Corporate Waste Removal Cost: Is My Business Paying Too Much?
When people are looking to cut costs in their organization, eyes turn first towards unnecessary expenditures. This can mean everything from renegotiating your lease, eliminating discretionary spending, or leasing space and equipment. But often, companies overlook one obvious factor that significantly cuts into their bottom line: corporate waste removal cost.
Since the beginning of the pandemic, the production of waste has shifted dramatically. According to a report by the Wall Street Journal, residential waste has increased in weight by 10% since the onset of COVID-19, while commercial and industrial waste has decreased by 16% compared to a year earlier. This offers an opportunity to many businesses locked into contracts that don’t match their production of waste.
Environmental regulations have made waste disposal more expensive for companies, prompting many companies to launch initiatives to go green. But don’t assume that this is the only way to mitigate your corporate waste disposal cost. Hauling companies increase their fees for waste removal every year, and odds are, you’re paying too much.
The best way to tackle corporate waste removal cost is to go directly to the source. In this blog, we examine where costs and hidden fees emerge, and tools and strategies you can use to significantly cut what you’re paying on monthly bills.
Where High Corporate Waste Removal Cost Emerges
Your waste bill changes over time. Waste management companies tend to raise their rates over time, often at your expense. For this reason, it’s important to understand where costs are coming from, particularly unexpected fees that might emerge over time. There are several answers to the question “why am I paying so much for my waste removal bill?”
- You’re Paying More Than You Need To – Waste management overcharging is a common practice – historically, the industry is known for adding fees while companies find themselves blindsided by expenses. As commercial trash bills are often overlooked, massive margins are built into waste contracts. These costs can be negotiated and diminished, but all too often companies neglect looking at their waste disposal bill. Looking at existing contracts is the first thing any business should do when looking to lower waste disposal cost.
- You’re Paying Hidden Fees – When waste goes unchecked, unexpected fees can quickly emerge. Overflow fees are a common (and often hefty) expense that can add on to your monthly bill. These fees can come from practices as simple as not having your lid completely shut, or an extra bag of garbage sitting off to the side of a locked dumpster. Understanding why your waste bill is fluctuating from month to month can offer greater insight into cost reduction opportunities.
- Reduce Waste and Recycle – In many American cities, recycling is much cheaper than using landfills. If you are paying for unnecessary trash pickups or failing to meet minimum pickup tonnage, contract negotiation should come first. Downsizing your dumpster and diminishing your overall waste together can help reduce your monthly bill.
Strategies for Reducing Corporate Waste Disposal Cost
When a company has to pay invoices for multiple locations, yearly increases can go ignored. Over time, it is easy to fall into a situation where you’re paying for services that no longer match your organization’s needs. Thankfully, several strategies exist for mitigating these expenses:
- Every part of a waste contract can be negotiated, not just pickup rates. This includes price escalators (the percentage or dollar amount by which the vendor can raise the rates on an annual basis), fuel charges (which are often marked up unnecessarily), and auto-renew clauses.
- Examine the waste needs of your business. Waste disposal companies generate massive revenues off of companies that fail to meet minimum waste pickup tonnage, or may be picking up trash too frequently. Smaller dumpsters or less frequent trash pickup can dramatically reduce your company’s waste management cost.
- Hire cost reduction experts to negotiate contracts on your behalf. Shopping for waste service vendors or renegotiating on your own can lead to lower costs, but without knowing what similar businesses in your area are paying, you may be missing out on key information that can significantly decrease what you are currently paying.
Partnering with a fixed cost reduction company like SIB makes cost reduction easier than ever. We help companies reduce waste management expense without cutting off essential service. Corporate waste removal expense reduction is just the tip of the iceberg of what we have to offer – SIB offers telecom bill reduction, 401k fees, negotiating insurance and benefits costs, and much more. We have provided savings for more than 98% of our clients across a breadth of industries. Contact us today for more information about our services.