Why Pay More for Waste? Time to Renegotiate!

WasteBinsWhen it comes to shopping around for better prices on services such as energy, insurance and logistics, most companies will say they do it on an annual basis.  Not surprisingly many small businesses tend to shy away when asking their current waste collection company for a better price even if they’ve been a loyal customer for many years. 

Out of the 9 businesses that I’ve spoken to in the last 3 months, only 2 of them said they have considered asking for better prices.  Your waste collection service is no different to any other service that you pay for. 

If you have been with a company for more than a year, ask them for a better price even if it is £2 less per collection than what you are currently paying.  Think about it, if you have 1 collection per week, that’s £104 saved per bin per year.  If they say no, then shop around, there are many waste companies out there.  Have a look at which companies your neighbours are using. Sometimes banding together with them will give you stronger negotiating power. 

Waste disposal companies will generally offer 2 services, by lift or by weight.  By lift basically means that they will empty your bin even if it is only ¼ full.  You are charged the same amount whether your bin is partially full or completely full.  By weight, is exactly that, you pay for what you produce.  Have a look at how much you are producing and ask them to give you a cost for both services. 

Most disposal companies now record the weight of what they pick up from your business.  Bins are often chipped to record the data, so ask to see the weights collected.  You can only decide which service works better for you once you’ve seen how much you produce and what you are paying. 

Another tip when looking at paying less for waste is to separate and recycle as much of the waste as possible.  Nowadays most waste produced can be recycled.  Whether it is paper, glass, metal, wood or food your disposal company should be able to offer you the service.  These services should cost less than your general waste so make sure you are paying according to the waste that is being collected.

In very rare cases waste collection companies will offer you a rebate on some of the materials that they collect.  This of course will depend on the quality of the material, how it is collected, and the current market value of the recyclate.  Prices for paper and wood fluctuate more than metals and glass.  If your business produces any of these recyclable materials in big quantities, speak to your contractor and ask for a rebate or reduced collection cost. 

Contractors will of course take into account their own costs of providing you with the service, but there’s no reason why they can’t offer you the same service with a slight reduction especially if you’ve been a loyal customer.

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