If you have junk on your property, it can be an eye sore and a nuisance. But for those of us who will tackle any challenge that comes our way, junk removal doesn’t scare us! Whether you want to get rid of old furniture or unwanted trash, we’ve got the perfect set of instructions to help you calculate your pricing AND get it done right. So how much to charge for junk removal? You might not think this is a hard topic, but trust me: it can be complicated if you don’t know what you’re doing.
Deciding how much to charge for junk removal
There are a lot of elements to consider when deciding how much your junk removal service will cost.
Your location Where in the world you live will make a difference to how much you’ll be charged. For example, if you are pricing in New York City, you’ll need to take into account that most people have more stuff there than they do elsewhere.
How much stuff is there? The larger the quantity of junk that needs removing, the less expensive your service is likely to be. This may mean purchasing new materials or hiring more people to help with the job.
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 cover by a certain number.
For example, if you can cover 12 square meters, the cost per square meter would be $10. This means that if your junk removal task covers only 200 square meters, the price per area will be $200.
Time based pricing
A time-based pricing method is probably the easiest way of organizing your junk removal pricing. It means you look at how much time it takes to complete a certain task and then decide on a rate based on the standard working hours.
Landscaping and junk removal, for example, could be priced based on the time spent doing it. You would start with a normal landscaping day rate, add an extra 30% to cover the additional labor involved in removing junk from your property, and then divide that by the number of hours needed. The result is price per hour of work.
Standard pricing for junk removal jobs:
What you should charge. It’s possible to break down standard pricing in any way you like – by square meter or cubic meter or even by weight.
How to price your junk removal jobs, step-by-step
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1. Understand what is required
Before you can decide an honest price for your junk removal services, you need to identify what the customer wants taken away.
Computer monitors, for example, are considered electronic waste and are not accepted by all junk removal companies. If your company does take them away, there may be additional cost involved in separating the monitor from the base and so on.
You should ask yourself: how much time would be needed to prepare this stuff for disposal? What types of materials will need to be removed? Do I have to rent a dumpster or can I go directly to a recycling facility or land fill? Anything that adds time or cost should translate into money out of your pocket.
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.
Labor: This is the amount of time that will be spent on each job and is determined by a number of factors such as distance between jobs, time required to drive there and back, equipment used, special features needed to carry out the task.
Fuel: It’s not exactly cheap maintaining a junk removal team! You need fuel for your vehicles and gas for your generators – there’s also the cost of having someone sitting in the office at all times waiting for phone calls. The time spent driving around may not be factored into this.
Taxes – Don’t forget those, they will follow you everywhere you go!
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.
You should also include a deadline when the customer must call with their answer as it’s not fair to keep them waiting for an answer.
How does job management software help your junk removal business?
Keeping track of all the junk removal jobs you do, planning when to schedule one for a client, keeping tabs on your staff or subcontractors is easier than ever with junk removal software.
In terms of scheduling your staff, it’s good to keep a note on who works in what area and how long it takes them to get from one place to another. That way you can work out how long it will take for each person to get from one job.
Since not everyone can have time off on the same day, you may need someone else to step in and cover their shift. Job management software helps with that as well because you know who needs their shift covered and how long they could be gone for.
When using subcontractors as part of your junk removal team, you should keep track of every invoice and payment to make sure you can prove that money wasn’t wasted. You’ll also need to provide them with enough information so they can get the job set up for you. This could include client contact information and photos of what needs removed.
You need your job management software to include the following: It should have a scheduling function, the ability to send emails and text alerts, notes and photos, an accounting section to record expenses & payments, a record of subcontractors used and their work order number.
It should be able to provide you with real-time updates on: Clients calling in with new jobs or ordering repeat services. Your staff calling off sick or sending you text messages about delays. Subcontractors sending you progress reports. Service requests through your website – also known as online booking systems.
Hopefully, all the above will give you a better understanding of how to price your next junk removal job and how you can use software to streamline your job management.
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