Posted by: Ian Hopping
A client recently asked me to take at look at his waste and recycling costs. Not the most glamorous of projects admittedly, but then Cost Management is rarely, if ever, glamorous. I’ve never yet been asked to travel around the world to review a billionaires’ fleet of luxury yachts, or Formula 1′s expenditure on champagne, but I live in hope. Rooting around in a car dealerships’ wheelie bins will have to suffice for now.
My client had been with the same contractor, a local company, for many years. Their service had always been reliable, but it was an area the client hadn’t reviewed for some time and prices had risen under the cover of the annual Landfill Tax increase. So, I immersed myself in my clients’ waste for a while. Not literally of course, although I did take a look inside his wheelie bins early one collection day to check they were full.
The analysis, and the tender I subsequently carried out, showed the client was paying more than he needed, for more wheelie bins than he needed, and introducing better recycling practices would reduce costs even further. When presented with the results the incumbent contractor was happy to re-negotiate the contract (not that there actually was a contract, they had lost it – perhaps it had been put in the recycling by mistake?) and the client is now benefiting from a £4500 pa reduction in his waste costs (a 51% saving) and continued good service.
My client was so pleased with my work that he’s now asked me to review his spending on floor mats, oil wipes and work-wear for his mechanics…still not very glamorous, but it’s a step up from waste and recycling!
If you don’t have the time or the specialist knowledge needed to look at the essential costs of your business then please get in touch for a free Business Health Check.