@@Lifes_Apprentice This is not relevant for this analysis. Some costs are fixed, some are variable. It is only a variable cost for this analysis if it goes up by dumpster. Saying that everything will go up with scale is different than everything going up by dumpster. In this analysis you need to factor fuel into the per dumpster cost as it is truly variable. DOT numbers, financing payments etc go up with scale as you buy another truck or something like that but it doesn't go up by dumpster which makes it a fixed cost and not a variable cost. Art is right in that since fuel goes up with each dumpster it should be considered a variable cost and not a fixed cost.
@@bradleyterry8223 I think the takeaway here is that TH-cam does a great job at inspiring us all to do and be better. The gentleman is giving us a little more to think about here. As a Business Major, there is so much further you can go down the rabbit hole. The point is, have a plan… a better plan than just a video because those numbers represent real dollars.
Great video. I ran a very large (for my area) roll-off company (40-50 containers per day) and believe me there are a lot of people in the big companies who do not know how to break down overhead like you have here. Well done.
Best way to do this is an actual break even analysis to determine how many dumpsters you need to do each year to break even. Assuming your numbers it would look something like this: 38,265+155x = 400x ($38,265 represents fixed cost, $155 is the variable cost per dumpster and $400 is the revenue per dumpster with x representing dumpsters) 38,265 = 245x (using algebra subtract 155x from each side resulting in 0x on the left and 245x on the right side) 156.18 = x (Again using algebra divide each side by 245 leaving 156.18 on the left and just x on the right) x=156.18...... this means with your fixed and variable cost you would need to do 157 dumpsters before breaking even. You have a couple items in your fixed cost that are really variable costs such as fuel so this isn't exactly precise but I ran the analysis based on the numbers in the video for simplicity. Doing a true break even analysis takes some of the guess work out of the equation rather than just dividing by 100,200,300 etc you can get a precise number of how many dumpsters you need to do to break even. Anything over 157 cans is pure profit.
Dude, seriously awesome video! Glad you mentioned that your overhead is higher than most so you don’t scare away smaller or wanna be new comers to the dumpster game. And I’m also super glad that you were so detailed! Merry Christmas to you and your family
That is a fantastic breakdown. Thank you for all the knowledge you pass on. I am in the process of getting started here in Central Oregon and this is invaluable for me. Thanks again, and Merry Christmas.
Wow. Great, realistic breakdown. I saw a guy with a mini roll off dumpster business the other day and figured it would be easy money. But where I take construction waste here in MA it's $180/ton. Thanks for showing me the reality!
Very good video overall on overhead breakdowns! One item that is pretty important (and wrong) in your math is fuel cost. Fuel cost should be applied per dumpster rather than for the year. It cannot be the same amount of fuel for 100 dumpsters and for 300 dumpsters. Keep up the good work!
Thank you for this info! Running a 2 truck business & would love a phone call/ advice from you. Do you offer coaching? If so, 20 minutes would be a tremendous blessing for our north Idaho family business!
😂 Loved the ending of the video. Ding Ding. Great video to watch. Always been curious how you guys actually make any money ?? Especially liked the part about ? I Know How To Grow a Business and Loose Money, LOL. It sounds odd to say it that way. But as a small business you need to look this way on paper, but it's not so much about how you live your day to day life. IF someone doesn't understand this ? Best to talk to a Good Accountant. Thanks so much for sharing your life with us. All the best with your business. Sounds like you have a great idea of what and how you want to grow your business. 👍
You can take the per bin rental revenue, subtract variable costs (gas, dump fees) to come up with contribution margin, that amount offset your fixed costs in what is called a break even analysis. The thing folks most often overlook is all the time, to get the bins, drop off pick up, empty and park. With a smaller scale the time isn't spread across as many rentals and economies of scale or convivence of grouping trips, doesn't become profitable when you consider your time as an owner operator. Best of luck!
I think it's great that you broke down these costs, and it's great to see some real numbers. But I don't think fuel would be considered overhead because it is directly related to the business done so it would be a cost of goods sold, like labor.
If you are paying someone $25 hour, you need to charge $75 to cover cost of workmans comp, unemployment insurance, ect. So, it's $50 hour total your cost per employee and $25 is your profit per hour off of employees.
Thank you for doing this. I started five months ago, and I am just getting to the break even point at 16 rentals per month. When I hit 20, I can start paying myself back for the initial outlay of six dumpsters, trailer and down payment on my used F250. People need to realize that you need another income while you start this, unless you have a chunk of savings you can live off.
@@pennylab2527 I started with a package deal, someone was selling a one year old trailer and four 12s. I purchased a 20 four months later and a 16 three weeks after. Having the bigger dumpsters helps feed the smaller rentals. I look at different sizes as opportunity. Why start if you don't have confidence in yourself to succeed? I just ordered another 20.
I really want to dive in and start my own business but I know nothing about running a business and that is what has kept me from trying. How did you learn what all is entailed to get going? I appreciate any advice or direction.
