Starting a dog waste removal business can be a rewarding venture, but setting the right prices for your services is crucial to your success. Pricing too high may drive away potential customers, while pricing too low can affect your profitability and ability to scale. Here’s a comprehensive guide to help you set competitive and profitable prices for your dog waste removal services.
Understanding Your Costs
Before you can set your prices, you need to have a clear understanding of your costs. These include:
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- Direct Costs: These are costs directly related to providing the service, such as fuel, waste bags, and disposal fees.
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- Indirect Costs: These include overhead costs like vehicle maintenance, marketing, insurance, and administrative expenses.
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- Labor Costs: Consider how much time it takes to service a client and the wages paid to employees (if you have any).
Researching the Market
Conduct market research to understand what your competitors are charging. This will give you a benchmark for setting your prices. Consider the following:
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- Competitor Pricing: Check out the pricing of other dog waste removal services in your area. Look for their pricing structure and any additional fees they may charge.
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- Service Quality: Compare the quality of services offered by competitors. Higher quality services, and stronger brands can command higher prices.
Determining Your Pricing Model
There are several pricing models you can use for your dog waste removal business:
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- Flat Rate Pricing: Charge a flat rate for each visit. This is simple and easy for customers to understand.
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- Tiered Pricing: Offer different pricing tiers based on the frequency of service (e.g., weekly, bi-weekly, monthly) number of dogs, or the size of the yard.
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- Custom Quotes: Provide custom quotes based on the specific needs of each client, such as the number of dogs or the size of the property.
Setting Your Prices
Once you understand your costs and have researched the market, you can set your prices. Here’s a step-by-step approach:
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- Calculate Your Break-Even Point: Determine the minimum amount you need to charge to cover your costs. This is your break-even point.
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- Add a Profit Margin: Decide on a profit margin to add to your break-even point. This ensures your business is profitable. A common margin is 20-35%.
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- Adjust for Market Rates: Compare your calculated price with market rates. Adjust your price to be competitive while ensuring profitability.
How Much do Pooper Scooper Companies Charge?
A survey conducted within the Poop Scoop Millionaire™ community shows that there is a pretty big range on how much customers are willing to pay for dog waste removal services. Based on our survey pooper scooper companies across the united states are charging between $65 – $130 per month, per customer.
Based on the PSM survey results it’s clear that most companies are charging between $86 – $95 per month on average. That works out to be around $20 – $22 per week/cleanup. I personally would not recommend charging less then this, as it will make it difficult to hire employees, pay for marketing, and complete other cash intensive activities needed to grow the company.
How Does my 7-Figure Pooper Scooper Business Set Prices?
At Swoop Scoop® our average customer pays between $96 – $105/month. However, we raise our prices around 10% each year, so we expect this number to continue to rise year over year. We are more expensive then most of our competitors, and this is a big reason why we have one of the fastest growing pet waste removal companies in the country. With higher prices, we can afford to spend more on advertising, hire better employees, purchase better equipment, and ultimately grow the business much more effectively.
Pricing Strategy for Recurring Customers.
Our pricing strategy for recurring customers is based on a tiered pricing matrix that takes the following factors into consideration:
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- Zip Code
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- Number of Dogs
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- Service Frequency
Once we collect this information we are able to give instant quotes to customers with a flat rate price, and even sign them up directly through our Sweep&Go client onboarding tool on our website.
One Time/Initial Cleanup Pricing
When you sign up a new dog waste removal client, the first cleanup will typically take much longer then a regularly scheduled cleanup and you will need to charge accordingly. Here are the three most popular ways to charge for one time cleanups, or for initial cleanups.
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- Flat Rate – You give the customer a price, and that’s what they pay no matter how long it takes.
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- By Time – You quote the customer a price per hour, or per minute and keep track of how long the cleanup takes.
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- Per Bucket – Some companies charge by how much accumulated waste they collect.
My preference is to give customers flat rate pricing, based on how long the average onetime/initial cleanup takes, and how much we want our company to make per hour.
Example: The average initial cleanup takes 45 minutes and you want to make at least $100/hour. Your flat rate price would be $75
If you don’t know how long your average cleanup takes, then I would recommend charging by the time until you get some business data, then switching to a flat rate down the road. When you charge a flat rate customers won’t be looking over your shoulder watching your every move, and it makes the financial transaction much smoother when both you and the customer know exactly how much the service costs, rather then counting every minute.
Final Thoughts on Pricing
Setting the right prices for your dog waste removal business is essential for attracting and retaining customers while ensuring profitability. By understanding your costs, researching the market, determining an appropriate pricing model, and effectively communicating the value of your services, you can establish a pricing strategy that supports the growth and sustainability of your business.
Regularly reviewing and adjusting your prices as needed will keep you competitive in the market. With a well-thought-out pricing strategy, your dog waste removal business can thrive and continue to provide excellent service to your customers.
If you want to download our residential pricing matrix, commercial pricing calculator, or talk to other established pooper scooper companies, you can join the Poop Scoop Millionaire™ community for additional support, resources, and information you can’t find anywhere else.