You’re overpaying on your waste by 20-40%, and you don’t have to. In the 18 years we’ve been in business, we’ve found savings for multifamily complexes over 90% of the time. Translation? You’re likely sitting on thousands of dollars worth of savings.
This article will show you how exactly you’re overspending, and how you can start saving. We’ll go over:
The more you know about your hidden valet problems, the better equipped you’ll be to find cost-cutting solutions.
Valet services are doorstep trash pick-up. Residents in a multi-family complex leave their trash in a receptacle outside their door, and a valet employee removes and disposes of it.
Different locations will have different frequency needs. Some will only offer valet waste once a week; others offer it every day during the week.
Most vendors will service your location at night so that your residents aren’t disturbed - and so they have time to place their trash outside their door.
These services have become increasingly popular in the last decade. Taking the trash out isn’t something most people enjoy, so valet services are a valuable added amenity for residents.
When we complete a waste audit for a multifamily complex, we find the answers to these questions about their valet waste services:
If the answer to any of these questions is yes, you’re likely overpaying on your waste services. Below, we’ll go over how in detail.
If your terms are longer than three years, you have fewer opportunities to review other area pricing. We limit all client contracts to three years instead of the more typical length of five years. Suppose you’re paying $12 per door for five days a week service on a unit with 100 doors. That means that each week, you’re paying a base rate of $1200, or $4800 every month. Over the course of a five-year contract, you’ll pay $288,000.
But suppose you have a three year contract, and you partner with us right before that contract ends. The first thing we would do is terminate the auto-renewal clause, which lets us keep your current provider while looking for better pricing options in your area. Then, we’d get a few bids from service providers. Let’s assume we find one that provides a rate of two dollars less per door - $10. For the three year contract with the cheaper vendor, you’ll pay $144,000, or $4000 each month.
If you were stuck in a five year contract and not able to sign a new three-year contract with the new vendor, you’d overpay by $115,200! In other words, you’d be stuck at the rate of $4800 every month. And instead of being able to switch to the new provider, you’d be forced to pay $57, 600 each year for an additional two years!
The bottom line? Shorter term on contracts means we have more opportunities to find savings. It gives us the chance to make sure your rates are equitable, and it minimizes your odds of overpaying. (This is also true for your waste contracts as well!)
Providers often overcharge you because they can. Many multi-family management companies don’t evaluate the valet invoices they receive, or they just don’t know how to ensure their contract is in their best interest.
Rates can increase as much as 1-2 times a year! Every so often, you’ll see an uptick in the rates listed on your invoice. It can be as little as 5%, but it can also be much more. But even a 5% increase compacts over time! If you’re charged an extra $20 each month during a five year contract, you’ll overpay by $1200!
We recently worked with a multifamily developer/manager who offered valet services at their properties. The WCI Project Manager noticed that the price per unit seemed to be awfully high. We were able to introduce a new vendor who was able to save them $28,800 every year at just 3 properties!
If your valet services suddenly start missing days of service, you need recourse. There must be consequences in place in your contract if your provider consistently does not provide quality service.
If you don’t have a provision for poor service in your service agreement, you’re leaving yourself open to persistently unresolved issues. You need to know that if your provider consistently misses entire floors or forgets to run the compactor, you can terminate the contract with no penalty. If you don’t have this clause, you’ll likely have to pay a contract buyout in order to end the contract, which usually entails paying several thousands of dollars.
Having this provision in your contract will save you this buyout fee, so it’s absolutely critical to have it.
Many service providers will tack on additional fees that have little or nothing to do with the actual cost of service. If your contract doesn’t specify that these fees are prohibited, they can charge you for them.
Some additional fees might include an administrative fee, or an overage fee.
This is another way to protect you and your residents from unexpected price hikes. You can dictate when and by how much the vendor can increase prices.
We expect that service rates will rise over time, but we also know vendor’s proclivity to raise prices as they see fit. As a result, we will ensure our clients’ base rate stays the same for the first 12 months of a contract and is then capped at a certain percentage for years two and three. This allows our clients to budget with incredible accuracy. You’ll know when to expect price increases and by how much every year.
If your rates are too high, you may be getting overpriced services. You could likely be getting the same services for less - in some cases, much less! When we recommend switching valet services, we calculate your contract buyout fee versus the amount you’ll save with a cheaper service.
Because we’ve been in the waste industry so long, we have relationship capital with vendors who price their service fairly and provide high-quality service. We know who the best service choice will be based on your location and your unique needs. We do all the heavy lifting of getting bids and evaluate option - and not just during your initial contract bid. We do this repeatedly, prior to every valet contract’s expiration. So we know for sure that you’re always getting the very best pricing available to you. Not just right now, but for the duration of your partnership with us.
If your current vendor is truly awful, their services are not worth your time or money. If they have great rates, but their porters consistently “forgets” to service entire buildings, that’s a problem. If they repeatedly leave a trail of garbage down the halls, that’s also unacceptable. (Both of these things have happened to our clients). When these issues happen time and time again, you’re effectively overpaying your vendor because you’re paying them twice. First, you’re paying them for their sub-par services. But you’re also paying your staff to handle the steady stream of complaints this vendor is eliciting. No company’s service is worth that.
As industry experts, we take over all service issues on behalf of our clients. We document as need be and get resolution for each and every issue that arises. We often prove to be much more effective advocates because of our industry knowledge. We know who to talk to, and how to hold vendors accountable to contract specifics. With us, service issues are one less thing for you and your staff to worry about.
Simply put: without professional oversight of your waste management, you’ll likely overspend. But you don’t have to. Our clients have found reliable solutions and consistent savings after partnering with us, and you can too.
You need a waste ally to proactively prevent valet issues and overspending and protect your savings. What you don’t know is costing you.
You’re likely being charged at rates that are too high because your contract ensures that your rates will steadily increase, unchecked. You may have the most expensive service provider in town, and you may be locked into a contract that has truly terrible terms. Can you afford not to know for sure how much you’re overpaying?
Sign up for a free consultation to talk about your options!
