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Can your Garbage Company Raise your Price After Merging with a Different Hauler?
Do you own a business in the northeast? Have you noticed a considerable increase in your monthly expenses for trash and recycling service over the past year? Did the name of your garbage company suddenly change following a sharp increase in your monthly hauling expenses or vice versa? Have you received a form letter (or one for each location you own) citing “the increasing cost of disposal, fuel, and other factors” to rationalize a rate hike, sometimes in the hundreds of dollars, that appeared on your next invoice?
Although it is commonplace for waste haulers to raise their customer’s prices over time, a series of mergers that happened over the past year in the northeast have caused many business owners to see a sudden spike in their cost for waste and recycling service, in addition to receiving service and invoices from a company they had never heard of, much less signed a contract with. Here is what is going on behind the scenes: the companies who have purchased other vendors in New York, Pennsylvania, and New Jersey have very strict criteria in terms of the profit margins they must make on each account – margins would seem outrageous to most people of sound mind if they knew what they were. For this reason, said company, mirroring some other large haulers in the US, has sent out “profit teams” to single out “underpriced” accounts and bring their pricing into line with the profit margins they are accustomed to making.
Global Trash Solutions has gone head-to-head with this company several times in the past year, as many of our clients used vendors who GTS had negotiated fair pricing with that unfortunately were bought out during the merger. At GTS, we do everything within our power to protect our clients, and because we had negotiated a special arrangement with their vendors before the merger, we were able to protect our clients from what many would consider to be price gouging by the new company. We protected one client in particular from an over $1,050.00 per month increase that the new company was attempting to impose on their nine locations – even threatening to cut off their service at one point when they refused to pay. In fact, we saved this customer an extra $400.00 per month by transitioning them to another one of our vendor partners in their market. At GTS, we have learned the importance of always having a “Plan B.” If your business is among the thousands of companies experiencing fallout from this merger and losing revenue each month, or if you just plain want to save time and money on garbage service, please call us today.
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