On the average, small movers may charge $50 – $200 to move a furniture item, depending upon the size and miles traveled. Individuals dedicating 10 or 20 hours a week can easily earn an extra $700 – $1000 per month when starting a moving company.
As of Jul 13, 2022, the average annual pay for a Mover in the United States is $30,386 a year. In order to have an idea of the amount a moving company is expected to make, you should clearly define the service offerings of a moving company.
The basic services rendered by operators in the moving and storage industry include; local and long-distance transportation of household and office goods; warehousing and storage services; packing and packaging services; process, distribution, and logistics consulting; merchandise sales and other services.
It is important to point that there is no one mold – fits – all when it comes to how much a moving and storage company is expected to make. There are some factors we are going to look into before giving an estimate of how much an average moving and storage business can make yearly.
Factors That Affect How Much An Average Moving Business Makes Yearly
Table of Content
- The Capacity of the Moving and Storage Business
- The Location the Company is Covering
- The Management Style of the Moving and Storage Company
- The Business Approach of the Moving and Storage Business
- The Advertising and Marketing Strategies Adopted by the Moving and Storage Company
- The State of the Company’s Trucks and Vans
- The Number of Years the Company is in Business
The Capacity of the Moving and Storage Business
One cannot conveniently state the amount a moving and storage company is expected to make yearly if you do not know the capacity of the business. A moving and storage company that is just starting out in business will earn lower when compared with a well–established moving and storage business that offers robust services such as local and long-distance transportation of household and office goods, warehousing and storage services, packing and packaging services, process, distribution, and logistics services et al.
The Location the Company is Covering
We must not rule out the fact that the location the moving and storage company is covering is a major factor that will determine the amount the business earns monthly. The truth is that you will struggle to make good money as a moving and storage company if you locate the business in an area filled with people who don’t aren’t prone to moving goods or properties like retirees et al.
A recent report released by IBISWorld shows that industry establishments (moving and storage companies) are generally located in regions with relatively high population and booming real estate industry, notably the Southeast and West regions. The report further stated that the moving and storage industry is a needs-based industry and companies typically locate where there is the highest concentration of goods and property movement.
The Management Style of the Moving and Storage Company
Another key factor that will determine the amount a moving and storage company is expected to make yearly is the management style of the business. Trust me, the results you will get when you are a good manager with eyes for top-notch customer service will be far different from a moving and storage company with a poor manager of business.
The idea is that a good moving and storage business will not just retain their old customers, but will also keep getting new customers and contracts especially through recommendations and that no doubt will greatly influence the amount they are expected to make annually.
The Business Approach of the Moving and Storage Business
There are different business approaches that a moving and storage company can choose from and no doubt it will greatly influence the amount they are expected to make monthly and yearly. The company may decide that they want to work alone and do their marketing alone, but they can also decide to partner with other businesses that will recommend clients to them. It is easier to find moving and storage businesses that offer robust services partnering with;
- Merchants and Warehouse Operators
- Retailers who would want to move their goods from one location to another
- Manufacturers (Chemical manufacturers and Textiles manufacturers et al)
- Households who would want to move from one apartment to another
- Corporate organizations who would want to move from one office to another
- Government agencies who have cause to move goods and materials from one location to another location
- Non – Profits and Charity organizations who have cause to move goods and materials from one location to another.
The Advertising and Marketing Strategies Adopted by the Moving and Storage Company
Another key factor that will determine the amount a moving and storage company can make yearly is the advertising and marketing strategies adopted by the management of the company. Trust me, there are several advertising and marketing strategies that can help a business increase their earnings, but you may be expected to spend more.
But the results you will make will far outweigh the amount you spent on advertising and marketing. Of course, you don’t expect a moving and storage company that is engaging in aggressive advertising and marketing to make the same amount yearly with a business that is passive with its advertising and marketing.
The State of the Company’s Trucks and Vans
If you make use of a brand new moving trucks or vans for your moving business, you will spend less on fueling and routine maintenance when compared to making use of fairly used trucks and vans.
A moving truck is used to transport goods and properties from one location to another hence regular maintenance must be carried out as at when due. The truth is that you don’t need to be a mechanic to know the component parts of your moving truck.
If you are a moving and storage company or the owner of a moving truck and van, it is important to understand preventive maintenance and the purpose it serves. It is well known fact that if you perform preventive maintenance on your vehicle, it will extend the lifespan of your truck. It can also play an important role in sustaining a moving truck’s value if you want to sell at after a while.
The Number of Years the Company is in Business
Lastly, another key factor that will determine the amount a moving company is expected to make on a yearly basis is the number of years the company is in the industry. In business, the number of years you are in existence will go a long way to determine the amount you will make especially if the business is well–managed.
This is because over the years, you would have been able to gain the trust of your customers and it will be easier for you to always have them coming back and even recommending clients to you. For example, in your first fiscal year (FY1) you might make one hundred and twenty thousand dollars (120,000), in your second fiscal year (FY2) you might make one hundred and fifty thousand dollars ($150,000) and in your third fiscal year (FY3) you might make two hundred and fifty thousand dollars ($250,000).
In conclusion, some of the major factors that count positively in this line of business are trust, honesty, good relationship management, and of course timely and safe delivery. Once a moving and storage company has gained credibility, it is easier for them to go for brand new trucks and vans as against making use of second hand trucks which are usually expensive to maintain.