Just a few months ago, one of our clients got an unwelcome surprise. They got their hauler invoice for the month and found that their service rates had increased not 9, not 90, but by 900%!
As you can imagine, they were somewhat less than thrilled.
They didn’t have any service or equipment changes. In fact, nothing had changed.
And yet here they were.
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:
Allow for unlimited price spikes
Has inaccurate service levels
Charges you for additional fees
Makes it nearly impossible to cancel
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!)
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.
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.
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.
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!
Not sure how we can benefit you? Think your industry may not actually be helped by waste review? Unsure about the possible ROI?
Below, you’ll learn how a waste review can find your hidden disposal problems - and your unique solutions.
We’ll talk about the five top industries that are sitting on waste savings:
Multifamily
Manufacturing
Retail
Restaurants
Medical
Regardless of industry, our clients save an average of 10-30% on their waste expenses - and not just 50% of the time. Not 60% of the time. We find savings 90% of the time.
Multi-family properties need a waste review because of the amount of trash they produce. An individual creates an average of 3 pounds of waste every day, which means that most apartment complexes create 120 pounds of trash every day!
Residential waste is relatively simple to transfer from your facility to a dumpster, but that doesn’t mean it’s inexpensive. If multi-family complexes are not using the right equipment, they will easily overpay by thousands of dollars on waste services.
Compactors help managers realize significant savings over time. Compactors crush the garbage in a specially made cannister, making pick-ups less frequent. And generally, the fewer pick-ups you have, the less you’ll pay. While they are a significant investment up front, they pay for themselves as time goes on.
Manufacturing factories need waste expense reductions because they often don’t sell their by-products. Glass, plastics, and cardboard can all be sold to other businesses or even other manufacturing plants. Are you missing out on a revenue stream?
You and your company might also want to consider industrial recycling. It’s another possible way to add a revenue stream. This could be a good idea for you if you:
Are overspending on waste, recycling and landfill costs.
Want to reduce raw material expenses.
Producing too many leftover materials.
Some metal producing companies, have been saving roughly $1,300/ton from their recycled metals. Many companies have also benefited from reusing recycled materials to produce new products. Companies, such as Nike, have cut a large amount of their raw materials expenses because they are now able to reuse recycled materials.
Retail properties need a waste review because they typically overspend on waste as well. They often have high output of trash, but we find that their current waste management process does not typically align with their real needs.
They may be getting too frequently serviced. They may have the wrong equipment. They may have too little equipment.
All of this is exacerbated by the high output of trash. The more of a service you need, the more critical it is that that service is efficient.
In other words, if you are paying expensive rates for trash and you have a high output you’re going to overspend.
Restaurants typically need expense reductions because they create enormous amounts of wet food waste. For this reason, it’s critical to have the right equipment on site. The right equipment can help you reduce your waste expenses!
For some restaurants, we recommend getting a compactor for the same reasons we’ve listed above for multi-family. But we also recommend it because it does a really good job containing food waste - and the smells that can accompany them. Dumpsters are functional for the this purpose, but they’re not going to be able to contain odors as well as compactors will.
Medical waste or red bag waste is a critical part of your overall waste management process. It often involves hazardous materials that must be disposed of with care.
Medical waste is anything that could contaminate blood borne pathogens. Proper disposal of any medical waste containers is absolutely critical. 5.2 million people worldwide die from conditions related to poor medical waste disposal - and this could be completely eradicated with proper procedures in place!
Do your part to ensure that medical waste is safely and effectively disposed of. You are protecting the lives of everyone who enters your facilities.
At least 50% of companies nationwide are overpaying on their medical waste disposal. Why? Because regulated medical waste often comes with “special” pricing. Medical waste services are notorious for their exorbitant fees and frequent price hikes.
I wish there were some good reason for this - a lot of people assume there is! They think that red bag disposal is expensive because the process requires people to handle dangerous materials. Or they think that paying higher prices means better quality of service. (It can - but it doesn’t always!)
Medical waste service providers will often hike prices because your contract allows them to do so.
Because of this, audits - and constant monitoring - are imperative. You need an independent third party to review every aspect of your medical waste management process.
Your current vendor isn’t going to disclose your current savings opportunities. They’re not going to tell you that another vendor in your area charges 95% less (as we recently discovered for one of our clients)! They’re not going to show you what terms in your contract are costing you thousands every year. We will.
What questions do you have about waste expense reductions? Let us know in the comments below!
There are lots of resources for you to help you reduce your waste and recycling expenses.
But the internet is a pretty big place so we’ve collected the very best resources for you below and summarized them.
Below, you’ll learn how to find and identify ways you can save on your commercial waste management expenses.
