Guide to Waste Consultants, Waste Brokers and Waste Haulers {Updated for 2021}

“Consultants and brokers are really the same, right?”

“Are haulers responsible for pick-up, or are consultants?”

“Do brokers work with haulers, too?”

These are some of the questions we get on a regular basis about our industry, and we can’t say we blame people! There are so many roles in the waste industry and it can be really overwhelming. But the more you know about consultants, brokers, and haulers, the better decision you can make about your waste management needs.

Here’s a simple breakdown of the differences and similarities between waste consultants, waste brokers, and waste haulers.

Comparison of Waste Consultants, Brokers, and Haulers

Waste Services Comparison Chart

The waste industry can seem complicated, but having the right information will really help you make ideal decisions for your business.

Let’s look at how consultants, brokers and haulers compare in these categories:

1. Waste Payments and Billing Practices

2. Initial and Ongoing Waste Audits

3. Waste Hauler Selection, Accountability, and Payment

And after you’ve been informed about each of these categories, you’ll have a much clearer picture about what your business or organization needs in relation to waste disposal. We’ve also included one last section at the end about how to know what waste service is right for you.

Ready? let’s dive in!

Waste Payment and Billing Practices

Are you overspending on waste services? Don’t let this be you!

The next time you pay your electric or gas bill, take a quick look at the services listed. You’ll likely see a list of dates and your usage over that period of time. This is called an itemized bill. Consumers tend to appreciate these because they show exactly what they’re paying for - which makes it easier to spot sudden price hikes or mistakes.

Here at WCI, we think this kind of transparency is invaluable and we make sure our invoices reflect this. After we check hauler invoices (more on this below), we address any mistakes then send an itemized invoice to our clients. They can see exactly what they are paying for at each location and which haulers or vendors are being used. This transparency gives you the whole picture of your expenses.

Brokers, on the other hand, will send you a consolidated waste bill that likely will not show their fees, price spikes, or itemized expenses. Consolidated bills have a simplicity that some property managers really like, especially those who have multiple locations. But the convenience can come at a cost. It can be difficult to discern price spikes, or if your hauler has suddenly changed.

But brokers and consultants also differ in how they are typically paid.

As consultants, we are compensated by sharing in the savings we find for our clients. Typically, we share 50-50 in the savings.

A broker, however, will collect his monthly fee regardless of whether you are overspending. Overpaying by 20% for his hauler’s services? That’s unfortunate, and you may not ever find out about it. Spending $2000 more a year on a dumpster you don’t really need? You’ll likely never know.

This tendency to overspend on waste expenses is rampant in every industry we’ve ever serviced: food services, medical waste, retail, multi-family, you name it!

How do we combat it? By conducting extensive audits.

Initial and Ongoing Waste Audits

Due to these opposing profit objectives, consultants and brokers tend to have different approaches to initial audits.

When first setting up a contract, both consultant and brokers will conduct an initial audit. Consultants, however, tend to be much more thorough at this stage; brokers aren’t often as careful. We see this time and time again when people use brokers and as best we can figure, it happens because of the different profit objectives.

We also complete on-going site audits to make sure you aren’t being overcharged. We go over each bill to make sure it’s accurate, and fight price spikes on your behalf. WCI also looks for other ways you’re overspending in your waste and update you as needed. After all, the more savings we find for you, the better off we both are!

But since a waste broker is compensated regardless of how much expense he saves you, they often do not have the financial incentive to conduct exhaustive reviews or perform hauler audits.  

Waste Hauler Selection, Accountability, and Payment

Unless you’re planning on taking out the garbage yourself, you need a waste hauler! There a couple of different ways to partner with one.

You can create a hauler agreement between you and the hauler. But for those with many properties or properties in different states, this can create an administrative nightmare.

So a lot of companies chose to partner with a waste consultant or a waste broker. Both do the same thing: they negotiate with and manage the haulers on your behalf.

But the consultant operates from a partnership model; when we finish our review, we present our clients with a Waste Savings Summary (WSS) that shows our recommendations. We then discuss the best options with our client and implement them on his or her behalf.

The broker, on the other hand, will make this decision without consulting with the client. Occasionally, their selection of waste haulers is the ideal choice for the client - but a lot of times, it’s not. Some of our clients have overspent on their broker-selected hauler by 20-30% a month; something we quickly put a stop to.

