In nearly every industry, you'll find companies that directly provide services and those that act as brokers, reselling other companies' services. For instance, there are insurance brokers, mortgage brokers, and so forth.
Brokers are not necessarily bad, but they aren't inherently good either; their quality often depends on the industry and their specific business practices.
When it comes to dumpster rentals, you can choose between brokers and local businesses. In this case, hiring a local dumpster rental company is typically more beneficial for homeowners and small construction companies. Here’s why:
How Much Do Dumpster Rental Brokers Really Care About You?
Dumpster rental brokers often do their best to conceal the fact that they are not located in your area, which increases the likelihood that you'll hire them. In reality, they could be based out of town, out of state, or even outside of the country!
If a broker connects you with an inadequate dumpster rental company, you might experience poor service. For example, the dumpster may not arrive on time, you might see unexpected charges on your bill, and when you try to resolve these issues, reaching someone who can help can be a major struggle.
So, how much does the broker really care? What incentive do they have to help you? They can easily move on to their next customer without facing any real consequences for their reputation.
On the other hand, a local dumpster rental company has a vested interest in providing good service. A poor experience can harm their reputation, leading to negative reviews that they cannot erase, not to mention the word-of-mouth warnings from people in your community.
You Pay More, But Receive the Same or Less
Since brokers spend time on marketing and selling dumpster rentals, they need to generate income. Likewise, local dumpster rental services also need to earn a profit. This situation leads to two possibilities:
1. They charge the same total rate as a local dumpster rental company would charge on its own.
2. They charge more than local companies for the exact same service.
If the broker and the dumpster rental service charge the same combined rate as a local provider typically does, it means that the local company must find a way to cut costs. However, delivering a dumpster can only be done so quickly; there are no secret methods to substantially reduce the costs of this service.
In the best-case scenario, the dumpster rental company with a broker has to cut corners to make a profit. In the worst-case scenario, you end up paying 10% to 100% more for the same dumpster and service offered by a local provider. Thus, for homeowners and small construction companies, brokers generally do not make sense.
Communication Risks: Confusion and Errors
We've all played the game "telephone," where a message is passed from person to person, often resulting in a completely distorted final message. This game illustrates how communication can break down when multiple parties are involved.
Brokers operate similarly. They act as middlemen responsible for all communication with the actual dumpster rental provider. They need to effectively communicate with various service providers, increasing the likelihood of misquoted prices, service misunderstandings, or missed deliveries.
When Do Dumpster Rental Brokers Make Sense?
Brokers can be advantageous for large national construction companies that require coordination for projects across the country. However, for consumers and small local businesses, brokers usually don't provide much value.