Monday, October 11, 2010

10 Tips on Selecting a Recycling Company

By Randy J Miller 



• First and foremost - does the recycling company you are considering service your area? This is important, as a properly structured recycling program can be difficult to operate if a company representative is not readily available.

• Do they have the experience necessary to properly market your materials? Unfortunately strong and profitable markets do not always exist for various recyclable commodities. It is therefore important to contract with a company that is aware of market fluctuations, and has the experience and financial stability suited to endure these market variations.

• Make sure they have a long term history. Many "startup" companies jump in to the recycling business when markets are strong, and there are few challenges. These companies can be long gone when markets do (and will) turn and they are unable to market your commodities.

• Does the company own and operate its own fleet of service equipment? Relying on outside subcontractors to provide equipment such as trailers, transportation, and recycling equipment can be difficult.

• Is the company familiar with and can they provide the proper on site equipment, such as balers, compactors, etc.? Supplying the wrong equipment can create headaches and add to your labor costs with regard to collecting and suitably packaging your recyclable material.

• Make sure the company and its staff has the experience necessary. Demand a list of current clients being serviced by the recycler. If possible visit several to see if they are long term satisfied clients.

• View and tour the recycler's facility. Many recyclers only broker material and do not have a processing facility. This is fine; however it can create problems, and add costs, with rejected loads. It also makes it difficult to handle materials in "less than trailer load" quantities. Also - all loose material processing must be subcontracted, at an additional cost.

• Do they have the ability to collect and market various materials? Again, there are many companies that "specialize" in only one material, such as paper, or specific types of metals. This is fine if you only generate one grade. A large commercial printer, for example, may generate paper, aluminum litho and possibly film scrap. If your recycler only handles paper you will be required to contract with several additional vendors to market the remaining materials.

• Are they offering fair and competitive pricing? Just as you should strive to obtain a fair price for your recyclables, you also need to be aware of companies that are offering considerably more than the nearest competitor. Recyclable material prices are fairly consistent based on individual geographic regions. If a company is offering dramatically more than the nearest competitor, you need to find out why. High prices are sometimes quoted to "get in the door", only to find them adjusted later on.

• Be careful of promises that sound "to good to be true". Many companies will make promises, such as free equipment offers, high pricing, advanced payments, etc., in an attempt to land a new client. These types of deals usually do not prove to be in the best interests of the client. Proper research of the recycling company is in your best interest.

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