How to Price a Junk Removal Job: A Detailed Guide

Are you wondering how to price a junk removal job for your business? Pricing your junk removal services can be a difficult process as it requires carefully weighing a number of variables, including: 

• The type and quantity of junk
• The time and manpower needed
• Disposal costs, etc.

However, with the appropriate approach (as we will show you), you can make it much easier. 

In this post, we’ll discuss the primary elements that impact junk removal pricing and examine the various pricing strategies as a contractor you can use.

We will also assist you in making well-informed pricing decisions – whether you’re just starting your junk removal service or trying to improve your pricing strategy.

Factors that Affect Junk Removal Pricing

There are a number of variables that can influence the total cost when it comes to pricing a junk removal job. You can develop a fair and competitive pricing strategy by being aware of these factors and how they affect pricing. 

So here are the 4 main elements that influence the cost of junk removal:

1. The amount and type of junk

The biggest factor that influences pricing is the quantity and kind of junk that needs to be removed. Most junk removal companies decide their cost based on the amount of junk being removed, such as by the truckload or the number of items. 

Due to the additional labor and equipment needed to remove heavier items, such as appliances and furniture, the cost may also be higher.

For example, Moving away a small pile of used clothing and books might only cost $100, but removing a sizable pile of construction waste might run you $500 or more.

2. The distance to the junk’s location

The location of the junk and its distance from your business can affect pricing. The company may charge more for travel time and expenses if the junk is located far from the business. 

Furthermore, if the junk is in a difficult-to-reach location, like a basement or attic, it might also need more labor and equipment, which can raise the overall cost.

For example, If a job requires a business to travel more than 30 miles from its base location, junk removal companies might charge an extra $50.

3. The time and labor required to remove the junk

The larger and more complicated a job, the more time, equipment, and effort you need to complete it. Thus, higher will be the junk removal cost.

The need to disassemble or cut the junk into smaller pieces in some situations to remove it can also add to time and labor costs.

For example, It might cost $300 or more to remove and haul away large appliances, which requires two workers and several hours of labor. 

Whereas for lightweight garbage, which requires only an hour for one worker to complete, the junk removal cost may only be $50.

4. The disposal fees

Many items that are regarded as “junk” need to be handled carefully and disposed of differently, as they cannot be disposed of in standard trash cans. This might lead to extra costs and fees that are passed on to the customer.

For example, A job involving only common household items may cost much less than one requiring the disposal of hazardous waste such as cleaning solvents, spent acids & bases, etc.

These are the 4 factors that affect the pricing of a junk removal service. However, none can affect your junk removal prices as much as profit, labor costs, and taxes. These 3 are inseparable from every project you undertake.

So, decide the wages of your servicemen and know the rate of taxes in your region to determine your prices such as you make a sufficient profit.

Now let’s see how you can set the prices for your junk removal company.

How to Price a Junk Removal Job?

You have understood some important factors that affect your junk removal costs. But how exactly should you price them? So are here the steps that you can follow:

Step 1: Know the exact requirements of your client

How can you price a job accurately without knowing what you have to do in it? Thus, you cannot take this lightly.

Know exactly what you have got to do by finding: 

• What junk is it? – Construction debris, yard debris, hazardous materials, etc.
• How much is it? – Approximate truckload volume of the waste.
• Where do you have to pick it up from? – Is it near or far away from your office?
• How can you dispose of it? – Dumping into the local landfill or something else?

The answers to these questions affect the total cost incurred by you. And this brings us to our next step.

Step 2: Determine the cost of the project

All other details aside, you will need to figure out the total cost of completing the whole project. It is this amount on top of which you will be able to add profit for your junk removal business.

If you fail to measure it accurately, your pricing for the project may not turn out to be profitable for you. So how can you determine your total cost for completing the project?

First, understand the various costs that will add up in it:

• Labor costs
• Transportation costs
• Dumping costs

The cost of dumping and transportation relies more on your experienced guess. However, the labor cost is a more quantified entity as you can determine the hourly wage you will pay to your staff working on the project

Pro tip: 

• Labor Cost = Hourly Wage x Number of Hours x Number of Workers

• Total Cost = Labor + Transportation + Dumping

Step 3: Add in your profit and taxes

Now comes adding the fuel of any business – profit. So decide on the amount you can add to your total cost of the project to keep your pricing competitive.

This will go as your profit. But we suggest you refrain from being overly greedy and not keep the price of your trash removal services too high. 

Otherwise, you will run the risk of not being able to convert a prospect into a paying customer.

You will also need to add the appropriate taxes as per your region.

Easy, right? But you can make it more accurate by keeping the following tips in mind.

Tips for Pricing Junk Removal Jobs

1. Research competitors’ pricing

Even though your pricing may vary from that of your competitors, the fact is that nobody wants to pay a premium for trash removal. Thus, you need to keep your pricing competitive and provide value for money.

So, find out how much your competitors are charging for their services and how they vary from yours. If their services are more affordable, spy on how they are able to pull that off and yet make a profit.

You can then use similar tactics to be affordable while providing better services to be able to stand out from the rest.

2. Consider your margins

No matter how affordable the pricing you keep, the truth is you need to make a decent profit. Or else you won’t be able to sustain your business for long.

Pro tip: Don’t forget your margins just to compete with others on pricing.

So figure out your bare minimum business operation and project execution costs which may include:

Business operation costs	Project execution costs
1. Office ren	1. Total wage provided to your workers for the project
2. Taxes	2. Transportation
3. Phone bills	3. Waste processing and dumping
4. Equipment or truck maintenance
5. Insurance and licenses
6. Invoicing software
7. Marketing and promotion

Keep both of these things in mind when giving a cost estimate to your client. So with clarity of your costs, you can then add a margin to make the project profitable.

3. Account for unforeseen circumstances

In any business, unexpected events are bound to arrive. And they can affect your business in two ways:

• Customer satisfaction
  Such unaccounted events may affect the quality of your services or even fail you to deliver on your promises. This will obviously make a dent in customer satisfaction if not tackled properly.

• Profit margin
  No matter how proactively you try to calculate your costs, you are bound to miss to account for these unexpected events. 
  So to prevent them from eating up your margins, you can add a buffer for them in each estimate you create for a project.

4. Use reliable invoicing software

To come up as a reliable service, you need to show professionalism in every aspect of your business. Thus, you cannot ignore providing accurate estimates and branded invoices to your clients.

So try using invoicing software like InvoiceOwl from the start of your junk removal business.

Conclusion

This is how you price your junk hauling services. It is all about hitting the sweet spot between your costs and your profit. This is why it is imperative for you to know your numbers accurately when deciding on your pricing.