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Subject:		Recycling - Where Does The Money Go?
Name:		Scrib Kelly
Date Posted:		Jun 18, 08 - 9:39 AM
Email:		scribkelly@aol.com
Message:		I saw an article in The POA Bulletin on the above subject. It got me to wondering, " Where Does The Money Go?" If the numbers in the POA are right, then the service is collecting $700,000 per year. That's a lot of money. I have no idea how much it cost today to purchase, service and maintain a truck used for this function, so I started to think. How many truck days would it take to stop at all the 40,000 homes each week. If we assumed each truck could make 1,000 pick-ups per day, then 40 truck days per week would be required. If they can make 2,000 stops, then only 20 truck days per week are required. Last I looked there are between two and three workers on a truck (assume 2.5). That means if there are 20 truck days per week, then there are 50 man days per week required to make the 2,000 stops. What does a person make who collects trash and recycling materials these days? $7.5 per hour sounds like a good place to start. That means if a worker puts in 8 hours, then the 50 man days per week would cost $3,000 per week, or $156,000 per year. Now remember what I stated earlier. I have no idea what it takes to purchase and operate a truck. If we were to consider that worker's expenses are 20% or 40% of total costs, then maybe, just maybe it costs between $780,000 to $390,000. If it is on the higher end, then the company isn't making anything and our original question is mute. However, if it only costs $390,000 to collect our recycling items, then a sizable profit is being enjoyed. Bottom-line, I have no idea what it costs. But the company performing the service needs to make a profit or they will soon be out of business (not good for us . . . what will we do with all those clear plastic bags we've purchased)? Regardless of the answers to the questions I've posed, I wouldn't want to do what they are doing, and I'm glad they want to. If they are making some money along the way, then more power to them. I'd still like to know what it costs them to perform the service and what they are actually making, but I'm not going to lose any sleep over it. I'm retired and don't have to worry about that kinds of stuff anymore.
Replies:
Re: Recycling - Where Does The Money Go? by Shadow · Jun 25, 08 - 7:51 PM

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