How Much Money are You Making on Each Junk Removal Job?

How Much Money are You Making on Each Junk Removal Job?

Gross vs. Net Margins for your Junk Removal Business I recently released a video explaining the difference between gross and net margins in a...

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Turn Calls Into Bookings for your Junk Removal Business

Turn Calls Into Bookings for your Junk Removal Business

The Telephone is One of Your Most Important Tools The telephone is one of the most important tools in your junk removal business or...

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What Causes Entrepreneurs to Burn Out?

What Causes Entrepreneurs to Burn Out?

Elon Musk and Entrepreneurial Burn Out Some fairly large headlines have been made in the business community over the last week or so related...

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How to set your Junk Removal Pricing

One of the hardest things to do when first starting your junk removal business is choosing how to price. Do you price by time? By weight? By volume? A hybrid of two or three of those? All of these are approaches used by junk removal companies from time to time.

Time. Many first time customers will believe that you charge based on either weight or time, so it is natural if you think that might be how you should charge as well. The easiest and most straightforward way to charge is just based on the amount of time your job takes plus disposal fees. If you chose to charge this way, you would clock in at the start of the job, clock out at the end, go unload and dump, and then add in the disposal receipts at the end of the job to figure out total cost. You would then either bill the customer or run their credit card. However, there are some issues with this approach.

First, this approach makes it exceedingly difficult or even impossible to give the customer an up-front price. There are simply too many variables involved. What is the weight of the items you are taking? How is the property laid out? Is there any disassembly required? All of these have to be considered.

Another issue with this approach is the fact that the size of the job and location of items could be prohibitively expensive for you or the customer. A simple garage pickup of some light items could see you losing a significant amount of money, while a one-truck attic cleanout could take hours and end up costing the customer over a thousand dollars. For these reasons, the “time plus disposal fees” option just isn’t the best approach.

Weight. What about just charging a flat rate for weight? There is a company in Vancouver called “Junk Rangers” with a very unique concept for this approach: they mount scales on their truck. They take a total weight at the beginning and end of each job and charge per pound. The advantages of this are obvious. As the junk removal business owner, it will be much easier to keep your disposal expense percentage exactly where you want it because your pricing literally depends on the same criteria.

There is an advantage with this route for the customer as well. It is a scientific approach with which the customer cannot really argue. The price per pound is made clear up front and the customer can clearly see their total weight (and therefore price) at the end of the job. However, this method still leaves the customer without a price up front.

Volume. The third common way to price your junk removal franchise is the most frequently used: volume. Price points are set based on fractions of the truck between a minimum and full truckload. If a job will require more than one truckload, the pricing simply restarts for every truckload after the first. A firm price can be provided up front because an experienced Team Leader can accurately quote load sizes after taking a look at items to be removed. Most experienced Team Leaders are almost perfectly accurate. The one drawback to this approach is that there will be the occasionally missed quote. You should expect new team members to misquote a couple jobs as they gain experience (and therefore train these team members before they have to make these quotes on their own). Rarely, a customer may dispute the load size in the back of the truck, but again, this is exceedingly rare.

The volume approach tends to be the best for the customer because they know what they are paying before the job starts. This approach also keeps costs down on some of the more time-consuming jobs, as their increased labor expenses are offset by jobs like garage cleanouts, which are very quick. It’s all about averages. As a result, most junk removal companies price by volume.

Check out this video for a full explanation on setting pricing.

The rest of this article will the steps to choosing to price based on volume. While everything is covered in the video, the main points are summarized here:

1. If you are new with no prior knowledge of your market and no financial data on which to base your decisions, you should research your competitors’ pricing. You can call other junk removal companies pretending to be a customer. Alternatively, some companies, like Junk King, have their pricing listed online.
2. Consider factors such as:

• Traffic. In areas with high traffic, your trucks will spend more time on the road, increasing labor, fuel, and maintenance costs.
• Layout of buildings. Ranch homes can be quickly cleared. High-rise apartments, on the other hand, will require time-consuming removal down hallways and elevators. The longer truck teams are inside a structure, the higher the labor cost and the greater the risk of property damage or employee injury.
• Disposal fees. This should be one of the biggest factors in your pricing. In North Carolina, our average disposal cost per ton is about $42. In some areas in the northern United States, disposal fees are more than $100 per ton!
• Climate and road salt. Areas with high snowfall (and therefore lots of road salt) will see higher truck maintenance costs. Road salt wreaks havoc on trucks and adverse weather conditions both slow down truck teams and increase accident risk.