Tips for Cutting Waste Removal Costs at the Office - This article covers some of the more detailed questions you should be asking yourself that could lead to savings. Some of these questions include:
Have you right-sized your schedule and containers?
Are there options to change providers?
Do you qualify for regional or national savings?
10 Ways to Reduce Your Waste Management Costs - Here, you’ll learn some tricks of the trade to reduce your waste disposal output by reducing waste volume separating recycling waste from regular trash, garbage, or by-product refuse.
10 Ways to Cut Business Waste Disposal Costs - This blog post has specific actions to take to evaluate whether your current waste management process is truly efficient - and cost effective.
6 Ways Your Business can Cut Commercial Waste Management Costs - Learn a few additional ways to reduce your waste expenses. This is a short, concise guide that can help you quickly identify overlooked savings opportunities.
Stop Wasting! 7 Steps to Cut Costs, Reduce Waste - This one says it’s specific to Florida businesses, but don’t be deterred. The vast majority of tips discussed here are applicable to you regardless of where you live.
7 Tips for Reducing and Managing Waste on Commercial Properties - Did you know that going green and saving money can go hand it hand? This article lays out exactly how to assess your current waste management system, and how to solve hidden waste problems.
How to Save Money on Commercial Waste Management Costs - This post has some innovative ideas for reducing your waste expenses, including sharing waste costs with other businesses!
Which of these was most helpful to you? Leave a comment in the space below!
Most companies are overpaying on waste and recycling problems, and most companies also don’t do anything about it. Why? Because they don’t know they’re overpaying.
The waste industry has certain norms in how they operate. These norms ensure that rates go up year over year, and that you won’t have the time to find better rates before your contract automatically renews. They ensure that you won’t have much recourse when service issues arise and that you have the wrong service levels. They ensure that you overpay.
In this article, you’ll learn why these problems remain hidden (and why you likely have them).
These problems remain hidden because of three false assumptions:
You can’t make changes to a proposed contract.
Your stated service levels are accurate
Your waste hauler is being fair.
None of these things are necessarily true. We have great success negotiating contract terms. Most service levels are actually inaccurate (70% of our clients have received too many pick-ups). And your waste hauler isn’t always fair - particularly when it comes to price hikes.
Learn more about your waste problems here!
If you remember nothing else about this post, remember this: you can ask for different terms than a standard waste contract. In fact, you absolutely should.
Most default waste contracts are set up to help your hauler:
Increase profits
Not be accountable for poor service issues
Retain your employment at the end of your contract.
You have to be proactive about putting specific language in your contract to make sure price hikes are limited and service provisions are provided. You’ll also need to make sure no auto-renewal clause occurs in the contract.
You should ask for the following inclusions on your contract:
Short terms (3 years - no more)
No automatic renewal
Limited price hikes
Provisions for poor service
No ancillary fees
If your hauler wants your business, they’re going to be willing to listen to some (if not all) of your requests. If they aren’t willing to work with you, you may be able to find another vendor in your area who will.
70% of our clients in the past 18 years have had inaccurate service levels. Why? Because many haulers are paid based on the frequency of service. The more pick-ups they complete, the more they’re paid. So when they set up your contract, they’re likely going to err on the side of too many pick-ups.
Your hauler is not often going to take the initiative to find cost-cutting solutions for you. They’re paid to pick up your trash, not reduce your waste spend. Doing so would run counter to their desire to make a profit.
Check your dumpster fill levels. If they’re consistently less than half full prior to pick-up, you’re paying for too many pick ups.
Your hauler isn’t going to tell you if they’re charging more than their competitor. They’re not going to tell you that they plan to raise your base rates twice in the next year. They’re not going to volunteer information that could cut into their bottom line.
They’re going to do what is typical in the waste industry. They’re going to hand you a contract to sign and assume that you won’t want to tweak any of it. They’re going to assume that you won’t carefully look over it and that if you do, you won’t want to make any changes.
It’s not necessarily because they’re out to get you - it’s simply because the industry has evolved this way because profits are paramount.
It would be fair of them to:
Agree to limit price spikes to a certain percentage -and timeframe.
Agree to cancel the contract without penalty if they can’t provide adequate serviced as agreed to.
Give you plenty of time to get bids of other service when your contract expires
But again, most haulers are not going to voluntarily do this.
The good news is that many of them will if you ask them to. Ask for what you want. The worse you can hear is a “no.”
We’ve created a free, comprehensive mini e-course for you to learn more about your waste problems. There are 5 ways you’re likely overpaying on waste expenses, and we go over every one of them in depth.
Sign up below and we’ll send you the first video immediately - and include an additional downloadable PDF.
Incredibly, there are some reasons to overspend on waste . . . but should you?
