How Valet Services Overcharge You - And What to Do About It!
Is your vendor overcharging you? How would you know if they were?
Let’s face it, no one likes taking out the trash, right?
In the past few years, valet services have become increasingly popular. No longer do multifamily residents have to haul their own trash to the dumpsters - they can just leave it outside their door! A valet employee collects it and disposes of it. Sounds dreamy, right?
Trash valet services are a fantastic amenity to offer to your residents. But they aren’t always fantastic when it comes to pricing.
As with so many other areas of the waste industry, vendors will often increase prices because they can - or charge fees way above market level!
How can you make sure this doesn’t happen to you?
In this post, we’ll go what valet services are, some ways you might be overcharged, and what you can do to prevent overspending.
Psst! Ever wonder why you should care about waste in the first place?
What exactly is Trash Valet Service?
Valet services are a really fancy way of saying “doorstep trash pick-up.” In most situations, it happens exactly as is described above. Residents leave trash outside their door, and a valet employee picks it up and disposes of it.
Different locations will have different frequency needs. Some will only offer valet waste once a week; others offer it every day during the week.
Most vendors will service your location at night so that your residents aren’t disturbed - and so they have time to place their trash outside their door.
How You’re Overcharged for Valet Waste Services
Your trash pick-up provider can be sneaky - just like waste haulers, unfortunately! In fact, valet services are one of the top ways that multi-family complexes overpay on their waste expenses.
Providers often overcharge you because they think they can. Most multi-family management companies don’t evaluate the valet invoices they receive, or they just don’t know how to ensure their contract is in their best interest.
What you don’t know can cost you hundreds or even thousands of dollars over time - but it doesn’t have to!
Your rates may suddenly increase. Every so often, you’ll see an uptick in the rates listed on your invoice. It can be as little as 5%, but it can also be much more. But even a 5% increase compacts over time! If you’re charged an extra $20 each month, during the term of your contract you may overpay by hundreds of dollars.
Rates can increase as much as 1-2 times a year! Your fees can raise whenever your vendor feels like it. Not all vendors will take advantage of this - but some undoubtedly will.
We recently worked with a multifamily developer/manager who offered valet services at their properties. The WCI Project Manager noticed that the price per unit seemed to be awfully high. We were able to introduce a new vendor who was able to save them $28,800/year at just 3 properties!
Rate increases compound over time. Before you know it, you may be significantly overpaying.
Because there’s so little information out there about valet services and how they do what they do, you may think it’s normal. Or even something that you should expect.
But just because everyone else is paying at these rates doesn’t mean you have to as well.
Make Your Waste Valet Contract Airtight
The two best ways to prevent overpaying? Get a feel for the market, and then evaluate your contract.
Find out:
What are other area trash valet services are charging? Get at least one or two estimates.
What are other area multi-family complexes being charged? Get in touch with a contact, or just make a cold call - you’d be surprised how far a friendly voice and cheerful attitude can get you!
Then, take a good hard look at your contract and answer the following questions:
Are price hikes capped or eliminated?
Are rates locked in?
How easy is it to get out of my contract?
Are there provisions for poor service?
It can be expensive to stay in a bad contract - or have continual service issues with no recourse!
In the end, you may need to weigh your options. If you have a terrible valet service provider who is not interested in lowering their prices, it may be worth it to break your contract and get a cheaper service provider.
Protect your bottom line!
Fix your valet contract, and you’ll not only prevent overspending - you’ll know how to budget for years to come because you’ll have fixed rates.
You can have peace of mind knowing that you’re not going to be trapped into paying outrageous prices. And you’ll have a contract to protect your best interests.
Don’t wait until a price spike hits to worry about your valet services!
Do you use valet services at your multi-family property? Thinking about getting them at some point in the future? Let me know your thoughts in the comments below!
How to Overspend on Your Dumpsters This Month
Most companies in the US are overspending on their dumpsters and they’re all doing it in the following ways:
Getting too much service.
Not having the right dumpsters sizes.
Not having the right number of dumpsters.
These are the waste disposal problems we routinely fix for clients and we know just how much money and time can be saved by addressing each of these issues.
Getting too much waste disposal service.
There’s a good chance - it hovers around 70% - that you’re getting too much waste service. You’re getting pickups four times a week, when you only need two. Or you’re getting service everyday and you only need it three times a week.
There’s a simple reason this over-servicing occurs: the more service you get, the more your hauler gets paid. They’re incentivized to overestimate your real waste needs - not to save you money.
Once simple way to tell if you need to reduce service is by observing how full your dumpsters are when they’re serviced. If they’re less than half full, you need to reduce your service days.
Making this change will likely save you hundreds of dollars over the next year - and the effect will be multiplied across every location you implement this cost-cutting measure.
Not having the right size dumpsters.
Larger dumpsters can save you by further reducing the number of needed pick-ups. Alternatively, smaller dumpsters may reduce the rent you pay for their use.
The right size of dumpsters is critical, and there are a number of factors that can help you determine which size to use. Ask your hauler to give you quotes for:
larger dumpsters with less service
smaller dumpsters with more service
smaller dumpsters with less service
You’ll need to have a pretty good idea of your trash output to know what will actually work in your favor, so it’s recommended to first reduce your service days, as we mentioned in the first tip, then adjust your dumpster sizes accordingly.
Not having the right number of dumpsters.
You’ll need to simultaneously evaluate the right number of dumpsters as well as the correct size.
You may be somewhat limited by space constraints as to how many dumpsters you can have, but it is worth exploring the possibility in order to ensure you are paying what you should for waste disposal expenses.
When you ask your hauler for quotes, be sure to ask for a varying amount of sizes.
With all of this information, you’ll be able to make the best decision for the locations in your portfolio, and you’ll likely save yourself thousands of dollars in the process.
Five Ways Your Waste Hauler is Ripping You Off
Most people don’t give much thought to their waste management. But if they did, they would likely realize how much they’re overspending on waste - and how much it’s costing them in lost time.
Most people don’t give much thought to their waste management. But if they did, they would likely realize how much they’re overspending on waste - and how much it’s costing them in lost time.
The waste industry is designed to trap you into paying way too much for terrible services.
They don’t want you to know the ins and outs of your contract. They don’t want you to start asking uncomfortable questions about how exactly they get away with charging what they charge.
Because if you did, you might see their tactics for what they are - indifferent at best and outright dishonest at worst.
The waste industry is unfair to you, their clients, in five ways. Most haulers would love for you to believe that you have to accept:
Price hikes
Ancillary fees
Awful Contract Terms
Automatic Renewal of Your Contract
Terrible Service
And its just not true! There are options when it comes to your waste management. You rarely have to accept your contract as written. In fact, there’s specific language you can put in your contract to prevent or limit all of the examples above.
Learn more about your top 5 hidden waste problems here!!
