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!

Free Download: "7 Ways You're Making Your Hauler Rich!"

Let me share a little secret with you: you’re almost certainly overpaying your waste hauler.

The industry isn’t designed to help you save. It’s designed to help your haulers make more and more money off you. In the past 20 years we’ve been in business, it’s something we’ve seen again and again.

So we distilled the most common way people overpay in this handy download, which can be yours for free with the click of a button!

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Stop making the same waste mistakes over and over - for good!

---

Free Download: "7 Ways You're Making Your Hauler Rich!"

Let me share a little secret with you: you’re almost certainly overpaying your waste hauler.

The industry isn’t designed to help you save. It’s designed to help your haulers make more and more money off you. In the past 20 years we’ve been in business, it’s something we’ve seen again and again.

So we distilled the most common way people overpay in this handy download, which can be yours for free with the click of a button!

---

Stop making the same waste mistakes over and over - for good!

---

Free Download: "7 Ways You're Making Your Hauler Rich!"

Let me share a little secret with you: you’re almost certainly overpaying your waste hauler.

The industry isn’t designed to help you save. It’s designed to help your haulers make more and more money off you. In the past 20 years we’ve been in business, it’s something we’ve seen again and again.

So we distilled the most common way people overpay in this handy download, which can be yours for free with the click of a button!

---

Stop making the same waste mistakes over and over - for good!

---

How Valet Services Overcharge You - And What to Do About It!

Let’s face it, no one likes taking out the trash, right?

In the past few years, valet services have become increasingly popular. No longer do multifamily residents have to haul their own trash to the dumpsters - they can just leave it outside their door! A valet employee collects it and disposes of it. Sounds dreamy, right?

Trash valet services are a fantastic amenity to offer to your residents. But they aren’t always fantastic when it comes to pricing. 

As with so many other areas of the waste industry, vendors will often increase prices because they can - or charge fees way above market level!

How can you make sure this doesn’t happen to you?

In this post, we’ll go what valet services are, some ways you might be overcharged, and what you can do to prevent overspending. 

Psst! Ever wonder why you should care about waste in the first place?

What exactly is Trash Valet Service?

Valet services are a really fancy way of saying “doorstep trash pick-up.” In most situations, it happens exactly as is described above. Residents leave trash outside their door, and a valet employee picks it up and disposes of it. 

Different locations will have different frequency needs. Some will only offer valet waste once a week; others offer it every day during the week. 

Most vendors will service your location at night so that your residents aren’t disturbed - and so they have time to place their trash outside their door. 

How You’re Overcharged for Valet Waste Services

Your trash pick-up provider can be sneaky - just like waste haulers, unfortunately! In fact, valet services are one of the top ways that multi-family complexes overpay on their waste expenses.  

Providers often overcharge you because they think they can. Most multi-family management companies don’t evaluate the valet invoices they receive, or they just don’t know how to ensure their contract is in their best interest. 

What you don’t know can cost you hundreds or even thousands of dollars over time - but it doesn’t have to!

Your rates may suddenly increase. Every so often, you’ll see an uptick in the rates listed on your invoice. It can be as little as 5%, but it can also be much more. But even a 5% increase compacts over time! If you’re charged an extra $20 each month, during the term of your contract you may overpay by hundreds of dollars. 

Rates can increase as much as 1-2 times a year! Your fees can raise whenever your vendor feels like it. Not all vendors will take advantage of this - but some undoubtedly will. 

We recently worked with a multifamily developer/manager who offered valet services at their properties.  The WCI Project Manager noticed that the price per unit seemed to be awfully high. We were able to introduce a new vendor who was able to save them $28,800/year at just 3 properties!  

Rate increases compound over time. Before you know it, you may be significantly overpaying. 

Because there’s so little information out there about valet services and how they do what they do, you may think it’s normal. Or even something that you should expect. 

But just because everyone else is paying at these rates doesn’t mean you have to as well. 

Make Your Waste Valet Contract Airtight

The two best ways to prevent overpaying? Get a feel for the market, and then evaluate your contract.

Find out:

• What are other area trash valet services are charging? Get at least one or two estimates. 

• What are other area multi-family complexes being charged? Get in touch with a contact, or just make a cold call - you’d be surprised how far a friendly voice and cheerful attitude can get you!  

Then, take a good hard look at your contract and answer the following questions:

• Are price hikes capped or eliminated?

• Are rates locked in?

• How easy is it to get out of my contract?

• Are there provisions for poor service?

It can be expensive to stay in a bad contract - or have continual service issues with no recourse!

In the end, you may need to weigh your options. If you have a terrible valet service provider who is not interested in lowering their prices, it may be worth it to break your contract and get a cheaper service provider. 

Protect your bottom line! 

Fix your valet contract, and you’ll not only prevent overspending - you’ll know how to budget for years to come because you’ll have fixed rates. 

You can have peace of mind knowing that you’re not going to be trapped into paying outrageous prices. And you’ll have a contract to protect your best interests. 

Don’t wait until a price spike hits to worry about your valet services!  

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Do you use valet services at your multi-family property? Thinking about getting them at some point in the future? Let me know your thoughts in the comments below!

5 Reasons You’re a Great Candidate for a Utility Audit

Who is the best candidate for an audit? Someone who is short on time - and sees the cost-reduction potential in an audit!

Most people don’t know they’re sitting on savings. What they do know is that they don’t really have the time or resources to find them.

We help companies champion their bottom lines through our exhaustive audits.

Let’s take a few minutes to examine five aspects that make you a great candidate for an audit.

You have:

1. Not evaluated your invoices in the past year

2. Multiple utility meters

3. Expense line items that you can’t explain to your fifth grader

4. Multiple telephone lines 

5. Multiple locations

Sound familiar? If one of these rings true, you’re likely sitting on savings.

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!

What would you do with an extra $12,000? This company found out!

Not too long ago, Anita Huffman got in touch with us. As the corporate director of a large manufacturing plant, Anita knew that there was a chance that they could be overspending on waste. They had several dumpsters and compactors on site, but they were also producing plastic byproducts that weren’t being sold.

When they got in touch with us, we explained that they would take on zero risk during our audit process. They wouldn’t pay us anything if we didn’t find savings.

We began the audit process in 2018 and we examined every waste stream that was available to them.

In the end, we found $12,000 worth of monthly savings!

Anita wrote us:

“My team and I were pleasantly surprised how much of a difference you made on our bottom line. 

During your audit, you uncovered more than $12,000 in monthly savings opportunities. Your exhaustive process and your team’s dedication to our success has permanently changed our approach to waste management. 

With your help, we’ve reduced our waste spend by thousands of dollars every year. We’ve decreased equipment inefficiencies, and we have service schedules that align with our production needs. 

Your team has gone the extra mile, and we couldn’t be happier with the results.”

Anita were overspending on their waste and they had no idea! She and her team found out that they were unknowingly making some critical waste management errors. But now, thanks to our exhaustive audit, they’re saving.

Too many companies in the US are overspending on their waste and recycling expenses. You don’t have to be one of them! What could you do with the savings from a 10-30% reduction in waste?

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!

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!