Take a look below at the 5 reasons to keep spending more than you need to on waste!
You probably know something is off with your waste disposal. Your waste spend is too high, and prices seem to keep increasing. Your haulers are difficult to work with and provide less than stellar service.
You know something is wrong; you just don’t know what to do about it.
Starting today, you can find relief from your waste worries. You can remedy and even prevent them.
Incredibly, there are reasons to keep overspending on your waste and recycling expenses. Most companies in the US are overspending on their disposal services, but there are some who may prefer it that way. Below, we’ll go over the last two reasons why.
You like having waste problems.
You like to ignore relevant data.
In this series, we’re exploring all the reasons you should keep overspending by 10-30% on your waste expenses. In this blog post (part 2 of a 2-part series), we’ll look at the last two reasons.
You may actually enjoy the surprise of waste problems. You may love it when your staff tells you your hauler has missed pick-ups at a particular location for the third time this month. You not have a problem with recurring issues because you may think this is normal.
Additionally, you may not have a problem devoting the time and energy needed to resolve these situations. You may have lots of spare time to call your hauler, wait on hold for 20 minutes and then have a customer service rep tell you that they can’t help and that you’ll need to get in touch with your account manager. You may have the expertise to know who to navigate hauler customer “service” departments, but most people don’t.
And, more importantly, they don’t have the time to waste. Do you?
Take a look below - these are the stats we’ve found after 18 years of service in the waste industry. Bottom line? Most companies are overspending, and they have no idea. Don’t be one of them.
If you have the resources to make your hauler rich, you should keep overspending on your waste expenses. If you don’t mind having inefficient waste and recycling services and equipment, you’ll almost certainly keep overspending. And if you don’t want to take advantage of professional expertise, you can keep paying more than you need to for expenses.
But if these reasons aren’t true of you - if you value your resources and your time - then you can chose to stop overspending on waste expenses.
Are there other reasons to keep overspending on waste? Let me know in the comments below!
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.
You can afford to make your waste hauler rich
You love inefficiency.
You don’t like to delegate to experts.
You like having waste problems.
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 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 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 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!
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!
We hold a unique niche in the industry, so there can be confusion about who we are and what we do.
To that end, here are a few examples of what we don’t do!
A waste review is a thorough review of all your waste expenses.
You need one because there’s a 90% chance that you’re overspending on your waste and recycling spend.
Below, we explain our process and how that process is tailored to your needs.
We know we have to review every pertinent detail about every waste and recycling stream at every location.
Fortunately, we can do that remotely, and with inconvenience to your staff being kept to an absolute minimum.
To begin our audit, we request several key documents for each location in your portfolio:
Copies of current trash hauler contracts
Copies of the most recent invoice
A list of every location under review
The majority of our clients can assemble this information in just a few hours. Then, we take 60-90 day to thoroughly evaluate your current waste management process and find where your problems are.
We use google maps and google earth to look at the location of dumpsters on your property. The documentation you give usually tells us everything we need. Your current service agreement tells us about your terms, pricing, and auto-renewal clauses. Your historic invoices show us the hauler’s record of service levels, equipment, rates, and fees.
Right off the bat, our analysts will know if you’re overpaying for a dumpster based on its monthly rate, or if you need to decrease frequency of pick-ups at a certain location.
But other information is not nearly so straightforward. For anything larger than a 8 yard dumpster, we have to evaluate your tonnage, and your frequency of pickup. Does your site really need to be serviced twice a week? Or is bi-weekly service actually ideal? We’ll also ask your site managers questions about your customer service experience. Your hauler may have great rates, but misses pick-up frequently - and doesn’t give billing credit. This is vital information, and we take it into account when we review your portfolio.
We look for unexplained price hikes, and we look at usage trends. We also look at your service agreements. We’ll note expiration dates, and we’ll check to see if ancillary fees are limited or exempt. We’ll look for language that prohibits auto-renewals, and limits price increases to a certain percentage.
Then, we’ll find other pricing options. We keep records of nationwide haulers, and we know equitable rates when we see them. Some of our clients profit from switching waste haulers, but for others, we renegotiate existing contracts for better rates. Our post-audit analysis will make it clear which option is more financially sound for you.
We make sure you don’t leave any savings opportunities on the table - which is why we have a success rate of over 90%.
An exhaustive audit is possible with this solutions-oriented approach. Our clients know our audits are thorough and our process works - and they save big.
Suppose you know that you have a waste management problem.
You know that what’s “normal” in your dealings with your waste hauler is actually hugely problematic: the price spikes are egregious, and you have constant service issues. You know that you need a solution to your waste disposal problems.
And you know that we provide these services. We monitor billing, we create airtight contracts, and we find every savings opportunity available to you.
