Moving company profitability boils down to making adjustments across the board of your operations. Even small adjustments can have a big impact on your bottom line. The following are some adjustments you can make that can help you keep your business profitable and your prices competitive.
- Watch the Discounts
Discounts should be used only to fill business that would otherwise go unused. Moreover, never discount your services so much that it is a break-even proposition for the business.
- Trim Waste
Whether it is office supplies that are wasted or superfluous equipment that’s never used, be constantly on the lookout for expenses that are siphoning profits from the ledger. The bottom line: If it’s not generating revenue for the business, it’s not something you need to keep spending money on.
- Schedule Wisely
Overtime expenses are one of the fastest ways to drain profits from your business and reduce moving company profitability. Pay close attention to your scheduling and staffing levels and make sure that you maximize the amount of time each employee is working without crossing into overtime territory.
- Reward Employee Efforts
Employee morale is crucial to building and maintaining a profitable business. Rewarding employees for hard work and achievements will go a long way towards improving customer service and quality. In return, high morale generates increased business and more stable revenue streams.
- Refinance Loans
Pay close attention to interest rates and be prepared to take advantage of any decreases that come across the horizon. To that end, you should have a financial strategy in place that allows you to move quickly when rates decrease to the point where the points and fees you’ll pay will reward you with long-term savings. Moreover, you should make paying down debts quickly a top priority for your business as the amount of money you can save on interest payments is anything but insignificant.
- Streamline Vendors
Streamlining vendors allows you to negotiate for better pricing and terms. The money you save on everything from gas to mobile storage containers will add up quickly.
- Play the Insurance Game
Upgrading your security, training your staff, purchasing ergonomic equipment, etc. can add up to significant reductions in your monthly insurance premiums. In many cases, the savings and expenses required to earn them cancel themselves out. However, these investments give you a more reliable, more trustworthy business. In turn, it gives you an advantage over the competition and can be used to promote your operations which can lead to a significant increase in revenue.
- Take Care of Maintenance
Make maintenance a priority. Ensure that equipment is always in top condition. Doing so will help reduce repair and replacement costs down the road.
- Ditch Unnecessary Services
If it’s not a service that’s being regularly used, then it’s not a service you need to keep around. While you want to cater to as many requests and needs as possible, there is simply no sense in trying to provide a service for one or two people at the expense of being able to meet the needs of 50 more. While you will most certainly want to try and fill niche services, there simply is no way to fill them all.
Improving moving company profitability isn’t always about massive changes to your operations or your offerings. As they say, the devil is in the details. In many cases, by tightening up the details, you will create a significant boost to the bottom line and the profitability of your moving business.