If you are a small business owner I’m betting that you’ve looked at your monthly trash invoice at one point and muttered to yourself “How did my bill increase again?” Then you thought, “How long will I be on the phone this time fighting yet another price increase? I wish I could just cancel your service??”
You are not alone. Business owners may know their business inside and out.. but they know little about waste removal contracts. Guess what, many of the trash hauler’s salespeople know this and even count on it! That’s how they get smart savvy business owners to sign contracts that allow the hauler to raise their price for any reason, at any time, and as often as they would like.
They make sure you can’t cancel service without a huge penalty and your contract auto-renews unless you send written notification usually by certified mail with receipt and that notification must be in your cancellation window- which is typically only 90 days long and every 3 years.
The Trash Haulers have had their lawyers turn a simple agreement into a very sophisticated and one sided contract. Here is an example from a clients old contract concerning cancellation:
*Customer acknowledges that the actual damage to company in the event of termination is difficult to fix or prove, and the foregoing of liquidated damages amount is Reasonable and commensurate with the anticipated loss and is an agreed upon fee And is not imposed as a penalty…
What does this mean? It means the Hauler can’t prove how a business canceling their contract before the term expires negatively affects the Hauler. That would mean if a business owner challenged the damages charge in court the Hauler may not win… So, they simply added verbiage saying the business owner agrees to pay liquidated damages as a fee in the event he/she wants to cancel their service in the future….
The Hauler will argue that A. You should have read and understood your contract before signing B. We give you a penalty free way to cancel in our window clause C. There are positives to having contracts between business and Haulers. All true.
So what does a business owner do when they find themselves in a one sided trash contract? There’s three options.
- Accept it as the new normal. Continue to receive price increase after price increase & devote the countless amount of time it takes fighting them and let your contract auto-renew until the end of time.
- The business owner attempts to handle the situation on her/his own. Argues with hauler to get the most current contract, learns which terms and clauses are unfair, keeps track of dates to release from auto-renew, and–once in the cancellation window– notify the hauler in writing by certified mail, possibly requiring proof of receipt. They must also at the same time look for a new hauler and negotiate a fairer deal and run their business. Not impossible, but difficult, time consuming, and frustrating.
- Hire an expert to help. Someone who is an expert on waste removal services and the contracts they require.
The Trash Consultant works with small to medium business owners who are located in the New England area to assess current or new waste removal services. With over a decade of industry knowledge, I personally evaluate a business’ current waste solution(s), recommend different service levels, container types, address other issues that may exist. I will examine any existing contract’s terms and clauses, provide an in-depth explanation of the contract, and execute the steps that are needed to successfully stop the current contract from auto-renewing. I will personally negotiate on your behalf with several reputable trash service providers in the area and present you with the most favorable agreement for your business(es).