Hidden Fees in Waste Management: What You Need to Know

I can understand why waste management companies add extra fees. In a competitive market like the GTA, customers have many options and to stand out, companies often offer incredibly low rates upfront. The reality is, most waste companies face similar operational costs, like trucking and disposal fees, and they need to recover these costs somehow—hence the extra fees. A publicly traded waste company also has shareholders to satisfy. So, the common strategy is to attract customers with low rates and then tack on as many surcharges as possible.

As a business owner, imagine you’re approached by a waste management company offering to save you 50% on your service. You sign up, but when you get your first invoice, you notice several additional charges. You check the original price, thinking it was the agreed amount, only to realize that’s just the base rate. Upon reading the fine print of your contract, you discover a clause saying, “The contractor reserves the right to apply surcharges,” and you’re left thinking, “Wow, I didn’t see that coming!”

At Fairview, we do things differently. We don’t charge extra fees. You pay one flat monthly fee with no surprises. Occasionally, potential customers tell us, “ABC company is 20% less expensive.” Our response? “Their surcharges will likely end up being 30% higher.” Just wait until you see a fuel surcharge, bin overload fee, or recycling contamination fee—the list goes on. And if a waste company isn’t charging extra fees right away, just wait—chances are, they’ll be coming soon.

Here’s a list of popular hidden fees and why you might be charged them, with some companies applying as many as six. Keep in mind, some companies may invent excuses or vague reasons to charge you these fees, even when they’re not entirely justified or transparent.

1.     Administrative Fee: This charge covers the cost of processing and managing services. It’s often a fixed amount or a percentage of the service cost. Shouldn’t this be built into the base price?

2.     Fuel Surcharge: This additional fee helps companies offset fluctuations in fuel prices. Since fuel costs can change frequently, businesses like waste management add this surcharge to cover higher fuel expenses without adjusting their base rates. Admittedly, this is the only surcharge we somewhat agree with, especially considering the volatility of gas prices during COVID. However, I believe this surcharge should still be included in the overall cost.

3.     Carbon Emissions Recovery Surcharge: A fee that companies may add to offset the environmental impact of their operations, particularly related to carbon emissions. For example, a waste management company might apply this surcharge if they’re investing in greener trucks or carbon offset programs. This charge helps fund sustainability initiatives.

4.     Environmental Fee: This charge covers expenses related to environmental management, disposal, or compliance with regulations. It’s meant to support the company’s efforts to stay environmentally responsible.

5.     Bin Maintenance Fee: A fee applied to cover the costs of maintaining, cleaning, and servicing the waste bins provided to customers. This ensures bins are kept in good condition, cleaned when necessary, and replaced or repaired if damaged.

6.     Sustainability Fee: This fee helps fund a business’s efforts to promote environmental sustainability. It’s typically used to support initiatives like reducing carbon emissions, recycling programs, using renewable energy, or adopting greener technologies.

7.     Bin Overload Fee: A charge applied when a customer’s bin exceeds its weight or volume limit. This typically happens when customers overfill the bin or add items that are too heavy or bulky for safe handling.

8.     Recycling Contamination Fee: This fee is charged when non-recyclable items are placed in a recycling bin, contaminating the entire load. Since recycling programs rely on sorting specific materials, contamination can ruin the entire batch, leading to additional handling or disposal costs.

As you can see, there are many ways a company can add on surcharges. Of course, the easiest and most fair way would be for every company to charge a flat rate, but unfortunately, they don’t. The market is so competitive that the only option is to lower rates and hope to sneak in the extra fees. While we may not always have the lowest rate on paper, you’ll definitely save money in the long run with Fairview—no surprises, no hidden costs.