About time someone put up a video detailing the true costs of running a dumpster business. Every video out there makes it seem like it's party time with bags of cash.I run 2 new rolloff trucks and 90- 30 yard cans.We spend an enormous amount of money every year just to pay the operating costs. The one thing you need to add in is the cost for payroll including taxes worker's compensation and unemployment benefits. My driver makes $30/hour but it probably costs my company close to $45-50 per hour.Good luck.
I am glad you liked the video! There are several cost that could be different. My goal was to keep it simple so people could understand. I have seen so many videos that say I rented a dumpster for 400 and it was 20 bucks in gas and 20 bucks to dump! I made 360 dollars! lmao NO you didnt!
Im debating on starting a roll off business. However it would be with a tandem truck doing 30s starting off. Do you know the numbers would be similar to this breakdown roughly?
Thank you for your numbers. I'm in the process of working some numbers for a tandem axle roll off route, but the numbers will be quite different than a trailer/pickup set up.
Before you start this business I would look at your local market, in my area a 10-15 yard dumpster with one ton of disposal is $260 dollars. We also have a local transfer station in town so drop off is only an hour or so, I think it’s $50 per ton or so. Every company around here is using an F550 with a hook lift at the least. Another thing to consider is a sorting yard, people throw away so much metal and other stuff that could be recycled and get paid for. Thank you for the video, it’s great info. I’m hoping to start soon.
Dear Justin I believe ur name u and me have very common I do basically in tree service business I never able to drive my truck covid made me to drive and learn over years I purchased 11 bins I do have 200 truck loads of hard wood never able to motivated money. Invest in firewood processor great videos to new starters what problems u faced bothers can avoid
As stated, all costs will scale which is not adjusted above. Even with the numbers you have... Cost $38K generates a profit of $35K that takes 900 hours to generate. The 900 hours is only for dumpster and does not including time for "business" like advertising, banking maintenance etc. With the amount invested in equipment and time other ventures may be a better business seem to be the take away.
You are spot on with trade ends. So, if one views his or her dumpsters business as a going concern then “REPLACE COST” has to be at top of one list correct? Now, some may view dumpsters as a long live assets. However, the trucks are not up for debate. They have to many moving parts. Noice video!
even if you own a truck outright you should budget some money for replacement cost. dumpsters should last 10-20 years but they will need to be painted at some point and replaced for nicer ones periodically
So where do you figure in: 1) depreciation of the truck and dumpsters (loss of value over year, how long does a work truck last and how much of its value is lost during that period), 2) maintenance of dumpsters (if any) and trailer/s including car and trailer washes which seem to be needed quite often in some areas where dumps are muddy more often than not, 3) payroll taxes employer contribution, workers comp (i usually figure about 30% - 26% of whatever the payroll number is for employer costs if no medical and other benefits are added in), is there a provision for 4) taxes (non payroll) and any other govt fees, 5) Accounting and Legal Fees, etc. Do you pay yourselves payroll or take contribution only from profits right now? Any associated taxes with income both payroll and partnership/LLC? Hope a clear picture of NET income is produced and yes then I can see the income, profit and costs per unit with average placement of lets say 2 times per week, 48-50 weeks a year or so? 2 day vs 1 week rentals?
1 depreciation is a great thing for small businesses like ours but i dont get into that very much because i am trying to teach beginners the basics. a good accountant can help alot when it comes to this 2 maintenance is figured into the overhead. in our experience so far there is no maintenance 3 all workmans comp, taxes, etc is included in my hourly rate. take home for employees is about 17/hr for now 4 accounting was not included in this because we hadnt paid any fees yet but will be included when we have accurate numbers. i have not paid myself a dime yet. my pay is based on the companies growth in the future. this was a basic coverage of overhead because there is a huge lack of understanding in this business. i also get pretty personal in my numbers and have to leave a few things out and try to make it "less personal" so i am not completely transparent. it sounds like you have a great handle on this type of subject!!!
Thanks for the breakdown, however, your fixed costs change based on your dumpster amount (insurance, registration, fuel, debt, fuel), so you can't really say you're losing or gaining money based on 100/200/300 dumpsters, you can only say for your amount with this calculation
How do you advertise? We are new in business but have spent 4000 per month in ads on Facebook so far. It's the only thing we found that makes the phone ring enough
the debt is from a new truck and new dumpsters. all of the costs showed can be written off. as an owner operator you would be more/less profitable depending on pay
Almost 40 k to even keep the doors open for him . If he scales up the Business he will take on even more debt to get ahead . Those 200-300 more dumpsters cost money to buy too . Not including another truck . It almost looks like until all trucks , dumpsters , debt is payed off then you could make money . But then you need More employees which cuts into profits .
