1. Why Junk Removal is a Great Business
The junk removal industry generates over $10 billion annually in the United States, with steady 5-7% year-over-year growth. Unlike many businesses, junk removal has relatively low barriers to entry, consistent demand (people always have stuff to get rid of), and strong profit margins when run efficiently.
Pros
- +Low startup costs compared to other businesses
- +High profit margins (40-60% typical)
- +Consistent year-round demand
- +Can start part-time and scale up
- +Cash flow positive from day one
Challenges
- !Physical labor intensive
- !Vehicle and equipment maintenance
- !Dump fee fluctuations
- !Competition from established players
- !Customer acquisition costs
2. Business Licensing Requirements
Licensing requirements vary by state and city. Most junk removal businesses need:
- Business License - Required in all states, obtained from your city/county
- EIN (Employer Identification Number) - Free from the IRS, needed for business banking
- Waste Hauler Registration - Some states require registration with environmental agencies
- Special Permits - May be needed for hazardous materials or specific waste types
State-by-State Licensing Overview
| State | Business License | Waste Permit | Est. Cost |
|---|---|---|---|
| Florida | Required | DEP Registration | $50-150 |
| Texas | Required | TCEQ Permit (if hauling hazmat) | $50-300 |
| California | Required | CalRecycle Registration | $100-500 |
| New York | Required | DEC Permit | $200-1,000 |
| Georgia | Required | EPD Registration | $50-200 |
| North Carolina | Required | DEQ Registration | $50-200 |
| Ohio | Required | EPA Registration | $50-150 |
| Pennsylvania | Required | DEP Permit | $100-300 |
| Illinois | Required | IEPA Registration | $100-250 |
| Michigan | Required | EGLE Registration | $50-200 |
Do You Need a CDL?
Usually no. A Commercial Driver's License (CDL) is only required if your vehicle's Gross Vehicle Weight Rating (GVWR) exceeds 26,001 lbs. Most junk removal operations using pickup trucks with trailers stay well under this threshold. However, if you're running a large box truck or roll-off container truck, you may need one.
3. Insurance: What You Actually Need
Insurance is non-negotiable for junk removal. One accident, one damaged item, or one injury can bankrupt an uninsured business. The good news: proper coverage is affordable.
General Liability
Highly RecommendedCovers property damage, bodily injury to third parties. Essential for customer trust.
Commercial Auto
RequiredCovers your truck and trailer while working. Personal auto insurance won't cover business use.
Workers Compensation
Required with employeesCovers employee injuries on the job. Required in most states if you have employees.
Inland Marine
OptionalCovers tools and equipment in your truck/trailer. Good for expensive equipment.
Umbrella Policy
OptionalExtra liability coverage above your other policies. Good for high-value jobs.
Getting a Certificate of Insurance (COI)
Many customers, especially commercial clients and property managers, will ask for a Certificate of Insurance (COI) before hiring you. This is a one-page document your insurance company provides that proves you're covered.
How to get one: Contact your insurance agent and request a COI. They can usually email it within 24 hours. Most agents provide unlimited COIs at no extra charge.
Where to Get Insurance
- • Next Insurance - Fast online quotes, junk-removal specific
- • Simply Business - Compares multiple carriers
- • The Hartford - Established, good for commercial auto
- • Progressive Commercial - Competitive auto rates
- • Local agents - Can bundle policies for savings
Total Monthly Insurance Cost
4. Equipment & Startup Costs
One of the best things about junk removal is you can start lean. Here's a realistic breakdown of what you'll need to invest.