Unfair Price Hikes Happen with No Warning
It isn’t fair to be on the receiving end of surprise price hikes. You should be notified ahead of time - and what you’re charged shouldn’t be exorbitant.
Most waste haulers don’t warn you prior to an increase in fees. There are some exceptions - if disposal sites mandate an increase in fees, a hauler may let you know. Unfortunately, this isn’t typical industry practice.
This in itself is a pretty shady business practice. What would happen if your Hulu or Netflix subscription increased by $50 a month overnight? This is exactly what haulers do on a regular basis.
A hauler can increase their rates as much as four times a year and up to ten percent each time.
This means if you’re paying a $1000 a month for waste disposal, you could be paying up to $1400 a month by the end of the year.
Price hikes can make it nearly impossible to budget for waste expenses. By proactively limiting them in your contract, you’ll be able to plan for future costs with accuracy - while saving capital.
Haulers Let You Think You Have to Pay All Ancillary Waste Fees
The waste industry is designed to pass on as much of their operating cost to you as possible. Most haulers, unfortunately, are going to charge you and any other companies on their route as much as they can. Ancillary fees are one of the main ways haulers do this.
There are dozens of waste fees, but you’re most likely to be charged for fuel or environmental fees. They’ll be listed on your invoice and will look like this:
Most people don’t realize they can limit these waste fees. Before you sign a contract, make sure it has a clause that caps these fees to a certain percentage. You aren’t going to have a lot of luck changing your contract mid-term - haulers just don’t have the incentive to do something they know will cost them.
It’s not fair for haulers to use what you don’t know against you. You shouldn’t have to pay a fee if you don’t have to.
Most haulers know that their clients aren’t going to question what they’re paying and why they’re paying it - they’re just going to do it.
But there’s no reason for you to be part of the 95% of companies out there who are overpaying.
Don’t patently accept your ancillary fees. Prevent or cap them in your contract and you’ll could save hundreds or even thousands over the long run.
Contract Terms Are Designed to Trap You
How difficult it is for you to get out of your contract? It’s probably more difficult than you think.
Most haulers require that you send a certified letter within a very specific time frame prior to the end of your contract. Most contracts require that you give 90-180 days notice if the standard clause is intact.
If you send it too early, it’s null. If you send it too late, you’re out of luck. And heaven forbid you email them - you have to take the time to take it to the post office.
On top of that, you’ll have an termination fee. Most of the time this termination fee is the average of the most recent 6 invoices X 6. So if you pay $1000 a month, you’ll owe your hauler $6000. This may sound like a lot but for many companies, this is actually the less expensive option in the long run.
You need to make sure your contract is relatively simple to terminate. (If you already have signed a contract, make a note of when your contract ends and what you’ll have to do to end it - and read the next section carefully!)
Bad Waste Hauler Contracts Automatically Renew
Most contracts will automatically renew. If you don’t give notice within a narrow window of time, you will be stuck a new contract you didn’t want!
Suppose your hauler keeps missing pick-ups, and you’ve realized you’re nearing the end of your contract and you want to terminate. You give your hauler rep a call to let them know, but they tell you - surprise! - your contract has already been renewed. There was no notice, no email, no phone call. You now have a new three year contract with a hauler you can’t stand.
No one should have to go through that!
It’s not fair for you to be trapped in a contract if you want to terminate it. This is exactly why we review your contract terms in our thorough waste audits - and every other critical part of your waste and recycling streams!
Haulers Aren’t Going to Protect You Against Their Terrible Services
Haulers don’t often make service provisions a standard part of their contracts. This means that if you want to have recourse when trash keeps getting strewn across your location, you need to shore up your contract.
Make sure that there are clear consequences for missed services, or service that is poorly performed. For example, you may want to add a provision about how quickly they will come if you call for an extra pick-up or a provision for cancelling without penalty if they consisently do not perform.
If there isn’t a consequence; it’s more likely that haulers will be less careful about the way they service your locations.
You Don’t Have to Be Ripped Off By Your Hauler
Haulers are not going to show you how a compactor could save you $80,000 in the next five years.
They’re not going to tell you that you don’t actually need service 5 times a week. They’re not going to tell you that getting a cardboard baler can help you save money by adding a revenue stream. They’re not going to disclose that you can reduce your costs by requesting that each of your five dumpsters at a certain location get picked up at a different frequency.
We will.
Schedule a free, no-obligation consultation today to learn more about your savings opportunities!
5 Easy Waste Tips That Will Reduce Your Waste Expenses
If you take the time to do even one of these steps, you’ll save money on your waste expense in the long run.
Most companies have waste problems they just don’t know about. Their contracts are poor quality, their equipment is inefficient, and their service levels are inaccurate.
But the tips below will address each of these issues and help you stop overspending.
Track your contract expiration date.
Eliminate your auto-renewal clause.
See if you can lower your service levels.
Ask your hauler for pricing options on other equipment.
Get a waste review.
The little extra bit of time it will take to put these tips into action can translate into thousands of dollars in savings.
Track your contract expiration date.
Most companies don’t know when their contract expires and they let their contract renew under the same terms they currently have. You should only allow this to happen if you know for a fact that your contract terms are stellar (spoiler alert: most aren’t).
If you don’t know your contract expiration date, you won’t have time to evaluate your services. You won’t have time to see if other haulers have less expensive prices. And you won’t save what you could have saved.
Eliminate your auto-renewal clause.
This tip goes hand in hand with the one above. You need to know when your current terms of service expire, but you also need to cancel your auto-renewal clause.
Most contracts have this clause. It allows your services to renew for another contract term. But, as we mentioned above, most contract terms aren’t great. They’re costing you. If your contract renews, they’ll keep costing you - sometimes for an additional five year term!
When you cancel your auto-renewal clause, you don’t have to renew services with your current waste disposal provider. You can, but only if you are assured that your bottom line is protected and that your contract will include all the clauses it needs to do so.
See if you can lower your service levels.
We estimate that 70% of companies get too much service. The reason is simple - the more you get garbage service, the more you get charged.
If your dumpsters are half empty when they are serviced, you’re getting too many pick-ups. See if you can reduce your service days, or the number of pick-ups. This is one of the easiest ways to start saving almost immediately.
If you get charged $100 for each pick up, and you get service four times a week, you’re paying $400 each week. But you may only actually need two of those pick-ups. That’s $200 a month ($2400 a year!) that you could be saving!
Making this change can easily save you thousands of dollars in the long run.
Ask your hauler for pricing options on other equipment.
If you have the space capability, you may be able to get larger dumpsters. This can translate into fewer pickups, thus saving you on waste expenses.
Ask your hauler what kinds of equipment options they offer, and then ask your representative to come up with quotes for different service levels on each. You may very likely pay less for smaller dumpsters or fewer pickups, but the exact amount will differ based on what you hauler charges for pickups and equipment.
Get a waste review.