Another major difference between consultants and brokers is whether they pay the hauler. A waste consultant will review their invoices, but we don’t pay haulers on your behalf. Brokers do. This can be great for convenience but ultimately leaves you in the dark about what exactly you are paying for.  

Is a waste consultant or a waste broker right for me?

If you want a thorough understanding of your refuse needs and on-going auditing services, consider learning more about the recurring savings opportunities offered by a waste consultant.

But if you find yourself in a position where you don’t want as much say in the haulers you work with, or want the simplicity of a consolidated bill, a broker might be best for you.

It’s really a question of how involved and informed you want to be in the management of your haulers and your waste and recycling streams.

What kinds of issues do you have with your current waste management process? Do you have any recurring frustrations with your hauler? We would love to answer any questions you have. You can always get in touch with us at info@wasteconsultantsinc.net.

Waste Hauler Secrets Exposed: Part 2

Everyone likes to be in on a secret, right?

Think of how many stories revolve around hidden knowledge: Jason Bourne has to figure out who he is, Indiana Jones unravels the mystery around the arc of the covenant, and Pandora can’t stand not knowing what is in that secret locked box.

Sometimes, there’s a really good reason that knowledge is hidden. We’d all be happier of Pandora hadn’t opened her box, right?

But other times, what you don’t know can really hurt you.

Download the free Waste Hauler Questionnaire today!

We’ve found this to be the case over and over again when it comes to waste hauler contracts. So many people are overspending on their waste haulers - some by as much as 50%!

In our experience, most haulers aren’t exactly forthcoming about what they charge you and how they set up contracts.

We’re drawing back the curtain and giving you an insider’s look at what’s really going on with your hauler contract.

You have more power than you know when it comes to setting up contracts - you just don’t know it!

Today, we’ll go over the top four questions we get about hauler contracts: whether you should sign one, lock in prices, and renegotiate.

Should I sign a waste hauler contract?  What are the advantages/disadvantages of contracts?

OK, I admit, this is sort of a trick question.  Gone are the days that your local hauler will pick up your trash without a signed service agreement.  To get your waste picked up, you have to sign an agreement or contract with a hauler.

So, yes, you’ll definitely need to sign one, but you need to be absolutely certain that the one you create is in your best interest.

Contracts themselves aren’t the problem - bad contracts are!

Unfortunately, we see a ton of awful contracts.

Most of our clients sign contracts that aren’t in their favor!

Some sign with a hauler that charges way too much for their services. Others need an 8 yard dumpster instead of a 4 yard one, or two pick-ups a week instead of three.

They just don’t know that better options can be had. And contracts lock you in to overpaying for years at a time.

As I often joke with our clients, if you’d like to get out of your current agreement before the expiration date all you have to do is jump backwards through a ring of fire, stick the landing, and hope that your renewal notice letter gets to them within their allotted window of time!

But good contracts have their advantages.

In some instances, I will actually recommend that our clients sign an agreement with their hauler for longer than 3 years.  

Why? Better long-term pricing. We are often able to negotiate terms that pre-determine when and by how much the hauler can raise their rates.

If there is typically a lot of volatility in a particular market or if there are not many options available, locking in the price can help the client accurately budget for years to come. It will also prevent the hauler from applying their typical price increases that most companies have just come to accept.  

What is going to happen to waste disposal prices in 6, 12, 24, 36 months? Can I lock in a price?

I tell our clients all the time - it’s not a matter of when and if you will receive unauthorized price increases, it’s a matter of when, how much and how egregious the price increase will be.  

The simple fact is, if your hauler contract isn’t thorough, you will be on the receiving end of some really fun surprise price hikes in the next few months and years.

You can lock in your price, but it must be done as part of your initial negotiation with your hauler.

 If not done (or not done properly) I find that most haulers will increase prices every year by as much as 15% or more. And there usually aren’t any warnings ahead of time, either.

In order to catch these price hikes or other errors, the hauler invoices need to be reviewed carefully each month and compared to previous invoices.

When a discrepancy is found, a company representative will need to let the hauler know that you are not going to pay the invoice until you understand the price increase and why you received it.  

