It’s said that the moving industry in the United States is a multi-billion industry, with an average of 27 million moving every year. These statistics look very impressive. However, this doesn’t mean that you are guaranteed to make profits when you start a moving business.
If you’ve been in the industry long enough, you understand the unforeseen expenses and overhead costs that crop up from time to time and you need professionals like NYC commercial movers. Most times, you will need to invest in trucks, moving equipment, storage space, staff, and insurance to get started.
So, what does that mean for a moving company owner? It means they must be good in numbers if they want to make profits. With that said, let’s look at the top tips to help you make profits when running a moving business.
Understand the input costs
At times, it can be very exciting for moving company owners to book jobs and make sure that their calendar is loaded up. For most people, this means money. However, there’s a high chance that you might be losing money on some moving jobs.
This calls for one to understand the costs and revenues related to certain jobs. If possible, invest in a moving company software, which should give you reports on every moving job completed, and show you the costs associated with every move. With this, you will eliminate guesswork, and have a clear picture of all your operational expenses.
Lease your truck
The professional moving experts from Torex Moving say that a moving truck is one of the most crucial and valuable assets for any moving business. However, it’s not advisable to buy a moving truck, especially if you’ve not established yourself in the industry. Rather, you should lease a truck.
Yes, this might eat into your finances. However, you will not have to worry about maintenance costs during off season months. A leased moving truck can significantly save you a considerable amount of money, especially during the winter season when the housing industry is slow.
However, you must understand that leasing a truck is not a sustainable option in the long run. So, when you establish a name for your business and expect a consistent flow of clients, you can consider purchasing a truck.
Hire part-time staff
Hiring part-time employees is a great way of cutting down your expenses. Besides, you don’t have to worry about paying salaries during the off-season, as this can affect your cash flow. So, consider going with this option if you want to maximize your profits all year round.
Review your operational and administrative staff levels from time to time
You can reduce your service and administrative department by a 1:4 ratio without worrying about reducing the quality of your services. In fact, most businesses can handle a 1:3 cut without any notable negative impact. However, this doesn’t mean you cut your staff. Rather, you can choose to delay hiring your operational and admin teams as your moving business grows. The thing is, you need to let your revenues grow first before you start hiring.
Streamline your internal operations
Scheduling your moving crew is an essential operational aspect of any profitable moving business. Knowing who to put where depending on the schedule, can be a bit challenging. However, this is what determines whether you make profits.
So, you need to learn how to schedule your moving crews and adjust them to unforeseen events. Here, you will also need software to help you with this task. Depending on excel spreadsheets or paper calendars can lead to confusion, which translates to loss. So, you need to invest in a software program that allows you to see the available and unavailable crew—this will make it easier for you to understand your scheduling capacity.
Expand your networks
This calls for you to improve your networking skills. Talk to property managers and real estate agents because they can be a fantastic source of referrals. The moving industry is very competitive. So, you cannot always rely on clients to contact you directly. While you might need to pay a commission for every referral, it’s a great way to give your business a steady flow of clients and keep your cash flow on a positive trajectory.
Get everything right
To run a profitable moving company, you will need to learn how to manage your finances and look for better ways to improve your business. Besides, you must learn how to attract more leads and make your clients happy.
If you want your moving company to grow, always be polite with your customers. Besides, focus on delivering quality services, allowing your clients to promote your business and help generate qualified leads.
Follow up on your leads
If you want your moving business to remain profitable, you must ensure that you are consistently booking clients. However, some companies have a challenge with this, especially if they are understaffed. With that said, you must have CRM software in place if you want to identify, nurture, and convert your leads. This way, your moving business will be on an upward growth trajectory—thanks to the constant flow of clients.
The moving industry is very competitive and unforgiving for any company that isn’t organized, optimized, and streamlined. Following the above tips will help you keep your moving business organized and optimize your processes—and this is what you need to make the business profitable.