A waste review is a thorough analysis of every waste stream at every location in your portfolio. It’s typically completed by an independent waste reviewer, someone who is not affiliated with the haulers and is thus more naturally aligned with your interests.
As experts in the waste industry, our zero risk audit can only help you save. This review has a 90% success rate and it’ll find where you’re overspending and show you the exact steps to take in order to protect your bottom line.
What is the Industrial Recycling Process - and Can I Save?
Different companies can benefit from recycling in different ways.
Depending on what byproducts you produce, you can either resell them, or reuse them within your company or factory.
When the word “recycling” comes to mind, most people think of paper, water bottles, and cardboard.
But recycling is more than that! It can also include industrial recycling.
Industrial recycling is different from other types of recycling. In this article, we’ll look at how different types of major industrial materials are recycled.
Different companies can benefit from recycling in different ways.
Depending on what byproducts you produce, you can either resell them, or reuse them within your company or factory.
Today, we’ll talk about three of the most common ways companies use industrial recycling, and how it affects their bottom line.
Recycling Oil
Recycling Metal Scrap
Recycling Construction Debris
Let’s dive in!
Recycling Oil
Oil has always been a controversial topic in the waste industry. Although the thoughts behind the word “oil” have always been negative, i.g. BP oil spill, recycling it can have a more positive impact on the environment and on a company’s bottom line.
Where does it come from?
Most of the oil that is being recycled comes from oil change shops, mechanic shops, and car dealerships.
Although these are the top oil recycling companies, other companies are considering recycling due to its benefits. How could you gain by recycling oil?
How does it work?
Let’s take a look at the process that goes into oil recycling.
To be recycled, all oil must be tested to see whether it is reasonable for refinement.
After the oil is approved for refinement, then it goes through three stages of refining:
Dehydration
Defueling
Vacuum distillation
These processes are used to separate water and extra chemicals that are still in the oil mixture. Then the oil enters its final processes, hydro-treating, where a sustainable process reduces the amount of carbon, acid, sulphur, nitrogen, etc.
The recycled product is often sold to lubricant manufacturers. They in turn often make their own oil-recycled mixture to benefit their company. Oftentimes, recycled oils are used to produce recycled engines and industrial oils.
How can I benefit?
Oil can save a company thousands of dollars. It does not have an expiration date, meaning they can be reused and reproduced into renewable resources. Depending on a company’s specific operational needs, you can potentially recycle oil and reuse it to generate heating and cooling. This will reduce your electric bills. Oil recycling can also diminish the energy required to produce or process raw materials. For example, recycled oils can be reused to run engines and machines that are used in the manufacturing process.
Recycling Metal Scrap
Many companies across the country recycle 30-40% of their metals. Recycling metals can be very beneficial for the company because one, it reduces extra costs that company does not need to spend more money on, and two, it allows companies to reuse their recycled materials to produce new materials. This will diminish the raw materials expenses of a company and its transportation costs.
Where does it come from?
Metals are collected from different sources (i.e. ships, railroads, cars, structures, equipment) then they are separated by metal types of chemicals that make up the metal.
How is it done?
Different types of metals have different recycling processes, but similar processing methods. The first step in metal recycling is collecting and sorting.
After separating the metals, processing begins. First, metals are shredded, making it easier for metals to be melted. After shredding, metals are melted in large furnaces then purified using a direct electric current to eliminate contaminants. Lastly, the metals enter the purification cycle, where they are cooled and solidified.
Once the process is complete, the metal recycling company or scrap yard will transport the metals to corporations that will then use the new recycled raw materials to produce new goods, such as new metal beams for construction or recycled tinned cans.
How can I benefit?
Recycling metals can save a company thousands of dollars. Not only does it diminish the disposal costs of a company, but companies who use their recycled materials to produce new products can save up to 90% of the energy required to manufacture a new material/product. If you do not own a company that reuses metals to produce products and simply just recycle your metals, you can sell your scrap metals to recycling companies who will reproduce new materials from it. This is good for your company because it will generate additional revenue. As recycling consultants, Waste Consultants can help help guide you on the current markets rates, the best available vendors, and best practices around collecting, sorting, and selling your metal recyclables.
Recycling Construction Materials
Many have wondered where all the leftover construction materials go after a demolition process or a construction. Well, many of them are sent straight to the landfill. Today, landfills are filling up by the minute and it is harder and harder to find land for landfills. By recycling construction materials, this will eliminate the need to send all of the unused materials to landfills.
Less landfills = less toxic build up in the atmosphere.
There are many recyclable materials that can be recycled from a construction site.
Some examples are:
Metals
Wood
Concrete
Glass
asphalt pavement
Gypsum (drywall material)
How can it be reused?
Wood: Untreated and clean wood can usually be reused to make boiler fuel, mulch or engineered board through the process of re-milling.
Metals: See previous section
Asphalt Pavement: leftover materials can produce energy savings. These are often re-melted and turned back into asphalt.
Glass: Leftover windows can be recycled for other projects. Glass can also be melted and reformed into a material that can be used.
Gypsum: This is drywall materials and can be reused to produce recycled drywalls, cement, or be used in the agriculture industry.
How can I benefit?
You and your company can benefit from this! In a recent study, construction companies who recycle have saved and earn profit by recycling their leftover/wasted materials.
In the study, they calculated that companies are able to gain $50/ton of profit for cardboard, $5/ton for materials containing paper, $150/ton for PET materials (which are materials from packaging/ similar to polyester), $250/ton for HDPE plastics (bottles, plastic bags, boxes), and $1,325/ton from recycling metal materials such as aluminum.
Industrial Recycling is Your Ticket to Savings
We’ve looked at specific methods of how industrial materials can be processed and recycled. Here, at WCI, we can help you and your company with your waste management so that you have the opportunity to find savings and protect your bottom line.
We will help you find the right haulers who will not take advantage of you and we’ll make sure you don’t leave any saving opportunities behind.
Want to learn more about how your company can start saving and recycling? Don’t hesitate to contact us and schedule a consultation. We’ll share how our services can benefit you and help you save!
How much could this waste equipment help you save?
When waste service is first set up, waste haulers tend to be less than thorough in their assessment of equipment needs.
They tend to estimate what they think your facility or location needs, and that’s what gets inked on the contract.
And unfortunately, they rarely re-evaluate over the term of your contract. Which is a real shame, because your needs at a particular location may change over time. The equipment you needed two years ago may not be the same equipment you need now.
In this post, you’ll learn how these types of waste equipment can help you save:
Front load dumpsters
Compactors
These are common types of waste equipment, and many commercial and residential sites have them. But they have to be used correctly in order to maximize your savings opportunities.
How to save on your waste spend with front load dumpsters.
Front load dumpsters come in several sizes. In order to know which ones to use, you need a third party reviewer to evaluate your waste output.