But you’re not sure what the next steps might look like.
What kind of terms does our contract include? Will our audit process take too much time from your staff? And how sure are we that we’ll find savings for you?
We’ve included answers to these - and a whole lot of other related questions - below for your convenience, organized by topic.
If you’re spending more than $10,000 a month on waste, we can likely help you save 10%-30% on your waste spend. For some companies it will be a little less, for others, it will be more.
This is the average amount of savings for a company. How did we come up with this average? In the 17 years we’ve been in business we’ve helped hundreds of clients. And we typically have saved them 10-30% on their waste spend.
Why is this number so dependable? It’s because we know how the waste industry operates. They’re going to try to overcharge you. Your waste hauling rates are going to increase, and you’re going to charged for all kinds of fees that aren’t really service related (LINK). They’re going to overcharge you because it’s the industry norm: because they can.
How sure are you that I’m actually overspending by 10-30% each month? If you’re spending north of $10,000 on waste, there’s a 90% chance you’re overspending. We help mid-size companies across every industry reduce and manage their waste. Most companies need our services. They’re overspending, and they have no idea. They’re sitting on potential savings opportunities, and they aren’t aware of them at all.
What if you don’t find any savings? Over the years, there have only been a small percentage (about 10%) of companies that don’t benefit from our services.
There can be any number of reasons for this. Sometimes certain markets are really tough. Other times, there are external factors that keep the companies from savings.
When we don’t find any savings for a company, we actually see this as a benefit for them. First, the company now knows for certain that they’re paying fair prices for their waste spend.
They know that their contracts are airtight, and they know that what they’re paying is commensurate with the market.
Secondly, the company just got a free waste audit. We don’t believe that you should pay for something you don’t benefit from. It’s part of our performance-based pricing. If our services aren’t of benefit to you, you don’t owe us anything. You only pay us when we find savings that affect your bottom line.
It’s pretty straightforward. We don’t use algorithms or percentages; we charge you half of the savings.
This means if we find you $5,000 in savings every month, we’ll send you an invoice for $2500.
And to be clear, after we complete our initial audit process and begin invoicing you, we don’t just sit on our laurels.
We monitor your bills for accuracy. Why? Because there are inaccuracies on one out of every ten of your invoices. We know because we find them for our clients. Haulers are human too, and we find that they often make unintentional mistakes. Sometimes these mistakes aren’t that big of a deal. But sometimes they are!
And even if they are small, they’re can be a pain to get resolved. Our staff spends hours every week resolving customer service and billing issues. This is time that your staff can devote to other, more significant projects .Our staff makes your staff more efficient.
We are the first line of defense against haulers that miss pick-up or leave trash strewn across your property. Or when you get a 900% rate increase on your bill. We know what’s normal, and what’s not. And we know how to negotiate for fair charges and resolutions on your behalf.
Have you ever heard of a waste audit? Sound a little too good to be true? Sound off in the comments below!
We may have all the great ideas in the world, but if we can’t make them happen, they’d be useless.
We’re as intentional about our audit implementation process as we are about evaluating your utility, telecom, and waste disposal process - and finding savings.
To enact savings, we typically make changes to your:
Service levels
Waste Equipment
Vendor
These changes occur with your full knowledge and consent. We go over each and every savings solution we have found with to ensure they really are the right solution for you.
Let’s take a close look at how exactly we implement changes.
Suppose our exhaustive audit shows that you can save $4,000 every year by being serviced twice a week instead of four times a week. We evaluate your service levels and find that you weren’t actually producing enough garbage to justify all those pick-ups. After sharing our full savings plan with you, we would carefully coordinate the needed changes.
We would call your service provider and explain that we need to eliminate the unnecessary services. We would propose an amendment to the current contract, and explain why the change is necessary for you, the client.
The vendor would likely agree and send over an updated contract. We would review it to ensure that the new rates are fair and that pricing is equitable.
After reviewing the contract, we would send it to you for your signature. (We don’t ever sign documents on your behalf - you’re in the driver’s seat!) Once you signed, we would send it back to the vendor, and it would likely take effect the following month.
We update our records accordingly, and let you know when to expect the update. With changes like this were service levels are being adjusted, we frequently ask our clients to get in touch with us if the service levels don’t change. Waste disposal hauler companies can be pretty big - and communication that happens with a sales rep isn’t always successfully communicated with the trash hauler, or driver.
We try to anticipate problems before they become issues. We’ve learned it’s a lot easier to deal with concerns when they’re small before they have a chance to get big!
If there’s anything people hate more than taking the trash out, it’s not having a place to take the trash to! Making sure that dumpster or compactor changes happen without service disruption is vital to your sanity - not to mention your resident’s or customer’s satisfaction levels.
