How do you think a moving company makes its money? The average profit margin of a standard moving company is 10%.
What this means is that after all of the expenses have been met and paid for, the employer will be left with 10% profit at the end of their fiscal year.
Gross revenue minus direct costs yields net profits, but in a small movers industry we see turnover rates of about 60-65%, and some are much lower than that.
Margin (as defined as Sales less Operating Expenses) can be used to measure overall profitability within an organization.
Indeed, the moving industry isn’t the most profitable one out there, with only 10-20% margins on average.
However, business proprietors can increase their profits drastically by putting into practice some simple marketing strategies.
I’ve used these tactics to help generate hundreds of thousands of dollars in a single year! So if you’re still struggling to build your company’s profits, here are my best tips.
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Get Organized
This has to be the first step! Without organization, you’ll never be able to improve your efficiency or productivity.
And we know that you have limited time to read this article, so not only will you save a lot of time by skipping on being disorganized but you Also!”
Not! Be losing valuable minutes doing something else that’s productive and getting things done.
And if all of this is not reason enough for you to instantly be in the market for an app like the one mentioned below just try an experiment with me.
Wait a day without organizing anything in your life at least once and then ask yourself how many tasks got done.
- Save you time and money
- Increase productivity and efficiency
- Increase and help to close more sales
- Follow up with customers
- And keep accounting and payroll
Customer Relationship Management software
Movegistics is an absolute software powerhouse. It’s a complete CRM system that’s way better than any other option on the market, hands down.
The best part about it all is that Movegistics is still improving with time and getting even more advanced features out into the world for free!
There are so many wonderful things about this software and you need to experience all that it has to offer.
But we do understand if there’s something you want to look for specifically.
A lot of people want a different kind of customizable CRM solution; some companies want something with a lot less of the complex frills included.
And a higher degree of ease-of-use while others want just the opposite; which is why it’s important that you find the right software for your company because not all are alike.
One of the best CRMs that is currently out there in my opinion is Movegistics.
It’s feature-rich and it’s very high quality in terms of development as compared to most other CRMs on the market at this point.
I think out of all that are available, Movegistics is indeed number one when it comes to features and overall quality.
However, you need to choose the right kind of CRM for you because some companies have different needs than others.
There are several problems that can occur while using a software so take your time before choosing a CRM.
- SmartMove
- Move-It-Pro
- Elromco
- Granot
- Compumove
Set up Real Doable Financial and Sales Goals
Set goals and targets is a must. If you want to earn profits, you need to identify the financial turnover that you’re going to make.
You should be able to design the strategies and tactics necessary in order to reach the set target.
Of course, not all targets are achievable on their own and sometimes one might encounter problems that are beyond their control.
That’s why it’s important for leaders to coach and train their team, so everyone understands what they need to do and identifies solutions that best fit their niche market.
Everyone who works for your company knows exactly what is expected of them because there are no surprises or lack of clarity.
A goal-oriented approach makes it possible to structure certain activities in a way that allows you to grow sustainable revenue with minimal efforts from your part.
Goals and targets are essential to achieving a profit. When you’re able to work backwards from your desired results, you can create the strategies necessary to get there.
But it takes more than just setting goals and targets alone, because they don’t mean anything if nobody knows what they are!
It also helps to let your crew know what those targets and goals are – not only that, but how you plan on going about achieving them too so that everyone will be more organized as a team.
Coordinating everyone’s efforts in this way ensures that no one is inadvertently doing their own thing.
When no one is in charge and there are no definable goals then everyone will have their own agenda and that is chaos.
Chaos is confusion and nothing ever gets done in confusion. The point of all this is to say that clear communication with a strategy will help bring out good results for your product’s target numbers!
Pump up Advertising
If you know your numbers as I mentioned in step 3, you will know where you’re getting the most lucrative ROI from advertising.
Using this data, pump up certain aspects of your advertising to give yourself an advantage over the competition and cut out what is proving not to be fruitful at this time and simply eliminate it.
My favourite way to advertise was with postcards (you can see that here and here). You need to figure out what method or medium works best for your company.
This is also the step where you want to start bringing on some trained salespeople that are extremely good at networking so that they can bring in more revenue than ever before!
Okay, so you’ve been doing some great things! You managed to build a product that people are interested in and you started thinking about who should be your customers.
How do we go about finding them? There’s a pretty good chance they’re online – maybe on Facebook, Instagram or Twitter.
The best place to begin is by putting together start of a list of keywords related to what you offer and then performing some (free) keyword search on places like Google Awards.
Conclusion
A move is a big undertaking and you want to make sure you’re getting the best service at the best price with the best customer service.
When you’re comparing companies, you’ll want to be sure to read the fine print. Many companies will claim they’ll charge you by the hour but their price will include a bunch of services.
You might end up paying for things you won’t need or services you won’t use.
Move companies charge what the market will bear. In other words, how much a move company charges depends on how much people are willing to pay for its services.
As an industry, the move industry follows the economic principle of supply and demand.
The supply of move companies is relatively fixed, as there are only so many companies that can do interstate moves in any given area.
The number of movers can vary, but it’s difficult to increase the number of movers in a local region because the local population size is limited.
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