Key steps to success in becoming an active supplier of raw materials, include solving scarcity and availability problems thanks to a predictable lead-generation process, adopting effective pricing strategies, and using market analysis to structure the business and implement the available technologies.
By Samuele Barrili
In today’s crowded and competitive waste management industry, small waste management companies face numerous challenges, including difficulty standing out in the market, supply chain problems, scarcity in availability, and price issues.
However, amidst these challenges lies a significant opportunity to increase revenue and profitability, expand your customer base, and stay up-to-date with industry trends and technologies. Companies can add multiple revenue streams by selling secondary raw materials.
This article aims to educate small waste company owners about the best practices for selling secondary raw materials in order to seize this opportunity.
#1: Understanding the Potential of Secondary Raw Materials
Secondary raw materials refer to materials that have been used or discarded, but can still be recycled or repurposed. These materials include metals, plastics, paper, glass, and more. By recognizing the value of these materials, waste management companies can tap into a lucrative market and contribute to the circular economy. The demand for secondary raw materials is growing, driven by environmental
concerns, government regulations, and the increasing cost of virgin materials. This presents an excellent opportunity for small waste management companies to capitalize on this demand and generate additional revenue.
#2: Building Strong Supply Chains
One of the primary challenges faced in the raw materials market is supply chain problems. To overcome this hurdle, it is crucial to establish strong relationships with recycling plants. Collaborating as a supplier who can provide a consistent and reliable stream of secondary raw materials is essential for recyclers. For that, you should invest in efficient collection and sorting systems to ensure the quality and quantity of the materials you sell. By building robust supply chains, these companies can meet the demands of their customers and establish a reputation for reliability.
#3: Addressing Scarcity and Availability Issues
The problems of scarcity and availability often arise in the market of raw materials. However, that is an opportunity for small waste companies. You can help the market to overcome these challenges by adopting a predictable lead generation process. I know that it can seem strange, but having a predictable flux of new potential clients allows you also to have a predictable flux of raw materials entering your plant. The lead generation process can be diversified, touching, for example, the household, the offices, and the building companies of the city where you are operating. You can easily imagine how many sources of secondary raw materials you have. This approach will transform your company into a reliable supplier of raw materials by addressing scarcity and availability issues.
#4: Pricing Strategies for Secondary Raw Materials
Pricing problems is another common issue small waste companies face when selling secondary raw materials. That is mainly because they do not consider that their primary part of business and do not want to spend time doing it.
To overcome this challenge, it is crucial to adopt effective pricing strategies. Conducting market research to understand the current prices of raw materials is essential. By staying informed about market trends and fluctuations, companies can set competitive prices for their materials.
Additionally, offering incentives such as volume discounts or long-term contracts can attract customers and ensure a steady business flow. By implementing smart pricing strategies, you can maximize the profitability of your small waste company or junk removal while gaining a competitive advantage in the market.
#5: Exploring New Markets and Technologies
To expand your client base and reach new markets, I know how much energy you must invest to stay up-to-date with the latest industry trends and technologies. R&D (Research and Development) is something that only big companies should do. Companies with significant R&D investments are not reliable; you need to understand that large investments in research and development for your small waste company are a trap.
Many technologies and solutions are available on the market, and you should find the one that can satisfy your clients’ needs. That does not mean you have to choose and take one without consideration. On the contrary, invest time and energy in the complete knowledge of both sides of your market—the people that want to give you their waste and the recyclers that want to buy your secondary raw materials.
For example, setting up a system to treat glass bottles and glass in-house can give you a competitive advantage. You will be able to sell glass sand. That is something cheap and valuable if you know the market. Exploring new markets and technologies is important for a small waste company, but it should be done carefully. In many cases, the market analysis you conducted before the opening of your business should give you the complete overview for the next five years. Technologies are something that change every single day, and the most crucial aspect to consider is that you should watch the outcome that the market is searching for. That is something that has not changed. Only the volume of recycled material requested has changed.
Conclusion
In conclusion, small waste management companies face numerous challenges in a crowded and competitive industry. However, by recognizing the potential of secondary raw materials and implementing best practices, these companies can overcome these challenges and thrive. Key steps to success in becoming an active supplier of raw materials, include solving scarcity and availability problems thanks to a predictable lead-generation process, adopting effective pricing strategies, and using market analysis to structure their business and implement the available technologies.
Small waste companies can increase revenue and profitability, expand their clients’ base, and contribute to sustainability by seizing the opportunity to sell secondary raw materials. | WA
Samuele Barrili is a Waste Management Expert and Business Strategist. Born in Cagliari, Italy, Samuele began his career as a salesman in 2010. After earning a degree in Toxicological Chemistry at the University of Cagliari (Sardinia) and many masters in Waste Treatment, he combined his knowledge to define his mission: save the planet helping 6,000 waste management companies to continue to thrive. After nine years in the field, working as a sales and marketing manager for international firms in waste management, Samuele created M4W Marketing For Waste, the first growth agency focused on helping waste management companies.
Marketing4Waste is the first service dedicated to waste management companies. He can be reached at [email protected] or visit www.marketing4waste.com.