Sometimes we recommend that you stick with your original hauler, but use a different hauler-provided dumpster or compactor.
When this is the case, the process is really simple. We simply ask the hauler to switch out the dumpster with one that is the correct size effective on a certain date. We ensure this date is ideal for you, and that there aren’t any events happening at the site that could interfere with the proposed delivery.
But other times, equipment changes happen because you are changing waste disposal service providers.
Suppose you’ve been paying $500 a month for bi-weekly service on you two 8-yard dumpsters. But we found a vendor who will only charge you $350 (this big of a price change is not actually that unusual)!
So your term with your current provider ends, and we facilitate the paperwork for you to sign up with a new service.
We first make sure that the new service date will work for you. Then we contact the old provider in plenty of time to cancel the contract without incurring a termination fee. We ask them to remove their dumpsters the day prior to the date the new service begins.
The week before the switch-out is set to take place, we call the new and old vendor to confirm they have the switch-out in their records.
If there are any problems - if the old hauler takes a little longer to remove the equipment, or if the new vendor’s truck breaks down and can’t deliver the new equipment - we troubleshoot. We make sure that you’re in the loop, and that you know we’re working for solutions on your behalf.
We carefully implement service level, equipment, and vendor changes. We understand your concerns about smooth transitions - you don’t want your residents or visitors up in arms!
We don’t leave things to chance. We proactively anticipate hitches and prevent them. We make sure you are in the loop at all times about what is going on at your locations.
We’re as careful about the implementation process as we are with your audit. Because your peace of mind matters - and with us, it takes priority.
In 2020, we put out tons of content for people who wanted to learn more about reducing their waste expenses.
But these ten are far and away the most popular.
Do we come on-site? What do we need to start the process?
Learn where these contract specifications appear, and why you don’t necessarily have to pay them.
8. Do Our Audits Really Find Savings?
Ever wonder if waste audits are really effective? This blog post explains why we repeatedly find 10-30% of savings on average.
7. How to Fix Waste Hauler Contracts
Many waste hauler contracts have the same problems - and they all need fixing.
6. "Why Do I Need a Service Provision in my Contract?"
In this blog, we go over just a few reasons why a service provision is critical.
5. Why Haulers Increase Their Rates
Most companies will get 1-4 price hikes every year from their hauler, and there’s one specific reason why.
4. "How much will an auto-renewal clause cost me?"
This clause can cost you - no exaggeration - thousands of dollars over the term of your contract.
3. Why Care About Waste Expenses?
Are waste expenses really that big of a deal? Find out why it’s worth it to educate yourself about the ways you could be overspending.
2. "I already have a waste hauler contract. Can you still help me?
The vast majority of our clients are already under contract, but they can still reduce their waste expenses!
1. What We Do and How We Do It
Most people don’t know what waste consultants do. We lay out all the details in this blog post.
Bonus: The most watched video on our site? 7 Ways You’re Making Your Hauler Rich!
Most companies nationwide are overspending on their waste disposal and recycling expenses. In the past 18 years we’ve been in business, we’ve discovered that many of these companies are overspending in similar ways.
Below, we go over the top 3 ways most companies are overspending.
We provided you with our portfolio and you were able to reduce our waste disposal expenses by over 25% as a direct result of your knowledge, industry contracts and tireless efforts.”
Rik Maxey, Community Management Corp
Can a waste audit really help you? Will it save you money? Will it work?
Who better to answer these questions than our clients! Throughout this document, they'll share their thoughts on the waste savings journey.
They represent different industries, and each had waste issues unique to them. But they all share one thing in common: they suspected they could be overspending on their waste expenses and they chose to do something about it.
In this post, you’ll learn how companies just like you found hidden waste savings opportunities.
We’ll show you the three steps companies took in their savings journey:
“I could have hidden waste problems.”
“WCI can find savings.”
Savings achieved.
In the process, you'll learn what our waste review process was like for them, and how much they are saving or have saved as a result.
Ready? Let's dive in.
About 90% of companies are overspending on waste and they have no idea. After 18 years in the business, we have found that most companies overpay in one of the five following ways:
1. Your contract allows price spikes.
Most haulers count on price hikes to increase their revenue. They go above and beyond the cost of servicing your account. We’ve seen haulers raise prices as much as four times a year at a 5-10% increase. These incremental increases add up.
Your current waste contracts almost certainly allow for this unless someone on your team has proactively added language limiting or prohibiting them.
2. Your service levels and equipment are inefficient.
Your waste equipment comprises every waste and recycling receptacle serviced by your hauler. The efficiency of your waste equipment has a direct impact on your waste spend.
