How much can you save my business?

TYPICAL LEVELS OF SAVINGS Due to the local market nature of waste disposal, it’s hard to talk about savings levels in terms of industry averages and such. However, we will summarize the savings levels of each model. We will also discuss what it takes to achieve maximum levels of savings. Savings levels vary the most with hauler-direct firms. Results depend upon the scope of the project. Most often hauler-direct firms achieve sub par savings by limiting the scope of their cost reduction projects and the time they have to focus on the project. It is not uncommon for a firm to limit scope to one or two waste streams or facilities, rather than tackle them all. Further, even assuming that project teams conduct sound research into cost reduction options, their lack of industry expertise will lessen results. Waste brokers will definitely produce savings through their bargaining power, but maximum savings will not be passed along because they must mark up the rates in order to make a profit. Typical savings range from 20% to 40% company wide. Furthermore, brokers’ broad brush approach to negotiations will not ensure the lowest prices in all possible markets.

Waste consultants will drive the deepest levels of savings, ranging from 20% to 65% company wide. Because they are motivated to design custom waste disposal plans location by location, it’s not uncommon for consultants to maximize local market opportunities to the extent that some individual locations may see some recycling waste streams become a profit center.