@@hhprogressiveconstruction1140 scaling a business fast cuts into initial profits for sure. if i worked in the business i could make money and scale at the same time. my money is hinged on a future sale of the business
One man company, owner puts the 3 hr @ $25 in his pocket. May or may not work for you. Just know you just own your own job at this point. Many in business do this to be on their own and free from the man. This guy just showed you how to have more and what it takes. Hope you see the fruit of your hard work. Profit and equity is the goal too
yes this is a mistake that i made in this video. we did a little over 300 dumpsters for that fuel. someone else brought that up in the comments and 100 dumpsters should be about 1/3rd the fuel
How do you take payment what are your policies on payment and how long the dumpster is out etc. Do you invoice...is that what Docket is? and do you have a way making someone pay extra when they hide a mattress and cause an extra fee at the dump?
@@Lifes_Apprentice Why are registrations so high? Registration for a truck and trailer in Texas is under $50. Thanks for the feedback. I'm on the front end of all of this so I'm just trying to understand the costs.
@@BrentTallent we are in wisconsin which has some very high taxes compared to most states. our roads dont last very long due to the winters here.i have a feeling that is why it is so high. just to register a small car here is around 100 bucks.
What are the requirements for needing a dot number in wisconsin for intrastate diving. I was under the assumption that in wisconsin as long as ur gcwr was under 26k pounds u didnt need a dot number?
Awesome video. For your employees I notice you have 3 hrs. How many hours do your employees/yourself work per day? Do you do a lot of same day appointments? How do you schedule?
our schedule changes alot because people usually dont schedule very far ahead of time. i have the 3 hours per dumpster. my drivers work from 6 to 12 hours a day depending on the day. my main driver is on salary
@@Lifes_Apprentice Could you elaborate on your comment? Is it just because you use just 2 trailers to service 30 dumpsters that its a longevity issue or? I really want to dive in and start my own roll off business but I know nothing about running a business. I appreciate any advice or direction.
you need to know your overhead per month and then figure out your dump fee per ton and mark it up 30 percent or so. our landfill fee is 46/ton so if you had 3 tons it would cost$138 just for dump fees
As you continue to look at these numbers and manage your business you need to get “correct” in your application of costs. Some of what you have as fixed costs in overhead is not correct at all. Your fuel and maintenance should be removed from the overhead and figured separately like the dump fee and labor. Figure out the distance of your average 3 hr drive and get average fuel use and apply that to each dumpster rental. Same goes for vehicle/trailer maintenance. As you drive more miles dropping dumpsters you will incur more wear and tear and costs. A good idea would be to get average distance driven for average dumpster and apply the current mileage rate from good old Uncle Sam, tax year 2021 it’s 56 cents. The allocation of costs to fixed overhead necessitates that the cost is fixed and doesn’t vary with production. Good content though.
@@Lifes_Apprentice 5000 seems like a lot of maintenance cost for a truck and 2 trailers. Plus you are paying a lot for labor and could save a lot doing it yourself. the margin would be closer to 40-50%.
The other guys definitely forget about overhead and even if everything was paid with cash the equipment needs to be depreciated and that can be included in the annual overhead. How many dumpsters did you ended up doing this year?
You said you’re average rental income is about 400, is there for a certain time period? Week? month? Also what is your customer demographic mostly, is it more residential or commercial or a healthy balance of both?
@@bobbybank5026 for us we have found we cannot pick up, dump, and set more than 4 a day. we have found about 20 dumpsters is one truck/persons limit overall
There are several things I left out and you are right. adjusting for scale is speculation for the most part... I am just trying to help new business owners understand thier numbers better
@@Lifes_Apprentice You have 18 dumpsters and only do 300 pulls a year? That's like 3 weeks between every pull on each dumpster. Isn't that too many dumpsters?
we are raising our prices slowly to avoid shock from repeat customers. with the amount of growth/debt we are taking on it is alot harder to be profitable for a few years. we will do 500+ dumpsters this year and break even most likely. once the debt is payed down the profit should be insane. you also have to figure the business is breaking even. doesnt mean the owner isnt making a nice salary!
This is why this is not a great business to own. If you're not renting 300 dumpsters you're screwed and even if you do, you are not making good money. $120K for 300 dumpsters minus business costs of $40K and $155 per dumpster. No thanks that's slave labor money and you would be broke as fuck where I live for a whole hell of a lot of running around. My current business I service 85 pools per week at $100 per pool average and have none of those types of costs to run the business. I thought about this for a moment but you really helped me quickly drop that idea so thank you for the excellent video breaking it all down. Businesses with high operating costs and big equipment are just too hard to make money at. Just to buy a descent used pick up truck is almost a small mortgage now a days. Yeah no thanks.
Great video but there’s a flaw in your math. You’re combining your fixed costs with your variable costs incorrectly. The $155 is per load. To get your true cost per load you should be breaking down your Overhead by load, not dumpster. In the first example of 100 dumpsters. The $382.65 is your cost per dumpster per year. If you do 50 loads a year with each dumpster your cost per load is $7.65 + $155, not $382 + 155. At $400 in revenue per load, you’re making $237 a load, not losing &137.
