By Marc Savas, President at Vector97, LLC
With inflation reaching its highest point in more than 40 years, CFOs are taking a closer look at ways to contain fixed-cost spend categories. When it comes to waste and recycling costs, it’s not as simple as asking your vendors for fair market pricing.
From the contract terms and limitations of pricing flexibility to the carrying out of the agreed pricing and terms for contracted waste management services, a lot can go wrong. The result could mean you’re overpaying monthly for services or equipment you don’t receive or don’t need. And this can add up if you operate at multiple locations.
While you may be able to negotiate a better short-term rate, in many cases, those rates rebound higher just a few months later.
Three of the most common frustrations we encounter include:
While inflation has surged in the last two years, in some cases, the price of waste hauling has increased two or three times the inflation rate. Dramatic increases in monthly service charges can significantly impact your profitability.
Many businesses have the laudable goal of moving toward zero waste to landfill. But these efforts can be delayed if you don’t have time and resources to gather and analyze your sustainability data. Currently, it’s difficult for even the largest national waste vendors to aggregate and present sustainability data in a way that’s useful for a business to report or act on.
To stay on top of your waste expenses requires auditing your monthly bills against your contract – both of which can be nebulous by design. If you manage waste and recycling for properties in multiple locations with multiple vendors, this quickly becomes a complex and time-consuming process and may require hiring additional staff.
There’s a more effective approach to managing your complex waste and recycling program and maximizing your company’s resources.
Why work with an independent partner to handle your waste and recycling procurement, contract management, and reporting needs?
Sure, a team of experts who talk trash, so to speak, with decades of industry knowledge and data from every market, can ensure you’re paying a fair market price. But controlling costs is just one benefit.
True expertise is knowing when a 64-gallon toter is a better choice than a 96-gallon version or if a valet waste strategy is the more cost-effective solution. When a roll-off is more appropriate than a compactor or when your pick-up frequency isn’t optimized for your needs.
Beyond just brokering a better contract, here are six keys to optimizing your waste and recycling management program:
The results of these strategies not only ensure transparent waste and recycling solutions and services, but they have real, long-term value and significant impact on your bottom line. By optimizing your recurring monthly costs, you gain the resources to invest or grow other areas of the business.
An independent team of experts can help you manage your contractual terms, employ the correct services and design, and give you the insights you need to achieve your sustainability goals.
We use our industry knowledge and buying power to reduce your waste management rates by an average of 35%. We also renegotiate your waste hauling rates and negotiate preferred hauler contract terms with your existing vendors at the same service levels. Contact us to learn more and get started today.