Startup Cost Breakdown
| Item | Low End | High End | Notes |
|---|---|---|---|
| Used Pickup Truck | $8,000 | $20,000 | F-150/Silverado with good towing |
| Dump Trailer (12-14 yard) | $6,000 | $12,000 | New or quality used |
| Business Registration | $50 | $500 | Varies by state/city |
| General Liability Insurance | $500 | $1,500 | Annual premium |
| Commercial Auto Insurance | $1,200 | $3,000 | Annual premium |
| Workers Comp (if employees) | $0 | $5,000 | Required with employees |
| Basic Tools & Equipment | $500 | $1,500 | Dollies, straps, PPE |
| Website & Marketing | $0 | $2,000 | Free with 67Junk! |
| Initial Dump Fees (float) | $500 | $1,000 | First month operating capital |
| Misc (uniforms, cards, etc) | $200 | $500 | Professional appearance |
| TOTAL | $16,950 | $47,000 |
Budget Option: Start for Under $5K
If you already own a pickup truck, you can start much cheaper:
- • Rent a trailer ($50-100/day) until you can afford one
- • Use your truck bed + tarps for small jobs
- • Get minimum required insurance only
- • DIY your marketing (free website from 67Junk)
- • Total: $2,000-$5,000
Pro Setup: $25K-$40K
For serious operators ready to scale:
- • Newer, reliable truck with good towing capacity
- • New dump trailer (14+ yards)
- • Full insurance coverage
- • Professional branding (wraps, uniforms)
- • Marketing budget for first 3 months
- • Total: $25,000-$40,000
Trailer Size Recommendations
~4 cubic yards. Good for single items and small jobs. Limited earning potential.
~8-10 cubic yards. Sweet spot for most operators. Can handle full cleanouts.
~12-16 cubic yards. Maximum capacity. Requires larger truck and more skill.
5. Understanding Dump Fees
Dump fees are your biggest variable cost. Understanding them is critical for profitable pricing. Fees vary dramatically by region and disposal method.
Dump Fees by Region
| Region | Per Ton | Per Cubic Yard | Notes |
|---|---|---|---|
| South Florida | $45-65 | $35-50 | Higher in Miami-Dade |
| Central Florida | $35-55 | $25-40 | Orlando area slightly higher |
| North Florida | $30-45 | $20-35 | Jacksonville competitive |
| Texas Metro | $35-55 | $25-40 | Houston, Dallas, Austin |
| Texas Rural | $25-40 | $18-30 | Smaller towns cheaper |
| California Coast | $60-100 | $50-80 | LA, SF very expensive |
| California Inland | $40-65 | $35-55 | Sacramento, Central Valley |
| Northeast | $55-85 | $45-70 | NY, NJ, CT premium |
| Midwest | $30-50 | $22-38 | OH, MI, IL competitive |
| Southeast | $35-50 | $25-40 | GA, NC, SC average |
Ways to Reduce Dump Fees
- • Separate recyclables - Metal, cardboard, electronics often free
- • Donate usable items - Goodwill, Habitat ReStore (free + tax deduction)
- • Use transfer stations - Often cheaper than landfills
- • Negotiate volume rates - Regular customers get discounts
- • Time your loads - Some dumps have off-peak rates
Special Disposal Items
- • Mattresses - $15-40 each surcharge at most dumps
- • Tires - $5-15 each, some places won't accept
- • Appliances (freon) - $25-50 each for refrigerators/AC units
- • Electronics - Often free at designated e-waste facilities
- • Paint/chemicals - Require special hazmat disposal
Ton vs Cubic Yard: The Math
Dumps charge by weight (tons) or volume (cubic yards). Knowing the conversion helps you estimate costs:
General household junk: 1 cubic yard ≈ 200-400 lbs ≈ 0.1-0.2 tons
Construction debris: 1 cubic yard ≈ 400-800 lbs ≈ 0.2-0.4 tons
Heavy materials (concrete): 1 cubic yard ≈ 2,000+ lbs ≈ 1+ ton
6. How to Price Your Services
Pricing is where most new haulers struggle. Price too low and you won't make money. Price too high and you won't get jobs. Here's the formula that works:
The Pricing Formula
Pricing Examples by Job Type
Based on $30/cubic yard dump fees
| Job Type | Volume | Est. Dump Fee | Labor Time | Suggested Price | Margin |
|---|---|---|---|---|---|
