What you need to know about skip hire brokers
The skip hire market is extremely fragmented. There are a great many relatively small, local skip companies covering limited areas geographically and operating from, at most, two depots.
National organisations needing skips at a number of sites all over the UK found this state of affairs difficult to manage – so this prompted the growth of skip hire brokers. Skip hire brokers – or, if they offer more than just skips, waste management companies – can create a national solution by sub-contracting national contracts to local skip hire companies. These brokers focus on winning business, managing customer relationships and ensuring that local skip hire companies meet agreed service standards.
Even those who don’t need to hire skips for a variety of locations may prefer to use a skip broker – principally because the broker will be easily accessible and its website is more likely to be up-to-date and user-friendly to navigate.
The broker earns money by adding a commission (usually between £15 and £40 plus VAT) to the local skip company’s rates. So, the price charged to the client by the skip hire broker is likely to be more than if that client had dealt direct with the local skip company. However, the client should save time and hassle by only dealing with one organisation to satisfy its nationwide skip needs.
Usually, brokers have at least two skip hire companies on their books for every region in the UK. They negotiate discounted rates with each supplier, on the promise of a high volume of orders. This means that the broker has some alternatives if a particular supplier doesn’t have sufficient capacity. They can also create competition when it comes to prices.
Skip hire companies like working for skip hire brokers because there’s a strong likelihood of regular work for clients that might not, ordinarily, consider using that particular skip hire company. On the other hand, the skip hire company’s business relationship is with the broker, not the client – and the basis of that relationship is always that of (lowest) price, compared with local competitors.
Skip hire brokers guarantee their customers that the company that’s supplying their skips complies with all current regulations regarding how it gets rid of the waste. Moreover, the guarantee also includes assurances that the skip hire companies carry the appropriate insurances and comply with legislation covering such things as waste carrier licenses as well as health and safety processes.
The main difference between Waste King, the waste management company, and skip hire brokers is that Waste King doesn’t provide skips.
Waste King can provide a nationwide waste clearance service, if required, but the majority of its activities are done in direct negotiation with the client, rather than sub-contracting to a third party.
That means that Waste King doesn’t add commission on any deal. Moreover, dealing direct with a customer tends to ensure that the standard and quality of communication between Waste King and the customer is high.
Sometimes, people really want a skip - rather than a Man and Van clearance service which, from Waste King at least, offers to load the waste for you and also clean up afterwards.
But, before you rush off to order from a skip broker, it might well be worth giving Waste King a call first. You never know, you might save some money - and we guarantee you’ll save a whole lot of hassle.
If you want to know how you can get the most cost-effective deal when it comes to collecting and disposing of all your waste, contact us on:
Freephone: 0800 141 2778 or, from a mobile, call 01442 210034.