Commercial Skip Bins Cairns

There are three primary methods utilised in the pricing of commercial skip bins in Cairns. These methods have evolved over time, influenced by regulatory changes and operational efficiencies.

Total Fixed Price:

This method was predominantly used prior to the implementation of the Waste Levy. It involves setting a predetermined price for the bin service, based on volume, with no regard to weight. With the advent of the Waste Levy, which necessitates the use of weigh-bridges at landfills, this approach has become less practical. While providing absolute certainty to customers regarding price, the bin provider is left with all the risk with regard to bin weight and disposal cost.

Fixed Price with Cut-off:

In response to the changed regulatory requirements, many service providers adopted a fixed price with a cut-off weight. This model involves charging a fixed fee for waste bins below a specified weight threshold, with additional charges applied for bins exceeding this limit. It requires minimal additional management effort, as record-keeping and invoicing are simplified. Customers benefit from predictable costs, which facilitate budgeting. However, the skip bin provider is relying on an averaging principle within the defined weight range to determine price, and as such is exposed to some risk with regard to disposal cost. 

Operational Dynamics

The fixed price with a cut-off approach is based on an estimated average weight. For example, using our data with a cutoff of two tonnes, 26.24% of bins are above this threshold, with an average weight of 2.95 tonnes, while 73.76% are below, averaging 1.04 tonnes. While the overall average weight across all bins is 1.71 tonnes. This approach can lead to unintended consequences, such as customers aiming to maximise their bin load to reach the cutoff, thereby increasing the average weight and eventually the pricing.

Floating Price: (NORHIRE “TRUCK PLUS DUMP”)

The floating price model, regarded as the fairest, charges customers strictly based on the actual weight of waste disposed of in each bin. This method necessitates full access to a weighbridge and a robust management system to ensure accurate weighing and timely invoicing. It aligns costs directly with waste generation, encouraging waste minimisation and efficient waste management practices.

Norhire advocates for the floating price model, which we term “TRUCK PLUS DUMP”.

Advantages of Using the Norhire “Truck Plus Dump” Option:

• Fair Pricing: You pay only for what you put in the bin. Light bins cost less, heavy bins cost more. It is as simple as that.
• Transparency: With our own certified weighbridge, every bin is weighed accurately. NO estimates. You receive ONLY ONE invoice showing the exact weight and price after pick-up and processing of bin waste.
• Clarity and Confidence: No need to guess or rely on estimates. The actual weight determines the price.
• Encourages Better Waste Management: Tracking bin weights helps you optimise your waste practices and potentially reduce costs.
• Cost-Effective for Heavier Waste: Heavier materials like soil and concrete are easier to sort and cheaper to dispose of per tonne. Our progressive pricing structure passes these savings on to the customer. 
• Fairer for Customers: It discourages trying to fill the bin to the limit just to get “full value.” You only pay for what is actually dumped.
• Builds Trust: Transparency and fairness help strengthen your relationship with your waste management provider.
• Environmentally Friendly: We operate as a transfer and sorting station. We reduce landfill waste and promote better waste practices.

The “Truck Plus Dump” pricing structure comprises:

• Fixed Component: Covers the hire of the truck, delivery and pick-up and the rental of the skip bin while on-site.
  • Variable Component: Dump cost based on the actual weight of the waste processed.

Operational Enhancements and Management Practices

Norhire has invested in a registered and certified weigh-bridge and holds an Environmental Authority (ERA) permit to operate as a transfer and sorting station. This infrastructure enables accurate weighing of each bin upon collection, with weight data and pricing details included on invoices. Such transparency allows clients to monitor waste production, identify trends, and implement strategies to reduce disposal costs.