A Dump Trailer business might not be the first thing that comes to your mind when thinking about starting your own business, but it is something worth considering. Let me tell you why exactly.
In the past decade, the U.S. dumpster rental market has expanded by 40% and is worth more than $500.
The best part is that there are approximately 200 Dumpsters only operating in the U.S., so the competition is way less.
But the most important thing for you to know is dump trailer rental business profitable.
In this guide, find out all the nitty-gritty of this business, including profit potential and revenue figures.
Business Overview
The dump trailer rental business is a versatile service-oriented business that is used for delivering and unhauling large quantities of goods, including building and construction waste, household waste, etc.
Dump trailers are ideally in demand, and your business can be quite versatile depending on the type of servicing you choose.
In this business, your main focus could be on paving, mining, excavation sites, etc., or in unhauling other items that we will share with you moving ahead.
You will be required to follow safety rules and procedures, especially if your dump trailers are used for dumping hazardous or toxic waste.
To find out the investment and profitability of dump trailer business keep on reading.
How Much Does it Require To Start a Dump Trailer Rental Business?
In order to start a dump trailer business, you need to invest anywhere between $20,000 to $50,000.
This includes the cost of three dumpsters costing $5000 each, a downpayment for the roll-off truck, and insurance, among other things.
Here’s a complete breakdown of the investment required to start a dump trailer rental business:
| Start-up Costs | Ballpark Range | Average |
|---|---|---|
| Setting up a business name and corporation | $150 – $200 | $175 |
| Insurance | $100-$300 | $200 |
| Business licenses and permits | $100 – $300 | $200 |
| Business cards and brochures | $200 – $300 | $250 |
| 3 dumpsters | $12,000 – $30,000 | $25,000 |
| Website setup | $1,000 – $3,000 | $2,000 |
| Down payment on a roll off truck | $6,000 – $10,000 | $8,000 |
| Warehouse storage space | $1,500 – $3,000 | $2,250 |
| Total | $21,050 – $47,100 | $34,075 |
Your investment can be more or less than this depending on the number of dump trailers you buy, your marketing expenses, etc.
How Much can I Earn From a Dump Trailer Rental Business?
The money that you can make from your dump trailer rental business depends on the duration of your business, its size, the industry you are catering to, etc.
However, on average, a dump trailer business owner generates revenue of $78,000 – $260,000 p.a. and net profits of $40,000 – $130,000 p.a.
The money you make will increase as more years you give and the more dump trailers you rent.
Average Profit of Dump Trailer Rental Business
The profit margin of a Dump Trailer rental business is usually 50%. So, for example: if you rent out three dump trailers in a week consistently, you will make around $78,000 in annual revenue. So with a 50% profit margin, you should be able to keep approximately $40,000.
Over time, as your business grows, you can start adding more dumpsters, and with ten dump trailers on rent, you can earn as much as $260,000 in annual revenue and enjoy profits of $130,000.
Here’s a real-life net profit earned by Dump Trailer rental business owners:
| Years of Business | Staff Count | Marketing investments range / Month | Monthly Profit |
|---|---|---|---|
| 15 | 27 | $1000 – $2000 | $176k |
| 10 | 15 | $1000 – $1500 | $105k |
| 8 | 11 | $2000 | $95k |
| 3 | 4 | $300 – $700 | $55k |
| 1 | 2 | $600 | $40k |
How to Make $100,000 a Year in the Dumpster Rental Business?
Pros And Cons of Dump Trailer Rental Business
Pros of Dump Trailer Rental Business
- Good earning potential.
- Always in demand.
- Lesser competition.
- Easy work.
- Opportunity for expansion.
- Flexible working time.
Cons of Dump Trailer Rental Business
- You need space to store dump trailers.
- High-cost investment business.
Ways to Make Money With a Dump Trailer
There are many ways to make money using your dump trailer. Here’s how you can rent it out in different ways:
- Landscape Material: Landscaping jobs create a lot of dumps, so you can join hands with your local landscapers to deliver and haul materials before and after the landscaping job is done.
- Animal Shelter/Zoo: The amount of food, medical, and other maintenance supplies that the Zoo and animal shelter require is huge. So you can rent out your dump trailer for this purpose specifically.
- Contractors or Construction workers: A dump trailer is needed every day at construction sites, and renting out your dump trailer to construction sites is the most common and good way to earn money.
- Nurseries or Tree farms: This one again requires a lot of transporting plants, soil, fertilizers, and other things, and by joining hands with your local nursery or tree farms, you can get regular work and make a lot of money.
Rental Dump Trailer Business Ideas
You can rent out your dump trailer for a plethora of things and not just construction and other wastes.
Here’s a list of businesses for which you can rent out your dump trailer:
- Bulk /Loose Materials
- Tree’s & Nursery Goods
- Bundled Materials
- Rock, Brick, Block, Pavers
- Palletized Materials
- Feed & Supply
- Wood Pellets
- Medical Supply
- Sod
- Ice Melt
- Fertilizer
- Fencing Materials
- PVC Materials
- Bunks of Lumber
- Cabinets
- Concrete Blocks (CMU)
- Steel
- Sheet Rock
- Debris Clean Up
- Mulch, Sand, Dirt
- Landscaping Stone
- Cement Mix
- Trusses
Wrap Up
So to conclude, is the dump trailer rental business profitable? Yes, it is, and with this business, you can easily make $40,000 – $130,000 per annum.
Starting a dump trailer rental business might be good for you if you are looking to enter a business that has the potential to make good money, is flexible, requires lesser investment compared to other businesses, and, most importantly, has less competition.
You can rent out your dump trailer to a variety of industries depending on where you can make the most money.
And the best part is you can choose to get involved full-time by also offering driving or drop-off service. Or you can simply rent your dump trailer and let others make money for you.
FAQ’s
What are the barriers to entry in starting a dump trailer rental business?
The biggest barriers to entry in starting a dump trailer rental business are:
- The high start-up cost.
- The requirement of space for your dump trailers.
How much can I earn weekly from my dump trailer rental business?
If you rent out three dump trailers a week and are consistent with it, then you can make $500 a week easily or more.
What is the growth potential of dumpster rental business?
Through 2027, the global market for the dumpster rental business is predicted to grow by more than 3%.
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.