The exact amount valet trash companies make yearly will vary based on numerous factors. These businesses offer a service that is specifically designed for multi-family housing units. On specified days, residents in these apartments place their garbage outside their doors in a pre-provided container for the valets to pick them up and haul to a larger dumpster on or off the property.
The services offered by these businesses are without a doubt a convenient amenity. It eliminates the stress of taking out the trash, freeing renters up to enjoy their time and apartment. Valet trash service companies generate revenue by negotiating private contracts with property managers, municipal organizations, and companies.
Have it in mind that the contract notes the type of garbage to be collected and the related services to be provided, including recycling or landfill services, all for a fee. America has long remained one of the most wasteful countries in the world, generating 239 million metric tons of garbage every year, about 1,600 to 1,700 pounds per person.
Although some consider it a threat to the environment and society, it remains a lucrative opportunity in this modern age. Have it in mind that valet trash service businesses solve a problem that won’t go away anytime soon.
Truth be told, one of the notable selling points of any valet trash service business is the fact that they are offering an amenity that makes a property management company money. Just like it was noted above, numerous factors will determine how much Valet Trash companies make.
Factors That Determine How Much Valet Trash Companies Make
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Note that the location of a valet trash business will influence how much the business makes yearly. Truth be told, valet trash services are most needed in urban markets where families won’t mind spending money to get their waste hauled to the dumpster.
Rural markets have fewer customers available, and some of those won’t mind carrying out the tasks themselves. Inner cities have higher costs associated with the property while customers have less cash for extras. Therefore, the exact location of the valet trash business will ultimately affect the revenue of the business.
Type and Size of Apartment Communities
The size and type of property will surely have a huge impact on the cost of valet waste removal and this will affect the bottom line of the business. Have it in mind that the services offered by these businesses are considered highly efficient when it comes to multifamily properties.
Companies in this line of business that need bigger multifamily properties will make more money than companies that cater to the needs of single-family properties. Single-family homes are designed to be used as a single-dwelling unit with one owner, while multifamily properties include townhomes, apartment complexes, and condominiums.
Frequency of Pickup
As per the standard waste removal services, trash is expected to be collected between 8 PM and 11 PM twice a week. Although this is the industry standard, have it in mind that there may be certain exceptions. There are valet trash companies that offer charges based on 3 or 5 collections per week, with the cost going past $8 per unit to $12 per unit.
While other factors that impact Valet trash business income often increase the costs, the frequency of trash pickups works in both ways especially since it can either decrease or increase depending on the number of pickups.
Note that contract lengths will have an impact on the cost charged per unit and this will also dictate the possible income of the company. Each contract that you get with an apartment complex will become revenue that your business generates. Have it in mind that this is the same whether it’s one, two, or ten apartment complexes.
Signing one contract with a multi-year term automatically guarantees that you have a job for the next few years. Note that when you put together these contracts and renew them when they are about to expire, it can set you up for quite a while.
Owners management style
A valet trash business owner who is eager to generate more revenue will need to have an attitude of service. Have it in mind that businesses that provide their employees with the right tools, training, and additional perks will earn better than those who simply boss them around.
Note that when an employer focuses on serving others, their number of clients tends to grow and the income they generate also increases.
Just as with any other business, there are costs to start and manage a valet trash business. While some expenses are necessary, there are some that can be delayed. For instance, when you start you will need money to form a business entity, get marketing materials (business cards, flyers, etc.), a website (at least one page with your info), and many other things.
Any other thing aside from these can be delayed until you get enough contracts to foot those bills. You will also need to invest in your supplies to service a community, insurance, accounting software, and the largest item, trash containers for a property. Any other expenses you choose to take up will affect the profit of your business.
Note that when a valet trash removal company is one of many within the community, you will find that the prices are more competitive than those of a company that has monopolized its region.
However, whether you’re starting in a market that already has the valet trash amenity or an area that doesn’t know about this service yet, you should expect your nearby competition to influence how much your business can make in a year.
Profit Margin for Valet Trash Service Companies
The profit margin of a valet trash company also varies depending on certain factors such as contract length, number of clients, apartments serviced, coupled with the sort of services provided. However, companies in this waste management sector are advised to aim for profit margins within the range of 10 – 13%.
To grow profit margins, these businesses may have to fiddle around with their service contracts to determine the pricing sweet spot that will draw in the greatest number of clients. Valet trash service businesses are most often advised to start with a month-by-month contract at a low rate that can be altered as they go.
This will allow customers to use the services on a trial basis and also offer the business the platform to figure out the best price point for their services.