Your fuel cost will increase with more dumps
all costs go up with scale
@@Lifes_Apprentice This is not relevant for this analysis. Some costs are fixed, some are variable. It is only a variable cost for this analysis if it goes up by dumpster. Saying that everything will go up with scale is different than everything going up by dumpster. In this analysis you need to factor fuel into the per dumpster cost as it is truly variable. DOT numbers, financing payments etc go up with scale as you buy another truck or something like that but it doesn't go up by dumpster which makes it a fixed cost and not a variable cost. Art is right in that since fuel goes up with each dumpster it should be considered a variable cost and not a fixed cost.
@@bradleyterry8223
I think the takeaway here is that TH-cam does a great job at inspiring us all to do and be better. The gentleman is giving us a little more to think about here. As a Business Major, there is so much further you can go down the rabbit hole. The point is, have a plan… a better plan than just a video because those numbers represent real dollars.
Insurance is high, I dint know that, cracked driveway protection wasn't in my thoughts....great video.
Are you adding tire fees in maintamce, lots of nails where your frequenting...
Great video. I ran a very large (for my area) roll-off company (40-50 containers per day) and believe me there are a lot of people in the big companies who do not know how to break down overhead like you have here. Well done.
Thanks for watching!
Best way to do this is an actual break even analysis to determine how many dumpsters you need to do each year to break even. Assuming your numbers it would look something like this:
38,265+155x = 400x ($38,265 represents fixed cost, $155 is the variable cost per dumpster and $400 is the revenue per dumpster with x representing dumpsters)
38,265 = 245x (using algebra subtract 155x from each side resulting in 0x on the left and 245x on the right side)
156.18 = x (Again using algebra divide each side by 245 leaving 156.18 on the left and just x on the right)
x=156.18...... this means with your fixed and variable cost you would need to do 157 dumpsters before breaking even.
You have a couple items in your fixed cost that are really variable costs such as fuel so this isn't exactly precise but I ran the analysis based on the numbers in the video for simplicity. Doing a true break even analysis takes some of the guess work out of the equation rather than just dividing by 100,200,300 etc you can get a precise number of how many dumpsters you need to do to break even. Anything over 157 cans is pure profit.
Dude, seriously awesome video! Glad you mentioned that your overhead is higher than most so you don’t scare away smaller or wanna be new comers to the dumpster game.
And I’m also super glad that you were so detailed! Merry Christmas to you and your family
thanks
WOW what a humpin hussell. I have a new understanding of why charges are SOOO Expensive. Thanks for sharing
That’s real stuff man. . I would love to see your idea of making this business profitable to stay open . Big props to you for showing everyone this .
That is a fantastic breakdown. Thank you for all the knowledge you pass on. I am in the process of getting started here in Central Oregon and this is invaluable for me. Thanks again, and Merry Christmas.
Wow. Great, realistic breakdown. I saw a guy with a mini roll off dumpster business the other day and figured it would be easy money. But where I take construction waste here in MA it's $180/ton. Thanks for showing me the reality!
Glad it was helpful!
Best breakdown I have seen yet. Well done
thanks
Great video in many dimensions. Thank you. Sometimes I think growing it and then selling it is the way to go
Absolutely!
Very good video overall on overhead breakdowns! One item that is pretty important (and wrong) in your math is fuel cost. Fuel cost should be applied per dumpster rather than for the year. It cannot be the same amount of fuel for 100 dumpsters and for 300 dumpsters. Keep up the good work!
you are right
Thank you for this info! Running a 2 truck business & would love a phone call/ advice from you. Do you offer coaching? If so, 20 minutes would be a tremendous blessing for our north Idaho family business!
Good stuff brotha, love these information videos, looking forward to more
😂
Loved the ending of the video.
Ding Ding.
Great video to watch.
Always been curious how you guys actually make any money ??
Especially liked the part about ?
I Know How To Grow a Business and Loose Money, LOL.
It sounds odd to say it that way.
But as a small business you need to look this way on paper, but it's not so much about how you live your day to day life.
IF someone doesn't understand this ?
Best to talk to a Good Accountant.
Thanks so much for sharing your life with us.
All the best with your business.
Sounds like you have a great idea of what and how you want to grow your business. 👍
thank you! understanding that you can make money and the business lose money is something alot of people do not understand!
Amazing break down! Thank you!
You can take the per bin rental revenue, subtract variable costs (gas, dump fees) to come up with contribution margin, that amount offset your fixed costs in what is called a break even analysis. The thing folks most often overlook is all the time, to get the bins, drop off pick up, empty and park. With a smaller scale the time isn't spread across as many rentals and economies of scale or convivence of grouping trips, doesn't become profitable when you consider your time as an owner operator. Best of luck!
I think it's great that you broke down these costs, and it's great to see some real numbers. But I don't think fuel would be considered overhead because it is directly related to the business done so it would be a cost of goods sold, like labor.
you are correct....
If you are paying someone $25 hour, you need to charge $75 to cover cost of workmans comp, unemployment insurance, ect. So, it's $50 hour total your cost per employee and $25 is your profit per hour off of employees.