If you don’t have the equipment you truly need, or if you have too much equipment, you’ll overpay. About 70% of the clients we’ve worked with in the past 18 years have been serviced too frequently!
Rhonda Cummons of Presbyterian Homes found herself in this exact position not too long ago.
Every month, Rhonda was paying for too many trash pickups - something we quickly put a stop to. This contributed to a 22% reduction in waste expenses!
And in January 2021, we helped a multi-family complex save an average of $3200 every year just by replacing their on-call waste dumpster with an 8 yard dumpster that gets bi-weekly service.
3. You don’t know market rates for waste and recycling services. Haulers know you’re not likely to consult with the restaurant across the street when you set up your service contract.
They know that you’re not going to ask that restaurant what their disposal rate is, or how often they get price spikes.
They also know that you don’t know what other area haulers are charging, and so you can’t know if they’re overcharging you. This is exactly what allows price gouging to happen. If you’re in the dark about hauler pricing, how can you tell what is fair?
4. You’re paying ancillary invoice fees. Most waste invoices include several ancillary fees. Most standard contracts neither limit nor eliminate these fees.
With our assistance, the majority of our clients pay a reduced fuel fee and administrative fee on their contract. Case in point - Rhonda Cummons! Not only did we reduce pick-ups, but we eliminated every additional fee on their contracts.
This contributed to her gross saving of $25,000 on her yearly waste expenses. What could you do with an extra $25,000?
5. Your contract automatically renews.
Waste needs often change over time, and waste service levels may need adjusting. About 95% of waste contracts we’ve seen include automatic renewal of contract terms.
When we cancel the auto-renewal clauses for our clients, it allows us the opportunity to find better pricing with another hauler or to renegotiate new contracts with your current hauler.
We recently did this for a multi-family management corporation called Camso. Two of their locations had a faulty contract that not only included an automatic renewal clause, but it allowed for indiscriminate price increases.
Cancelling these clauses will help us ensure they are always with their ideally-priced vendor.
Most companies are overspending, and you don’t have to be one of them. Which of these hidden problems do you think you might have?
Learn more about your hidden waste problems for free - sign up for our video mini e-course and we’ll show you how you can save!
Most companies are overpaying on waste and recycling problems, and most companies also don’t do anything about it. Why? Because they don’t know they’re overpaying.
The waste industry has certain norms in how they operate. These norms ensure that rates go up year over year, and that you won’t have the time to find better rates before your contract automatically renews. They ensure that you won’t have much recourse when service issues arise and that you have the wrong service levels. They ensure that you overpay.
In this article, you’ll learn why these problems remain hidden (and why you likely have them).
These problems remain hidden because of three false assumptions:
You can’t make changes to a proposed contract.
Your stated service levels are accurate
Your waste hauler is being fair.
None of these things are necessarily true. We have great success negotiating contract terms. Most service levels are actually inaccurate (70% of our clients have received too many pick-ups). And your waste hauler isn’t always fair - particularly when it comes to price hikes.
Learn more about your waste problems here!
If you remember nothing else about this post, remember this: you can ask for different terms than a standard waste contract. In fact, you absolutely should.
Most default waste contracts are set up to help your hauler:
Increase profits
Not be accountable for poor service issues
Retain your employment at the end of your contract.
You have to be proactive about putting specific language in your contract to make sure price hikes are limited and service provisions are provided. You’ll also need to make sure no auto-renewal clause occurs in the contract.
You should ask for the following inclusions on your contract:
Short terms (3 years - no more)
No automatic renewal
Limited price hikes
Provisions for poor service
No ancillary fees
If your hauler wants your business, they’re going to be willing to listen to some (if not all) of your requests. If they aren’t willing to work with you, you may be able to find another vendor in your area who will.
70% of our clients in the past 18 years have had inaccurate service levels. Why? Because many haulers are paid based on the frequency of service. The more pick-ups they complete, the more they’re paid. So when they set up your contract, they’re likely going to err on the side of too many pick-ups.
Your hauler is not often going to take the initiative to find cost-cutting solutions for you. They’re paid to pick up your trash, not reduce your waste spend. Doing so would run counter to their desire to make a profit.
Check your dumpster fill levels. If they’re consistently less than half full prior to pick-up, you’re paying for too many pick ups.
Your hauler isn’t going to tell you if they’re charging more than their competitor. They’re not going to tell you that they plan to raise your base rates twice in the next year. They’re not going to volunteer information that could cut into their bottom line.
They’re going to do what is typical in the waste industry. They’re going to hand you a contract to sign and assume that you won’t want to tweak any of it. They’re going to assume that you won’t carefully look over it and that if you do, you won’t want to make any changes.
