Do Lower Prices Mean Lower Levels of Customer Service

**This blog is written by a property manager, who had correspondence with their waste removal representative after hiring a waste broker to lower their waste expenses. 

People are always searching for discounts and coupons on purchases, and fixed costs.  Price shopping is a huge necessity when running a company, especially a property.  So how do you know when you are receiving the best available price?  And how do you know you are still receiving excellent service with this discounted price?

People will argue that a cheaper price means sub par customer service.   According to my waste removal representative, when I enlisted a waste broker to lower my costs, I sacrificed my customer service and caused my property to incur extra charges and fees.  This is an excerpt from the email I received from my waste removal representative.

 “How does a Broker know what a waste removal company’s cost are? Our company invests hundreds, thousands, and millions of dollars to provide one stop solutions to any industry that needs waste removal services.

Moving to a broker you will be losing a lot of influence on your properties with service level. They are going to cut services to make it look like they are saving you money. Then when you have a service problem the PM has to call the broker, then the broker to us and then reverse to get a resolution delivered. Often time brokers promise low rates but sacrifice customer service levels they can’t provide.

When haulers have to sacrifice rates you start seeing more and more fees because we have to recover our costs.“

Comparing what my waste removal representative said and the broker contract there seems to be several discrepancies.  For instance the representative states that I will start to see more fees in order for the waste removal service to cover costs, yet the broker contract states that my invoices will be audited every month to ensure 100% accuracy due to extra costs and fees added by the waste removal service already.  The representative is also concerned with the level of service I will receive by enlisting a waste broker. He believes that in order for me to make a service request, or if I have any issues, I must call the broker’s customer service representative, who then calls the waste removal service to handle the issue. However, the broker states that they do not wedge themselves between me and my vendor. The broker simply acts as my agent to right-size the pricing, audit my bills monthly and create efficiencies in the logistics that result in savings.

So if the broker is ensuring I am not charged any extra fees, and my monthly service is substantially less with the same level of customer service, why would I not use a waste broker?

The arguments that the waste removal representative put forth were not in accordance with the facts I received from the broker stated in their contract.  The waste removal representative only pushed me further into my contract and savings with the broker.

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One thought on “Do Lower Prices Mean Lower Levels of Customer Service

  1. Pingback: Tell Us- Does Lower Prices Mean Lower Levels of Customer Service | Refuse Specialists

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