Money through the operation.
WHAT THE PATTERN IS
Vehicles, crews and disposal paid continuously, with collection from customers lagging.
WHAT THAT PRODUCES
A gap that grows with the number of customers.
WHAT TO CALCULATE
Monthly operating cost before any revenue arrives.
WHAT THE FIXED COSTS ARE
Vehicle finance and maintenance Crew wages Licensing Premises
WHY WAGES SPECIFICALLY
They are paid monthly regardless of whether customers paid.
WHAT TO ESTABLISH
Reserves covering at least a period of operating cost.
WHAT DISPOSAL COSTS
Charges at the destination, per load or per tonne.
WHY IT MATTERS
It is a direct cost per collection and it is frequently underestimated.
WHAT TO ESTABLISH
Disposal cost per route.
WHAT TO TRACK
Revenue per route Cost per route Margin per route
WHAT THAT REVEALS
Routes that lose money.
WHAT TO DO ABOUT THEM
Improve density, reprice, or stop serving them.
WHAT RECYCLING ADDS
Revenue that offsets disposal cost.
WHY
Material recovered is material not paid to dispose of.
WHAT TO CALCULATE
The combined effect: disposal avoided plus material sold.
WHAT TO BE CAREFUL WITH
Depending on commodity revenue.
WHY
Prices move and revenue disappears.
WHAT TO ESTABLISH
That the business works on service revenue alone, with material revenue as improvement.
WHAT TO REVIEW MONTHLY
Collection rate, cost per route and margin.
