Roll off dumpster business

investor profile

August 30, 2021

by an investor from Villanova University in New Jersey, USA

Anyone explored rolloff dumpster business? I’ve been studying this business for sometime. I feel this business can scale inward (increase more revenue) and outward (geographically). It is very capital intensive and there is a good element of customer retention. Wondering anyone explored further.

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Reply by an investor
from Babson College in Miami, FL, USA
Ive looked at these business' I dont really think they are too capital intensive- the dumpsters are fairly cheap, and it seems like there are always used ones for sale. The biggest cost is Landfill. The other thing you gotta have is a hungry salesperson willing to hang out at Home depot at 6am to prospect for business. The barriers to entry not high- but if you can, over time, transition from flippers to more commercial type work where the dumpsters tend to stay longer you can increase your utilization/profit quite a bit.
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Reply by a searcher
from University of Virginia in Phoenix, AZ, USA
I have a friend who started a new company in this space last year and was profitable within a few months, already expanding his fleet. He looked at acquiring then realized the multiples being asked, at least in the Phoenix area, were too high so he started from scratch, spending what he would have spent on a down payment with an SBA loan on his first truck and several dumpsters. Granted he had a large network within the construction industry but he is growing faster than he had projected.
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