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!

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!

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 is a waste hauler contract?"

A waste or recycling hauler contract is a service agreement between you and your chosen vendor to provide waste and recycling service at a location or at multiple locations. You agree to pay them at a particular rate for a 3- or 5- year term, and they will pick up and dispose of any waste and recyclable materials.

99% of haulers will not do business with you unless there is a contract in place. Larger vendors like Republic Services and Waste Management will always require a contract to provide service. Some regional providers will operate on a ‘gentleman’s agreement’, but this is rare.

The agreement itself is typically short - only 2 or 3 pages. The first page specifies your site and billing addresses, service information, pricing, and any special terms of the agreement. The second page usually states the contract terms, any auto-renewal language, and other service information.

Below, you can see an example of a contract one of our clients had with Waste Management. It includes an automatic renewal clause that made it more difficult for them to get better pricing from other vendors at the end of the 3-year term. This clause is in the black square).

Is my contract costing me?

If your hauler contract has any one of these five issues, it's almost certainly costing you money. 

1. Allows price spikes.

2. Has inefficient service levels. 

3. Allows ancillary fees.

4. Has inefficient waste equipment.

5. Has an automatic renewal clause.  

Have one of these issues means you're likely overspending on waste and recycling expenses. Having all of them practically guarantees it. 

Most companies don't realize that their hauler contract is set up in their hauler's best interest. The hauler wants to be able to increase your rates at will - this guarantees more revenue. They don't have financial incentive to provide service that meets your true needs. They are more than happy to service your dumpster 5 times a week when you really only need service 2 times a week. They are not going to suggest cost-cutting solutions because it cuts into their profit. 

You can read more about these issues - and their solutions - here! 

Should I sign a waste hauler contract?

You almost certainly need a waste hauler contract; but you need to ensure you have a good one!

Most of the contracts we’ve seen in the 18 years we’ve been in business favor the hauler, not you - their client. They can raise prices at their discretion, and there is often no recourse clause for service issues. As a result, some of our clients have overpaid by 50% on their waste expenses.

You should only sign waste and recycling contracts that:

• Limit price spikes

• Outline the allowable annual % increase on services

• Have no auto renewal clauses

• Include the correct service levels

• Have an unresolved service clause

• Reduce or eliminate ancillary waste fees

Want to learn more about good and bad contracts? Sign up for our free, on-demand webinar!

Sign up now and we’ll redirect you to the video so you can start watching immediately.