Waste Management Services: How To Reduce Your Costs
Waste management services: nearly everyone wants to receive sustainable cost reductions as the new financial year begins of July 1st. Unfortunately, good things like permanently lower costs do not just happen by themselves. When it comes to waste management services, often a business owner needs to give a little consideration to what they are hoping to achieve, as this time can pay great dividends to the business bottom line over the next financial year.
What are waste management services?
Fundamentally, waste management services are simply the removal and processing of materials that your business does not want anymore i.e. garbage as well as recyclable commodities such as paper and cardboard, plastic, metals etc.
Once we understand what waste management services actually are we have to decide on one of two routes to achieving our cost reduction goals:
A. Trusting a waste collection company to collect your rubbish and ensure your total costs are minimised; or
B. Having an understanding that ongoing improvements can be made in the collection methodology or having a waste consultant or waste management company commit to those reduction goals for you.
Option A: Set and forget waste collection contract
Option A is basically a transactional relationship – you sign a waste collection contract with a supplier and then basically do not think about it to much afterwards. The bins will be collected (hopefully on time) and you will receive an annual or even twice annually price increase.
Under this arrangement, you are unlikely to receive any improvements in service, cost reductions or recycling improvements as to be honest, your supplier will not be incentivised to offer you this. Any improvements delivered will likely decrease their revenue and profits and hence if they have a long term (multi year) binding contract they will not favour this.
The likely outcome of this scenario is that you will receive a low initial price per collection that over time will increase significantly and you will not receive any active account management or focus on cost reductions. You may have your bins picked up too often, have half empty bins picked up or see large amounts of recyclable commodities in your general waste bins (these could be picked up much more efficiently in a cardboard and paper recycling bin.
Option B: Active focus on account management
The second option is to focus on the “Account management” aspect of your waste management services. This basically can be translated as holding someone accountable for outcomes (both financial and environmental) and seeking to optimise your waste collections.
As waste collection and disposal companies are often not focused on this when they have a binding long term contract, you have a number of options in this regard.
- Appoint someone in your business to focus on waste and recycling – this often is not realistic as you are busy running a small business and have many tasks to focus on.
- Seek a waste audit or speak to a waste consultant who can help you minimise costs.
- Engage a supplier who is confident of their performance and will offer you a month to month contract. In this situation, if a supplier is confident in their ability to offer you sustainably low costs and cheap services, they will see customer service as a key metric to meet.
Waster.com.au can certainly help your business with Option 3 above i.e. we work under flexible 30 day waste collection services contracts where we are so confident in our service and account management standards that you can leave us at any time with 30 days written notice. We are confident you will not of course!
Waster.com.au is a customer service and account management business first and foremost. Our objective is not to collect your waste (that is a given), but to ensure your waste and recycling services are managed in as efficient and cost effective manner as possible. There is a distinct difference.
We invite you to check out our online waste services agreement builder and find out how much you can save your business in Financial Year 2016/17 – all whilst improving service standards and increasing your flexibility. For example, you can start by checking the grease trap price if you run a cafe etc.
Author: Mr Waster.