Getting paid in a difficult sector.
WHY IT IS THE CENTRAL COMMERCIAL PROBLEM
Waste collection is a service customers value only when it stops, and non-payment is widespread.
WHAT THAT MEANS
Collection rate determines whether the business works.
WHAT TO ESTABLISH
Payment before or at the point of service, where possible.
WHY
Collection after service is substantially harder.
WHAT MODELS EXIST
Prepaid: customers purchase collection in advance
Monthly subscription, collected in advance Billing in arrears Bag or sticker systems, where the container itself is the payment
WHY PREPAID MODELS WORK BEST
They remove the collection problem entirely.
WHAT TO CONSIDER
Selling prepaid bags or tags that must be presented.
WHAT THAT ACHIEVES
Payment precedes service, and crews need not handle money.
WHAT TO ESTABLISH ABOUT NON-PAYMENT
What happens, and apply it consistently.
WHY CONSISTENTLY
Selective enforcement teaches customers who can avoid paying.
WHAT TO DO
Suspend service, after notice.
WHY IT IS THE STRONGEST LEVER
Waste accumulates visibly.
WHAT TO ESTABLISH
Clear notice before suspension.
WHAT TO TRACK
Customers served against customers paying Days outstanding Collection rate by area
WHAT LOW COLLECTION IN AN AREA INDICATES
That the area may not be viable to serve.
WHAT TO DO
Establish whether pricing, model or the area itself is the problem.
WHAT TO ESTABLISH FOR COMMERCIAL CUSTOMERS
Terms, limits and monitoring.
