If there are ways to cut costs and improve profitability across your business, it’s worth exploring them. When it comes to operating expenses, one often-overlooked area is your waste and recycling. You may not even realize that you could be spending more than necessary on waste management. But it doesn’t have to be that way. Here are some key signs that your business could be overpaying for commercial trash services, and how to address these issues head-on.
1. Frequent rate hikes and unexpected surcharges
One red flag to look out for is consistent or extreme increases in commercial waste disposal costs that your trash provider hasn’t explained or disclosed beforehand. You’ll see a breakdown with an itemized list of charges on your waste bill, so it’s important to understand what might be considered standard or normal, and which ones could be unusual and possibly cause for investigating further.
What are normal waste costs?
If you’ve ever looked at your trash invoice and asked, “Why has my waste management bill gone up so much?” many factors could be at play. Like any service, some annual adjustments are to be expected. Some common charge types that you could see on your invoice include fees for:
- Dry runs
- Contamination
- Extra yardage
- Trash or commercial recycling container swap, delivery or removal
- Extra pickups
- Not paying bills on time
You may see these types of commercial waste disposal costs regardless of your provider, but it should be a straightforward process to ask questions about your trash pickup bill and help you understand the charges. If it’s difficult to get in touch with your provider or get clear answers, you might want to start looking for better options. For example, RoadRunner's fully-managed waste services include a dedicated portfolio management team to ensure each location across your portfolio receives timely customer service.
What Could Be Unusual Waste Costs?
Drastic price hikes that go beyond the annual adjustments mentioned above could signify that your business is overpaying. Your current contract with your hauler may include automatic price increases (APIs), and those alone may be worth investigating. What else should you look out for on your bill?
- Frequent rate hikes
- Excessive surcharges
- Any unexplained fees
For example, you may be billed for environmental charges or commercial waste disposal surcharges as a result of increasing landfill tipping fees and fuel costs. But again, the right provider should communicate this with you, or make it easy to get in touch with someone who can explain these types of charges.
2. lack of transparency and rigid contracts
With waste costs in mind, consider also that a lack of transparency in overall pricing and contract terms can indicate you’re overpaying for your service. For example, your provider should be able to answer your questions around issues such as service charges or even equipment inquiries such as how much a commercial bin costs. And if they add charges without an explanation, this could also be cause for concern. Even standard cost increases and automatic contract renewals without clear communication may not serve your best interests.
To avoid this, review your contracts regularly, request detailed information on pricing structures and compare quotes from other service providers. Waste management can quickly become complex, but making no change or putting off exploring other options could cost you in the long run. Work with a comprehensive waste management company like RoadRunner that can help you understand your options and ensure you’re getting the best rates available.
3. service schedules that don't fit your needs
How do you know whether your business has effective waste management in place? You need data to know what’s going on with your pickup and where you can optimize. That means having insight into diversion tonnage, seasonal waste streams, and contamination points. Without this information, it’s difficult to pinpoint inefficiencies or negotiate better rates. If your waste and recycling provider is guesstimating your service needs and unable to provide you with transparency in operations and performance so you can conduct a cost-benefit analysis, you’re missing out on potential cost savings.
Technology like waste metering cameras and sensors can provide near real-time data on waste volumes and service levels, helping you hold your provider accountable. A lack of clear reporting means you could be paying more for services that aren’t meeting your needs.
4. misaligned service schedules
Another sign of overpaying for waste and recycling is having a service schedule that doesn’t match your business's needs. Consider that on average, dumpsters are serviced when they are only 51% full, which is inefficient as far as your operating expenses go. If your bins are consistently only half-full or overflowing, you might be paying for excess capacity or not enough service.
Assess your waste generation volume and work with your provider to adjust your service frequency and container sizes accordingly. Technologies that monitor dumpster capacity can help ensure that you’re only paying for the service you actually need, reducing waste and cost.
5. limited recycling and diversion options
Incorporating recycling into your waste management strategy is not only environmentally responsible but can also be cost-effective. By diverting waste from landfills, you reduce the volume and weight of your waste, which can lower disposal costs. Recycling also helps your business achieve sustainability goals, improving your ESG (Environmental, Social and Governance) rating, which can be attractive to eco-conscious consumers.
Commercial recycling can also have a ripple effect. Nearly 80% of U.S. consumers consider sustainability when making purchase decisions. Implementing robust recycling programs can help your business reduce waste management costs, appeal to more market segments and bolster your brand reputation.
6. poor communication from your provider
Effective communication is crucial for managing waste and recycling services efficiently. Your provider should proactively communicate changes, as well as share strategies to reduce waste and improve recycling efforts. If you’re looking for a new trash service provider, you should have a clear understanding of how a future agreement will work. Some questions you should be able to ask and get answers to include:
- Can my company save money by recycling? If so, how much?
- What are the rates of waste reduction and recycling my business can expect by working with you?
- If I switch, what will be my service costs? For equipment, how much will commercial bins cost?
- Why has my waste management bill gone up so much?
If your provider is slow to respond, difficult to contact or unwilling to answer questions, it can lead to service disruptions, billing errors and missed cost-saving opportunities. A responsive provider will help you identify and implement cost-saving measures, ensuring your waste management strategy remains efficient and effective.
optimizing your operating expenses starts with waste and recycling
Part of your business’s financial health and sustainability should include optimizing your commercial waste disposal costs and recycling strategy. If you notice any of the signs outlined above, there could be significant savings and operational improvements to gain. Not to mention, every dollar saved on waste management can be reinvested to other critical areas of your business.
When you partner with a fully-managed waste services provider like RoadRunner, you can ensure that your waste and recycling programs are both cost-effective and aligned with your goals. Take charge of your commercial trash service costs today and help your business operate more efficiently.