Sounds like a lot of work, doesn’t it? We know! That’s why support options are built into our service agreements with our clients.

We find it’s worth it: we find mistakes on about 10% of hauler invoices. And no, that is not a typo!

We take on all the work - we notify the hauler on our client’s behalf and request a credit and/or explanation of the price increase.

As a result, you and your staff spend their time doing their jobs instead of trying to track down and negotiate with a hauler.

When we identify a price increase it’s almost never authorized. Why? We build it into hauler contracts.

So when these price spikes do hit, we have already negotiated terms on our client’s behalf that prevent or minimize future price increases.  

We tend to have a lot more success negotiating price increases than most businesses who go it on their own. Why?

1. We know the contracts and what they should be paying.

2. We know who to call.

3. We continue to call until it gets resolved.

You’re a busy person! You don’t always have the time or resources to get to the bottom of price increases, so it’s something we’re glad to take on on your behalf.

What waste hauler terms are negotiable?

You can actually negotiate your hauler terms! So many people don’t know this, and it ends up really coming back to bite them.

Honestly, your hauler would probably prefer that you stay in the dark about what you can negotiate and what you can’t. But we don’t! Take a look at the list below.

Negotiable terms include:

• Pricing: How much you pay for services like pick-ups, dumpster rentals, etc.

• Length of the contracts: Contracts can vary in length, but you do have some control over how long the terms are.

• Price increases: Contracts stipulate when and by how much a waste hauler can hike prices.

• Ancillary fees: Some examples are fuel/environment fees, recycling recovery fees, overage fees and administrative fees

• Payment terms: How and when you will pay the hauler.

• Performance: Specifies hauler pick-up schedule, how quickly they’ll show up after a service request, and protocol for missed pick-ups.

• Pick up timing: This part of an agreement discusses roll-offs and compactors, how quickly they will pick up after a client requests one.

Should I renegotiate now or at some later date?

The timing of renegotiating your current contract is critical. Wait too long, and you could be locked into overspending for months.

In general, the sooner you can renegotiate more favorable rates, the better.

A few ways you can do this:

• See if you can get other bids from area haulers. There are often other haulers in your area who can service your location for less.

• Include price hike stipulations in your contract

• Make sure the level of your current service is what you actually need (pick-up frequency, equipment limitations, etc).

Ending a contract with a current hauler can be pricey, so we make sure that it actually benefits you.

We do a cost benefit analysis to see if curtailing your contract with one company could save you money in the long run.

And you know what? 99% of the time, it does.

Consider a manufacturing company we recently worked with.

They were paying one hauler over $1600 a month for their services at one of their locations in Florida.

Surprising absolutely no one, we found they were overpaying. There was another hauler in their region that could do provide the same services but for $300 less a month. Which means that they were overspending by $3600 a year!   

How did we do this? We have standard addendum that we use that tilts the deck in our clients favor. And it works - more than 95% of the time, we find overlooked savings.

Not sure if your current hauler contracts are really in your best interest? Are you currently trying to negotiate with a hauler and just finding it completely overwhelming?

Download our free Waste Hauler Questionnaire. It has all the questions you need to ask your hauler about pricing, contracts, and waste audits.

Let us know your questions in the comments below.

Waste Hauler Secrets Exposed: Part 1

You know what most haulers thrive off of? How they really make their money?

Your ignorance about what they do.

Yup, seriously.

But you know what? You have every right right to know how you’re being charged for your waste services.

Honestly, haulers aren’t going to like this article because we’re going to be really honest with you about how they decide what to charge you.

But we really believe that knowing things like how haulers calculate their operational costs is vital for you as a decision maker.

Knowledge is power; and one of our goals here at WCI is to empower you. You don’t have to overspend on your waste expenses - you just have to know what to look for!

Psst! Download our free Guide to Reducing Waste Expenses here!

The more you know the nitty-gritty about waste hauler costs, the less likely you are to sign less than ideal hauler contracts.

So let’s jump in! We’ll look at the top three questions we get about hauler costs

1. What are the primary components of “costs”?

2. Can the vendor’s “costs” (not Price) be reduced?

3. What is the vendor’s profit margin?  

Ready? Let’s go behind the scenes of hauler pricing!

