Waste Hauler Contract Management - Understanding the Fees and Surcharges Game
Waste Hauler "Fees & Surcharges" are seen as a very interesting topic by "many" Companies.
Why you may ask? Well, it quite possibly could be due to the "thousands" of Companies across the US that have signed a Waste Hauler contract where the "actual" dollar amount that they would be obligated to pay each month, was "never" listed on the contract.
Some of you may say...
"Nonsense", the amount you pay "has to be" on the contract, right? Wrong! Waste Hauling Companies have made a historical practice of listing the cost of services "MINUS" the monthly Fees & Surcharges (they typically put the Fee & Surcharge language on another page of the contract).
If you have received a first or second invoice that was 15% to 40% higher than the "actual" rates listed on the Waste Hauler contract, you are not alone.
This is crazy! Never, never, never allow the Fees & Surcharges language to remain in your contract.
They may tell you it is mandatory, or that there is no way to remove this language.
If your Company does not represent a significant amount of business for them, they may not budge.
In this case, I suggest finding another Waste Hauler who "will" work with you on this.
If you are in a "Franchise Market" where the Municipality has foolishly given the service rights in their area to only 1 Waste Hauler (not allowing for any competition), there is not much you can do.
I have known Companies in Franchise Markets who pay 200% more for Waste services than their neighbor just across the Municipality's border.
Monopolies have never worked in the best interest of Consumers/Companies.
Waste Hauler Fees & Surcharges are always "pitched" as mandatory or necessary due to the cost of doing business.
For instance, Fuel Surcharges are added or increased due to the price of gas going up.
Have you ever seen the charge reduced when the price of gas goes down...
very doubtful! Have you seen an Account Management Fee, Administrative Fee, etc.
, appear on your monthly invoice out of nowhere? Fees and Surcharges are most always used as a "Legal" mechanism for increasing a Waste Hauler's revenue and profitability...
even while there is a negotiated contract in effect with a Company, and even when normal price increases have been negotiated out of the contract.
Fees & Surcharges are a HUGE revenue source for Waste Haulers.
It provides a loophole by which it is possible for them to increase their revenue and profitability at the drop of a hat.
Do your absolute best to require the Waste Hauler to disclose "every" cost, including Fees & Surcharges.
Your best bet is to find a Waste Hauler who will provide an "all-inclusive" rate.
This means that all Fees & Surcharges, etc.
are included in the service rate listed on the Waste Hauler's contract.
Why you may ask? Well, it quite possibly could be due to the "thousands" of Companies across the US that have signed a Waste Hauler contract where the "actual" dollar amount that they would be obligated to pay each month, was "never" listed on the contract.
Some of you may say...
"Nonsense", the amount you pay "has to be" on the contract, right? Wrong! Waste Hauling Companies have made a historical practice of listing the cost of services "MINUS" the monthly Fees & Surcharges (they typically put the Fee & Surcharge language on another page of the contract).
If you have received a first or second invoice that was 15% to 40% higher than the "actual" rates listed on the Waste Hauler contract, you are not alone.
This is crazy! Never, never, never allow the Fees & Surcharges language to remain in your contract.
They may tell you it is mandatory, or that there is no way to remove this language.
If your Company does not represent a significant amount of business for them, they may not budge.
In this case, I suggest finding another Waste Hauler who "will" work with you on this.
If you are in a "Franchise Market" where the Municipality has foolishly given the service rights in their area to only 1 Waste Hauler (not allowing for any competition), there is not much you can do.
I have known Companies in Franchise Markets who pay 200% more for Waste services than their neighbor just across the Municipality's border.
Monopolies have never worked in the best interest of Consumers/Companies.
Waste Hauler Fees & Surcharges are always "pitched" as mandatory or necessary due to the cost of doing business.
For instance, Fuel Surcharges are added or increased due to the price of gas going up.
Have you ever seen the charge reduced when the price of gas goes down...
very doubtful! Have you seen an Account Management Fee, Administrative Fee, etc.
, appear on your monthly invoice out of nowhere? Fees and Surcharges are most always used as a "Legal" mechanism for increasing a Waste Hauler's revenue and profitability...
even while there is a negotiated contract in effect with a Company, and even when normal price increases have been negotiated out of the contract.
Fees & Surcharges are a HUGE revenue source for Waste Haulers.
It provides a loophole by which it is possible for them to increase their revenue and profitability at the drop of a hat.
Do your absolute best to require the Waste Hauler to disclose "every" cost, including Fees & Surcharges.
Your best bet is to find a Waste Hauler who will provide an "all-inclusive" rate.
This means that all Fees & Surcharges, etc.
are included in the service rate listed on the Waste Hauler's contract.