Amazing but true. We just reviewed the current waste/recycling costs for a small property near Lawrence and Sheridan Road in Chicago, reflecting how Republic Services up almost 225% over the last few years. The board entered into an agreement in November 2021 for a total of $118/month. They are now paying just under $400/month for the same service. That’s about a 225% increase in about 3.5 years.
How can this be possible? We can only guess but it’s a testament to the industry practice of bidding low for the work and then quickly raising rates. With Republic Services up almost 225%, it’s clear that the cost adjustments are significant.
How do you protect yourself from this kind of runaway price increase? Write in an annual price increase cap in your contract. Also, don’t let that Fuel/Environmental Recovery Fee become variable. Ask your waste hauler representative to cap it at a certain percentage to prevent situations like Republic Services up almost 225%.
Want to learn more? Read a previous blog post here