Down in the Dumpster – Is Your Trash Hauler Contract Getting You Down?

By Kenzo Kawasaki

Image courtesy USAF

Having your commercial trash hauled away shouldn’t be that hard.  You put out a request for bids, you choose the hauling company that you feel will get the job done for the right price.  You sign a contract for a year.  What could be simpler, right?  For many business owners, this is the case.  However, for others, once the bloom is off the rose, they come to find that the only thing that smells worse than their trash is the way their hauler treats them.  To keep you from getting down in the dumpster, this week I thought I’d cover the top-10 complaints that business owners have when it comes to dealing with trash haulers, as well as what they can do about it.

      1.      Better late than never doesn’t cut it. – While most trash haulers are prompt and courteous, others are neither.  This can sometimes result in having to wait an inordinate amount of time to get your trash hauled away.  While the contractor might tell you that they had a truck break down, which can throw their schedule into chaos, this should be the exception rather than the rule.  If you find your hauler is often late to haul your trash, this is a sign that the company is overpromising and underdelivering.  Translated, this usually means that the service side of the business isn’t keeping pace with their sales force.  The only choice in such a case is to look for another provider when it comes time to renew your contract.

     

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2.      Raising your rates causes you to hit the roof. – Unless the agreement you sign clearly states that the rate you are being charged is going to be guaranteed through the life of the contract, you have in essence given the hauler a license to steal.  You’ll know that you’ve been had the moment the contractor sends you a bill for more than you agreed to pay, usually followed by the proviso that their costs have gone up and they are forced to pass the increase along to their customers.  This kind of bait and switch tactic is commonly used by underhanded haulers who low ball their bids to get a contract, only to renege on the deal almost as soon as the ink is dry. (This is why you need to carefully read the fine print before you sign on the dotted line.)

      3.      Substantially increasing the cost when you renew the contract. – This is another thing that irritates many business owners; having the cost to haul their trash go up substantially when it comes time to renew.  While this tactic isn’t uncommon, it isn’t necessarily a reason to automatically switch contractors.  Not if you can renegotiate with your current vendor.  The sad fact is most business owners never bother to try to get a better deal when it comes time to renew.  That can cost them big, since it’s a lot harder for the hauler to get a new client than it is to retain those they already have.  Sometimes it’s simply a matter of explaining to the hauler that you have other options, such as jumping ship to one of their competitors.  Other times all it takes is for both you and the hauler to reach a compromise for a rate that you can both live with.

      4.      Being nibbled to death by ducks. – When it comes to a hauling contract, you need to be aware that there can be several additional fees that can be stipulated in the fine print that can add up to substantial amounts if you aren’t careful. These fees can include trip fees, overage fees and overloading fees.   (This is also a reason why you should always request references and speak to existing customers of the hauler to find out what kind of experience they have had with the contractor.)

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      5.      Do you have a dumpster that’s too small? – When it comes to contracting with a hauler, the first thing you need to determine is how much refuse your company produces.  Get this wrong and you could find your dumpster overflowing, the solution being to have your trash collected more frequently, which will result in additional fees. (The other solution would be to lease or purchase a commercial compactor.)

      6.      Do you have a dumpster that’s too large? – You wouldn’t think that having too much of a good thing could be bad for you, but this is another tactic that could cost you plenty.  If you have a dumpster that’s too big for your company, you could wind up having it half empty every time the truck comes around to haul your trash.  This means you’re being charged too much for the dumpster rental, or you are paying too much to have your trash hauled away.  The easiest way to remedy this situation is to call the hauler and have them haul your trash away less frequently. 

      7.      Who’s on first? – How hard is it to talk with a decision maker?  While that smiling salesperson who works for the hauler may give you all the time in the world, depending on the size and corporate policies of the contractor, you may find it extremely difficult to speak to anyone in charge once you’ve signed on the dotted line.  Sometimes this is a function of the corporate structure of the hauling company, since larger firms have larger staffs and more corporate infrastructure to deal with.  This means if you need to ask a question, make a change or request something other than what’s written in your contract, you could spend a lot of time just trying to get to speak to the right person in the right department. 

      8.      Surly to bed and surly to rise. – Just as in any other business, everything doesn’t always go as planned in the trash hauling business.  The question is when something out of the ordinary arises on either the hauler’s part or the customer’s part, what kind of reception do you get from customer service?  If the hauler acts as though they are doing you a favor every time you call with a question or a complaint, it’s time to start looking for a replacement.  (This is also a good reason to check seek out online customer reviews and ask for references before you sign up with any hauler.)

      9.      The lowest bid isn’t necessarily the best company. – If price alone is the yardstick you use to decide which hauler you hire, you could be in for a rude awakening.  Always make sure you’re comparing apples to apples by reading the fine print on any contract.

      10.  Perform your due diligence on every hauler before you request a bid. - While every business owner looks to save money, price alone should never be the sole reason to sign up with a hauler.  Things like reputation, trustworthiness and the ability to be flexible are just as important.  Today it’s not only possible, but easy to check out all these factors online before you even call for a bid.  Reviews and complaints available on sites like Google, Facebook and the BBB can save you a lot of grief if you take the time to vet haulers online before you ever call one for a quote.

Kenzo Kawasaki is president of BC Hydraulic Services, a commercial trash compactor service company based in Jacksonville, Florida.