You can likely save 10% on your recurring waste and recycling expenses by carefully and critically examining your monthly invoices. In the 18 years we’ve been in business, we’ve found that this is the rate that errors occur on average. How much has this cost you in the past 5 years?
In this article, you’ll learn:
Why errors happen.
What kinds of errors happen.
How they can cost you.
What you can do about it.
The more you know about the billing errors, the more equipped you’ll be to spot them.
Why do waste and recycling invoice errors happen?
There are a couple of different reasons that invoice errors happen. Sometimes they happen when service changes occur at your site. Suppose we learn that you need to reduce your dumpster sizes from 8 yards to 6 yards to reduce costs. It’s possible that your hauler may continue to charge you for the 8 yard dumpsters after your 6 yard replacements are on site. If you don’t carefully check your monthly invoices, you won’t find these mistakes. In the wake of other more seemingly urgent tasks, this effort may seem superfluous. But over time, it’s likely to help you save hundreds if not thousands of dollars on your waste contract.
Other times, your hauler will charge you despite certain stipulations in your contract to the contrary. We recently worked with a client who had about a dozen hotels in the midwest. They had recently signed a new contract that prohibited regulatory fees on their waste disposal expenses. But we found out they were continuing to be charged for this fee - and were paying for it.
We documented the exact amount of overcharges and the months they occurred, then presented it to the vendor. They couldn’t deny the charges or what the contract stipulated. So they agreed to provide several hundred dollars in credits.
You can follow this exact process with your hauler. Hold them accountable when their charges are not in accordance with your contract, and you’ll protect your bottom line.
What kinds of errors can occur on waste and recycling invoices?
As in the case above, you can be charged something that is prohibited by your contract. This often occurs by oversight - we haven’t found hauling companies to be the best at communication between departments. The salesperson that draws up your original contract may not make billing aware of all of its specifications. As a result, the billing coordinator may charge you for fees not in your contract.
Typos are another example of errors. They happen to the best of us, but they’re particularly inconvenienced when they make you overpay. A misplaced decimal can be extremely costly - just ask this client whose waste invoices increased by 900% in one month!
How much can these errors cost me?
Typically, waste and invoice errors will cost you about 5% of the amount invoiced.
Waste and recycling invoice errors will actually cost you in two ways. They can be expensive monetarily, of course. But they can also drain other resources, like your time. In my experience, resolving a waste service issue will take a minimum of two communication touches. This is the case for smaller waste issues, like moving a dumpster from one spot in a parking lot to another, or requesting an additional pickup. I will typically make an initial communication to address the issue, then will follow up to ensure the request has been resolved.
These two communications can take up to an hour, depending on how long I have to wait on hold, and how many people I have to speak to to get the issue addressed. Smaller problems, like a missed pick-up, can usually be resolved by the initial representative I speak with. Other issues like adding a pick-up day or confirming the specifications of a contract term often need to be resolved by speaking to the account manager. Some haulers seem reticent to disclose their direct phone numbers, so it can be a little tricky to get in touch with them.
If the company is one of the few more responsive haulers, only two communications via phone (or email) will be necessary. Unfortunately, this is not necessarily the case with significant billing errors. Depending on the hauler and the significance of the error, it can take months to fully resolve.
If your trash hauler overcharges you by several hundred dollars, it’s likely going to take more than a few calls to rectify the situation. When we fight overcharges on our client’s behalf in the past, it has taken up to three months for the billing cycle to reflect the correction. Your staff may not have this kind of time, which is why it’s a service that an independent waste auditor provide.
What can you do about it?
When it comes to auditing your waste disposal and recycling invoices, there are two best practices.
First, you and your staff need to carefully review your waste hauler invoices. Look for price hikes and inexplicable fees. How different is this month’s invoice from last month’s? Are there any charges that seem high or shouldn’t be there?
When you find these errors, you’ll need to call your hauler and ask for a billing credit for the next invoice cycle. Prepare to be persistent! We have found that many haulers are reticent to provide credits to you that may adversely affect them.
Second, you’ll need to be fairly familiar with your waste hauler contract. Are you allowed to be charged ancillary fees? Does it prohibit price hikes or cap them at a certain rate? Your contract will specify what can and cannot appear on your invoices. Be sure to look for what is there in addition to what isn’t! If you don’t have certain terms included on your contract, you’ll get surprise price hikes, and your contract may automatically renew - all of which can cause overspending.
Want to know for sure how quality your waste contract really is? Use our free Waste Hauler Contract Scorecard - just fill out the form below and we’ll immediately send you a copy!