Benefits of a junk removal business:
One of the main reasons to consider starting a junk removal business is the growing demand for this type of service. Many municipalities have size requirements for what will be picked up by weekly trash pickup, and even though many communities arrange for larger trash pickups once or twice a year, not everyone wants to wait that long to get rid of something that’s taking up space. Businesses and homeowners often need large items such as broken furniture, attic items, and old appliances removed quickly, and that’s where a junk removal business can step in.
Another benefit of starting a junk removal business is the flexibility it offers. As a sole proprietor, you can be your own boss and set your own hours. Additionally, you can earn more money per hour than in many typical 9-5 jobs according to National Trash Valet. All you need to get started is a large vehicle with a possible trailer, and a place to temporarily store items that you have picked up from your customers.
When it comes to making money in the junk removal business, it’s important to consider your target market and the competition in your area. In most cases, each junk removal pickup vehicle can service one home per hour, but some jobs may take longer. Many junk removal businesses have a minimum charge of $100 to $125 to cover expenses related to one hour of work, but this can vary depending on the size of your target market. For one junk pickup vehicle, it’s estimated that you can make an income of $500 to $1500 per day, but it’s important to subtract out taxes, wages, fuel, and any overhead costs related to your storage building, vehicles, etc. according to Junk Trash Removal.
According to Forbes, junk removal services accept a similar range of items and don’t accept items that are dangerous to transport.
Why is junk removal a constant need, especially after COVID-19?
The COVID-19 pandemic has had a significant impact on the market and has led to several changes that make people more likely to need a junk removal company. Here are some of the major changes:
- Increased time spent at home: with many people spending more time at home due to lockdowns and remote work arrangements, they may have more time to declutter and clean out their living spaces. This could lead to a greater accumulation of unwanted items that need to be disposed of.
- Increased online shopping: the pandemic has accelerated the trend towards online shopping, which has led to an increase in the amount of packaging and shipping materials that people need to dispose of. Junk removal companies can help with the responsible disposal of these materials.
- Concerns over infection control: in the context of the pandemic, people may be more hesitant to handle and dispose of potentially contaminated items. Junk removal companies can provide a safe and hygienic way to dispose of these items.
- Changes in the real estate market: the pandemic has led to a surge in demand for housing in suburban and rural areas, as people look to escape densely populated urban areas. This could lead to more people moving and needing to dispose of unwanted items.
- Changes in commercial real estate: the pandemic has also led to changes in the commercial real estate market, with many businesses downsizing or closing. This could lead to a need for commercial junk removal services to dispose of unwanted office furniture, equipment, and other items.
Still interested? Here are the stats!
- The junk removal industry in the United States is projected to reach $10.2 billion in revenue by 2025, with an annual growth rate of 4.4% from 2020 to 2025. (source: IBISWorld)
- In 2020, the top 10 junk removal franchises in the United States had a combined revenue of $1.44 billion. (source: Entrepreneur)
Junk removal is one of the fastest-growing segments of the waste management industry, with an estimated growth rate of 8% per year. (source: Waste Advantage Magazine)
- According to a survey by the International Franchise Association, 43% of junk removal franchisees reported an increase in revenue in 2020 despite the pandemic. (source: Franchise Times)
- The average cost of hiring a junk removal service is around $250, with prices ranging from $75 to $700 depending on the volume and type of junk. (source: HomeAdvisor)
Starting a junk removal business can be a rewarding and profitable venture, but it’s important to do your research and plan accordingly. That’s where we come in with our junk removal academy where we will be providing and guiding you every step of the way! By understanding the industry, identifying your target market, and providing a reliable and efficient service, you can make your junk removal business a success.