When we review waste streams for our clients, we assess how much waste you’re really putting out. We ask your site manager(s) whether your dumpsters are completely full when serviced. We estimate that 70% of US companies get too many pick-ups, so it’s likely you fall into that category.
We help some companies cut costs simply by reducing the number of times they are serviced each week.
But we’re able to help other companies by finding the best equipment and service solution for them. For some companies this means:
Getting bigger dumpsters with fewer pickups
Getting smaller dumpsters with more pickups
Alternating the days of pickups for sets of dumpsters
We’ve found this comprehensive approach typically finds our clients savings.
Compactors can reduce your waste spend.
Compactors are a great solution for high-volume trash generators. Residential complexes and restaurants are typically among them.
Residential complex - Groups of residents generate lots of trash. If the multi-family complex is big enough, it can benefit from a compactors. Instead of paying for multiple pick-ups weekly (or daily) a compactor can reduce service to once or twice a month in some cases.
Restaurants - Wet food waste can be smelly, and large amounts of it can be difficult to contain. A compactor solves both of these problems. It can contain the waste more effectively, making it harder for critters to access the trash. A compactor will also compress the trash so that fewer pickups are necessary from your service provider.
Compactors require a significant up-front investment in order to install, but they can significantly reduce your waste costs over time if your properties generate lots of trash.
Waste dumpsters and compactors may solve your waste disposal problems.
When used effectively, compactors and dumpsters can reduce your waste spend over time. In order to tell how best to use each piece of equipment, you need a thorough waste review. It will help you protect your resources and more efficiently manage your waste streams and processes.
What equipment do you use at your locations? How have they helped you save?
How to Put Your Waste Management on Auto-Pilot
I’m willing to bet you didn’t wake up this morning thinking about how you could spend more of your time thinking about trash.
But I’d like you to consider spending a few minutes thinking about trash today.
Why?
Well, first, 90% of companies are overspending on their waste. You don’t need to be one of them. There are too many hidden problems that most companies have, and what they don’t know hurts them.
Second, it’s easy to save on your waste expenses. You don’t have to do inordinate amounts of work. You don’t have to do tons and tons of research to try to figure out how to save.
In fact, this blog post will show you just how easy it can be to save if you don’t have the money or time for a typical waste review.
You can put your waste management on auto-pilot by:
Delegating the waste review process.
Taking on 0% risk during the process itself.
Ensuring future savings
Delegate the waste review process.
In order to save on your waste expenses, you need an independent waste review. Waste and recycling haulers don’t have the financial incentive to properly evaluate your real waste needs. They rarely set up service agreements that help you save. They don’t make it easy for you to make changes to your services or contract specifications.
You need a waste ally - someone who knows the industry and can show you where your savings opportunities are. You don’t need to have the time or expertise to do it yourself. You can delegate the entire process to a trusted industry expert.
You don’t need to be involved in the nitty-gritty details of your waste management process. You and your staff likely have more important things to attend to.
We take on the thorough examination process so our clients don’t have to. We find every overlooked savings opportunity, and show you the exact steps you need to take to find savings.
Taking on 0% risk for the off-site waste review.
The way we do business is really different from a lot of other waste auditors. If we don’t find savings during our review process, you don’t owe us anything. It’s that simple.
No savings, no charge.
It doesn’t happen often (only about 10% of the time in the past 19 years!), but when it does, we simply part ways with the client without charging a dime. In this scenario, the client essentially gets a free waste audit to ensure their waste management process is efficient.
We don’t believe in charging for services that are don’t actually help your bottom line. Lots of other companies out there don’t have a problem with that. But that’s not how we do things.
There are no monthly charges or invoicing during the initial review period. Instead, our off-site team works behind the scenes in conjunction with your staff to find your savings opportunities.
And even after the review process is completed, your risk is still mitigated. How? We are paid solely out of the savings we find for you. No extra line items in the budget. No scrounging for more resources to allocate. You can always afford us because we’re paid out of your waste savings - usually at rates of 50%.
Future Savings Opportunities are Never Missed.
After your initial review process is completed, we continue to periodically review your account for other savings opportunities.
We track all contract expiration dates. Prior to your contract’s expiration, we evaluate your market to see if other less expensive haulers are available.
We renegotiate expiring contracts. We ensure that you get the best terms available to you. We know exactly what should - and should not - be in a new contract, and we make sure that’s exactly what you get.
We handle the negotiate process for new contracts. If a better, less expensive vendor becomes available at the right time, we handle all the negotiations and make sure you get the ideal contract terms.
So on top of the 10-30% reduction in waste expenses every month, companies can continue to expect support to solve and prevent future waste disposal problems.
Put waste savings on auto-pilot.
Having a waste ally allows you to find waste savings automatically. During the initial audit period, we require minimal documents and interaction with your team.
Our thorough review happens entirely off-site, and we continually review your account for more savings opportunities.
The entire process maximizes your resources. We protect your time and your investment in the review process, and our results are reliable - 90% of companies we work with see a reduction in waste expenses.
What questions do you have about putting your waste savings on auto-pilot?
Top 3 Commercial Waste Disposal Problems - and Their Solutions!
Business owners who don’t routinely examine their waste expenses typically pay 10-30% more than those who don’t.
You have better ways to allocate resources.
Today, we’re tackling the top three commercial problems that contribute to this overspending. If you can fix these three things, you may actually save on your waste disposal expenses.
These three problems are:
Not capping rate increases
Getting too many pick-ups
Not eliminating waste fees
These are issues we’ve fixed for many of our clients in the past 19 years, so we know that fixing these key issues will affect your bottom line positively.
Problem #1: No caps on rate increases on your waste hauler contract
Your waste hauler contract will include specifications about what you will be charged for services. Most hauler contracts will include this information on the first page of the contract.
Typical hauler contracts will not include language that caps price increases. Why? Because this is a key way that haulers make their profit. It’s not in their best interest to include this language.
Haulers will raise their prices 1-4 times a year at a 10-15% increase each time. This represents a significant threat to your bottom line.
Solution: When you contract is up for renewal (or when you get a different contract with a new vendor,) you will need to make sure that the “Notes” section on your contract includes price caps.
Below is a Waste Management contract, with the notes section highlighted. This contract does not have specifications about rate caps, but if it did this is where it would appear.
Different haulers will allow different rate caps. It depends on your region of the country and it often depends on how many competitors are in the area.
Problem # 2: Receiving Too Many Pick Ups from Your Waste Hauler.
70% of companies are getting too much service from their haulers. Why? Because haulers are compensated based on quantity of pick-ups. The more times they visit your locations, the more money they make.
Many haulers aren’t intentionally being dishonest when they set up your service for too many pick-ups. They simply don’t have the financial incentive to ensure the services you receive are truly efficient. They may estimate what they think you need based on typical service schedules for locations your size. But estimates are, by definition, not exact.
