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Entrepreneurs

Pink-Trash's Sweet-smelling Year

By Jenny Callison, posted Jan 8, 2013

 

In its first year of business, Wilmington-based Pink-Trash has really cleaned up.

Not only has the company exceeded its first-year projections for commercial service, but it has also accelerated its entry into the residential and construction trash pickup markets.

The company, formally known as Coastal Ladies Carting, works in tandem with Inman Septic Services to provide commercial waste and recycling services throughout New Hanover County. Increasingly, the company’s pink bins are appearing in residential neighborhoods. 

At present, Pink-Trash serves residents in the Ogden, Masonboro Sound, Castle Hayne and Wrightsboro areas. Its equipment is coming to more and more construction sites as well.

Pink-Trash owner Kelly Buffalino and her husband, Chris, got the idea for the company when Chris Buffalino realized that monthly trash collection rates for the apartment complex he owned were varied and unpredictable. On top of the contracted monthly charge, typically the national and regional haulers added fuel, administrative and environmental fees that, according to the Buffalinos, could add up to another 10-30 percent of the monthly charge for businesses.

The couple was motivated to start a local trash company and began assessing how such an enterprise would fare against the two large trash haulers currently serving New Hanover County. To help with this financial analysis, they brought in Shaun Kiviat, a friend of Inman Septic owners Dan and Michelle Inman. In fact, the Buffalinos’ ability to collaborate with Inman Septic Services was the key to developing a viable business concept.

“We realized that to properly compete, we would need liquid and solid waste capacity,” Kiviat said. “We are the only Wilmington-based company that has complete liquid waste services. We install, repair and service septic systems and grease traps, which are required for restaurants.”

The Buffalinos believed that charging an affordable flat rate – inclusive of all fees – for their trash collection and recycling services would give them a competitive edge.

“We tell you what your rate is, and that’s what it is,” Chris Buffalino said.

As Kiviat crunched numbers, he and Chris Buffalino talked to a number of businesses to gauge the appeal of their business model.

They also added a charitable twist. Kelly Buffalino, a breast cancer survivor, wanted to do something to further cancer support services in the community. The couple decided that its new business would give 1 percent of its gross receipts to Pretty in Pink Foundation Wilmington, so the money would remain in the community. The company also houses the foundation’s Wilmington office within its facility, free of charge.

To tout the connection, Coastal Ladies Carting adopted pink as its signature color, and the Pink-Trash business model was complete.

Once plans were final, the Buffalinos and Kiviat approached East Carolina Bank commercial loan officer Brian Hartzell, who had been recommended to them. They realized they would need significant financing to launch, given the cost of equipment, space and personnel.

“Kelly and Chris Buffalino brought me a really good business plan that basically explained the Pink-Trash concept and included a detailed market analysis. They also had spent a lot of time sitting down with potential customers,” Hartzell said. “A year and a half ago, it was extremely tough to get financing, especially for a start-up business, so we had many meetings.”

Hartzell said he was impressed at the fact that the business plan was based on industry data rather than on wishful-thinking projections. Ultimately, he created a 10-year deal for the company.

“The sales strategy is spot-on,” Hartzell said. “They understand exactly what they are putting out there in terms of products and services. Their branding is incredible, and they are building their business around trust and service.”

Pink-Trash had agreements with 500 companies prior to its launch, Chris Buffalino said. Since then, said Kiviat, its average month-over-month growth has been nearly 19 percent, with commercial being its strongest segment.

“People would rather do business with a small business and one that gives back to the community,” Kelly Buffalino said. 

Hartzell said that Pink-Trash has done almost too well, given that the company will need expansion financing sooner than expected. He stays involved with the business. “They send me quarterly reports because I like to stay on top of things, and I meet with Shaun [Kiviat] on a monthly basis,” he said.

“Our biggest challenge has been controlling growth,” Kiviat said. “We are growing organically. Right now, we’re looking at an additional area where we have a waiting list of residents. But to grow and still provide the best service, there is tremendous cost. Equipment and inventory will cost millions of dollars.”

When Pink-Trash takes delivery on two brand-new trucks, the combined trash and septic services fleet will consist of three front-load commercial and three rear-load residential trucks, one roll-off and one container delivery unit, one pump truck, two dump trucks, one frame truck and five utility vehicles Pink-Trash continues to raise its profile through word-of-mouth and by participating in special events. According to Kelly Buffalino, her pink trucks have been featured at the Junior League’s Touch A Truck fundraiser and several events benefiting Pretty in Pink Foundation. 

The breast cancer connection has been a good business strategy as well as allowing Kelly Buffalino to support a cause close to her heart, said Joy Wade, Pretty in Pink Foundation’s  Wilmington program manager for cancer outreach and support services. 

Money from Pink-Trash provides financial assistance to local uninsured and under-insured breast cancer patients, enabling them to get the medical treatment they need.

“No matter what we do, Pink-Trash is a big sponsor of that, giving of money and time,” 

Wade said. “Anything I need, I just call. It’s a win-win. Everywhere I go, people say, ‘Do you know the Pink-Trash people?’ They ask me, ‘Do they really give you money?’ This is a model that other businesses need to latch onto. It sets you apart from the other guy, more than your goals and your business statement do.”

Pink-Trash’s two new trucks create additional capacity. The company expects to hire three more staffers in the first quarter of 2013, raising the Inman Septic Services/Pink-Trash workforce to 19. For customers who don’t want a pink dumpster, there are now alternative colors and even a camouflage design available.

“We want people to know we appreciate their business and work hard for it,” Kiviat said. “We do everything it takes to keep them happy.”

 

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