Adding mobile storage can put a considerable spring in your bottom line. Once you recoup your start-up costs, the high-profit margins and low-maintenance costs make it a long-term investment that pays off handsomely. As you build a solid reputation for reliable service, the referrals that walk through your door will be more than enough to keep your containers and the money they bring in rolling all the way to the bank.
Monthly Rental & Delivery Fees
A 12′ container typically rents for $110 a month, while a 16′ might rent in the neighborhood of $125 or more. The delivery fee on these for a local move is approximately $100. For long distance moves, customers typically pay between $6-9 per mile for the total cost of the move. This adds up quickly and means that it is quite possible to recover the cost of the container within a year or two.
Mobile vs. Traditional Moving Services
There will always be a place for traditional moving services. Even so, mobile storage is poised to take a big chunk out of the traditional market. Traditional moving services are often prohibitively expensive for many consumers, and this means that an alternative that is less costly but just as effective is incredibly attractive. Mobile storage and container moving has already established itself within the market, and as the market grows, those businesses that establish their operations now will be in a position to reap considerable rewards in the future.
Tips to Boosting Profitability
Adding mobile storage to your operations can boost your profitability if you don’t give your services away and let coins slip through the seat cushions. There are many temptations along the way to cut corners, offer discounts, and trim staff, but these temptations will actually cost you more in the long-run. As you add mobile storage services, keep the following tips in mind:
- Train and Reward Employees. A well-trained employee that is well-rewarded is loyal to the business and knows how to solve problems and can satisfy even the crankiest of customers. This is money in the bank that you can count on.
- Curtail the Discounts. Never offer discounts that leave you breaking even when the deal is done. Always ensure that you have a healthy profit margin even after the coupons and discount codes are handed in.
- Keep an Eye on the Logistics. Keeping your container delivery and maintenance schedules in order will ensure that your containers and trucks aren’t idle or delayed. Idle containers and delayed deliveries eat into your bottom line and your reputation.
- Refinance Loans & Renegotiate Insurance. Always be on the lookout for better loan options and cheaper insurance policies. But, be careful to review these to ensure that the terms and coverage aren’t less than what you currently have.
- Watch the Waste. From extra fuel to overtime, keep your budget in line at all times. Keep an eye out for fuel contracts that provide a buffer against rising fuel prices, and hire enough employees that you can manage your client’s needs without wearing your employees out and draining your account.
Adding mobile storage won’t make you wealthy overnight, but it is most certainly a profitable long-term investment that pays strong dividends. Over time, those dividends will get larger and larger as your inventory costs decrease and the scope of your business expands. It is far from an easy road, but as you travel down the path towards success, the bumps in the road get smaller and the rewards will start to emerge from over the horizon.