The skip industry is highly fragmented across the UK, so larger national customers have to deal with a series of individual skip companies. Brokers solve this problem by carrying out all of the leg work on behalf of large customers, in return for a small fee on top. They are also able to provide smaller individual customers with the reassurance they are using a reputable service provider.
A brokers focus is managing the relationship with skip providers throughout the UK and ensuring they provide a good level of service to meet the needs of their customers. On average brokers will take a fee out of the collection, due to the volume of work they offer they are able to either get a discount for themselves on the hire or it goes over the top, generally across the board the mark up is £20-£40 per collection.
Skip brokers generally have a vetting process for their skip providers ensuring they are licensed, insured and compliant, this is also updated annually giving the reassurance the waste is managed appropriately. This process can risk difficulties in communication if there is an issue, by adding the number of people in the chain and at times a broker may broker to another broker which can cause a real barrier to clear communication.
For a skip company brokers can offer a reasonable increase in work, and although the price for the work will be under your own charges, the increase of reliable work can be a benefit. The vetting process they go through with you will also help ensure your own compliance and provide reassurance.
There is a danger on becoming too reliant on brokerage work, especially as the margins are smaller, and if the broker loses contracts or starts using a different provider, it can suddenly impact on cash flow, affecting the stability of your business. A balance between brokered work and private can work well in partnership.
Ben: 24th Nov 2017 14:03:00