How to Price Foreclosure Trashout & Debris Removal Jobs Using the Pickup Truck Capacity Rule
In a foreclosure cleaning business / REO trash out business, you will need to know how to charge for debris removal services to make a profit. Many trashout and debris removal jobs can be priced using the pickup truck capacity rule.
In a foreclosure cleanup business / REO trash out business, 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
Much of your work will consist of trashouts -- 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 trashout 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
company's prices; or call other competitors in your area, and then, set your
Sample Pricing from a Large Junk Hauler
Here's sample pricing from a larger junk hauler that services cities throughout the U.S. (please see below). Note the
sample pricing is based on the Atlanta, GA 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 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 a "Win-Win!"
In debris removal, pricing by the truckload is really a win-win. Why? Because if it turns out the client has more junk and
debris than you realized when you wrote the original estimate, a standard
clause in your foreclosure cleanup debris removal estimate will protect you.
Trashout 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 trashout job, you will be fine if you, as a matter of course, ADD this clause to your foreclosure cleanup trashout 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 5x8 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 cleaning business.
NOTE: Throughout the internet and in real estate industry literature, you may see the names mortgage field services, property preservation business, foreclosure cleanup, foreclosure cleaning, foreclosure clean-outs, foreclosure clean, clean foreclosures, cleaning foreclosures, REO trashout, REO trashouts, field asset services, property field services, field service, and field services used interchangeable. The main thing to remember is foreclosure cleaning and foreclosure cleanup generally refer to smaller entities; while property preservation generally refers to larger companies.