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Junk Removal business tips

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In a junk collection business, how to price your junk removal service right can mean all the difference between success and failure. Pricing too high can leave your potential customers looking to give their business to a competitor, and inversely, overly aggressive pricing can find you spending too much time taking on unprofitable or money-losing engagements.

When comparing pricing, look at providers that have been in business for years and have a proven track record of success.

There are often new entrants who offer their services at low rates that are unsustainable to business viability, and you do not want to follow that path. That’s why it is so important to understand your costs in relation to pricing.

Factors to Consider

Vehicle operating cost and overhead. Your charge should capture not only the operational cost of running your truck but also a portion of payments, insurance, and maintenance. Consider the distance and time involved in going to and from a job. Obviously, if you have to travel further, or anticipate sitting in traffic for extended periods, reflect that in your pricing. Will there be multiple stops at charities, recycling centers, and the landfill to unload the customer's junk or more than one trip required? Additionally, you should not only factor in your hourly rate but a reasonable percentage for non-billable hours related to record keeping, marketing, and administration.

One person job or two? Some jobs may be appropriate for a single person while others will require a two (or more) person crew for lifting appliances or other heavy items. For extremely heavy items such as old pianos, it may make sense to develop particular expertise before attempting to handle these items.

Piano moving in itself is a specialized niche that you may be interested in exploring.

How long will loading take? Depending upon the nature of the junk to be removed, it may be as simple as loading an old sofa at the curb, or as tedious as picking up litter at a housing project cleanup. Sweeping or hosing down a driveway will add extra time. A quick check of quoted prices ranges from $20 to $30 per hour for excessive time spent picking up the load. Ask the right questions before taking on a job to limit the surprises. If possible, provide a price range rather than a hard quote to allow for unanticipated costs.

Consider drop-off fees. You will soon become familiar with fees. For instance, your area may have recycling centers that take such items as old paint for a charge, or other goods such as old computers, mattresses, and box springs or stuffed chesterfields and chairs. Again, be sure to incorporate these additional fees and mileage in your pricing.

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