Cost Avoidance Analysis*

Steps in a cost avoidance analysis

  1. Assess Total Current Waste Disposal Costs
  2. Assess Total Proposed Waste Reduction Costs
  3. Assess Cost Avoidance Effects of Waste Reduction
  4. Assess Revenues and Other Benefits from Waste Reduction
  5. Summarize Cost Avoidance Analysis for True Economic Picture of Waste Reduction
    1. Assess total current waste disposal costs
      Total Waste Costs = A + B + C + D
      • A = Waste Fixed Assets (e.g., dumpsters, rolloffs)
      • B = In-House Waste Handling
      • C = Hauling Costs
      • D = Disposal Fees (tipping fees)
    2. Assess Total Proposed Waste Reduction Costs
      Total Waste Reduction Costs =E + F + G + H
      • E = Recycling Fixed Assets (e.g., balers, bins)
      • F = Recycling Operational Costs (material handling)
      • G = Recycling Hauling Costs
      • H = Process Modifications or Other Changes
    3. Assess Cost Avoidance Effects of Waste Reduction
      Total Costs Avoided =I + J + K+ L
      • I = Avoided Waste Fixed Asset Costs
      • J = Avoided Waste Hauling Costs
      • K = Avoided In-house Waste Operations Cost
      • L = Avoided Disposal Costs
    4. Assess Revenues and Other Benefits from Waste Reduction
      Total Revenue and Other Benefits = M + N+ 0 + P
      • M = Revenues from Sale of Recyclables
      • N = Value of Tax Incentives for Resource Recovery
      • o = improved Efficiencies in Production
      • P = Reduced Purchases and Inventory Costs
    5. Summarize Cost Avoidance Analysis for True Economic Picture of Waste Reduction
      • + Current Waste Disposal Costs
      • + Proposed Waste Reduction Costs
      • - Costs Avoided from Waste Reduction
      • - Value of Revenues and Other Benefits
        ____________________________________
        Net bottom line effect of waste reduction efforts

    Typical solid waste charges by haulers

    An understanding of the general cost of solid waste services to businesses and industries can be critical to helping them explore waste reduction options. Source reduction and recycling can help business or industry reduce the number and/or size ofdisposal containers it rents or owns, and can help reduce the number ofpickups or hauls it needs for disposal of wastes. Reduced disposal charges can help them cover expenses related to waste reduction (such as the cost of a baler).

    The following sheet shows "ballpark" figures for typical solid waste charges by private haulers to commercial and industrial clients. Actual charges depend on local conditions, competition, level of client demand, and local tipping fees.

    Charges are broken down here by four items of cost: Monthly Rental, Pick-up or Per-dump fees, Hauling fees, and Tipping fees. Haulers generally charge all itemized costs as a single billed fee per month.

    Monthly rental of containers

    Container size/type
    Average monthly rent
    4 cubic yard front-loading box
    $15
    6 cubic yard front-loading box
    $15
    8 cubic yard front-loading box
    $20
    30 yard roll-off container
    $60
    40 yard roll-off container (open-top uncompacted)
    $60
    40 yard roll-off container (compacted, including compactor)
    $275

    Pick-up (per dump) charges - monthly total charges (not including tipping fees)

     
    Dumping schedule
    Container size
    Once per week
    Twice per week
    Three times per week
    4 cubic yard front-loading box
    $40
    $70
    $80
    6 cubic yard front-loading box
    $60
    $70
    $80
    8 cubic yard front-loading box
    $80
    $70
    $80

    Hauling charges

    Large, bulky containers, such as compacted or uncompacted rolloffs, are charged for each time they are hauled to a disposal facility.

     
    Range of monthly costs to facility (four weeks per month)
    Typical hauling charge
    Once per week
    Twice per week
    Thrice per week
    $75-120 per load
    $300-480
    $600-960
    $900-1,440

    Hauler will append the tipping fees for each load to the charge; tipping fee charges are not included here.

    Tipping fees

    Haulers will also need to cover the costs of tipping fees in their charges. For roll-off loads, the direct expense of the tipping fee at the scale is appended directly to the bill. For front-load containers, haulers figure around 100'to 120 Ibs. per yard in the box. Thus they would charge 100 Ibs x yard size of container x weekly number of dumps x 4.33 (average weeks in a monthly), all divided by 2000 (lbs in a ton) x local tipping fee.

    Other expenses

    Container purchase prices (approximate)

    4 cubic yards
    6 cubic yards
    8 cubic yards
    30 cubic yards open-top
    40 cubic yards open-top
    $350
    $475
    $600
    $2,000
    $2,800

    *original fact sheet printed by N.C. Office of Waste Reduction prior to 1995