It’s not necessarily because they’re out to get you - it’s simply because the industry has evolved this way because profits are paramount.
It would be fair of them to:
Agree to limit price spikes to a certain percentage -and timeframe.
Agree to cancel the contract without penalty if they can’t provide adequate serviced as agreed to.
Give you plenty of time to get bids of other service when your contract expires
But again, most haulers are not going to voluntarily do this.
The good news is that many of them will if you ask them to. Ask for what you want. The worse you can hear is a “no.”
We’ve created a free, comprehensive mini e-course for you to learn more about your waste problems. There are 5 ways you’re likely overpaying on waste expenses, and we go over every one of them in depth.
Sign up below and we’ll send you the first video immediately - and include an additional downloadable PDF.
You deserve to know exactly what is and isn’t working in your waste disposal process. You deserve to know whether your waste streams are operating at maximum efficiency. You deserve to have the assurance that your savings are secure.
A free consultation, or a Discovery Call, is the first step towards finding savings. It’s a quick, no-obligation consult where a WCI representative will ask you questions about your current waste management system.
At the end of the call, you’ll learn more about what we do, how we do it, and whether you’re a candidate for our waste review process.
We typically cover these questions in a Discovery Call:
How much do you spend on waste and recycling? (We are able to bring the most value to the table for companies who spend a total of more than $10,000 each month)
How many locations are in your portfolio?
How many waste streams do you currently have?
What problems are you currently experiencing with your waste hauler?
What are your growth plans over the next 1-3 years?
The purpose of these questions is to gauge how much value we can offer you. We are able to best service companies with substantial waste and recycling expenses and with several locations. If you have no interest in saving or in making your streams more efficient, we aren’t the company you’re looking for. This call is the perfect way to find out if we may be a good fit for your needs.
This call is easy and informal; a time for you to ask whatever questions are on your mind and for us to learn more about your unique needs.
Many clients ask questions about:
Timeframe for possible completion
Unique situations that could complicate an audit (current construction, properties that are for sale, etc.)
Specific questions about how our audits occur
How much initial time it takes for your staff to obtain audit documents
The discovery call is a great time to ask any questions you have about what the audit process could look like for your company and at the properties or locations in your portfolio.
If there was a possibility that a 15 minute phone call could save you over $100,000 each year, would you make time for it?
Anita Huffman, the Corporate Finance Director at TWE Smart Nonwoven Solutions, did. As a result, her company will save $300,000 in the next three years.
She told us, “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.”
Anita took the first step toward her savings with our Discovery Call. The questions we asked on that call made it clear that there were likely overlooked savings opportunities - and the rest is history!
90% of companies nationwide are overspending on their waste and recycling expenses. Stop being one of them.
Schedule a free consult today!
90% of companies in the US are making their haulers rich. Below, we’ll discuss the top three ways you’re likely doing this. There are 7 specific ways companies inadvertently overpay, and we’ll show you how to stop below.
Too many companies are overpaying - you don’t have to be one of them.
You’re making your waste hauler rich by not:
Knowing about waste hauler problems
Eliminating waste or garbage vendor invoice fees
Eradicating the auto-renewal clause
Eliminating price hikes
We’ll cover these four in this article, and the last three in part 2.
In the 17 years we’ve been in business, these are the issues we routinely fix for our client. Let’s take a look at these common waste disposal problems - and their solutions. We’ll take a deep dive into each one so you can start saving!
The waste industry has created a norm where most companies are overpaying and are completely in the dark about it. A lot of professionals think that it’s normal to have price spikes, or it’s normal to have to pay all kinds of fees, for example. But it doesn’t have to be - our clients certainly don’t!
Your waste hauler is betting that you’re going to be kept in the dark about what’s really going on in your waste management. He’s betting that you aren’t going to have the time or resources to really find and address your waste disposal problems. What you don’t know is likely costing you, so it’s worth it to take some time to ensure your waste management processes are really as efficient as they could be.
Many of our clients have assumed that they simply have to pay the fees their hauler asks them to pay. But we’ve found that many haulers are willing to eradicate or significantly reduce the fees they charge companies! Not many people really know what these waste fees are - let’s take a look at some of the most common ones below.
Container Service Plan: This is a fee that was automatically added to most Waste Management Accounts a few years ago. Enrollment in this plan (involuntary though it may be) allows you to replace your container as necessary. But most people don’t need to replace their garbage container frequently - some of our customers have containers that over 5 years old and still look fine.
So do you really need to pay for this plan? Probably not.
Fuel/environmental fee: The hauler charges you for the gas to service your site and deliver your trash to the dump. But they typically more than recoup this since they charge everyone on the route for gas. When this occurs, the fee simply becomes an additional profit center.
