Whether you remove old furniture or trash, we’ve got the perfect set of instructions to help you calculate your pricing. So how much to charge for junk removal?
Deciding how much to charge for junk removal
There are many factors to consider when deciding how much your junk removal service will costs.
Your location will make a difference to how much you’ll charge. So will travel distances, the sizing of the junk items etc.
Volume-based pricing
This might be the most popular junk removal business pricing approach and the most standard method. This is where you multiply the amount of square footage you have to move by a certain number.
Time-based pricing
A time-based pricing method is the easiest way of organizing your pricing. Looking at how much time it takes to complete a task and then decide on a rate based on the standard working hours.
It’s possible to break down standard pricing in any way you like – by square meter or cubic meter or even by weight.
Test Your Pricing on fieldd for free
1. Understand what is required
You should ask yourself: how much time do I need to prepare this stuff for disposal? Do I have to dispose of the junk in a special facility or not?
2. Understand your company expenses and labour cost
Next, you need to understand all the money you spend on running your junk removal team and how much you have to charge.
This includes:
Labor: How expensive are your human resources? Staff costs are an important factor to consider when setting pricing structures.
Fuel: It’s not exactly cheap maintaining a junk removal fleet! You need fuel for your vehicles and gas for your generators, ensure you factor this in.
3. Estimate your profit on each job
You need to calculate the expected profit on each job. This is calculated by dividing the cost of labor, fuel, and materials needed to complete the job by the amount of time it will take for you to complete the task. For example, if you spend $100 per hour in labor and $20 in fuel on a junk removal job, the profit would be $58 per hour.
4. Write the quote, send it, and follow up
Once you have calculated the cost you need to add some extra percentage for profit. In this case, it would be around 35%. Once a customer agrees to the price, your next step is to write a quote or proposal. This should include the details on what is included in the service and any instructions that will be provided.