The hauler is unlike to do a thorough waste review to access your true needs. They aren’t going to look through your invoice history. They aren’t going to see if your current equipment is what you actually need. They’re simply going to give you a contract based on what your past needs have been, or based on their best estimate.
Solution: Have your waste services reviewed and reduce the number of pickups as necessary. Most companies here in the US have never had their waste needs evaluated by an independent professional. As a result, they are paying for too many pick-ups and they are robbing themselves of potential savings.
Problem #3: Allowing ancillary fees on contracts.
Waste fees are fees like “administrative fees” or “waste cost recovery fees” that appear on your invoices. Most typical waste fees don’t have to be included on your contract.
We find that when companies allow fees like these on their contracts, haulers tend to indiscriminately raise their charge rates. One month a company may be charged 5% for a fee, the next month they may be charged 6%. If your contract doesn’t cap these increases, the company can charge whatever they want for each category of fees.
And we find that most waste hauling companies do exactly that.
5 or 6% may not sound like much, but it can translate to thousands of dollars when you have multiple locations with years-long contracts.
Solution: We include all fees and waste charges in one flat rate that is capped at a certain percentage growth. In other words, we allow the haulers we select for our clients to increase the flat rate at specific intervals in the contract term. That way, the hauler can only raise his fees up to that percentage.
This solution is fair to the haulers, and it’s fair to our clients. The haulers are prevented from charging unfair rates and the clients don’t receive unplanned hikes.
This also allows the client to be able to budget accurately for the fiscal year. If they know when and by how much their rate will increase, they will know how much to allot for waste expenses with certainty.
Solutions for Your Top Three Waste Problems
90% of companies have these waste problems at their locations - regardless of industry. These simply aren’t problems that most people are aware of.
But if you do the following, you will save yourself 10-30% on your waste expense every year:
Cap price increases
Reduce the number of pick-ups
Eliminate ancillary fees
Doing these three simple things will help protect your bottom line and prevent future overspending.
Have you ever tried one of these solutions for your waste management?
Do waste audits really find savings?
If you’re spending more than $10,000 a month on waste, we can likely help you save 10-30% on your annual waste and recycling spend.
For some companies it will be a little less, for others, it will be more.
The actual percentage you save depends of course on the amount you’re currently spending on waste expenses.
Take Tad Dolbier, for instance. He had a gross savings of $6800 each month in savings. Scott Alderman of Landura Management (multi-family management) is saving a total of $116,000 every year. We’ve found millions of dollars in savings for our clients - how much are you sitting on?
And Lisa Russell of Ardmore? Click the video below to find out how much she saved!
Why is the average savings percentage so dependable?
We know these percentages are reliable because it’s the average amount of savings companies have saved with us for the past 18 years. We’ve become experts in finding the gaps in your current waste management process. We know where to find your biggest hidden savings opportunities, and we know how to fix them.
Click the presentation below to see how much just a few of our clients have saved! (You can also download this file here.)
What if you don’t find any savings?
On the rare occasion we find no savings, you don’t owe us a dime. When this happens, you get a free audit and the assurance that you’re managing your waste costs efficiently. You will only pay us when we find and implement precise solutions for you.
Our services are guaranteed to be cash-flow positive. You only pay us out of the savings we find for you, so our services are not an added expense.
Our business model is unique, and we believe that it is one that is in your best interest. You take on zero risk to see if you are one of the 90% of companies nationwide who can stand to cut their waste expenses by 10-35%. Your odds are better than good that you’ll save - in fact, they’re great.
Schedule a free consult now!
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:
Allow for unlimited price spikes
Have inaccurate service levels
Charges you for additional fees
Makes it nearly impossible to cancel
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.
What To Do With A $20,000 Waste Bill
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.
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. They paid a little over $2,000 in April, but found themselves being charged over $20,000 in May.
So naturally, they got in touch with their vendor.
Now I wasn’t there but based on what they told us, I imagine the conversation went something like this:
“Hey guys, Apartment Complex X here. There’s got to be something wrong with our invoice this month - it jumped over $18,000! Can you tell me what’s going on?”
Hauler: “Hmmm. Um, it’s a rate increase.”
“A what?”
Hauler: “A rate increase.”
“You’ve got to be joking. What kind of rate increase entails a 900% jump? That’s ridiculous!””
Hauler: “ Well ma’am, standard price increases are typical and frequently occur after a certain period of time…”
I can’t tell you what I would have said to end this conversation. But I can tell you that Apartment X got in touch with us rapidly.
And their WCI project manager jumped in immediately.
He stayed on the the haulers like a hawk to get a sound answer. After several rounds of calls, the WCI project manager was finally able to speak to someone at this particular hauler’s office who could help. And - surprise, surprise - this person told tell him that the increase was indeed due to an internal error.
But the issue wasn’t all cleared up.
The next month’s invoice came out and was not quite as high, but it was still way off. It wasn’t until the following month’s invoice came out - 2 months after the $20K bill - that the pricing was finally corrected. Our project manager fought for the client at every turn and he didn’t stop until the issue was completely resolved.
What would they have done if they couldn’t have called us? Gone back and forth with their service provider for hours and days and weeks to try to reach a resolution? Paid the invoice? Filed a lawsuit?
But they did call us. They knew we had their backs. We fought on their behalf, and they didn’t have to pay the inaccurate invoices or even accept any sort of rate increase.
This is an extreme example of something that actually happens frequently. We find errors on client bills about 10% of the time. And when we do, we do exactly what we did here - we encourage the provider to correct the invoice.
What would your staff do with an error like this? Would they have the time and resources to devote to it?
We help companies eliminate their waste worries - and prevent overpaying on hauler contracts and invoices. Learn how we can help you by scheduling a free consult today!
How to Stop Overspending on Your Waste Disposal
Sometimes, it can seem like the waste industry is just one big headache. Contracts are difficult to get out of. Pick-ups are often late, or missed completely. Expensive haulers get away with being paid even more. Ultimately, you can end up overpaying by thousands of dollars as the years pass.
Your disposal services are likely not really serving you.
But you can fix that, starting today.
Sometimes it seems like the waste industry is just one big headache. Contracts are difficult to get out of. Pick-ups are often late, or missed completely. Expensive haulers get away with being paid even more. Ultimately, you can end up overpaying by thousands of dollars as the years pass.
Your disposal services are likely not really serving you.
But with some effort you can fix that, starting today.
Download our free Guide to Reducing Waste Expenses to help you get started!
To figure out how to stop overspending, you’ll need to
Review your waste process
Learn the ins and outs of your contract
Make strategic service changes
Monitor those changes
Think of these as the four keys to unlocking savings. 95% of businesses - across all industries - are overspending on waste services. It’s likely that you’re sitting on hundreds or thousands of dollars of waste savings. But use these four keys, and you can find them!
And since you’re likely to be short on time, this post boils it down to the essentials and will walk you through each step.
