If you didn’t know that the trash hire business is worth $500 million, you might not be interested in working with dumpsters. You’ll need a lot of money to start a trash rental business, but since dumpsters rent for $500 per week, you should be able to quickly repay your investment and get a piece of this growing market.
But to get started, you’ll need a lot of business knowledge. The good news is that this step-by-step guide will teach you everything you need to know and make you a business-savvy operator who is ready to start your own dumpster rental business.
Step 1: Find Out if this is the Right Business for You?
To start, it’s important to say that a dumpster rental company rents out dumpsters for short periods of time, usually to people doing home repairs or to building companies cleaning up job sites. Also, it’s important to remember that dumpster rental companies must get rid of all waste, including recyclables and dangerous materials, according to local laws.
Before choosing whether or not to start a dumpster hire business, you should think about the pros and cons.
Positives Vs Negatives
| Good Money: With a weekly rent of $500, there is a good chance of making a lot of money. Simple jobs include putting the trash down, picking it up, and dumping it. Clean Up Your Town: Give people somewhere to throw away their trash. | Dumpsters and trucks need a place to stay. High Cost at the Start: Dumpsters and roll-off trucks are not cheap. |
Industry Trends
- Size and progress in the past: The US dumpster hire business is now worth more than $500 million and has grown by 40% in the past ten years.
- From now until 2027, the world market for dumpster rentals is projected to grow by more than 3% per year.
- Number of businesses: There are more than 200 trash hire businesses in the US.
- There are about 6,000 jobs in the field.
Cost of Starting Dumpster Rental Business
Starting prices for dumpster hire companies range from $20,000 to close to $50,000. The costs include getting three bins, which cost around $5,000 each, and making a down payment on a roll-off truck. Cost of renting an extra room for storage is also included.
Investment Items:
- There must be at least three dumpsters.
- Roll-off truck
Is Dumpster Rental Business Profitable?
Costs vary based on how long you rent the dumpster for and how big it is. A 10-yard dumpster costs about $500 a week to rent, on average. After you take out costs like renting storage space and paying part-time workers, your profit margin should be around 50%.
If you consistently rent out three dumpsters every week, you’ll make more than $78,000 a year in your best few years. Taking that half edge into account, this would mean a good gain of nearly $40,000. As your business grows and you add more bins, you could rent ten dumpsters a week. With $260,000 in annual sales, you would make a solid $130,000.
Entry Barriers
- Finding the basic money for a new business
- Getting into a big market
Step 2: Create a Strategy
Identify a Gap
Look into dumpster hire companies in your area to compare their services, prices, and customer reviews. You want to fill a market gap. For example, the nearby market might miss an eco-friendly trash hire service that re-uses and re-uses materials that have been dumped.
This could get the word out about your business and bring in customers right away.
You could also help people get rid of their trash if you were willing to go all the way into waste the board. Your business could also take care of getting rid of junk and other trash and waste.
Solutions
Even though your services are pretty simple, offering recycling and reusing services can help you build your business and make more money. Most of the time, trash rental companies only drop off, pick up, and empty the bins correctly.
Pricing
Renting a 10-yard dumpster for a week costs about $500 on average. You’ll have to pay rent for a place to store things, pay part-time help, and pay for gas. At least a 50% profit is a good goal.
Once you know how much something costs, you can use this step-by-step tool to figure out your markup and final price. Don’t forget that the prices you use at send-off should change whenever the market does.
Target Market
Contractors, construction companies, renters, and building owners are the people you want to sell to. You can look for them on LinkedIn and Facebook. You could also ask builders and remodelers for customer feedback.
Location
You’ll need to rent a stockroom if you don’t have a place on your own land to store your bins and truck. Websites like Craigslist, Crexi, and Instant Offices can help you find office space for rent in your area.
You might want to keep these general rules in mind when picking a place for your business:
- A place in the middle that is easy to reach by public transportation
- Outside air and light
- You can add on to your lease as your business grows.
- Space that is ready to be used and doesn’t need any big fixes or changes.
Step 3: Write a Business Plan
A strategy is essential for any organization. This will assist you in guiding your new firm through the launch process while keeping your major goals in mind. A business plan also assists potential partners and investors in better understanding your company and its goals:
- Executive Summary: A brief outline of the whole business plan that should be written after the plan is done.
- Business Overview: A summary of the company’s goals, vision, purpose, assets, and control structure.
- What we make and what we do: Explain in detail what you’re selling.
- Do a SWOT analysis and look at market trends like changes in demand and growth opportunities.
- Competitive Analysis: Look at your key rivals’ strengths and flaws and make a list of what makes your services better.
- Sales and Marketing: Look at the unique selling points (USPs) of your business and come up with sales, marketing, and promotion plans.
- Management Team: An overview of the team’s tasks and professional backgrounds, as well as a business structure.
- Operations Plan: Your company’s operational plan includes how it will get supplies, where it will put its office, what its most important assets and tools are, and other practical details.
- Financial Plan: A three-year plan for money, including start-up costs, a break-even analysis, predictions of profits and losses, cash flow, and a balance sheet.
- Appendix: Add any other papers related to money or business.
Step 4: Create a Marketing Plan
Some of your business will come from people who walk by or find you online, but you should still invest money on marketing! For new companies, getting the word out is particularly crucial because it will draw in more customers and make more people aware of the brand.
When the web page is up and running, you can link it to your social media accounts. Social media is a great way to get the word out about your business because you can make interesting posts and sell your products.
- Facebook is a great place for paid ads because it lets you target specific groups, like men under 50 in the Cleveland area.
- Instagram has the same advantages as Facebook, but its users are different.
- Website: Search engine optimization (SEO) will help your website show up near the top of relevant search results, which is important for making sales. Make sure that the calls to action on your website are the best they can be. Try out different words, colors, sizes, and places for calls to action like “Book Now.” This has the ability to boost sales by a lot.
- Google and Yelp: Getting mentioned on Yelp and Google My Business can be very important for businesses that depend on local customers to get more people to know about them and buy from them.
- Flyering: Put up the right flyers in your area and at business events.
- In-Person Sales: Offer your dumpster hire services to companies that build or repair.
- Upload a video: Upload a movie that shows what you can do for trash rental.
- Make a blog: Make a blog and add to it often. Change up your information and share it on different sites.
- Find references. Give clients reasons to give you references that you can give to new clients.
- Paid ads on social media: Choose websites where your target audience is most likely to be and run ads that reach them.
- Pay-per-click marketing: Use Google AdWords to make your search engine results better. Find out what your watchwords mean first.
- Post infographics and use them in your content to make infographics.