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Profitability

Potomac Disposal Residential & Commercial Pricing and Costing Analyses

Potomac Disposal Inc., is a mid-size family owned solid waste and recycling collection company that provides services in the Greater Washington, D.C. suburban region. The major source of revenue for the company was generated from subscription residential and contracts with small homeowner's associations. However, the company seized two opportunities to change the course of its business in a short period of time. The first was the acquisition of a small commercial collection company.  The second came in the expiration of several municipal collection contracts, which would be coming due for bid.

Nestor Resources established a system to identify benchmarks and monitor the operational costs of residential and commercial collection routes. Based on operational productivity, Nestor Resources created a pricing for profit matrix utilized in the expansion of commercial services. The firm also prepared detailed costing analyses and  proposals resulting in the company securing several new major residential collection contracts in Montgomery County, Maryland that included curbside services for waste, recycling and yard trimmings.