Have you ever wondered how much profit moving franchises make, or if this business is profitable or not? After all, moving franchises move household items and get paid. Many moving companies also offer storage and packing services as well, making moving even more effortless.
Reasons for the Profitability of Moving Franchises
Moving franchises are still thriving despite huge competition, can be contributed to the following factors:
People Move Houses Multiple Times
The majority of people move multiple times. In the US alone, data shows that an average American moves 11 times in their lifetime. About 3 million Americans make an interstate move every year.
Offering Multiple Service Offerings
Most moving companies also offer storage services. Customers can store goods before and after the move. Packing services are another offering in which professionals pack household items carefully.
The more services and convenience a moving company provides, the more profit it is likely to make.
The Number of Immigrants is Increasing
Countries like Australia, Canada, and the US already have many immigrants because of the lifestyle afforded in those countries. The number of immigrants is increasing. Often, immigrants will try several locations in their new home country to find the best fit. Frequent relocations give moving franchises a great deal of business.
The Average Cost of a Move
According to a report published in Forbes, the cost of a move provided by a 2-person moving team within 100 miles is between $800 to $2,150. The average cost for such a short-distance move is about $1,400.
The cost of long-distance moves ranges from between $2,200 and $5,700. The cost of long-distance moves can go above $10,000 depending upon the size of the luggage.
Effect of the Pandemic on Moving Franchises
The pandemic has affected every business, including the Moving Service industry. According to IBISWorld’s report, the revenue of moving companies dropped by 0.7% in 2020 due to the pandemic. But, as the country finds its new normal, revenue is expected to grow by 5.4%.
The overall economy has improved in 2021, with less economic uncertainty, the net profitability of the moving industry is most likely to go up.
How to Make Maximum Profit from Your Moving Company?
A moving company can double its profit with the right mindset and marketing strategies. Here are some tips to increase profitability:
- Don’t settle for the average profit of 10%. Make a plan to shoot for 20% profit.
- Stand out among your competitors by focusing on customer service.
- Understand your sales funnel
- Utilize marketing assets to build trust
- Keep a record of the numbers. Use software to keep a track of your income and expenses.
- Ask for referrals
Data shows that the demand for moving companies will continue to increase in the next 4 years. It is already a resilient 18 billion dollar industry! Moving franchises are profitable and they are thriving because people move multiple times within a state and between different states. They want assistance with carefully packing their belongings and moving them safely to their destiny. So, if a moving company does the job right and gains a good reputation, it can make a good profit.