The most obscure ongoing general ledger ongoing expense is Waste Removal and Recycling. It is a perceived fixed cost for businesses and organizations alike. When the Accounts Payable Department receives any Waste Removal and Recycling Fee, they just pay it without question because the bills themselves can be incomprehensible. More importantly, they want to pay the bill promptly because if they don’t, their garbage will pile up on their premises, and they will get the blame! More importantly, no salaried employee has the core competency to be able to discern what itemized charges are correct on each of these bills. And, if there are ongoing overcharges, they will continue to go on indefinitely.
As it turns out, there is an alternative that is available to the majority of businesses and organizations are completely unaware exists. It is completely legal to engage the services of a Waste Removal and Recycling Management firm who are experts in reducing these expenses without any direct capital out-of-pocket expenditures. How is this possible? Simply put, these entities charge for their services strictly on a performance-based shared savings basis. So, for any past overcharges and/or future savings they identify, they split out those savings with their clients on a 50/50 basis.
Here is how the process works. When the client signs up with the Waste Removal and Recycling Management firm, they are electing their firm to pay all their Waste Removal and Recycling vendors directly. Once they sign up for the service, the Waste Removal and Recycling Management firm can analyze their current bills, determine if there are any ongoing billing errors, and follow-up with the vendors that are currently providing services to their clients. From their expertise, they are able to determine if clients are being over-serviced or under-serviced by any Waste Hauler and/or Recycling Company. They can also determine whether clients are paying too much comparatively to other businesses and organizations in their same geographic area. They can then negotiate with the Waste Haulers and Recycling Companies to get the client reduced rates. They can also identify items that clients are currently not getting diverted from landfills and implement cost savings in that area.
Additionally, in most parts of the United States and Canada, Waste Removal and Recycling is deregulated, meaning that there is a choice of Waste Haulers and Recycling Companies. This provides the Waste Hauler and Recycling Management Company with leverage in communicating to the clients’ existing provider that if they do not reduce the clients’ rates, they have the authority to select another service provider going forward. And, even in what are called Franchised territories, which in this case means States like California where geographic locations only have one Waste Hauler, cost savings are still available, because the Waste Removal and Recycling Management Company does business across the Country. And, that Waste Hauler that had been given a monopoly to provide service to a designated City knows that it is in their interest to try to keep them on good terms for opportunities to obtain new customers in other parts of the Country.
There is another hidden cost savings for multiple location clients. If, for example, a business has dozens of locations their Accounts Payable Department is spending dozens of hours reconciling each one of those monthly invoices. That means just the Accounts Payable employee labor cost hourly wages they were incurring alone are substantial. Think about it. For each invoice, the Accounts Payable Department had to log-in each payable, draft a check, address an envelope, stuff the envelope, and then; affix a stamp to the envelope. By engaging the services of a Waste Removal and Recycling Management Company, instead of one bill for each location, they will receive one bill for all their locations in a consolidated manner. They simply pay the Waste Removal and Recycling Management Company directly.
Finally, the Waste Removal and Recycling firms themselves provide their clients with customer service 24 hours a day, 7 days a week, for any issue regarding Waste Removal and Recycling. This makes it easier for businesses and organizations to resolve any service-related issue.
