Keeping your moving business afloat and on course is no easy task. Managing risk and looking down the road is essential when it comes to increasing moving company profitability. Whether the economy is good, or whether it hits a bump in the road, the following are some things that will increase your profitability and help you weather the inevitable storms your business will face.
Keep Your Trucks Small
Trucks over 26,000 lbs require special licenses and permits to operate. By keeping the size of your trucks down, you can make a significant dent in your overhead expenses. Moreover, smaller trucks use less fuel, which means more mileage between fill-ups.
Your business should have signs up in as many places as possible. This means decals on the doors of your vehicles, logos on the sides of your portable storage containers, and road signs that are visible from far away.
Focus on Service & Convenience
Good service leads to repeat business and referrals. Always treat customers large and small like they are kings and queens. Moreover, build your marketing efforts around the convenience your standard moving services and add-on services offer. Combined, service quality and the convenience you create for customers will drive profits higher and higher.
Build Your Web Presence
An active and attractive web presence is essential for success. Next to personal referrals, it is the most commonly cited method consumers turn to when looking for moving services. Your web presence should be clean, informative, and mobile friendly. The easier it is for consumers to quickly find the information they need, the more likely they are to pick up the phone or send you an email.
Track Your Moves
Pay close attention to where your customers are migrating to and from. By monitoring this demographic data, you can make strategic decisions related to expansion and growth. In particular, you can begin scouting for partnerships, property, and affiliates in preparation for expansion into these new markets.
Make Your Move
One of the greatest threats to moving company profitability is insisting on doing things the way they have always been done. When times are good, it’s easy to sit back and relax. However, this can be a lethal long-term approach. A better approach is to look down the road and prepare your business to take advantage of opportunities that are down the road. By doing so you can prime your business to keep moving forward in both good times and bad.
Review and Remain Flexible
Moving company profitability is highly fluid. Gas prices, land prices, utilities, regulations, etc. are a constant strain on profits. By continually reviewing the cost of doing business, you can build and pursue strategies that help you maintain your profitability. To this end, a good accountant and a knowledgeable lawyer are essential people to add to your team.
Expand Your Offerings
Whether it’s mobile storage for the parks and recreation department, or whether it’s custom containers for construction companies, find ways to expand your offerings into niche markets. These niches and the potential for profitability will vary considerably from market to market, but there are niches in every market that are worth considering and investing in.
Moving company profitability changes from quarter to quarter, and year to year. Be proactive, look forward, and only glance back periodically to see what worked and what didn’t. Focusing on the future and the ways your business can provide service and convenience at a cost that consumers desire is crucial to keeping your business profitable and on the right course.