Tips on Pricing Your Waste Collection Service

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Lifestyle

Published on: 07 January 2020 Last Updated on: 11 January 2020
Waste Collection Service

One of the most important things to consider for your waste collection service start-up is the pricing. It can make or break the business, so be sure to make the right decision when it comes to this. You do not want to be overpriced as customers will choose other services that are cheaper than yours.

However, you also do not want it to be too cheap because you might not earn enough from it, so it will also cause your business to close after some time.

Here are some factors to consider to determine the appropriate pricing of your waste collection service for your junk removal business.

Tips on Pricing Your Waste Collection Service:

Cost of vehicle operation

Get a truck in which you can put and transport the waste that you collect. If you are just starting out, renting a vehicle might be a practical option since it will not require a significant upfront cost. Find a company offering a waste vehicle hire that can provide the truck that you need at the most reasonable price. Consider the rental of the vehicle when pricing, as well as the cost of fuel, maintenance, and insurance.

Other operational costs

Aside from the truck expenses, there will also be additional expenses that you will incur in running the business, such as utilities, taxes, telephone bills, advertising, and more. All of these will come out of your pocket. Be sure to include them in your business expenses when deciding on the price range of your service. It will help you avoid spending more than what you earn. The purpose of having your business is to make money. If you do not earn, it will be a waste of investment, time, and effort.

Drop-off fees / Disposal Costs

Visit the landfills and recycling centers around your area where you are likely to deliver the garbage you collect. Check on their costs, so you will be aware of them. It’s another factor to consider when pricing your service since it’s also another expense. All money spent must be considered to ensure that you will get it back and earn more.

Loading time

When it comes to the waste collection service or business, time equates to money. Make sure that your time is well-spent and paid for. There are jobs that are quick to complete, so you will be readily available to service other clients. However, some take more time to finish, which leaves you unavailable to accept other customers. Develop pricing that will take care of this matter. You may charge more for more complex and time-consuming work.

Number of people to do the job

Some work can be a one-person job, while other work may require more people to do it. For instance, collecting lightweight waste won’t need many people. However, if it involves lifting heavy furniture or items, then you will need more people, which also means a higher cost.

Consider all these factors when doing your pricing to ensure that you earn enough and remain competitive. You may want to check out reputable competitors to see their pricing, to have an idea of the current market.

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