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How To Work Out The Pricing For Your Rubbish Removal Business
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How to Work Out the Pricing for Your Rubbish Removal Business

Pricing your rubbish removal business is key to being successful in this industry. There are quite a few things you need to factor in when calculating what you’re going to charge. Simply charging lower than what everyone else is charging is not the best idea.

Once you have decided to get into the rubbish removal business one of the most important things you need to figure out is the pricing. Many newbie businesses get this wrong and because of that they often fail. Pricing your service too high will result in almost no business, while pricing it too low will result in almost no profit. The idea is to price your business taking into consideration your overall costs and what you make. There are a number of factors you’ll need to consider prior to being able to arrive at the right figure.

Do some research

One of the first things you should start with is to look at established competitors. What are they charging? And how are they able to make a profit. Regardless, of what market you may be targeting there are obviously established businesses that are turning a good profit. So their pricing is either spot on or they are making their revenue elsewhere. However, you should never price your service simply based on what competitors are offering.

Factors to consider

There are a number of factors you ought to consider, below we look at some of the more prominent ones:

  • You need to take into account the overhead of running a business. So, your charges shouldn’t just include your operational costs of driving your dump truck or van but also its insurance, maintenance, fuel etc. The overall distance you need to cover and the time it takes to complete the job should also be considered. This means that if you have to deal with lots of traffic jams and long driving routes to drop stuff off at recycling plants, landfills and charities these too need to be taken into consideration. The other thing you need to consider is non-billable hours for tasks like administration, marketing, advertising and record keeping.
  • You need to think if the job is a two man or one man job. There are some jobs which will require more than one person to help you out even if you hire someone to drive the truck. For instance, you’ll need help moving large tables, trash cans, bins, cycles, washing machines etc. so factor in the cost of labor.
  • The overall time it will take for you to dump everything at the loading site. This really depends on what you’re loading, if you’re loading things from a construction site the owner may also ask you to hose down the place. This obviously will take more time so this too needs to be factored in. Depending on what type of job you’re asked to do you can provide the client with an approximate or an hourly figure.
  • There are some landfills and recycling centers that charge rubbish removal services a small fee to drop their stuff off. You need to find out what this fee is and how you need to pay. The fee itself may vary depending on where you are located and the policies of the recycling plant you’re dealing with.


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