How large of a radius should you have for your service area? Should you focus on areas close to home or cover a large swatch of area? Lee with Junk Removal Authority tells all in this video on service areas. 919-617-1975. https://junkremovalauthority.com/
Hey guys, what’s going on? I hope everybody is doing great on this Saturday morning. What I want to talk today about is your service area. How far from where you’re at, from your main hub should you extend your service area? How far should you hit? What areas should you hit? That’s what I want to talk to you about today, because I see a lot of people doing it incorrectly. The way we approached our service area is one of the reasons we’re so much larger than anybody else in our area. There were people who started the exact same time that have since gone out of business, or have stayed about the same size, whereas we’ve ballooned.
Before we get into that, I want to tell you about some exciting news with Junk Removal Authority. This week, our very first business package customer opened up. They opened up on Wednesday. That is Altitude Hauling in Denver, Colorado. Check them out at altitudehauling.com. Brandon and Jayna came in for training about two weeks ago, just got them open this week, this Wednesday. Guys, they already booked 10 jobs, I’m just very excited. They’re using our call center this week, Jayna’s last day of work was yesterday, and she’s going full time in on this. Brandon was planning on bringing in so much work now. I think he’s going to probably go full time as well. It was a great launch – 10 book jobs in about a three-day span. That’s an incredible launch.
I want to welcome a couple of companies coming on board with us in West Palm Beach, Harrisburg, and Cleveland for pay per job, and then of course Junko there in Louisville. I always appreciate Blake’s business. He was the first person to come on board with pay per job. We got interest all around the country right now. We’re bringing people on just as fast as we can. Right now, it’s an exclusive in the market as long as you can meet certain parameters. We’re coming to your market. Work with us, or we’re going to be working with one of your competitors. Work with us on pay per job. There’s 20 to 50 jobs per month, possibly more, depending on your market. Check that out, go to the new junkremovalauthority.com, the junkra.com website, and check out pay per job. That’s the other little bit of news we have is the new Junk Removal Authority site is up. We are continually adding more information, it’s available at junkra.com.
I was at the beach much of this week. We were planning on coming back today. I worked a lot throughout the week at the beach, but Thursday evening, I told my wife” Let’s get home. We got work to do. We have something exciting we’re working on.” Last year with Junk Doctors, I could head off the beach, been there for a week, and it was on cruise control. I didn’t really like that, but I can relax. I’m so fired up to really just help as many people as we can right now. I had to get back. There’s so much stuff to do. Then, next week either Wednesday, or Thursday, we’re heading up to Oshkosh, Wisconsin. Aaron, our marketing director, will be coming with us to get great content to tell everybody all the time to get around people with money, get around people with wealth. There’s gobs over there. I’m talking $500,000 planes, $1,000,000 planes, $50,000,000 on display. People fly in and you can look at them. Thousands of aircraft, over a million admissions, over a million people passing those gates. There’s like 4,000 unique visitors, and over a million people actually pass through the gates, or a million people walk in the gates. It’s the largest air show in the world. I’ll be there either Wednesday, or Thursday through Sunday. I’m going to work throughout, get great content throughout, and we’re going to have some great stuff come up.
Looking Into Service Area
Let’s get to the topic of the hour, and that is service area. Far too many people want to do too small of a service area, whereas in Junk Doctors, in Junk Removal Authority, we recommend a huge service area. A really large service area where we won’t be able to service everybody. What you need to do to accommodate that is you have a base service area. Junk Doctors’ base area is 50 miles. If you have one truck, that’s probably too large. Depending on your area, like Denver for example his base areas about 30 miles, some areas you could have at 35 or 40, some areas might need to be 20 or 25. So you have your base service area, and you have an extended area where your pricing is higher for you to go to that particular area. Maybe instead of in your base area you book a two-hour window, maybe in your extended area you just have an ASAP slot, “We’ll get to you as soon as we can”, or it’s a four-hour arrival window, you set the parameters in that farther site. One of the main reasons you want to make sure you go to those areas is a lot of times, those suburbs of surrounding areas from your hub from the main city, a lot of times it is a lot of money. In North Carolina, we’ve got some major money right outside. In Denver, Brandon from Altitude Hauling, we mentioned him earlier, is having a job this morning. It was about 32 miles from, it was about a 45-minute drive. He initially was talking about not doing it. I said this is what we talked about in your extended service area, you just charge them more. I said that this is a good chance that nobody is servicing that area, he found you, he needs that stuff gone. That particular area in Denver, it’s Castle Rock – Castle Rock is a very wealthy area, lots of money in Castle Rock. I said to “You got to go. You really need to go there.” I told him to call them and up and tell them you’ll do the job, but for a minimum of $500. He got a schedule for that customer last night for a 5:00 to 7:00 job. He took care of that customer on the minimum. Dictate your terms, but don’t tell them “no”. We don’t ever tell any of our customers “no” for the most part. If somebody calls us up at Junk Removal Authority, or Junk Doctors, and they want something done, we say “Yeah, we can do it. We’re your guy. We’re your company, but for us to do it, this is what you are looking at as far as the cost.” It doesn’t bother us if for us this is what it’s worth it for us to do it. If it’s worth that price to the customer to pay us to come do that, then great, everything’s good, If it’s not then we don’t go. So, dictate your terms. You can take it or leave it if it’s outside of your normal area. Guys, we’ve gone up to two and a half hours away from a location to do a job multiple times, but we dictate our terms.
