Junk Removal Business Overview

Junk removal companies provide pickup and disposal services for unwanted items, debris, and waste from homes and businesses. These companies handle a wide range of items, including furniture, appliances, yard waste, construction materials, and general household goods. The work involves both residential and commercial clients, from single-item removals to complete property cleanouts.

The most common types of business models in the junk removal industry include:

• Full-Service Removal: A team arrives at the location, physically removes all items, loads them into their truck, and handles all disposal
• Dumpster Rental: The company drops off a dumpster for customers to fill themselves over a set period, then picks it up for disposal
• Specialized Removal: Companies focus on specific types of removal like construction debris, electronics, or appliances

Related: Checklist To Start A Business

How Do Junk Removal Businesses Make Money?

Junk removal companies generate their primary income by charging customers based on the volume of items removed and disposed of. Most companies use truck size or dumpster capacity as their measuring standard, with prices increasing as more space is used.

Industry Statistics

Junk removal is part of the waste collection services industry under NAICS 562119: Other Waste Collection Services. These businesses transport waste and recyclable materials and provide removal services for residential and commercial clients. Here are the numbers behind this industry.

Junk Removal Industry Size & Growth: While specific junk removal data isn’t available, these businesses are part of the larger waste collection industry, which generated $77.1 billion in revenue over the last year. The waste collection industry has shown steady performance with an average increase of 1.0% annually over the past five years. Growth projections remain positive, supported by increasing residential and commercial construction activity along with rising environmental awareness driving demand for proper waste disposal services. (IBISWorld)

Junk Removal Profit Margin: Junk removal businesses report average profit margins between 8% and 19.6%. Small operators typically see profits on the lower end of this range due to operational costs and competition, while larger companies achieve higher margins through economies of scale.

Also See: Ideas for Naming a Junk Removal Business

Costs To Start a Junk Removal Business

Starting a junk removal business could range from $2,500 to $65,000. The lower end assumes using your existing truck and purchasing a trailer, while the higher end includes a new truck and advanced equipment.

Here are the main costs to consider when starting a junk removal business:

Transportation Setup ($1,000 – $45,000): If you already own a pickup truck, a utility trailer costs between $1,000 to $3,000 used. New trucks with dump capabilities can reach $45,000. Many operators start with their existing truck and a used trailer to manage costs.

Equipment ($1,000 – $10,000): Daily operations require hand trucks, dollies, ramps, straps, tarps, basic tools, and safety equipment. Additional items like a pressure washer or mini dumpsters expand service capabilities.

Disposal Fees ($300 – $5,000): Initial funds for dumping fees at waste management facilities and recycling centers. Starting relationships with disposal sites often requires account setup fees and minimum balance requirements.

Business Insurance ($200 – $5,000): Commercial auto insurance and general liability coverage protect against accidents and property damage. Your policy should cover both transportation and onsite work activities.

These cost estimates are approximate, and actual expenses will vary based on your business model and scale of operations.