Waste Management rarely makes it to the top 10 list of priorities.
Often waste contracts can run for years without review. You take the view that it’s a necessary cost, and the company seems to be doing ok.
After all, most homes don’t even know when their waste contract ends.
So, very easily, the waste cost gets overlooked. And this plays straight into the hands of your waste management provider. This is excellent for them. They may be relying on it for their profit!
If you really looked into it, there are 5 things you might find out which they may not want you to know:
1) Annual price creep on rolling contracts
Your contract will most likely be rolling. That means you have to go out of your way to know when and how to terminate it. In the meantime, you’re received 5-6 annual increases. Whatever inflation was in each of those years, there is a good chance your increase was higher. This could have been under the guise of National Living Wage, petrol costs or landfill tax. But whatever it was they rely on your tacit acceptance. Clinical Waste in particular has huge elasticity of price. Be sure to shop around to get the best deals. Try not to stay in a deal for too long, as you’ll suffer significant cost creep.
2) Container Sizes
One larger bin costs less than 2 smaller bins making up the same size. If you have multiple bins, e.g. 240 litre wheelie bins, or 360 litre bins, you will most certainly be better off with fewer larger ones.
3) Are the bins even full?
As soon as you can before the next collection, go and ‘lift the lid’ on your bins. Are they full? They should be. If not, you’re paying for the unfilled space. Of course, this will happen occasionally based on how much waste you produced that week. But if it’s regular, you need fewer bins! And less cost!
4) Recycling more will save you money, and boost your eco credentials
Are you recycling as much as you can at source? Pre-sorted waste is cheaper to collect as it prevents land fill tax and is more easily returned to the circular economy. Are you recycling food? Food waste is a valuable commodity for agriculture. What could you recycle that you presently don’t? Electrical equipment, PPE, clothing?
5) Beware extra costs
Waste management companies are excellent at inventing extra costs. They are large enough to bolster net profits, but small enough for you to approve. In particular look for excessive surcharges, annual Duty of Care fees, and annual admin fees.
Overall, a good waste company might save you 25% on your waste costs. The reality is that your incumbent will try to match any quote you get, as they often have sophisticated retention departments. You will of course end up going down the same route over the next few years!
Our overall key advice would be to tender and review all waste streams, with a single point of contact to help you keep on top of costs, review service levels, and continually improve your recycling rates.
Focus Energy Services Ltd, Phoenix House, 9 Pike Hills Mount, York YO23 3UU
Registered in England & Wales 13576976 Data Protection Register ZB205253
E-Mail info@focusenergyservices.co.uk
Tel: York 01904 202294 Edinburgh 0131 526 3078