Procurer Decisions With Respect To Valet Trash Are Shifting from Considering Amenity Spending to Financial Analysis

It is hard to imagine anything more trivial than doorstep trash collection, especially when juxtaposed to major property improvements; however, many apartment managers are starting to treat such a service as a financial decision. The issue here is not whether residents will like convenience but if the service will prove economically viable.

Financial pressure has altered the criteria for evaluating amenities. Recurring expenses become subject of analysis more thoroughly than capital investments since they become a part of property cost structure. Doorstep valet trash service falls under that description.

There are several ways in which the service can affect property management. Managers will get fewer complaints concerning dumpster conditions or waste in hallways, but they will also have to consider vendor costs, administrative load and even resident opposition to increased expenses. In other words, the economic aspect of such service extends far beyond the contract for the service itself.

Apartments' owners are also taking into account the perception of value by residents. Ineffective use of amenities creates problems for managers since it makes justification of their purchase difficult. However, the case with doorsteps collection is different since the service is incorporated into residents' routine.

Procurement professionals are getting more interested in understanding how much such service affects the workload of management personnel. If there are fewer requests related to waste removal, property managers are likely to approach it in a different way than they would approach any amenity. The issue is if there is a possibility to save money on indirect costs through increased convenience.

The amenity is also becoming part of the renting process. In today's competitive environment, there are many apartments in need of residents. Therefore, they constantly seek for distinctive features to make themselves attractive to new tenants. A doorstep collection program is one such feature although it is unlikely to be the only one.

However, pricing can become an important aspect of that discussion. It might happen that some tenants will want convenience and others will prefer affordable prices. Consequently, the issue of service differentiation is getting complicated.

That problem makes procurement teams more interested in service reliability and residents' willingness to use it. A missed waste pick-up is likely to irritate residents more than its absence altogether.

The discussion of doorsteps collection services is slowly moving from the idea of novelties. Today, apartment managers are treating it as an ongoing financial decision that should compete with other uses of operating funds.