What are the primary components of waste hauler “costs”?

Of course, waste hauler have costs on their end. It costs them to do what they do.

Some of these costs include:

1. Disposal cost to drop off waste materials at disposal facility.

   Did you know that disposal facilities (like dumps) charge for the waste they receive? Haulers have to pay this fee, and this fee often gets passed onto the customer, or their client.

2. Cost of hauler equipment.

   Dumpsters, garbage trucks, and composters are expensive! Many people rent the equipment from the hauler company, so the haulers are responsible for maintenance. The hauler companies have to buy and service most equipment they use for waste disposal.

3. Cost for servicing account.

   A few other operation costs factor into the actual cost the hauler incurs to conduct business.

   Consider what it takes to make an average waste disposal run with a dump truck. Haulers have to take into account employee compensation (for driving the truck), the fuel cost, and the cost of the truck itself (wear and tear).

   Haulers will typically divide up the number of locations they have to service with one truck to figure out how much to charge each customer.

   Some of these costs are passed onto the consumer, but the degree to which it is passed on varies from hauler to hauler.

   Can the waste vendor’s “costs” be reduced?

A lot of the factors in pricing listed above are simply out of the hauler’s power. No one can control gas prices or how many oil changes a truck will need. There will always be a certain amount of operational expense, and nowhere is this more true than the waste industry.

But the hauler absolutely controls how much of his operational fees he passes on to you. And honestly, too many of them will pass on a ridiculous amount of his fees.

This is why it’s so critically important to set up your contracts right the first time! A good contract will prevent the hauler from overcharging you for his services.

In order to reduce the amount of operational costs the hauler passes on to you, you need to:

1. Review your contract to see if there is a fee to break your contract.

2. Price out other vendors to see if you can get less expensive service.

3. Audit your expenses to see if your waste needs are actually being met by your current level of service.

If it makes financial sense to switch waste haulers, you absolutely should do so!

What is the vendor’s profit margin?

No one works for free, right?

Most companies attempt to pass on any additional costs they incur back to their clients in the form of price increases.  The waste hauling industry is no different.

The profit margin varies from hauler to hauler and from region to region. However, most haulers will not enter an agreement unless they are making at least a 15% profit. (We’ve actually  seen some companies make as much as 100% or more in profit!)

Profit margins for the haulers almost always increase every year. We’re talking 99% of the time.

Haulers tend to increase their rates 1-10% of the time. We’ve seen them do this up to four times a year!

But you know what else?

A vendors profit margin is also dependent on you, the client!

When these price spikes happen, the majority of businesses either don’t notice them or don’t question them. Haulers often bet that you won’t notice, or that you won’t care if you do.

But we do. We conduct monthly invoice audits to catch these hikes, then fight them on your behalf. Not one of our clients will ever pay an unfair bill or invoice!

So there you have it! You are not powerless when it comes to negotiating your hauler contract, you just have to know the rules of the game.

Now, you know what to be mindful of when discussing pricing and contractual agreements with a waste hauler.

For even more information, download our free Waste Hauler Questionnaire. It has all the questions you need to ask your hauler about pricing, contracts, and waste audits.

Think you might be overspending on waste disposal? What questions do you have? Let us know in the comments below, or reach out to us!

Everything you Need to Know about Waste Consultants, Waste Brokers and Waste Haulers

“Consultants and brokers are really the same, right?”

“Are haulers responsible for pick-up, or are consultants?”

“Do brokers work with haulers, too?”

These are some of the questions we get on a regular basis about our industry, and we can’t say we blame people! There are so many roles in the waste industry and it can be really overwhelming. But the more you know about consultants, brokers, and haulers, the better decision you can make about your waste management needs.

Here’s a simple breakdown of the differences and similarities between waste consultants, waste brokers, and waste haulers.

Comparison of Waste Consultants, Brokers, and Haulers

Waste Services Comparison Chart

The waste industry can seem complicated, but having the right information will really help you make ideal decisions for your business.

Let’s look at how consultants, brokers and haulers compare in these categories:

1. Waste Payments and Billing Practices

2. Initial and Ongoing Waste Audits

3. Waste Hauler Selection, Accountability, and Payment

And after you’ve been informed about each of these categories, you’ll have a much clearer picture about what your business or organization needs in relation to waste disposal. We’ve also included one last section at the end about how to know what waste service is right for you.