Thank you for doing this. I started five months ago, and I am just getting to the break even point at 16 rentals per month. When I hit 20, I can start paying myself back for the initial outlay of six dumpsters, trailer and down payment on my used F250. People need to realize that you need another income while you start this, unless you have a chunk of savings you can live off.
it isnt as profitable as people think until you hit a certain scale
Honest question: Why did you get six dumpsters as a start-up?
@@pennylab2527 I started with a package deal, someone was selling a one year old trailer and four 12s. I purchased a 20 four months later and a 16 three weeks after. Having the bigger dumpsters helps feed the smaller rentals. I look at different sizes as opportunity. Why start if you don't have confidence in yourself to succeed? I just ordered another 20.
I really want to dive in and start my own business but I know nothing about running a business and that is what has kept me from trying. How did you learn what all is entailed to get going? I appreciate any advice or direction.
Awesome video man... wanting to add roll off’s to my PW business. This video will help with adding all the right numbers!!! Thanks bro
About time someone put up a video detailing the true costs of running a dumpster business. Every video out there makes it seem like it's party time with bags of cash.I run 2 new rolloff trucks and 90- 30 yard cans.We spend an enormous amount of money every year just to pay the operating costs. The one thing you need to add in is the cost for payroll including taxes worker's compensation and unemployment benefits. My driver makes $30/hour but it probably costs my company close to $45-50 per hour.Good luck.
I am glad you liked the video! There are several cost that could be different. My goal was to keep it simple so people could understand. I have seen so many videos that say I rented a dumpster for 400 and it was 20 bucks in gas and 20 bucks to dump! I made 360 dollars! lmao NO you didnt!
Im debating on starting a roll off business. However it would be with a tandem truck doing 30s starting off. Do you know the numbers would be similar to this breakdown roughly?
Thank you for your numbers. I'm in the process of working some numbers for a tandem axle roll off route, but the numbers will be quite different than a trailer/pickup set up.
every business will have different numbers!
Before you start this business I would look at your local market, in my area a 10-15 yard dumpster with one ton of disposal is $260 dollars.
We also have a local transfer station in town so drop off is only an hour or so, I think it’s $50 per ton or so. Every company around here is using an F550 with a hook lift at the least.
Another thing to consider is a sorting yard, people throw away so much metal and other stuff that could be recycled and get paid for.
Thank you for the video, it’s great info. I’m hoping to start soon.
I LOVE this " White board " format! :)
Me too
Thank you for making this video!!! I learned a lot!!
your welcome!
Excellent Video my freind. Beautiful breakdown of the day to day
Glad you enjoyed it!
Dear Justin I believe ur name u and me have very common I do basically in tree service business I never able to drive my truck covid made me to drive and learn over years I purchased 11 bins I do have 200 truck loads of hard wood never able to motivated money. Invest in firewood processor great videos to new starters what problems u faced bothers can avoid
We have alot in common! Glad my videos help! Thanks for watching! you ever have questions feel free to ask
Who do you use to insure the dumpsters?Not the trucks but tha actual dumpsters.
erie insurance. we have the dumpsters covered under our business insurance
So only 1200 per year for yard space rent? that is cheap up there.
Could you tell me who you are using for insurance? Just trying to get references
Erie insurance
GREAT wake up for young entrepreneurs. Love the video
thank you
I know how to grow a business and lose money! My type of business owner!💪
About to order a Nedland roll off trailer. Any reason I shouldn’t go with them? Seems like a pretty stout unit.
best trailer money can buy. i have no complaints at all. only problems we have had is normal maintinence
This is great stuff man. Thank you for sharing!
My pleasure!
How do we get in contact for a rundown on starting my own dumpster business?
wjustin1021@gmail.com
As stated, all costs will scale which is not adjusted above. Even with the numbers you have... Cost $38K generates a profit of $35K that takes 900 hours to generate. The 900 hours is only for dumpster and does not including time for "business" like advertising, banking maintenance etc. With the amount invested in equipment and time other ventures may be a better business seem to be the take away.
low overhead or scale is the key. if you can manage to do both its awesome.
Now u sir know what ur doing and where ur money is going 👍
Isn't DOT number free?
no
You are spot on with trade ends. So, if one views his or her dumpsters business as a going concern then “REPLACE COST” has to be at top of one list correct? Now, some may view dumpsters as a long live assets. However, the trucks are not up for debate. They have to many moving parts. Noice video!
even if you own a truck outright you should budget some money for replacement cost. dumpsters should last 10-20 years but they will need to be painted at some point and replaced for nicer ones periodically
So where do you figure in: 1) depreciation of the truck and dumpsters (loss of value over year, how long does a work truck last and how much of its value is lost during that period), 2) maintenance of dumpsters (if any) and trailer/s including car and trailer washes which seem to be needed quite often in some areas where dumps are muddy more often than not, 3) payroll taxes employer contribution, workers comp (i usually figure about 30% - 26% of whatever the payroll number is for employer costs if no medical and other benefits are added in), is there a provision for 4) taxes (non payroll) and any other govt fees, 5) Accounting and Legal Fees, etc. Do you pay yourselves payroll or take contribution only from profits right now? Any associated taxes with income both payroll and partnership/LLC? Hope a clear picture of NET income is produced and yes then I can see the income, profit and costs per unit with average placement of lets say 2 times per week, 48-50 weeks a year or so? 2 day vs 1 week rentals?
