This company knows only one road...Screw the customer. Greed is good. Slager gets his bonus at the expense of everyone. How long can this continue?
They are starting to lose military and municipal accounts because no one can bid the work properly. Their municipal contracts are taking a hit so they invent positions for loser suck ups to deal with local governments. If this hits 32 I'll be out for good with a few bucks.
This company's business model has been based on extreme pricing and any additional fees they can think up since 2009. They price increase ALL of their customers several times a year, including their A+ customers. They have been losing A+ customers over this issue, backfilling with C and D accounts where they can - but that gets harder and harder to do 'cause word gets around. Hiring a boat load of sales people to stop the bleeding didn't work so now they are laying them off. Good customers get angry when they finally realize how badly they have been treated, leave and don't come back. In the meantime they try to bolster numbers by cutting costs through restructuring, reducing pay as well as reducing staff and increasing employee workloads to the point that the talented employees who have the ability to leave have, or are doing so. Only a few (you can count them on one hand) pre-merger Republic managers are left. That should tell you something. This company is now just AW in disguise. If you remember, AW was heavily in debt and in trouble prior to the Republic merger. If current management is simply old AW managers playng their same old games, where do you think this stock will be in another 2-5 years? Seems to me Bill Gates - Cascade - simply parks money in this stock because it's viewed as a semi-safe parking lot, not because it's seen as a good investment for positive returns. After all, this stock was $36 prior to the AW merger - 5 years ago, and Cascade was holding a bucket full then.
Lesson to be learned? Always check your bill sucker!
All you need to do is check the job listings to confirm what is said here. As of today, advertising for 10 National Account executives, 2 Directors of Regional Revenue Management, and Director of Pricing Optimization and Strategy. I don't think the original Republic had pricing/financial analysits. They had quality people that new what the customer wanted and how to pick up the trash and dispose of it cost effectively. It probably helped since they didn't have hundreds of Directors and VPs who don't add any value to the company except producing spreadsheets and determining which customer hasn't been price increased enough. They built relationships with people in the community, both customers and vendors. As a vendor at one time, I can say it actually isn't just screw the customer, it is now screw their vendors also. They expect their own customers to pay more and more for the privelage of being served by Republic when they tell their vendors to cut their price since someone else quoted lower or they will kick them to the curb. For this company to turn around the Board needs to wake up, talk to the people actually on the street and not the ones in Phoenix drinking the Kool Aid and kissing up to Slager to find out how broken this company now is. Quality old Republic people that made it past the ridiculous reorginization are still today leaving the company for a slew of better run waste companies that don't live by the motto of screw the customer, screw the vendors, and screw the employees. Slager and all his cronies are the ones that need kicked to the curb before it is too late.
How can price increases be a bad thing? Everyone does the exact same thing at the beginning of the year so they can post aggregate incremental each month for the same service. They can roll back pricing when needed. Ultimately, its up to the customer to push back. The market controls the price. Why get upset about margin improvements? It's one of the good things for shareholders.