If we’re going to go out on two and a half hours down the road, it’s going to be $1,000 minimum, and you’re going to pay that $1,000 upfront before we even get on the road. You’re going to make a credit card payment right now, it’s $1,000, and we’ll get out of your way. We say it more polite than this, but if I don’t want to do it, we say we’re sorry. We say we’re sorry, this is a haul for us, we have a lot of expense to get out there and we need that money before we show up on site just in case something falls through. It’s $1,000 for the first load, after that, as long as the landfill rates around there are normal to what we’re used to, then it’s regular rates for any loads afterwards. We don’t get into a tremendous amount of jobs with those terms, but we do get some, and we’ve gone places before, and gotten two truckloads that took us maybe two and a half hours loading, and we brought home $1,500. It was a long period of time, it was 6 hours, so it was the majority of the day that they were gone, but it was $1,500. We like to see our trucks make anywhere from $1,000 to $1,500 a day local. They brought that in on one trip. We had limited disposal fees, fuel cost was a bit higher, but $1,000 to $1,500 is what we shoot for per truck per day. Some days I might have $800, some days I might have $2,000, but we like to see in a range each of our crews earn between $1,000 and $1,500 per day. Anyway, just don’t turn away business. You can talk to anybody that works for us, and they’ll tell you all I freak out if I hear somebody say we don’t service that area. I say “What do you mean we don’t service that area?” Just because it pops up on our scheduling software that that’s outside of our service area, that doesn’t mean we don’t service it. If somebody calls from Washington DC, there is a price that we will go to DC, or now we’ll find one of our Junk Removal Authority partners. We will find someone in that area to take that business. Don’t be quick to tell your customers no.
So, what happens if you’re so busy, you’re saying “Lee, we’re so busy, there’s no way we can go outside of our service area. What will happen if we’re going 50 miles to the west, and then our next job is in the far east of our normal service area. We get 75 miles to travel. We have these two hour of windows, there’s no way we’ll be on time.” What happens, what if? You dictate your terms, guys. You dictate terms. If you’re too busy in your regular service area to do a full area, if it’s just you have your 25, 30-mile radius, and you’re too busy to go any farther out, it’s time to add trucks, it’s time to add crews, it’s time to expand. I mentioned before that last year when we did our yearly, week long beach trip with my family, in the past few years I could stay all week, I could relax. That’s because we weren’t expanding as much. We were adding trucks, Junk Doctors were growing, but it in autopilot. I actually haven’t worked on Junk Doctors in probably two or three weeks. Then, we started JRA for expansion. That keeps you motivated, that keeps you interested. Whenever I go to the beach, I feel like I got to get back to it. I get to get back on, I got to get back in the mix, and in the activity. A lot of people, when that get to a certain size where they get one or two trucks, especially like me when you get three, you’re making pretty good money. If you build a business right, if you build it the Junk Removal Authority way, you don’t have to work too hard. You’ve got a manager in place, everything’s coming good, you get great money coming in. It’s running on autopilot. It’s easy not to expand it at that point, or you’re in the opposite end of the spectrum. You’re one truck operation, you’re afraid to hire people, you’re on the truck, you’re on every single job, and you’re afraid to expand. That’s the reason you can’t get into that order services area. Guys, you got to grow a pair, you got to get inspired, and you got to get up there and want to expand. If not, you’re just setting yourself up for failure long term, you’re setting yourself up to lose interest, you’re setting yourself up to when you get injured you can’t work, so expand. If you’re not growing, you’re shrinking – there’s no in between. Have expansion undermines at all times.
Guys, we got a new phone number here. You can always call our main Junk Doctors number 919-466-9322. I think our new number is now 919-617-1975 for Junk Removal Authority. We’ll stick that in the description, just double check the description before you give us a call. Our new website is junkra.com. Please subscribe to our YouTube channel. We always enjoy putting out a lot of great, useful content. I hope that you found this video useful. Everybody has a great weekend. We’ll talk to you real soon.