| Single Item (couch, mattress) | 1 yd³ | $35 | 0.5 hr | $75-125 | 50-65% |
| Small Cleanout (1/4 truck) | 3 yd³ | $90 | 1 hr | $200-300 | 45-60% |
| Medium Cleanout (1/2 truck) | 6 yd³ | $180 | 2 hr | $350-500 | 40-55% |
| Full Truck Load | 12 yd³ | $360 | 3 hr | $600-800 | 35-50% |
| Estate Cleanout (multi-load) | 30 yd³ | $900 | 8 hr | $1,800-2,500 | 40-55% |
| Construction Debris | 12 yd³ | $450 | 4 hr | $750-1,000 | 35-45% |
Minimum Job Charges
Always have a minimum charge to make small jobs worthwhile:
- • Single item pickup: $75-125 minimum
- • Small load: $150-200 minimum
- • Long distance: Add $1-2/mile over 15 miles
- • Stairs/difficult access: Add $25-50
When to Charge More
These situations warrant higher pricing:
- • Same-day service: +20-50%
- • Hoarding situations: +50-100%
- • Hazardous materials: Quote case-by-case
- • Heavy items: Hot tubs, pianos, safes
- • Weekends/holidays: +15-25%
Competitor Pricing Reference
Here's what the major national franchises charge (2026 rates):
$99-$750+
Premium pricing, strong brand
$99-$650+
Similar premium tier
$79-$500+
Competitive pricing
7. Getting Your First Customers
You've got the license, insurance, and equipment. Now you need customers. Here are the most effective channels, ranked by ROI:
1. Lead Marketplaces (Best for New Operators)
RecommendedPlatforms like 67 Junk connect you with customers actively looking for junk removal. You only pay when you get a real lead, and you compete on price and response time.
2. Google Business Profile (Free!)
Claim and optimize your Google Business Profile. This is how you show up in "junk removal near me" searches. Completely free and essential for local SEO.
3. Google Ads (If You Have Budget)
Pay-per-click advertising can generate immediate leads, but costs vary widely by market. See our complete Google Ads guide for cost-per-lead data and ROI analysis.
4. Facebook Marketplace & Groups
Post your services in local buy/sell groups and Marketplace. Many people selling items also need junk removal. Respond to "ISO junk removal" posts quickly.
5. Referral Partnerships
Build relationships with realtors, property managers, estate attorneys, and moving companies. They regularly need junk removal services and can send consistent business.
8. Common Mistakes to Avoid
Underpricing jobs
Why it hurts: New operators often quote too low to "get the job." This leads to burnout and going out of business.
The fix: Use the pricing formula above. It's okay to lose jobs on price - you can't work for free.
Skipping insurance
Why it hurts: One damaged floor, one broken window, one injury claim can bankrupt you.
The fix: Get proper insurance before your first job. It's $150-350/month - budget for it.
Not knowing dump fees before quoting
Why it hurts: Dump fees vary wildly. A "simple" job can destroy your margin if disposal costs more than expected.
The fix: Visit all local dumps, get their fee schedules, and factor in special items.
Over-investing in equipment early
Why it hurts: Buying a $50K truck and $15K trailer before you have steady work drains capital.
The fix: Start lean. Rent or buy used. Upgrade as revenue grows.
No online presence
Why it hurts: Customers search online first. No website = no trust = no calls.
The fix: Get a professional website (free with 67 Junk) and claim your Google Business Profile.
Slow response time
Why it hurts: Junk removal is often urgent. The first responder usually gets the job.
The fix: Respond to leads within 5 minutes if possible. Set up notifications.
No reviews strategy
Why it hurts: Reviews build trust. No reviews = skeptical customers.
The fix: Ask every satisfied customer for a Google review. Make it easy with a direct link.
Ready to Start Your Junk Removal Business?
Join 67 Junk and get your professional website free. Start receiving leads in your area and build your business with zero upfront costs.