1 depreciation is a great thing for small businesses like ours but i dont get into that very much because i am trying to teach beginners the basics. a good accountant can help alot when it comes to this 2 maintenance is figured into the overhead. in our experience so far there is no maintenance 3 all workmans comp, taxes, etc is included in my hourly rate. take home for employees is about 17/hr for now 4 accounting was not included in this because we hadnt paid any fees yet but will be included when we have accurate numbers. i have not paid myself a dime yet. my pay is based on the companies growth in the future. this was a basic coverage of overhead because there is a huge lack of understanding in this business. i also get pretty personal in my numbers and have to leave a few things out and try to make it "less personal" so i am not completely transparent. it sounds like you have a great handle on this type of subject!!!
Thanks for the breakdown, however, your fixed costs change based on your dumpster amount (insurance, registration, fuel, debt, fuel), so you can't really say you're losing or gaining money based on 100/200/300 dumpsters, you can only say for your amount with this calculation
yes you are correct. these numbers are based on 350 rentals.
@@Lifes_Apprentice at 350 that's great roi! Thanks again
Where in Wisconsin do you dump?
Fox valley
How do you advertise? We are new in business but have spent 4000 per month in ads on Facebook so far. It's the only thing we found that makes the phone ring enough
we advertise alot of ways. google, fb, nextdoor, hometown, and more 4000 a month is alot!
Okay, so Sims of that overhead can be written off, right? Also, if your an owner-operator than is $150 less. And what is the debt from?
the debt is from a new truck and new dumpsters. all of the costs showed can be written off. as an owner operator you would be more/less profitable depending on pay
What about now? Are you still in bussines ??
Hello, Have you had any issue with the f250 3/4 ton pulling the 20-yard Dumpsters on the roll-off trailer
we haul with a 2015f350 6.7 diesel on a daily basis and it works great. we have hauled about 16 tons gross and 8 tons net
What are your weight limits? Over 26001lbs your driver's need cdlA
What SOFTWARE do you guys use in the the dumpster rental business, any recommendations ?
docket
it was literally the first expense he mentioned
That sums it up, us small guys will go broke
Almost 40 k to even keep the doors open for him . If he scales up the Business he will take on even more debt to get ahead . Those 200-300 more dumpsters cost money to buy too . Not including another truck . It almost looks like until all trucks , dumpsters , debt is payed off then you could make money . But then you need More employees which cuts into profits .
nobody is going broke! we have profited a quite a bit this year. i am choosing to reinvest all profits and grow at a very fast pace
@@hhprogressiveconstruction1140 scaling a business fast cuts into initial profits for sure. if i worked in the business i could make money and scale at the same time. my money is hinged on a future sale of the business
One man company, owner puts the 3 hr @ $25 in his pocket. May or may not work for you. Just know you just own your own job at this point. Many in business do this to be on their own and free from the man. This guy just showed you how to have more and what it takes. Hope you see the fruit of your hard work. Profit and equity is the goal too
@@hhprogressiveconstruction1140 If you've ever wondered why people never get anywhere in life...it's this mentality.
Very informative. What do you think 🤔 supplying the labor as well. So when you drop off the trashcan you would load it and haul off
the junk removal part is a great way to make more per dumpster but for us we have no intention of doing that at this time
Do you have a specific amount of weight allowed for each size dumpster? If so, Do you charge extra per lb thats over?
We charge a flat rate for now and charge more based on cusomers project if it is going to be a heavy dumpster
Doesn't your fuel overhead go up significantly if you do 100 as opposed to 300+ dumpsters per year?
yes this is a mistake that i made in this video. we did a little over 300 dumpsters for that fuel. someone else brought that up in the comments and 100 dumpsters should be about 1/3rd the fuel
How do you take payment what are your policies on payment and how long the dumpster is out etc. Do you invoice...is that what Docket is? and do you have a way making someone pay extra when they hide a mattress and cause an extra fee at the dump?
we take payment on delivery. docket keeps track of finances and schedule
I thought DOT# was for interstate trucks over 10,000 lbs. Do you service more than one state?
no we do not. in our state we need a dot#
@@Lifes_Apprentice Why are registrations so high? Registration for a truck and trailer in Texas is under $50. Thanks for the feedback. I'm on the front end of all of this so I'm just trying to understand the costs.
@@BrentTallent we are in wisconsin which has some very high taxes compared to most states. our roads dont last very long due to the winters here.i have a feeling that is why it is so high. just to register a small car here is around 100 bucks.
