Pricing by the Truckload!
In a foreclosure clean-up business and foreclosure trash-out service, you will need to know how to charge for debris removal services to make a profit. Many trash-out and debris removal jobs can be priced using the pickup truck capacity rule.
The services you offer can be wide and varied. As a new business owner, you can offer everything from debris removal, cleaning, lawn maintenance, cleaning gutters, pressure washing, interior cleanup, painting, winterizing, boarding windows and doors, changing locks, property inspections, and more. But much of your work will consist of trash-outs — removing interior and exterior debris from a home.
You will need to know how to charge for debris removal services to make a profit. Many trash-out and debris removal jobs can be priced using the pickup truck capacity rule. The pickup capacity rule means you’ll be pricing by the truckload.
Find Out What Your Competitors Charge Per Load
If you call around, you can find out what your competitors are charging per load, but make sure you’re getting the size of their “truck” when you get the price per load. Is one load for your competitor based on a 4′x6′ compact pickup truck or is it based on a 5′x8′ full size bed? Call a few places and see what they say. The larger junk removers tend to charge by the load.
You can use the pricing formulas of companies like the large well-known junk haulers as a “starting point” to set your own company’s prices; or call other competitors in your city, and then, set your prices competitively.
Sample Pricing from a Large Junk Hauler
Here’s sample pricing from a larger junk hauler that services cities throughout the U.S. (please peek at the below). Note the sample pricing is based on the Atlanta, Georgia area:
Truckload — Price
Minimum Load Charge: $100
1/8 Truckload — $134
1/6 Truckload — $174
1/4 Truckload — $204
1/3 Truckload — $234
3/8 Truckload — $269
1/2 Truckload — $299
5/8 Truckload — $334
2/3 Truckload — $374
3/4 Truckload — $408
5/6 Truckload — $443
7/8 Truckload — $473
Full Load — $498
NOTE: Truck Size: This company uses a steel box on the back of their trucks. The measurements: 10 feet long, 8 feet wide, 5 feet high.
Who is Your Foreclosure Cleanup Client?
Remember to take into account who your foreclosure cleanup client is on a particular bid, whether or not it’s a HUD home, what you need to make on the foreclosure cleaning job, what your company’s markup percentage is, etc.
Truckload Pricing is Really a “Win-Win!”
In debris removal, pricing by the truckload is really a win-win. Why? Because if it turns out your client has more junk and debris than you realized when you wrote the original contract or estimate, a standard clause in your foreclosure cleanup debris removal estimate will protect you.
Foreclosure Cleanup Business and Trash-out Contract Clause to Protect You
For example, if someone uses the house as a dumping ground between the time you bid on the job and the time you actually start the trash-out job, you will be fine if you, as a matter of course, ADD this clause to your foreclosure cleanup trash-out bid or contract: “As of the date of this bid, there appear to be four (4) truckloads (filling to bed-top capacity), based on a 5×8 full-size pickup truck bed. Estimate will change accordingly on day of job if more than four (4) truckloads of debris, as outlined above, are encountered.”
That way, when you actually get ready to do the job, you don’t have to worry about finding more stuff at the property; it will mean more money for you.
Find full details on how to price foreclosure cleanup jobs, including cleaning, painting, lawn maintenance, and more in the Pricing Guide for Foreclosure Cleaning & Real-Estate Service Businesses: How to Price Jobs for Profit.
Good luck with your foreclosure clean-up business!
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Cassandra Black is a Foreclosure Cleanup Business Consultant, the Author of How to Start a Foreclosure Cleanup Business, and several foreclosure cleanup industry Guides, Reports and Forms available via Stone Cottage Books and Amazon. She is also CEO of Foreclosure Cleanup, LLC and a Real Estate Investor and Landlord. Follow Cassandra and Foreclosure Cleanup, LLC on Twitter.
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