Most businesses treat waste hauling the same way. It’s an expense that shows up every month, gets paid, and never gets questioned.
But when they finally decide to do something about this ever-rising cost, they come across two different options that sound similar: waste brokers and waste reduction consultants.
While they both might be offering to help you cut trash and recycling costs, they make money in opposite ways. And the difference determines whether you’ll actually save money.
What a Waste Broker Actually Does
Waste brokers sit between you and the hauler. Rather than you having to reach out for quotes individually from every hauler in your area, a broker shops these quotes on your behalf.
In some cases, brokers can even act as a single point of contact even after you’re set up with a waste removal company. If you have problems, billing issues, missed pickups, or need to make service changes, you can contact your broker and they’ll relay your needs to the hauler.
Here’s the part that matters most: waste brokers get paid by taking a cut of the hauler’s revenue or by marking up the rate they negotiated and pocketing the spread.
So if a hauler increases your rates over time, a broker isn’t incentivized to do anything about it. Since they take a percentage of your total bill, they get paid more as your costs increase.
What a Waste Reduction Consultant Does Differently
A waste reduction consultant focuses on cutting costs with your existing hauler. This can happen through multiple approaches.
Consultants audit your statements for bogus charges and inflated rates being charged by your provider. They also compare your service levels against actual pickup needs. Once those savings are identified, they negotiate better terms directly with your waste hauler on your behalf.
The biggest difference here is how consultants are compensated. Your cost reduction consultant shares a percentage of your savings.
This means that your consultant is incentivized to find you maximum savings.
Where the Two Roles Overlap
Both will tell you that they’ll save you money on waste management, and that’s where businesses get tripped up.
The question to ask is how those savings happen and where the savings actually come from.
Brokers get you a better price on garbage, typically by switching haulers. Consultants negotiate better terms with your existing provider by eliminating fees you shouldn’t be paying and addressing your actual service needs.
Read More: 6 Industries With the Highest Trash Removal Costs
Hidden Costs of Only Working With a Waste Broker
The problem with waste brokers is that they’re only trying to get you a lower rate than what you’re paying right now. This doesn’t address the root causes of overages, and it doesn’t protect your savings long-term.
For example, they might find you another waste hauler that can give you the exact same service for 10% less than what you’re paying today. But if you’re still paying for pickups on half-full dumpsters or being charged excessive contamination fees, you’re not even close to maximizing your savings.
These problems get amplified over time. Because when your hauler raises your rates, your broker has no incentive to push back because they’re taking a percentage of your total bill.
Most brokers tell you they’re going to find you the cheapest rate. But what they’re actually doing is setting you up with a hauler that’s going to be the most profitable for their own interests over the lifetime of your contract.
How to Tell Which One You Need
It all comes down to your specific situation, and in some cases, you can even use both.
Brokers are good for shopping rates. It’s similar to working with a local, independent insurance agent that’s contracted to sell you products from multiple carriers. They can source and compare contracts and services from providers, and then help you determine the best option to go with.
Cost reduction consultants are better for securing savings and protecting them long-term. Their interests align directly with yours, and they negotiate better rates on your behalf.
If you want to keep your existing hauler but pay less, go with a reduction consultant. If you’re positive you need a new hauler and want to shop rates in one place, a broker can help.
Even if you decide to work with a waste broker, a cost reduction consultant can still help you save money on trash and recycling. Just because the broker gets you a lower rate from another provider, it doesn’t mean that you’re paying as little as you should be.
There’s likely still savings to be found either in optimizing your services or by eliminating fees you shouldn’t be paying.
Final Thoughts
A cheaper invoice and the lowest total cost are not the same thing.
Brokers can be helpful in getting you a better price on the waste you generate through another hauler. But a reduction consultant ensures you pay the lowest possible price on trash removal, regardless of the provider.
And when your rates climb over time or new line items get added to your invoice, consultants will be there to audit their legitimacy and get bogus fees removed. Whereas a broker will be happy to see extra fees imposed by your hauler because it puts more money in their pocket.
If you think you’re overpaying on waste removal or just want a second opinion, contact our team here at the Cost Guards. We only get paid if you save money, and you don’t have to switch haulers.