Reviewing Your Waste Process
You may be looking at your waste stream and thinking, “Where do I even begin?” I recommend that you start with finding support and go from there. Even if you have less than an hour a week to contribute to a review, it is completely doable if you build a team and assign tasks. Your team can support you through the review process.
Recruit colleagues. Having a team to support the review efforts will ensure accountability and effectiveness.
Pick a time frame. Take your team’s availability and scheduling issues at your locations.
Conduct the Basic Audit. Familiarize yourself with the details of your waste streams. Are your dumpsters always full when they are serviced? Do your haulers frequently miss pick-ups? You won’t know until you conduct a basic audit.
Review Your Contract. Pay special attention to key sections on your contract like: pricing, service levels, and terms. (Use the next section to help you know what to look for!)
Analyze findings. You may find that you need different equipment, or fewer pick-ups, or a new hauler.
Evaluate next steps. Now that you know what to fix, you can take steps to solve on-going issues. Get a new hauler and a contract with better terms. Or adjust frequency of pick-ups. All of these will affect your bottom line for years to come.
Learn about Your Waste Hauler Contract
Nobody except legal reads contracts, right? But I like to think of waste hauler contracts as maps - what they contain shows you how to navigate your waste process and find savings.
And don’t worry; you don’t have to read it end to end! Below, you’ll learn what sections of your contract to pay the most attention to.
Terms - This part of your contract discusses how long your contract is in effect. Most hauler contracts are 3-5 years in length. But you’ll also want to check and see how easy it is to get out of these terms. Is there a fee associated with terminating the contract? What options do you have? Answers to questions like these are critical for implementing long-term, ideal waste solutions.
Fees - Does your contract allow price spikes? How often can your hauler raise prices? An ideal contract will regulate or even eliminate price hikes.
Service - How often are your site(s) being serviced? You may not actually need as many pick-ups as you think! There is often a lot of savings to be had in reducing the number of pick-ups, or getting different size dumpsters - or both.
It may also be helpful for you to look over your past few hauler invoices. Do you notice any increases to regular fees? Are you paying for services that aren’t in your contract? If the answer is yes to either of these questions, you know you’re overspending!
Making Disposal Service and Waste Equipment Changes
Every company has at least three options to reduce waste expenses. Once you know your waste process and your hauler contract pretty well, you’ll be able to see where it’s possible for you to make changes.
Suppose, for instance, that you now know that your haulers fees have increased twice in the past year, and that there are other haulers in the area who could do the same service for less. This is valuable information! You could use it to renegotiate your contract with your current hauler, making sure it includes decreased service fees.
Every business is a little different, but at least one of these options will likely be the best one for yours.
Renegotiating Your Contract - Some companies don’t need to get out of their contract completely; they just need different terms or different service levels. Other companies may not financially be able to exit their contract. Either way, for a lot of companies, renegotiating their contract makes financial sense.
Finding a New Hauler/Getting a New Contract - Some companies, on the other hand, find that it makes more financial sense to exit their contract, and pay out for the remainder. If you find yourself in this spot, send out bids to other area haulers and see if someone else can provide better levels of services.
Getting New Equipment - Depending on your situation, getting different sizes of equipment can significantly reduce expenses related to waste equipment. If, for instance, you have two four-yard dumpsters that get picked up five times a week, you could upgrade to an eight-yard dumpsters that gets picked up three times a week - and save a nice sum each year as a result. (Learn more about different kinds of waste equipment!)
Monitoring Those Changes
Moving forward, you’ll want to make sure that the changes you’ve implemented are actually working. If you’ve gotten a different contract or a new hauler, you should see a difference in savings almost immediately. The same with equipment - the savings should be evident on the next month’s invoices.
But in order to make sure you’re getting the full effect of the your efforts, you’ll need to also monitor hauler invoices. We find that haulers make mistakes about 10% of the time - and that adds up fast! Make sure you know what you’re supposed to be charged, and make sure your billing reflects that.
It’s also worth it to periodically revisit your basic audit. Waste needs tend to change over time in every industry, so you want to be sure that you aren’t overlooking savings you could take advantage of.
You Don’t Have to Keep Overspending on Your Waste Disposal
With some effort and patience, you’ll see how waste savings can add up. If you carefully review your waste process, your contract and service levels, and make strategic choices, you can reign in overspending. But you can also find relief from waste worries - from price hikes, from awful service, and from terrible contracts.
You can take charge of your waste worries, and you can start today!
What questions do you have about your current waste management process? Let us know in the comments below, or shoot us an email.
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:
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!)
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 Are Valet Services ( + 2 Ways to Save on Them!)
Trash valet service is when trash and recycling get picked up outside your door.
These services are typically performed at multi-family residences, or apartment buildings. Residents simply put their trash outside their door and the valet service employee picks it up. Then, they either deposit it at your on-site trash receptacle, or they take it to the dump themselves.
This service can be very attractive to potential residents since so few people enjoy taking out the trash. It’s something that can make your apartment complex stand out to potential leasers.
But like trash services, valet trash services can be overpriced. How would you know? Below, we’ll show you three ways you can save on your services.
Check out other vendors.
The easiest way to see if you’re overpaying is to ask other area vendors what they charge for similar services. If other area vendors charge way more or way less than what you’re currently paying, you’ll get a good baseline for how fair your prices really are.
Keep in mind, though, that rates are not the only thing you should compare. Some vendors may have certain clauses in their contract that would impact their overall pricing. Be on the lookout for auto-renewal clauses and language prohibiting price hikes. If vendor A includes rate caps in their contract, and vendor B doesn’t, vendor B will likely cost you more in the long run.
It’s also wise to ask vendors for references. Asking pointed questions of these references can help you understand what potential shortcomings may be. (See the video below for an example of why getting references is such a good idea!)
Rates should not be the only thing you compare! The cheapest service provider may have a terrible track record. You can also google their business and see how their clients rate them.
2. Scour your contract
It’s critical to your bottom line that your contract does not include:
auto-renewal terms
the possibility of additional fees and price hikes
zero provision for bad service
Auto-renewal terms will ensure your current contract renews. Not all contracts have the provisions you actually need to make sure you don’t overspend. You don’t want to be stuck with a bad contract!
You don’t want surprise additional fees on your invoices. And you certainly don’t want price hikes. You must have language on your contract that limits the possibility of this happening to you.
Valet services are an excellent amenity, but they’re not perfect. You need to make sure that you contract specifies that you have recourse in the event that service is not performed well, or inconsistently.
We audit our client’s valet services precisely for these reasons. It’s easy to have a bad contract and not know it. It’s easy to employ the most expensive service in town and have no idea.
Take some time to review your services to make sure they’re actually working for you.
Do you have valet services at your locations? Have you run into any waste service issues in the past? Sound off in the comments below! I’d love to hear your thoughts.
What exactly is a utility and telecom audit? (+ Infographic)
Think of a utility audit as your ticket to substantial savings. Most companies are overpaying for their utilities; you don’t have to be one of them!
