It can be quite challenging for a new junk removal company to set pricing for its services. One doesn’t want to put away potential clients by setting the price too high. Similarly, keeping prices too low is also not a wise idea since you will be doing it by slashing your profits.
The idea is to find the perfect balance. And for this, you have to take into account numerous factors. In this post, we have discussed exactly the same. These are some important factors you should consider if you are setting a company that aims to offer the best junk removal services.
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1. Basis for Setting the Price
First things first, you need to decide on which basis you will be charging your clients. Generally, companies opt for one of these methods:
It is the most common method opted by companies. The higher the volume of the junk to be removed, the higher the price and vice versa. An estimate is given to the client on the basis of measuring the amount/volume of the junk roughly. The company must have the services of an expert to take accurate measurements.
It is a rather easier way since there’s no estimate to be given or measurements to be done. The price depends on how much time it will take to remove all the junk. It is considered an easy method since there are no complexities involved.
Companies following this approach usually have per hour rates. They just have to note down the starting and ending time, and the price is calculated accordingly.
Many companies that offer services for appliance removal in Vacaville CA use this method. As per this method, charges are deciding as per the weight of the junk to be removed. It is another simple approach as you do not have to do any complicated calculations to give your clients as an estimate.
All you have to do is to set per pound charges. And once you have completed the job, simply hand over an invoice that has mentioned the total weight of the junk multiplied by the price per pound.
5. Research Your Competitors
It’s always a wise idea to know about the pricing model of your competitors. For this, do thorough research on their services and how they charge their clients. It may give you a better idea when it comes to setting the price.
6. Take Every Factor into Consideration
Never make this mistake of roughly deciding the price. You may end up setting the price too low and end up compromising on your profit margin. While there’s always an option of re-setting the price, it wouldn’t create a very positive picture of your brand on your clients.
Some important things you must take into account are:
- Rent of the office
- Staff salaries
- Junk removal trucks’ fuel and overhauling
- Utility costs
- Software costs
- Marketing costs
Once you have a better idea of your total expenditure, then set a service price after keeping a little margin for profit.
7. Don’t Forget Taxes
Do not neglect the fact that you will have to pay taxes to the government. So, it should also be accounted for when setting up prices.
8. Have a Cost Calculator on Your Website
Once you have decided the cost, it should be well clear to your potential clients. Make sure that the basis on which the cost will be calculated is mentioned on your website. Clients prefer companies that follow a transparent pricing approach. So, it’s better to be very clear about the pricing model you follow. This will help to boost your credibility.
Even better advice would be to have a cost calculator on your website. This feature has proven to be very helpful for building customer trust. Also, ensure there isn’t a lot of difference between the amount calculated by the cost calculator and the total amount charged. If there’s a lot of disparity, it can lead to conflicts and a bad name for the brand.
To sum it up, it’s certainly hard for a new junk removal company to get started when there is already a lot of competition. But there’s scope for everyone. The market is vast, and removing junk is a real problem in today’s time. Every household and commercial space accumulates junk, and it requires professional services for cleaning and hauling. This is where your services can come in handy.
You can follow successful companies like 3 Kings Hauling & More if you are looking for a successful business model. However, it is recommended to create your value by offering special services. Only then you will be able to beat the competition.
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Last update on 2021-04-13 / Affiliate links / Images from Amazon Product Advertising API