What LA’s Franchise Zones Mean For Waste Haulers
Los Angeles has approved a franchise zone plan for private waste collection, according to Waste360. This means that only the seven haulers that won 10-year franchise rights will be able to service the city, mainly to the detriment of smaller haulers.
As other cities around the country explore this type of system, most notably New York City, there is a growing need for small and mid-sized haulers to develop new marketing strategies for waste management.
LA approved the zones in order to meet environmental goals such as no longer putting waste in landfills, as well as to set transparent and predictable waste and recycling service rates, notes Waste360. Other cities have cited similar benefits.
So what does that mean for waste haulers that don’t win the benefit of servicing these franchise zones?
A marketing plan for a waste management company must now incorporate positive environmental and pricing aspects that align with the civic trends in this direction.
Helping Clients Meet Environmental Goals
If waste management companies want to win new business, they have to be able to offer what the market wants. And the market increasingly wants eco-friendly products and services.
For example, 75% of U.S. consumers said they’d be more likely to buy from a company making a great effort to adopt environmentally-conscious products, according to a 2013 Gibbs & Soell study.
This trend affects haulers in the sense that:
- Businesses are often looking to increase sustainability to satisfy their own customers’ eco-friendly desires. As a result, these businesses will want to partner with waste management companies that can help them with recycling, for instance.
- Some business owners themselves want to buy from eco-conscious companies. They’re consumers too, and knowing that a hauler has fuel-efficient trucks, for example, could be the extra differentiator they need to choose that hauler for waste services.
And this trend could accelerate due to initiatives such as the EPA adding waste tracking to its Energy Star Portfolio Manager, a sustainability platform used in buildings representing over 40% of U.S. commercial space.
So even if a waste company doesn’t win a franchise zone, they can win new business outside these zones for clients that want help meeting their environmental goals.
Is the Price Right?
In addition to sustainability, waste management companies can also win new business with improved pricing.
Yet improved pricing doesn’t have to mean cutting prices. Instead, as the LA franchise zones exemplify, consumers want to have more insight into pricing.
A business can spend as much money and effort as it wants to get potential clients to find them online, but without an ability to easily see prices, there’s a risk that the consumer won’t bother following through to try to figure out what the service costs.
A Forrester study found that 74% of business buyers conduct the majority of their research online before making an offline purchase, so providing more information can help your business stand out to these buyers in comparison to competitors’ websites which lack detail.
Pricing can even become a key component to a marketing plan for a waste management company if the hauler not only touts affordability but also transparency and ease of receiving a quote.
See how Grid Waste can help waste management companies convert more online leads with our automated sales platform that delivers instant price quotes.