Pro Waste Strategies

Most companies view trash disposal as a necessary evil. Few companies have someone in charge of managing waste material cost. Sometimes the accountant or purchasing manager put their current program out for competitive bid to area waste hauling vendors. A few other companies may actually use their own trucks to haul the trash to the landfill.

What typically happens is the company calls local trash disposal companies or the city sanitation department to order a dumpster for trash service. What they don't realize is that significant savings (10-25%) may be achieved with the right service for their type of waste material, volume, and available service.

I have listed some general guidelines for managing trash service.

1. Only sign a service agreement that is longer than month to month if special equipment is needed or savings may be achieved.

2. Take out any automatic contract extensions, roll over or evergreen clauses.

3. Review your service periodically to make sure you have adequate service for the least amount of cost.

Any of these cost savings tips should help you lower your monthly trash bill. Don't expect your trash vendor to point out the most cost effective program for you. Waste vendor sales representatives typically earn bonuses based on the revenue they bring in.

If you have questions contact an experienced Waste Disposal Consultant that has several years experience in the waste/recycle industry. Many offer programs that assist you with the design of savings alternatives for a small flat fee or a percentage of the actual savings.

Waste Brokers:

Generally speaking, a waste (trash) broker works with various businesses that have multiple locations and owners. Some examples are KFC, FedEx-Kinkos, Bank of America and Holiday Inn. The only thing they have in common is that they are all part of the waste brokers' inventory. The broker will then group some or all of these locations by geographic area to bid their waste disposal service out to area waste vendors, leveraging the group's volume for better pricing for the group. The broker fees may be a percentage of the monthly savings, a flat monthly fee, or any incentives (i.e. free service) that the waste vendor may offer or a combination of all. Broker's services include consolidated billing for customers who prefer one monthly invoice versus an individual invoice from each location. Brokers actually contract the services directly with a vendor. Many brokers also sell or lease equipment in addition to contracting disposal services.

Which program is best for your company?:

Most businesses have opportunities to save monies in their waste disposal fees. If you have a group of locations that produces a small amount of waste on a weekly basis, a broker would likely be your best option. For all other businesses, contacting a company that offers the more comprehensive program would be a good place to begin. Negotiating with your waste vendor may get you a 5-8% savings. With a comprehensive program, I have seen savings of 30-75+% are common, and in some cases, substantial refunds from waste vendors.

Waste disposal vendors do not readily offer savings information to their customers because they have little incentive to reduce their revenues voluntarily. That is exactly why most businesses need a waste consultant to evaluate current services and negotiate cost reductions with waste vendors.