Recycling recovery fee: This fee is charged by the hauler to transfer your recyclable material from your site to the drop off site. The discerning reader may ask: “Wait! Aren’t they already charging me a for fuel? Shouldn’t this fee ?” This charge often isn’t actually covering anything - it’s just another fee that the haulers often tack on because they can.
Regulatory Cost recovery fee: Some haulers, (like Waste Management) will charge this fee to cover costs in other regions - not necessarily yours. Your fees go towards paying other people’s garbage disposal. You can see an example of this fee in the picture below.
Do any of these fees look familiar? One or more of the ones above are probably occurring on your invoices currently. If you notice that some of them seem high, or that you have multiple properties it’s a good idea to take a look at your contract specifics.
See if they have any language about “all inclusive” waste rates that include reduced fees, or if they eliminate them completely. Any reduction in recurring charges will reduce your overall waste expenses.
You’re making your hauler rich by not eliminating your auto-renewal clause.
Most haulers are betting on the fact that you’re not going to remember when your contract expires three or five years from now. They know that if you do, you may choose to go with a different hauler, or start changing your contract. So they, in effect, limit the possibility of that happening.
Your contract will likely automatically renew without your input. So we’ve seen a lot of our customers get stuck with a service that may or may not be ideal.
The language often looks like this:
Allowing your contract to auto-renew wouldn’t necessarily be a bad thing - except it doesn’t allow you a chance to review what is really best for your company.
Waste needs often change over time, and waste service levels may need adjusting. Cancelling your auto-renewal clause gives you the time you need to find better pricing or to renegotiate new contracts, both of which contributes to thousands of dollars in savings over time.
Because contracts inherently have terms, any savings that are enacted accumulate over time. Suppose you stop your auto renewal and are able to find $1000 in savings each month by renegotiating your contract with better rates and no price spikes. Over the five year life of your contract, you’ll save over $60,000. That’s not pocket change!
And it’s savings that are made possible by stopping contract auto-renewal. You deserve the chance to get the best rates you can on your waste disposal - and for your waste management process.
You’re making your hauler rich by not eradicating or limiting price spikes on your contract. Most trash haulers schedule regular price hikes and service charge increases. This is a massive waste disposal problem!
Your hauler knows that he will raise prices at least once a year. Don’t let them get away with that.
We’ve seen haulers raise prices as much as four times a year at a 5-10% increase.
If price spikes happen at least one a year, think about how much you’ll be paying a year from now, or two, or ten. Again eradicating the possibility for price spikes now means you’ll be saving more later.
Not sure if your contract limits them? Pull out your contract and let’s have a look!
Look in the Payment Terms of your Waste Hauler contract. It’s typically titled something like “Charges, Payments, Adjustments.” If you do not find language that limits or prohibits spikes, you need to re-evaluate your contract ASAP. Because what this means is that a hauler could increase your rates at will - and you would have very little recourse.
In effect most price spikes make you pay higher and higher rates for the exact same services.
Now don’t get me wrong - some price spikes are actually legitimate. As fuel prices increase, the cost of providing services increases. But most haulers are not raising prices because the cost of service is increasing. They’re raising them because they can.
How do we know? Because we know how haulers calculate their costs. And we know the legitimate costs from the shady ones.
It costs a lot to run a waste disposal business. Here are some of the costs they incur to provide you service.
Disposal cost to drop off waste materials at disposal facility. Waste disposal facilities charge for the garbage they receive? Haulers have to pay this fee, and this fee often gets passed onto you - and not always in part.
Cost of hauler equipment. Dumpsters, garbage trucks, and compactors are expensive to make and they can be extremely expensive to service. The trash business isn’t exactly gentle on equipment. Dumpsters lose tops, or get rusted out. Compactors inexplicably stop working. Since most companies rent the dumpsters or compactores from the hauler company, the haulers have to buy the equipment and service it.
Cost for servicing account. It’s expensive for haulers to drive their trucks to and from your locations. Haulers have to take into account employee compensation, the fuel charges, and the cost of maintaining the trucks. Haulers will typically divide up the number of locations they have to service to figure out how much to charge each customer. This means you aren’t necessarily charged exactly what it takes to get from your location to another; it’s presumably divided up equally among those who are on the same route. However, it has to be said, there’s no external oversight on this. Most companies trust that their haulers are accurately and fairly charging them. But we’ve found that haulers can widely vary on how much of legitimate charges are passed on to the client - and how much is added in on top of that. Haulers should make a profit doing what they do - it’s important work! But they don’t need to overcharge simply because they can.
And a lot of times, they do. How do we know this? Because we’ve worked inside the waste industry before. 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 - and the main reason for this is price spikes. 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.
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).
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!
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
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