Monday, December 10, 2007

To People Who Want To Save Money On Your Companies Monthly Trash Bill With Your Current Trash Hauler -- But Can't Get Started


Waste Disposal Consultant vs. Waste Broker - What is best for your company?

Waste Disposal Consultants (WDC):

A Waste Disposal Consultant's services can range from very basic recommendations, to a comprehensive evaluation and analysis, or anywhere in between. WDC fees may be a percentage of the savings, a flat fee, or a combination of both. Comprehensive evaluation programs consist of analysis of the waste material from the point of generation within the facility through recycling or disposal in the landfill. Waste composition, handling methods, market conditions, equipment efficiency, labor cost, and available services are some of the data that is collected and used to develop alternatives designed to meet client objectives. These consultants have several years of waste disposal and recycling experience. The client contracts and pays the waste vendor directly.

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.


About the Author

Corey N. Coffelt, Senior Waste Consultant, WasteStream Consulting (US and Canada) has over 17 years of experience in the waste and recycling industry working for BFI Waste System (Allied Waste), Weyerhaeuser Recycling, and WasteStream Consulting. You may reach Corey at cnc@WasteStreamConsulting.com or (866) 245-8369 toll-free.

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