A utility audit is a thorough analysis of all electric, gas, water and sewer bills. A telecom audit reviews your phone invoices. The goal of both audits is to find areas where you are currently overspending and could save.
These audits are critical to you because you’re likely already overspending in these areas. Over the past 18 years, we’ve noticed that about 80% of companies we work with are spending too much on their utility and telecom services. Statistically, there’s a good chance you’re one of them.
We find the savings you’re sitting on in our three-part utility and telecom audits:
Research - We review pertinent telecom and utility invoices and service agreements. We don’t simply look at what you’re paying for, but we analyze whether you’re getting the best rates and whether you’re paying for what you actually need. Many of the companies we’ve worked with don’t actually need the entire service package they have - but more on that later!
Review - We look what is and isn’t happening in your utility and telecom processes. Are you taking advantage of all possible tax credits? Is there a cheaper, reliable service provider? Should you upgrade your telephone equipment? We look at all the angles to figure out what’s right for you.
Recommendations - We present the unique set of solutions that are right for you. We show you how much you could save when we implement those solutions, and we make sure there aren’t any unknown factors that could affect these savings.
Most companies simply don’t have the extra time to periodically evaluate their services. Or, they may not realize how common it is to overspend in these categories.
This article will help you understand what an audit is and why you need one. Let’s take a deeper look at how what this audit process entails, and how it so frequently succeeds in finding savings.
Research: Gather Needed Information for Utility and Telecom Audit
The first step in our utility audit program is for you to send us all needed documents.
We need:
12 month history of invoices for all telecom and utilities: electric, gas, water, and sewer.
A copy of every telecom and utility contract you have.
We are typically are able to get started with the most current invoice copy for each account and then pull the historical invoice copies from your utility vendor’s online billing portal.
Most companies are able to get us invoice or log-on information in just a few hours.
Review: Examine All Utility and Telecom Bills and Options
Once we’ve got a complete set of documents we:
Analyze the energy usage number vs. the current meter reading. Is there a discrepancy in these numbers? Is one much larger than the other?
Look for billing errors. Do your rates or fees jump in the past year? Are there typos? Does everything add up like it should?
Then we assess rate structures, trends, and tax exemptions. You may be eligible for a different rates structure. Or you may have been overcharged the past quarter. Or, you may not be taking advantage of the exemption opportunities available to you.
Because we’re so thorough, the entire audit process takes 30-90 days (depending on how many locations are in your portfolio).
Recommendations: Take Advantage of Savings Opportunities
We find the savings opportunities that are right for you.
We may suggest some or all of the following:
Different vendor recommendations
Rate structure options
Tax Exemption options
Credits due
The recommendations themselves vary, but we are able to identify cost reduction opportunities for over 80% of the companies that engage in our services.
Could more industries benefit from audits? Let us know your thoughts below!
Multi-Family Property Saves Thousands in Waste Expenses
Back in 2017, we partnered with Ardmore, a multi-family apartment property management company. After our extensive audit and review of their waste and recycling expenses, we made recommendations that saved them thousands of dollars a month!
What would you do with an extra $5000 a month in your business? You probably have a million ideas!
We specialize in giving businesses this exact opportunity. We help companies just like yours find the savings they’re sitting on.
Ardmore is one of those companies. After we found savings, Lisa Russell, the COO of Ardmore, wrote,
“We have a valuable partnership with Waste Consultants. At first, I was not sure how they could help Ardmore - now I know that we won’t do business without them!”
Why did Lisa give us such a glowing review? I’ll show you.
Originally, Lisa was spending $425,000 a year on waste disposal. We got that down to $360,000, which is an annual gross savings of $65,000 or 15%.
Another way to put it - they started making $5,000 more a month!
Here are some of the challenges we ran into and what we did to overcome them:
They had multiple waste vendors in place with multiple contracts. We familiarized ourselves with each vendor and each contract to see where there were inefficiencies.
No uniform pricing and unfavorable terms. Their vendors were all charging them different rates and their contracts were really not in their favor.
Valet door-to-door service was overpriced. Prior to our partnership, Ardmore just wasn’t aware of alternative services. We found them a less expensive option that had great service.
We were able to find savings opportunities due to our comprehensive services. We performed an in-depth review that analyzed yards of waste per unit and per resident.
As a result, we renegotiated their waste hauler contracts. The hauler agreements are more favorable to Ardmore and the future pricing is much more predictable. We also found them a less expensive valet service, which further reduced their waste costs.
We do this day in and day out for companies across the nation, and we have success rates of over 90%.
Too many companies have hidden savings opportunities. Too many companies don’t really know what’s going on in their waste management process. You don’t have to be one of them.
What questions do you have about your waste management process? Let us know in the comments below!
Retirement Group Saves 22% Annually on Waste Disposal Expenses
Imagine being able to save your company $25,000. Actually, scratch that. Imagine being able to save your company a total of $100,000 over four years. You’d feel pretty happy about that, right?
Rhonda Cummons, the controller of Presbyterian Homes, recently did exactly that.
Imagine being able to save your company $25,000. Actually, scratch that. Imagine being able to save your company a total of $100,000 over four years. You’d feel pretty good about that, right?
Rhonda Cummons, the controller of Presbyterian Homes, did exactly that. She wanted to solve her waste problems and save, so she reached out to us. As a result, she is saving 22% annually on her waste expenses.
Rhonda had three keys to success:
1. She agreed to a detailed audit
WCI audits are exhaustive - we leave no rock unturned. In the end, Presbyterian knew not only where they were overspending, but what actions they could take to quickly remedy it.
2. She approved our recommendations
Our thorough audit process revealed that Presbyterian Homes was overspending was by being over-serviced. We showed Rhonda how much she could save by cutting back on pick-up frequency, then we negotiated the change with the hauler. 70% of our clients’ sites are being serviced too frequently, so this is not an uncommon finding for us.
3. She approved contract changes.
Like most other companies out there, Presbyterian was paying ancillary fees - and they didn’t have to. After walking Rhonda through the contract process, we eliminated every additional fee on their contract. Going forward, our contract oversight will ensure that fair rates are maintained and that service issues are quickly resolved.
Maybe you’re like Presbyterian Homes.
Maybe you feel you should look into your waste spend, but you just don’t have the time.
Maybe you’re tired of ineffective haulers who you can never reach in an emergency.
Maybe you don’t know where to begin to review your real waste needs.
Get expertise on your side. Schedule a free consult today and see how easy it is for you to save.
What it's Like to Partner with Us - Part 2
Today, Patrick shares with us how much savings we found, how easy it really was to work with us, and some specific examples of service issues we’ve helped with.
We work remotely with the vast majority of our clients, but Patrick happens to be about an hour down the road from us. Thanks again for your time, Patrick!
How much savings did we find for you all?
I think we saw a 25-35% reduction?
