Waste management is essential, but not all garbage companies are the same. Many consumers and business owners are not aware that some garbage companies charge hidden fees on top of their flat-rate fees. Making informed decisions about waste management starts with understanding garbage companies’ fee structures.
Flat Rate Fee
A flat rate fee waste management company charges you one flat rate to dispose of your trash. The pricing is transparent, and no hidden fees are tacked on to the bill. Pricing transparency should outline all the costs involved in managing waste. However, some garbage companies are not transparent about their pricing structure.
Hidden fees are unexpected charges that can inflate your bill. These potential hidden fees are listed below. Before committing to a waste management service, you should inquire about the fee structure and potential additional charges.
1. Fuel Surcharges
There is no doubt that the fuel cost constantly fluctuates. Some companies have figured out a way to offset the costs of fuel charges by passing off the charge to the consumer. Fuel surcharges can range considerably. It is a hidden fee that you may find yourself responsible for. Some fuel surcharges are reasonable, while others are outrageous.
You must ask your garbage company how these charges are calculated. Many companies use a percentage of the base rate to calculate fuel surcharges. For example, the percentage used to calculate the charge can be 5% of the base rate. That means you will pay 5% more than the flat rate in fuel surcharges.
The cost of fuel surcharges can be significant over time. For example, if you pay $30 a month for garbage pickup services and the percentage of the base rate is 5%, you are paying $1.50 extra every month, and that is not the only hidden fee you may be paying.
2. Administrative Fees
Some companies will charge administrative fees not listed on the original service contract. How these fees are calculated can vary widely. For example, some companies charge a flat fee of “x dollars per month” to cover administrative costs. Other companies charge a percentage of base rate fees.
Ultimately, the fee structure varies, as does the hidden cost. Some companies will even charge you for billing processing. The fees can add up quickly. A proper flat rate fee company doesn’t charge you to run their business.
These fees can cost as much as one dollar per month, with additional charges for specific administrative tasks. For example, you may be charged a fee to ensure the company adheres to local rules and regulations. It is a hidden fee that you should ask your garbage company about. Unless you ask, these hidden fees are rarely disclosed at the start of service.
3. Environmental Fees
Some companies will also charge you an environmental fee. This is another fee that is often not talked about unless you ask. An environmental fee supports the company’s environmentally friendly disposal practices. These vague fees may cover the cost of compliance and other activities for which the garbage company is responsible.
The environmental fee may be a percentage of the total cost of service. This fee is not regulated by any agency and can be at a rate the garbage company feels is appropriate.
Hidden fees can substantially increase the cost of garbage pickup services. Because these fees are not typically disclosed at the beginning of services, many consumers are surprised when their bill arrives. Overpaying for garbage services is not something anyone should have to do, especially when they are not aware of all the hidden costs.
Want to avoid all these hidden fees altogether? Learn how choosing a local trash service gives you upfront pricing and real reliability.
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Wrap-Up
Trash pickup is an essential service. According to DoSomething.org, every person generates about four pounds of trash daily and one and a half tons annually. Garbage companies play a vital role in ensuring trash is appropriately managed. However, that should not mean you have to pay hidden fees. Learn more about honest flat-rate pricing to keep your waste management needs affordable.
Call us at (225) 612-2477 today. We offer services with upfront pricing and no hidden fees.
