to the past six months of charges, which is likely no small amount.

If you do chose to terminate, you have to send a termination letter within a very specific time frame prior to your contact renewing. Most of the time, this termination letter has to arrive at your hauler no more than 180-90 days prior to your contract renewing.

You must send a certified letter - not an email - specifying that you are terminating the contract and/or cancelling the auto-renewal clause.

Cancelling the auto-renewal clause allows you to create a contract with the same vendor with more favorable terms.

Has no provision for bad service

When there are service issues, you should be able to get them resolved quickly and promptly.

When a hauler misses a pick-up, it should be easy to get in touch with them to resolve it. If they’re leaving stacks of garbage around the dumpsters or make a mess every time they service them, the hauler should only need one request to service more conscientiously. But this isn’t often the case. 

Why pay someone for a service who is actually making your life (and your staff’s lives) more difficult? If you had multiple hauler problems with no resolution in sight, you need to know that you have an out if you need one. 

A thorough contract will include steps for resolution - and what will happen if you continue to be dissatisfied with service levels.

You Don’t Have to Overpay for Waste Services

By default, your haulers are going to let these things happen to your contract. But you don’t have to let them. You can solve current problems and prevent new ones from happening - all it takes is effort, and some persistence.

We help companies across the nation find waste solutions and implement changes on their behalf. Don’t be part of the 95% of companies that are overspending on their waste disposal! Drop us a line to learn how you can fix your contract.