@@Lifes_Apprentice Thanks for the response. I love your channel. Just now bought a truck.
@@BrentTallent thanks! good for you!
Do you need CDL run these dumpsters thks great video
not with our setup
Any trailer over 10k registered weight requires a class A cdl so yes he needs a cdl. He will find out when he gets that $1400 ticket
How do you get $400 per dumpster? A 20 yard here is $380 up to 8 ton included.
must just be my area. i am one of the cheapest too 8 ton cost me 400 just for dump fees
What are the requirements for needing a dot number in wisconsin for intrastate diving. I was under the assumption that in wisconsin as long as ur gcwr was under 26k pounds u didnt need a dot number?
I would have to double check but I believe any trailer with a gvwr over 10k you need a dot#
Ok, i found it pretty difficult to find any info about it when i google searched it. Thank u for the reply and hope ur business is doing well
Awesome video. For your employees I notice you have 3 hrs. How many hours do your employees/yourself work per day? Do you do a lot of same day appointments? How do you schedule?
our schedule changes alot because people usually dont schedule very far ahead of time. i have the 3 hours per dumpster. my drivers work from 6 to 12 hours a day depending on the day. my main driver is on salary
OK, you got me, what is docket/dockit software? Thanks and keep em coming!
docket is an app that keeps track of customers, employees, and schedule
How much did it cost you for start up? I was thinking of buying two 15yard dump trailers and a truck
i made a video about startup costs.
@@Lifes_Apprentice I should have checked that. Thanks for the response God bless.
Do you use a gas or electric trailer if electric how you keeping it charged all day?
gas. electric would never work for us
@@Lifes_Apprentice Could you elaborate on your comment? Is it just because you use just 2 trailers to service 30 dumpsters that its a longevity issue or? I really want to dive in and start my own roll off business but I know nothing about running a business. I appreciate any advice or direction.
@@tomcat5986 The trailer we use has a gas motor to run hydraulics so we do not need to keep a battery charged on a long day or in the cold
That was excellent information. That's my brother!
Glad it was helpful!
Where u from in wisco, I’m in se part
fox valley
@@Lifes_Apprentice good video, I need help getting started
@@tyg3571 I do consultations. email wjustin1021@gmail.com
Around here in Longview Tx area is $151 for three tons and $46 for each ton after. Any tips?
you need to know your overhead per month and then figure out your dump fee per ton and mark it up 30 percent or so. our landfill fee is 46/ton so if you had 3 tons it would cost$138 just for dump fees
Great video!!! 👍
Great video. Do you take payments from your customers directly through the Docket app or do you still need a square or something? thanks
we use square and direct payments like cash or check
Who is your commercial insurance through? 5100 for a year is amazing mine is double rn
we have insurance through progressive
Great video, good information 👍🏾
Thanks for watching!
My only comment is who in the world draws a money symbol by doing the dashes first before the S 😂🤑
i guess i do!
😂😂
Who'd you get your insurance through?
a local agent through erie insurance
Dude thank you. I will check them out. Thanks for making these vids and responding to these comments! Saving the world. 140 characters at a time. 😂
@@QuentinBSmith anytime! thanks for watching!
Who do you recommend for insurance? Im paying a few grand more for myself and one person. Thanks!
we have progressive htis year
Do you wash each dumpster after it been rented
we do not on everyone but some get stinky and we will take them through a self serve carwash
Great vid. They are always informative. What is DNR? Thank you.
department of natural resources
Hey buddy,
How are you?
Great video!!! Just a quick question, how did figure out your average dump fee for the year?
Thanks.
i totaled 100 dumps and divided by 100...
Thanks buddy
Not in Indiana
As you continue to look at these numbers and manage your business you need to get “correct” in your application of costs. Some of what you have as fixed costs in overhead is not correct at all. Your fuel and maintenance should be removed from the overhead and figured separately like the dump fee and labor. Figure out the distance of your average 3 hr drive and get average fuel use and apply that to each dumpster rental. Same goes for vehicle/trailer maintenance. As you drive more miles dropping dumpsters you will incur more wear and tear and costs. A good idea would be to get average distance driven for average dumpster and apply the current mileage rate from good old Uncle Sam, tax year 2021 it’s 56 cents. The allocation of costs to fixed overhead necessitates that the cost is fixed and doesn’t vary with production. Good content though.
Thanks for the video
You bet
You missed the expense of a business site for storing trailer and dumpsters
you are correct. we do pay 100/month for that and that may vary depending on your situation
Why is your dot number $155?
renewal is 155 a year...
@@Lifes_Apprentice that’s strange, my dot number was free... maybe you have something different?
Debt: my take is debt that earns you profit, makes sense. Work trucks, financing trailers, etc. Debt that doesn't = death.
completely agree! with a new fast growing business it can get out of control fast if you are not careful!
It must be cold where you're at. Why not turn up the heat so you can take your hat off.
you missed depreciation exp
i said in the video it doesnt include depreciation
Good stuff. Very useful.
