Gimmicks, contracts and customers sick of being jammed with the fuel surcharges.
Ahhhhh, the fuel surcharges........... Anyone care to do some math? This company is using "temporary" fuel surcharge line item and making a profit on it. When the other nationals are not nearly as wide spread on this practice, I am sure it will be coming to an end with both DOJ looking into the practice and the fuel $$ coming down. Class action lawsuit would send this stock into the single digits. Company is charging out the fuel surcharge at - 1% to 2.5% of the total bill!!!! Absolutely ludicrous. Customers are paying enough to cover the fuel two or three times over versus only the temporary added expence that war brought. The gouging by WMI will IMHO be cought up with and they will pay. HEAVILY. If you back out 1-2.5% of the total dollar volume this company has done over the last year and have to pay legal fees and fines and penalties, there wont be much left when its all over.
Save your breath before you go any further on this thread folks. There's already at least one suit being assembled on the fuel surcharges. You're right too, other busineses assess them. But, as is typical of the garbage mentality of the major haulers', they're charging for more than the cost of fuel to "pad" their pockets. How many landfill increases are "passed through" at their real rate? Hmmm? My favorite example is when a government landfill goes up 10% for disposal and the hauler increases their ENTIRE price by 10%. They conunt on the fact that Joe Dupe doesn't know only a percentage of the cost of service is landfill (which, of course varies from market to market) and forks over the whole increase. Then since "actions and practices" governs the parties to the five year, roll-over contract, he's stuck with the new price.
It'll be fun to watch after a major announcement. I'm surprised some state's AG hasn't already started to look into this prior to running for Governor. Of course, he could always count on WM ot be a campaign contributor if he agrees NOT to look into it...
Price changes for fuel is good business. Yes you can pin down a lot of costs but the unknown should and has to be written in to the contract. By the way, the solid waste business is not the only industry that has that written in. I don't think you would be in business long if things were left to you.