One question is asked more often than any other in this business: How do you price your jobs? Pricing, at its core, should be simple, but starting out, it can feel overwhelming. Some companies charge by the item, others by the truck or trailer load, and some provide a custom quote for each job. There isn’t necessarily a right answer, but what’s important is that you develop your pricing guidelines and stick to them.

1. Charging by the Item: Charging by the item can be very attractive to your customers. Junk removal companies often have a price sheet ready to send to inquiring customers or use as marketing materials. It makes setting a price easy, as you simply add up the total of all items being removed. Customers feel like they are paying for exactly what is being removed. The downside to this technique is that it can be difficult to manage for larger jobs. You may not be competitive with your cost when customers add up all the items they have. Consider having a disclaimer that allows for custom pricing on larger jobs. Another issue is that not all jobs are equal. Should a super-light couch sitting at the curb cost the same as a futon couch in a customer’s basement behind a mound of clutter? The answer is no. Ensure you have disclaimers stating that each price is a starting price.
2. Charging by the Truck/Trailer Load: Charging by the truck load is a popular pricing method among junk removal companies. It offers flexibility, consistency, and ease of use. While it may take some time to learn how to estimate loads and maximize space in your truck or trailer, it is a reliable and straightforward approach. One effective strategy is to provide quotes based on pictures sent by customers, although this method can sometimes lead to errors and potential losses on certain jobs. It is advisable to stick to your quote unless there is clear evidence of customer deception in the provided pictures. In such cases, owning up to any mistakes and learning from them is key. One significant advantage of charging by the truck/trailer load is the opportunity for upselling. For example, if your truck is at 3/4 capacity, you can inquire about additional items in sheds or backyards, explaining that it’s more cost-effective to dispose of everything in one trip. This approach often leads to successful upselling and increased customer satisfaction.

Here are some additional things to consider when building a quote:

Location: When determining your pricing, establish the maximum distance you’re willing to travel before applying an additional charge. For some, this may be 10 miles, while others are comfortable traveling further. Personally, I set my range to anything over 15 miles. I factor in wear and tear, fuel costs, and my travel time per mile, then multiply it by 2 for the round trip.

Weight: If you’re moving exceptionally heavy items, ensure you’re charging accordingly. Heavy items come at a premium, and customers are often willing to pay extra to avoid the back-breaking work. Don’t undervalue your service.

Item Location on Property: Price items differently based on whether they are on the curb, in the garage, or inside the house. For some items, consider charging more based on the floor they are located on. Sometimes, I inform customers that items in the garage or on the curb will cost less if they negotiate on pricing. This approach can save a deal for you in the future.

The Gross or Ick Factor: Without going into detail, there will be things you come across that you wish you hadn’t. Don’t charge your normal rate for items that are particularly unpleasant. Be upfront with the client and don’t hesitate to charge more for exceptionally unpleasant items. There will be jobs where the customer has been turned down by three other companies before contacting you. If you’re willing to take on the job, know your worth for being so courageous.

Special Fee Items: Items like Freon appliances, TVs, tires, and chemicals often require a premium for disposal. Each area has different disposal rates, so be sure to inquire locally. As a rule of thumb, I charge twice the disposal rate for special items if they are mixed in with a larger load. Use your judgment based on the quantity of such items.