Value for Money Cost Per Solution, Never a cost plus Mark Up
The Problems With Cost Plus
The main issue with cost plus is that it motivates waste managers to find the most expensive solution in order to make the most profit. A cost plus system is a mark-up system that adds a percentage on top of the base cost of a waste management solution. This often means that it is more profitable for a waste management company to send all waste to landfill as they can make more money this way. Using a cost plus system will never encourage waste managers to find a better solution for waste. Though the Waste Duty of Care obliges companies to find the most environmentally friendly waste disposal route, it still allows companies to choose what this route is themselves. If there is an economic advantage to a waste manager who sends waste to landfill rather than recycling because they can charge a percentage on top of the landfill tax, many companies will take advantage of this. And, what’s worse is that many companies don’t realise what is going on.
Why Cost Per Solution Works
Cost per solution turns the cost plus system on its head. Instead of making the most profit from the most expensive solutions, our cost per solution system works by incentivising our team to find the cheapest route in order to make a profit. To give you a quote, all we need to know is what sort of waste you have and how much of it there is. From here, we will research the best possible route for your waste, ensuring full compliance with the Waste Duty of Care. With this system, recycling is much more prevalent because our business model is built to make money here. Cost per solution works for everyone. You, the waste producer, will save money because we won’t be charging as much as possible but what is fair for the type of waste you have; we, the waste manager, will be able to offer a much more competitive price.
We believe that cost per solution is the best way to drive innovative waste management solutions and save our customers money, especially over a 5 year frame work.