1. Consider the cost of getting a crew on site. Labor costs, wear and tear on the truck, fuel, and time add up to about $70 just to get a truck to a job. Be mindful of this when you set your minimum price point.
2. Most customers don’t pay any attention to your interior price points – they only care about the minimum and full load charges. This allows you to compete with your minimum and full load rates while still making a profit between those two points.
3. Don’t restrict your price points to just ¼ load increments. If you load up about ⅓ of a truck, you’d either have to charge the customer significantly too little or significantly too much. Likewise, having 100 different price points makes it impossible for your truck teams to maintain consistency and confuses your customers. Setting 12 price points creates a good balance of fairness in pricing without overwhelming your truck teams or customers.
4. Don’t make your price curve linear. If your full load rate is $400, your half truck price should not be $200. Instead, pricing should follow a less even curve based on percentages of the full truckload rate. As an example and reference point, the Junk Doctors price points are listed below:
1. Minimum: $95
1. 1/8: $135 (27%)
2. 1/6: $170 (34%)
3. ¼: $205 (42%)
4. 1/3: $265 (54%)
5. 3/8: $300 (61%)
6. ½: $330 (67%)
7. 5/8: $360 (73%
8. 2/3: $390 (79%)
9. ¾: $420 (85%)
10. 5/6: $460 (94%)
11. 7/8: $475 (97%)
12. Full: $490

That’s all there is to it. Be sure to like and subscribe on YouTube for more helpful tips, and until next time, go get ‘em!

– Lee Godbold

The post How to set your Junk Removal Pricing appeared first on Junk Removal Authority.

Benefits and Drawbacks of Placing Up Your Very Own Junk Removal Business

One of the options you have when you are considering going into junk hauling is to start your personal junk removal business. This is as opposed to entering into this enterprise through a franchise. Some people choose to opt for a franchise because it is simpler and faster, with a well established name and system already in position for you to make use of.

Those who do make a decision to choose their own business locate that while it could be challenging, this direction additionally provides a great deal of flexibility to do exactly what they desire with their company. To reveal you 2 sides of the coin, in a manner of speaking, right here are some advantages and disadvantages to take into consideration before you determine to start your very own junk removal business:

Benefits: You don't need mad abilities to transport junk-- you don't need an university degree or genius-level coding skills in order to do well at a junk removal business. Just what you require is a will to succeed, not be afraid of difficult work, and have the perseverance of a saint when you begin this business. You also have to be okay with dealing with junk since that is what the business is everything about.

Drawbacks: You have to take care of junk-- it is just what the term says it is-- a junk removal and hauling business-- so you will certainly be expected to eliminate and haul junk. If you are believing that you won't be getting your hands filthy due to the fact that you will have individuals working for you that will do this, believe again. There will be times when you will have to pitch in, so you will certainly have to be fine with taking care of various other people's junk.

Benefits: You run business any type of means you want-- you are the employer, so you can operate your business any which means you want. You are not limited by established rules that a franchise has and also you could execute economic ideas that a franchise will not let you run. This can make you a lot of loan if you handle it right as well as if your developments verify to be fantastic loan making ones.

Drawbacks: You don't obtain the support that a franchise has-- among the important things some individuals discover soothing concerning running a franchise as opposed to their very own business is that when they need help, it is there. Operating a franchise could undoubtedly be much easier if you are somebody that does not intend to face the obstacles that come with a junk removal business alone.

Benefits: You could start as big or as tiny as you want-- beginning your own junk removal enterprise offers you the power to begin by just hauling junk with your pickup. You could additionally begin by taking out a business loan and also getting expert tools that can be used to remove and transport construction site trash. The decision is yours. All of it depends upon what does it cost? cash money you can think of and just how much of a risk you agree to take.

Drawbacks: You have great deals of competitors-- given that it is so very easy to get right into this business, you will absolutely have great deals of competitors. You may locate on your own contending against larger franchise business and established junk hauling organisations. Obviously, there is a remedy to this. All you should do is to locate a location where there is a scarcity of junk pub as well as a high need for junk haulers.

These are just a few of the pros as well as cons of running your personal junk removal business. If the cons do not frighten you as well as the pros are motivating you, then you just may succeed if you get involved in this industry.

