Archive for June, 2010

Don’t pay the “Stupid Tax”

June 6, 2010

We all want to pay less in taxes.  But sometimes we pay a tax that no one in any state capital or in D.C. has ever signed into law.  It’s called the Stupid Tax, and sometimes this tax can be very costly, and sometimes, we don’t even know we’re paying it.  Sometimes, we’re just stupid.

The day before any business opens, the owner no doubt is thinking “I can’t wait to start selling (or manufacturing, or leasing) _______ (fill in the blank with whatever that person’s business is going to be marketing).”  Same thing goes for new hires at established companies.  Whatever widget or commodity their employer hawks, newbies can’t wait to start helping to do their part to get them sold or made.  The focus is obviously on the end product, the revenue, and the bottom line, as well it should be.

Of course, one of the last things that come to mind for many businesses, new or established, is disposal of the solid waste and recyclables that’s produced in the income-generating activities.  A simple phone call to a local waste and recycling hauler and you don’t need to think about it any more.  Or so it seems.

This is where the Stupid Tax comes into play. 

We’re all guilty of paying Stupid Tax.  You, me, everyone we know.  Remember that car you bought back when you were a lot younger and perhaps a little more naïve and equally less endowed in the wallet?  It was supposed to be something reliable enough to get you from point A to point B, but it turns out that the brakes needed to be replaced, it leaked oil, and it gulped gas making you wish that you had your own private refinery in the back yard.  It somehow sucked money directly out of your pocket all of the time.  Remember that car?  I sure do!  And that’s just an example of a low-cost Stupid Tax.  Ever buy a rental property that didn’t pan out?

So back to our business example.  It now has garbage and recyclable pickup service, and everything seems to be fine.  Revenues are expanding, as are profits.  There’s never an issue with the garbage.  They come and empty the Dumpsters/compactors/rolloffs and send an invoice, which is paid without question.

But here is where many businesses fail to see potential bottom-line leaks.  The waste hauler is doing a great job on the surface, but there are many areas that can be major sources of inefficiency, and thereby more cost.  One is by simply over-servicing the client.  Scheduling pickups of Dumpsters too frequently so that they’re not coming anywhere close to the full mark, particularly if a business is cyclical in its trash production.  Another is by giving unfavorable rates for their service regardless if the equipment used is Dumpsters, compactors, or rolloffs.  And something that businesses will do to themselves to sabotage their efforts to curb costs is to not fully realize the advantages of recycling.  Likewise, not understanding all the terms in the waste hauler’s service agreement can lead to artificially high rates over time (courtesy of a little something called an auto-renew clause which automatically resigns existing clients to new service agreements at higher rates, even if the hauler’s expenses have decreased).

Having a trusted source independent of the waste hauling company come in to audit the waste and recycling system can be very beneficial.  Our company prides itself on helping clients increase profits by reducing costs an average of 30 to 50 percent.  That’s a lot of Stupid Tax not going out the door.

Our services are risk-free.  There are never any up-front fees, and if we can’t find any cost reductions or credits, no money is due to us.  And when we do get paid, we simply share the savings that our work generates.  It just doesn’t get any better than that!

Small, local companies like Cedar Village retirement community and the Hyde Park Golf and Country Club, as well as large, multi-location corporations like American Airlines, Winn Dixie grocery stores, and the McDonald’s corporation have benefited from the types of services we offer.  When you’re ready to “pay less taxes”, we can help you, too!

Trip Topken is the president of Waste Auditing Consultants, the premiere solid waste management consultants in the Greater Cincinnati area. An affiliate of Environmental Waste Solutions, WAC can help any company spending $400 to $375,000 per month on waste and recycling. Savings of 30 to 50 percent are normal, but not guaranteed. WAC, in collaberation with EWS, can simultaneously produce results at all locations across North America. No up-front fees are ever due, and WAC simply shares the savings its work generates. Learn more about Waste Auditing Consultants here. You can contact Trip at 513-398-2117 or email trip@wasteac.com.

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