Case Study – Garden Center – Waste
Case Study: How a garden center saved over 50% per year on their waste disposal
BENEFITS SUMMARY:
Significantly reduced fees for waste disposal service.
SERVICE:
Risk-free review of waste disposal cost structure and search for cost saving solutions and billing errors.
SITUATION:
A successful greenhouse and garden center with two locations was under contract with a large waste disposal company, but they suspected they were paying too much for the services they were being provided.
ANALYSIS/RECOMMENDATIONS:
We reviewed their current waste disposal service structure, and, since we are independent of all vendors, our cost saving recommendations considered all options in the marketplace –including the current provider. After considering the type of business and waste disposal services they use on a daily basis, we compiled a Value Report that detailed the existing environment and a pre-negotiated future state. The Value Report included several profit-increasing recommendations, which included the current and alternate providers. Because we have structured over 21,000 deals, use proprietary software for analysis and have the negotiation power of a large national organization, we were able to come up with significant cost saving recommendations for their waste disposal services.
RESULTS:
Our client selected our primary cost saving recommendation which included a vendor change, but because of significant early termination fees, decided to wait until the contract with their incumbent vendor expires before accepting the new proposal. Schooley Mitchell also negotiated a lock on fuel rate for the term of the new contract to prevent rising costs. Their contract with the new vendor will provide them with the same size garbage bins and same pickup rate as their incumbent vendor, but at under half the cost. Overall, Schooley Mitchell was able to negotiate for an estimated savings of $3,591.84 per year ($299.32/month), or 55.77%.