Learning How to Run Your Junk Removal Business

Just how challenging is it to run a junk removal business? All you have to do is to select up an additional individual's trash, transport it to the dumpster, as well as throw it away, right? If only it were that straightforward, however in reality, it is not that simple.

Running a junk removal business is serious as well as not recognizing how you can successfully deal with such a business might make you wind up losing money rather than making it. Just how can you learn how to run a junk removal business as well as make it be successful? There are a couple of means for you to do this:

Job for a junk removal company prior to beginning your personal-- A great deal of successful entrepreneurs attempt to discover the ropes from a coach before they venture out by themselves. The exact same can be done with a junk pub. If you are not averse to getting your hands unclean by working as a junk hauler for a junk removal company for a few months prior to attempting out business yourself, you can find out how business works from the in.

Read, research study, as well as learn-- You could hit the books and also discover ways to run a junk removal business by soaking up information that could be located on the subject. You can research online for sources that inform you what you have to do to begin such an undertaking and also how you can do well with it. You could additionally buy books that give you a detailed guide to beginning as well as operating a junk hauling business, with guarantees that if you follow exactly what they state, you will gain up to 6 figures from such a business.

Ask concerns-- You can ask business proprietors running this kind of a business about the ins and also outs of junk removal. You need to be advised though that not all company owner are anxious to share the secrets to their success. Besides, if you are thinking about installing the very same kind of business, you will become their competitor as well as they will not desire their rival to utilize their business techniques versus them.

Beginning with a franchise-- This is a more pricey strategy to learning how you can run a junk removal business, but it is a proven means to obtain the nitty sandy while running your personal business. You will certainly have to review the small print when you sign up for a junk removal franchise though given that a great deal of these agreements come with non-compete conditions that may bring you troubles if you begin your very own junk removal business. If you locate one that does not have a non-compete stipulation in their contract, do the respectable point as well as start your personal junk removal business in a location that they do not service.

These are simply a few of the methods you can discover ways to run your very own junk removal company. You can likewise attempt to muck it through by discovering as you go along, yet such a technique could lead you to losses and possible failing. If you intend to be successful at this undertaking, you should prepare on your own and also to learn as much as you can prior to you spend your time, loan, and also efforts into it.

Junk Removal Services You Can Deal Your Consumers

When you are considering setting up a company that provides junk removal services, you will certainly have to generate a checklist of offerings that your clients might require from you. The listing of services that you have will certainly establish just how successful your company will certainly be and exactly how numerous people will certainly pick you over others with the very same business. Right here are some suggestions that might be helpful when you are starting your personal junk removal as well as hauling business:

Clean garage and attic rooms-- some individuals discover dealing with old and dusty things to be disgusting not to state tiring. They prefer to have other people do the job for them while they manage as well as watch out for things they intend to keep from their stack of garage and also attic room junk.

You could use this service to people who wish to clean these areas in their home yet don't intend to do these by themselves. You could also supply to detail and directory the items that you find in these rooms for them as an added service, so they can pick which products they intend to throw away and which ones they intend to maintain before you transport these away.

Eliminate old bed mattress, rugs, and also huge furniture-- not all companies that focus on junk removal services remove and transport huge items because of their equipment and also personnel constraints. You could cover this particular niche by having individuals that are educated to securely get rid of old carpets as well as are solid sufficient to carry large furnishings and also mattresses in your group. You will additionally need trucks that allow sufficient to lug these to the corresponding dump sites that accept such junk.

Clear out storage space systems-- some people neglect the junk that they place in storage systems and end up not paying the month-to-month rental fee for these systems as a result of this. When this happens, the owners of such services contact junk removal companies to take care of the cleaning of these rental rooms. You could offer this service to storage space system companies or to those that rent these and also should eliminate their stuff from these spaces.

Hoarder clean service-- this is a rare service that is typically offered to the relatives of departed hoarders. When a hoarder's next of kin wants a home cleaned up, the work could be really unpleasant and also large because hoarders can accumulate massive stacks of just about anything in a home, occasionally filling it to the factor where moving is difficult. This is a work that could take days, depending on the amount of junk that has been hoarded.

Dumpster rental as well as hauling-- there are some people that do not desire strangers going through their the home of cart away their junk. A dumpster leasing permits them to fill this with their junk on their very own and this will be hauled by your company once they say that it is all set for hauling. You could charge your client for the number of days it takes them to fill the dumpster. You can also prefer to bill them a level price and provide a set quantity of time to finish loading the dumpster up prior to it will be carried away.