Posts Tagged ‘waste’

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.

What’s an easy way to increase your company’s bottom line? Reduce this cost!

May 10, 2010

And that is, the cost of removing the waste and recyclables your company generates.  And something we’ve been noticing lately is that we’ve been able to realize a large amount of savings by some of our clients who’s trash hauling service agreements have come up for renewal. 

As an example, we were hired by the Hyde Park Golf and Country Club here in Cincinnati in 2006.  Among other changes, we implemented a recycling program, and changed the trash pickup schedule to ensure the Dumpsters were closer to capacity before they’re emptied (they’re charged the same amount wether the containers are nearly full or nearly empty).  We also negotiated a new service agreement with more favorable terms and lower pricing.  In all, we saved the club 47 percent annually.

A couple of months ago, the service agreement came up for renewal.  When we got to pricing, we negotiated for lower rates, and the hauler agreed to lower prices even more…by more than 10 percent!

Needless to say, the club is very happy.  They’re confident in knowing that their waste and recycling hauling needs are being met, and with the same company they’ve used for years.  They also know that they’re paying the lowest rates possible.

Is your company in the same position?  If you’re unsure, don’t feel bad.  Most companies assume the waste haulers will take good care of them, and they usually do.  But it’s kind of like the fox guarding the henhouse – they deliver good service, but the pricing is way out of line compared to what it should be.  The invoice arrived every month, and as long as there aren’t any issues with overflowing Dumpsters or malfunctioning compactors, the hauler is paid.

We can audit your company’s waste and recycling system and find inefficiencies that drain money directly off of your bottom line.  We work with your staff to help streamline the disposal of your trash and recyclables, and to manage the cost of this necessary service.  Our clients see cost reductions of between 30 and 50 percent on average, risk-free.  There’s no up-front fees.  The way we get compensated is by simply sharing the savings our work produces.  If we can’t find any cost savings or credits, you don’t owe us anything. 

Want to see if we can produce the same, or better results with your operation?  Contact us today to set up a risk-free audit for your company!

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.

An easy way to add instant value to apartment properties? You may be surprised!

March 15, 2010

The recession has had a devastating effect on property prices – both residential and commercial. Estimates of price declines in some coastal markets are as much as 50% or more. And considering that many individual apartment investors are counting on selling these properties to fund retirement accounts some day, suddenly the erosion of the value of these buildings has many investors more than just a little worried. Corporate owners and managers are just as beat up. Rent reductions to attract (and even retain!) tenants have resulted in lower gross rental income, which means smaller or no raises for the staff, and possibly layoffs. Capital improvements are at a virtual standstill.

While the worst seems to be behind us, it’s still going to be an uphill battle to prop up prices to where they were in the mid-2000s. Operating expenses have already been cut to the bone. Or have they?? One expense that every apartment incurs, but that always seems to be overlooked, is trash and recyclable removal. Paring this expense while maintaining, if not improving, the efficiency of the current waste and recyclable hauler can instantly add value to an apartment portfolio while improving net operating income.

As an example, let’s say a 58-unit aprtment building is valued at $1.7 million, has a cap rate of 10%, and net operating income of $170,000. Assuming the building is 66% occupied (it’s been a rough economy!), the 38 units will each produce about 1.5 cubic yards of trash and recyclables per month. Let’s say that those 57 cubic yards are being collected by a reputable hauler in two 8-cubic-yard Dumpsters once a week at a rate of $550 per month, which is not an outlandish price, but certainly not where it should be!

Let’s assume that a reputable solid waste management consulting company (such as Waste Auduting Consultants!) is hired to help increase efficiencies, thereby lowering costs. And let’s assume that the costs can be lowered by 40% to $330 for the exact same service (WAC usually reduces costs to clients by about 30 to 50% without having to change waste haulers). What is the net effect? NOI has been increased by $220 per month ($2640 annually). The value of the property has gone up a little more than 1.55%, or $26,400, instantly (the price of an apartment equals the NOI divided by the cap rate).

What does this cost the owner? We simply share the savings generated by our work. So really, the value of the property went up about 0.775%, or $13,200. Still not bad for not having to lay out any cash at all, and for not having to make any capital improvements. And if this is just one building in a portfolio, the same results can be accomplished simultaneously at all locations – both here in the Greater Cincinnati area, and throughout North America!

If you’d like to see if we can accomplish the same, or even better results, with your properties, feel free to contact Waste Auditing Consultants. We would be happy to speak with you and answer any questions you may have about how our services can help you reach your goals.

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.