Glad it was helpful!
So, your profit for a year is only $35,400 if you do 300 trailers?
yes about 30 percent net profit. with loans and employees this is a great margin
@@Lifes_Apprentice 5000 seems like a lot of maintenance cost for a truck and 2 trailers. Plus you are paying a lot for labor and could save a lot doing it yourself. the margin would be closer to 40-50%.
@@mlbjr That depends on what breaks next.... because it always does. Some years your lucky.... some times not so much.
@@InquiryTeaching Understood. Great content. Thank you.
I am going to need an experienced business partner at the end of the year to start a new junk removal business in kissimmee florida
i could help you for sure! i am in wisconsin and florida is long way away but if you ever need help or have questions i would be happy to help
The other guys definitely forget about overhead and even if everything was paid with cash the equipment needs to be depreciated and that can be included in the annual overhead. How many dumpsters did you ended up doing this year?
we took over the business in april and sold about 300
Thanks for the great content.
Glad you enjoy it!
You said you’re average rental income is about 400, is there for a certain time period? Week? month? Also what is your customer demographic mostly, is it more residential or commercial or a healthy balance of both?
mix of commercial and residential. we do a 7-10 rental based on time of year
Hi my friend that I need CDL license to dumpster Business
we do not with our setup
Question ot the day is how many dumpsters do you rent in a year 🤔
we started april 1st 2020 and did 350 rentals in first 9 months. i hope to do 600 this year
@@Lifes_Apprentice
Awesome. With 28 bins I bet you could easily hit a thousand rentals in a year.
@@mr.d4295 that would be nice! we will see! to stay growing and profitable i need 600 at least 450 is about break even
@@Lifes_Apprentice How many dumpsters could one employee or one owner/operator service in a given day?
@@bobbybank5026 for us we have found we cannot pick up, dump, and set more than 4 a day. we have found about 20 dumpsters is one truck/persons limit overall
I expected your yearly fuel to be higher.
35k profit at 300 dumpster and 35k for ever 100 after that?
probably more like 10k net profit for every hundred after that
You say others don’t understand overhead costs yet you don’t adjust yours to scale in your example…
There are several things I left out and you are right. adjusting for scale is speculation for the most part... I am just trying to help new business owners understand thier numbers better
Compared to most types of business this is next to nothing though
How many dumpsters you currently have? For 200 pulls a year I'm guessing you only need 5 max.
you could do 200 with 5 dumpsters we are up to 18 now and have ran the business for 8 months
@@Lifes_Apprentice You have 18 dumpsters and only do 300 pulls a year? That's like 3 weeks between every pull on each dumpster. Isn't that too many dumpsters?
@@jameshack485 we started with 10 in april 2020 with 10 and have 18 now. we have sold more than 300. not bad for 8 months
@@jameshack485 we currently do 10 day rentals and if we are busy we do 7 day
Hard to grow it. You’ll need to do about 1000 dumpsters a year at 500 a pop
we are raising our prices slowly to avoid shock from repeat customers. with the amount of growth/debt we are taking on it is alot harder to be profitable for a few years. we will do 500+ dumpsters this year and break even most likely. once the debt is payed down the profit should be insane. you also have to figure the business is breaking even. doesnt mean the owner isnt making a nice salary!
At 200 dumpsters a year after over head and dump fees and labor you still are profitable with 11k.
U can’t devide $38,265 by 100,200,300
Your fuel for 100 rentals can’t be $8000/year
And $8000.00 for 300 rentals
This is why this is not a great business to own. If you're not renting 300 dumpsters you're screwed and even if you do, you are not making good money. $120K for 300 dumpsters minus business costs of $40K and $155 per dumpster. No thanks that's slave labor money and you would be broke as fuck where I live for a whole hell of a lot of running around. My current business I service 85 pools per week at $100 per pool average and have none of those types of costs to run the business. I thought about this for a moment but you really helped me quickly drop that idea so thank you for the excellent video breaking it all down. Businesses with high operating costs and big equipment are just too hard to make money at. Just to buy a descent used pick up truck is almost a small mortgage now a days. Yeah no thanks.
Much appreciated thank you
Glad to help
Great video but there’s a flaw in your math. You’re combining your fixed costs with your variable costs incorrectly. The $155 is per load. To get your true cost per load you should be breaking down your Overhead by load, not dumpster. In the first example of 100 dumpsters. The $382.65 is your cost per dumpster per year. If you do 50 loads a year with each dumpster your cost per load is $7.65 + $155, not $382 + 155. At $400 in revenue per load, you’re making $237 a load, not losing &137.
the numbers were based on 300 rentals in this video. i was just trying to give an example how profit will go up based on scale
Man you just explained small business class.thur the sba.
glad you liked the video!
I'd like to see you buying those new cans at whole sale or fabing them up yourself but uno lol
@@dannyridley2437 it would be a good business to be in! a sawmill would probably be best this year!!! lol