On a scale of 1-10 how easy was it to work with us?
10!
What service issues have we been able to help you with?
My hauling charges! And simple things like getting a new container. My managers have probably called the hauler 4-5 times, and now I can turn that over to you all.
We’ve also had missed pickups. Carolina Woods, one of our properties, is a good example. The haulers were dreadful, the containers were in terrible shape. We weren’t getting punctual removal. That has changed now!
We’ve got new containers out there and we’ve got a difference structure now. It’s been very beneficial. Carolina Woods was one where I really needed you all to step in and reach out to your hauler contracts especially since we had just taken over the management portion for that location. Taking over contract management for us
Would you recommend our services? Why or why not?
No, because I don’t want my competitors to find you!
Actually, I have recommended you all before. A lot of my colleagues and contemporaries are in similar positions to me.
I handle a lot of operations. I also wear a development hat, trying to organically grow the company whether it be through acquisition or new construction or new property management opportunities. I simply don’t have time to negotiate our hauling contracts.
Getting notifications that expirations are coming up is extremely helpful. A lot of the service contracts we have automatically renew. If I don’t know they’re coming up to the deadline of when I can serve notification, that locks me in for another year or two! I am just not as in tune with when those contracts come up.
Being able to rely on you all has made things a lot easier for me.
Top 5 Industries that Need Waste Expense Reductions
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 Management / Apartments
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
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
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.
Waste Expense Reductions at Restaurants
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 Disposal
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!
Five Ways Your Waste Hauler is Ripping You Off
Most people don’t give much thought to their waste management. But if they did, they would likely realize how much they’re overspending on waste - and how much it’s costing them in lost time.
Most people don’t give much thought to their waste management. But if they did, they would likely realize how much they’re overspending on waste - and how much it’s costing them in lost time.
The waste industry is designed to trap you into paying way too much for terrible services.
They don’t want you to know the ins and outs of your contract. They don’t want you to start asking uncomfortable questions about how exactly they get away with charging what they charge.
Because if you did, you might see their tactics for what they are - indifferent at best and outright dishonest at worst.
The waste industry is unfair to you, their clients, in five ways. Most haulers would love for you to believe that you have to accept:
Price hikes
Ancillary fees
Awful Contract Terms
Automatic Renewal of Your Contract
Terrible Service
And its just not true! There are options when it comes to your waste management. You rarely have to accept your contract as written. In fact, there’s specific language you can put in your contract to prevent or limit all of the examples above.
Learn more about your top 5 hidden waste problems here!!
Unfair Price Hikes Happen with No Warning
It isn’t fair to be on the receiving end of surprise price hikes. You should be notified ahead of time - and what you’re charged shouldn’t be exorbitant.
Most waste haulers don’t warn you prior to an increase in fees. There are some exceptions - if disposal sites mandate an increase in fees, a hauler may let you know. Unfortunately, this isn’t typical industry practice.
This in itself is a pretty shady business practice. What would happen if your Hulu or Netflix subscription increased by $50 a month overnight? This is exactly what haulers do on a regular basis.
A hauler can increase their rates as much as four times a year and up to ten percent each time.
This means if you’re paying a $1000 a month for waste disposal, you could be paying up to $1400 a month by the end of the year.
Price hikes can make it nearly impossible to budget for waste expenses. By proactively limiting them in your contract, you’ll be able to plan for future costs with accuracy - while saving capital.
Haulers Let You Think You Have to Pay All Ancillary Waste Fees
The waste industry is designed to pass on as much of their operating cost to you as possible. Most haulers, unfortunately, are going to charge you and any other companies on their route as much as they can. Ancillary fees are one of the main ways haulers do this.
There are dozens of waste fees, but you’re most likely to be charged for fuel or environmental fees. They’ll be listed on your invoice and will look like this:
Most people don’t realize they can limit these waste fees. Before you sign a contract, make sure it has a clause that caps these fees to a certain percentage. You aren’t going to have a lot of luck changing your contract mid-term - haulers just don’t have the incentive to do something they know will cost them.
It’s not fair for haulers to use what you don’t know against you. You shouldn’t have to pay a fee if you don’t have to.
Most haulers know that their clients aren’t going to question what they’re paying and why they’re paying it - they’re just going to do it.
But there’s no reason for you to be part of the 95% of companies out there who are overpaying.
Don’t patently accept your ancillary fees. Prevent or cap them in your contract and you’ll could save hundreds or even thousands over the long run.
Contract Terms Are Designed to Trap You
How difficult it is for you to get out of your contract? It’s probably more difficult than you think.
Most haulers require that you send a certified letter within a very specific time frame prior to the end of your contract. Most contracts require that you give 90-180 days notice if the standard clause is intact.
If you send it too early, it’s null. If you send it too late, you’re out of luck. And heaven forbid you email them - you have to take the time to take it to the post office.
On top of that, you’ll have an termination fee. Most of the time this termination fee is the average of the most recent 6 invoices X 6. So if you pay $1000 a month, you’ll owe your hauler $6000. This may sound like a lot but for many companies, this is actually the less expensive option in the long run.
You need to make sure your contract is relatively simple to terminate. (If you already have signed a contract, make a note of when your contract ends and what you’ll have to do to end it - and read the next section carefully!)
Bad Waste Hauler Contracts Automatically Renew
Most contracts will automatically renew. If you don’t give notice within a narrow window of time, you will be stuck a new contract you didn’t want!
Suppose your hauler keeps missing pick-ups, and you’ve realized you’re nearing the end of your contract and you want to terminate. You give your hauler rep a call to let them know, but they tell you - surprise! - your contract has already been renewed. There was no notice, no email, no phone call. You now have a new three year contract with a hauler you can’t stand.
No one should have to go through that!
It’s not fair for you to be trapped in a contract if you want to terminate it. This is exactly why we review your contract terms in our thorough waste audits - and every other critical part of your waste and recycling streams!
Haulers Aren’t Going to Protect You Against Their Terrible Services
Haulers don’t often make service provisions a standard part of their contracts. This means that if you want to have recourse when trash keeps getting strewn across your location, you need to shore up your contract.
Make sure that there are clear consequences for missed services, or service that is poorly performed. For example, you may want to add a provision about how quickly they will come if you call for an extra pick-up or a provision for cancelling without penalty if they consisently do not perform.
If there isn’t a consequence; it’s more likely that haulers will be less careful about the way they service your locations.
You Don’t Have to Be Ripped Off By Your Hauler
Haulers are not going to show you how a compactor could save you $80,000 in the next five years.
They’re not going to tell you that you don’t actually need service 5 times a week. They’re not going to tell you that getting a cardboard baler can help you save money by adding a revenue stream. They’re not going to disclose that you can reduce your costs by requesting that each of your five dumpsters at a certain location get picked up at a different frequency.
We will.
Schedule a free, no-obligation consultation today to learn more about your savings opportunities!