Skip Hire Fees and Overheads
Basically, the problem lies with the fees that the skip hire company are faced with. Most skips need a licence from the local council to park skips on the road and these costs seem to be at the discretion of the council. You can book a 6yrd skip in Liverpool for £120 which includes the road licence..
Other costs include waste management. Land fill and commercial waste can cost a pretty penny to dump - especially when dealing with hazardous waste such as asbestos or home appliances. However, some hire companies are reducing waste by recycling most of it at their own Waste Transfer Station.
Maintenance and repairs are also a qualifying factor for pricey overheads. It's not only the wagons that need repairs, but also the skips. The larger skips called Roll on - Roll off containers are quite difficult to load and upload and possibly suffer the worst damage and depending on the size of the fleet, can be high maintenance in terms of panel beating and spray painting.
So to summarize; is there really huge margins in skip hire? Look at the costs.
* Staff Costs
* Landfill Costs
* Council Licences
* Fuel
* Skip Maintenance
* Wagon Maintenance
* Road Tax
* Property and Yard Costs
As you can see there are few overheads considering the typical cost for a skip is £90 (not including the council road licence). This price includes transporting the product and dumping the waste.
Another part of this business is trade waste. More and more skip hire companies are investing in wheelie bins and rear end loaders. The bins look just like your average domestic wheelie bin but come in four sizes:
Small - 240 Litre which holds approx 3 - 4 bin bags
Medium - 360 litre which holds approx 5 - 7 bin bags
Large - 660 litre which holds approx 8 -10 bin bags
Extra Large - 1100 litre which holds 15 - 20 Bin bags
They can all be rented on a contract basis.
Questions and Answers
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