Ready? let’s dive in!

Waste Payment and Billing Practices

Are you overspending on waste services? Don’t let this be you!

The next time you pay your electric or gas bill, take a quick look at the services listed. You’ll likely see a list of dates and your usage over that period of time. This is called an itemized bill. Consumers tend to appreciate these because they show exactly what they’re paying for - which makes it easier to spot sudden price hikes or mistakes.

Here at WCI, we think this kind of transparency is invaluable and we make sure our invoices reflect this. After we check hauler invoices (more on this below), we address any mistakes then send an itemized invoice to our clients. They can see exactly what they are paying for at each location and which haulers or vendors are being used. This transparency gives you the whole picture of your expenses.

Brokers, on the other hand, will send you a consolidated waste bill that likely will not show their fees, price spikes, or itemized expenses. Consolidated bills have a simplicity that some property managers really like, especially those who have multiple locations. But the convenience can come at a cost. It can be difficult to discern price spikes, or if your hauler has suddenly changed.

But brokers and consultants also differ in how they are typically paid.

As consultants, we are compensated by sharing in the savings we find for our clients. Typically, we share 50-50 in the savings.

A broker, however, will collect his monthly fee regardless of whether you are overspending. Overpaying by 20% for his hauler’s services? That’s unfortunate, and you may not ever find out about it. Spending $2000 more a year on a dumpster you don’t really need? You’ll likely never know.

This tendency to overspend on waste expenses is rampant in every industry we’ve ever serviced: food services, medical waste, retail, multi-family, you name it!

How do we combat it? By conducting extensive audits.

Initial and Ongoing Waste Audits

Due to these opposing profit objectives, consultants and brokers tend to have different approaches to initial audits.

When first setting up a contract, both consultant and brokers will conduct an initial audit. Consultants, however, tend to be much more thorough at this stage; brokers aren’t often as careful. We see this time and time again when people use brokers and as best we can figure, it happens because of the different profit objectives.

We also complete on-going site audits to make sure you aren’t being overcharged. We go over each bill to make sure it’s accurate, and fight price spikes on your behalf. WCI also looks for other ways you’re overspending in your waste and update you as needed. After all, the more savings we find for you, the better off we both are!

But since a waste broker is compensated regardless of how much expense he saves you, they often do not have the financial incentive to conduct exhaustive reviews or perform hauler audits.  

Waste Hauler Selection, Accountability, and Payment

Unless you’re planning on taking out the garbage yourself, you need a waste hauler! There a couple of different ways to partner with one.

You can create a hauler agreement between you and the hauler. But for those with many properties or properties in different states, this can create an administrative nightmare.

So a lot of companies chose to partner with a waste consultant or a waste broker. Both do the same thing: they negotiate with and manage the haulers on your behalf.

But the consultant operates from a partnership model; when we finish our review, we present our clients with a Waste Savings Summary (WSS) that shows our recommendations. We then discuss the best options with our client and implement them on his or her behalf.

The broker, on the other hand, will make this decision without consulting with the client. Occasionally, their selection of waste haulers is the ideal choice for the client - but a lot of times, it’s not. Some of our clients have overspent on their broker-selected hauler by 20-30% a month; something we quickly put a stop to.

Another major difference between consultants and brokers is whether they pay the hauler. A waste consultant will review their invoices, but we don’t pay haulers on your behalf. Brokers do. This can be great for convenience but ultimately leaves you in the dark about what exactly you are paying for.  

Is a waste consultant or a waste broker right for me?

It can seem like there are too many options for waste management!

If you want a thorough understanding of your refuse needs and on-going auditing services, consider learning more about the recurring savings opportunities offered by a waste consultant.

But if you find yourself in a position where you don’t want as much say in the haulers you work with, or want the simplicity of a consolidated bill, a broker might be best for you.

It’s really a question of how involved and informed you want to be in the management of your haulers and your waste and recycling streams.

What kinds of issues do you have with your current waste management process? Do you have any recurring frustrations with your hauler? We would love to answer any questions you have. You can always get in touch with us at info@wasteconsultantsinc.net.