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Pricing portable restroom rental units doesn’t come with a consensus in the industry. Some companies will upsell their services while others are dirt cheap. Prices are extremely variable and can depend on the time of year, mileage needed to travel to a job, type of job and where the market is depending on the company that is looking to price rentals.
Due to this large gap in variability, it isn’t always easy to price rentals, and rarely will one job hold the same price as another one that is booked in the same week. However, there are conditions that will sway a business to charge one rate as opposed to the other. We explore these conditions and variables with the hope that your next job quote will be easy to relay to a client and done so with confidence!
Charge More Than You Think You Should
This might sound like a poor business practice, but there are many unknowns when it comes to a new contract. You may be surprised to find out you have cut an event coordinator a deal only to find out that they want the units meticulously serviced or cleaned which will cost you more in the long run.
Do Your Research and Ask Yourself Important Questions
If you are new to the business and aren’t sure what to quote a customer, ask around. Do your research and see what other companies are charging their customers and use your better judgment to price your own services accordingly. When researching the industry, you will also want to get a feel for your local or regional market. Ask yourself:
- How many companies like mine service this particular area?
- What are event coordinators and construction companies doing in my city this month?
- What do event coordinators and construction companies look for in short- and long-term rentals?
- What marketing strategies have other companies employed that worked?
- What discounts can I offer for bulk orders?
Offer Special Event Discounts for Bulk Orders
Special events like sporting events, concerts and festivals can be amazing jobs to book because of the sheer number of portable restrooms needed to service a large crowd. In order to stay in good standing and earn repeat business, offer discounts on bulk orders, even if they are short term. If you are renting out 5,000 units cleaned 5 times a day, charge for the unit cost plus the cost of servicing and cleaning and then apply the discount.
Know the Difference in Pricing with Construction Rentals vs. Special Events
Special events will draw hundreds or thousands of unit rentals which can be offered at a greater discount whereas construction rentals are long-term, but fewer in numbers. This is not to say construction rentals aren’t a strong investment for your company, because the contracts are, but you’ll need a proper balance between the two if you want to make more money. Construction monthly rentals are also extremely variable as well. Some companies will offer a site $60/month while others will charge $130. It simply depends on how the companies choose to do their business.
Construction rentals are the bread and butter of portable toilet companies. Special events are what can bring in a lot of money and grow your business, but you will always need that consistent cash flow from construction. Be mindful of maintaining a balance that is bringing in money for your business and creating a consistent income for your company.
Evaluate and Understand What Your Costs Are
Standard units are priced differently than luxury units — that is a given! The type of portable restroom rental has little to do with the overall cost that you will experience. In order to evaluate and understand what your costs are, you must investigate how much it costs to deliver, what the overhead investment is, how to incorporate mileage into the price and price rentals accordingly. If you don’t understand what your budget looks like, you won’t have success in pricing appropriately.
Factor Mileage Into the Cost
As mentioned earlier, some companies might charge $60/month for a rental where another company in the region will charge upwards of $100. The price difference depends on a myriad of factors including how far the driver has to go from the storage site to the job. Factoring in mileage, especially for short trips is important!
Looking to Take Your Portable Restroom Business to the NEXT LEVEL? Download our FREE Guide: “Your Guide to Operating A Portable Restroom Business.”
Thinking About GETTING INTO the Portable Restroom Industry? Download our FREE Guide: “Your Guide to Starting A Portable Restroom Business.”