A moving company helps people and businesses move their goods from one place to another. This post will tell you five ways through which you can grow your moving company in a couple of months. If implemented correctly, you can expand your moving business from zero to more than $2 million a year in sales in under two years. However, it's important to understand the moving industry before anything else.
There are different types of moving companies you can choose from. You should decide if you want to provide only moving labor services or become a full-service, coast-to-coast mover.
The moving industry is a large and rapidly growing entity, and this has been a trend for some time. With the relocation industry being as competitive and dynamic as it is, new moving companies keep popping up daily. Here's how you can expand your moving company business amid high competition.
Getting More Leads
Competition is high and to generate more leads for your moving company business, you have to work hard on the marketing aspect. Regardless of whether you're getting leads from thumbtack, HomeAdvisor, Google AdWords, Facebook ads, YouTube ads, postcards, or through some other medium, the fact that you are securing potential clients is important. Go to events where realtors are likely to converge so that you can connect with more realtors. It doesn't matter if you're using LinkedIn to engage with realtors as long as you get quality leads. If you go for a third party website that sells leads, be prepared for a compromise in quality; the difference between running your own lead generation campaign and asking someone else to help you with the same is quite significant.
You have to make a list of the lead sources you have used so far. Which leads worked for you and brought you good ROI and which ones didn't? Only that can be grown which can be measured. For example, to know which leads bring you the best on investment, you need to have a customer relation management (CRM). You need to tag those leads based on where the lead sources are coming from. It's important to know what leads you are using and how much you're spending for those leads. How many of them convert into actual sales and what is the average move coming out of every lead source? The moment you understand all of this, you'll be able to procure quality leads and have a higher percentage of lead generation.
How Can You Increase Conversion?
Converting leads into actual customers is the next step. There are several ways of converting potential clients into permanent customers. Following up is one method. You can set up automated follow-up emails, and notifications for your sales team or yourself (if you're a one-man show in terms of you running the dispatch).
Automatic follow-up is a huge help because you don't need to constantly remind yourself about pending tasks and adjusting your calendar. It can be text message, email, or some other kind of follow-up. In terms of email follow-up, you can use different techniques; click funnel is one example. It is a landing page with a full automated follow-up. And you don't have to pay for it.
It collects data like the customer name, email, phone number, and zip code. The moment your customer hits submit, the automation kicks in. You shouldn't send a quote to a lead without talking to him or her over the phone. And don't try selling to sell them on the first call itself. If they don't book then a follow-up message goes. If the customer books your offer, another follow-up email is sent that encourages the customer to buy more supplies, storage, valuation coverage, etc. Retargeting existing clients is another technique you can employ. Show them the testimonials you have received (along with success stories). This is a cost effective way of client retention.
Ensure you have a sales script. Use that script when you or your sales team is presenting a sales pitch. In the moving industry, lead conversion can be challenging. But once you have ample testimonials that show your success in the moving business, conversion should become easier. If you are looking for a moving company in the UK, go to this link and start connecting with the company
Clients To Buy More Services
What does this mean? You should charge a deposit. The mandatory point is that people should not be allowed to book their move without paying the deposit. Nonetheless, "clients to buy more" means if somebody has booked a move with you, they should be up-sold into buying supplies.
You can use a program or software or app like updater. When is the best time to convince somebody to buy more? The moment they pull their credit card, raise their hand, and say, "I'm a buyer I want to move with you ". So you need to have a system in place when people pay for their deposit to be able to upsell them right there. Click funnels allow upselling people without them having to enter their credit card information. For example, when people put their information and when they hit submit, a pop-up shows up and it will ask them would you like to add a six thousand dollars and nine thousand dollars worth of coverage for an additional ninety-five or pay hundred twenty-five at the time of the move. People always want to curtail the amount.
So that's how you make clients buy more. The next step in the up-selling process can be moving the supplies. So when people pay the deposit, you ask if they would you like to add moving coverage. Three out of ten will say yes (30 % conversion rate) and out of that 30 %, another 70% will buy the supplies because it's the next logical step in the process. So when they click submit, a pop-up appears, "Hey do you want to add coverage?" With this scenario, you can decide what's your profit margin and decide on how to increase the profit.
The last step in the process is down to sell or down-sell; it's something lower in the sales funnel. You ask, "Would you like to save 6 hours and have us change all your addresses?" Now you can show a video where you thank the customer for booking the move. This way, you can offer more services to client and your moving company business will grow faster irrespective of the competition in the industry.
Clients To Buy More Often
People don't just randomly move three or four times in a year. Some people may if they have a business. It's important to know if they want to move often.
They need to find out about you and this comes in the form of your lead generation efforts. You need to sell them and make great offers at the same time. For example, the customer gets a 5% discount every time he or she uses your moving business's service. In one year if they use your moving services four times, you have retained them permanently and don't need to pay again for retention. If you don't want to give discounts for returning customers, think about how much money you may have to spend for acquiring a new customer.
It's important to make more offers so that customers come back to you on and on. On top of that, you need to inform them that they will be entitled to amazing discounts if they decide to move back.
Have an email saying thank you sent to them after they move. And let them know that you offered them this discount. Some people don't assume that you do so you have to let them know. Your customers should become your brand ambassador and bring word of mouth publicity.
How Can You Increase Your Profit Margins?
Though every moving company is different, the underlying core strategies and policies are the same. Depending on how you decide to offer your service, how you decide to pay, how you decide to charge (credit card, cash, or check), and other factors, chalk out a plan to increase your profit margins. The first couple of places that you should pay attention to is how track your lead. Next, make your customer buy more by adding supplies and valuation. This way, you can make a profit without acquiring another customer. Focus on maximizing the value addition for each of your customers. And see the margin increase on its own.
If you have some people and a vehicle that you can use as a moving van, starting a moving company is a realistic way to make extra income or even a full-time salary. Like any business, it will require a lot of research and hard work as well as some start-up capital. However, the rewards are equally huge. Follow the above tips to grow your moving business and let us know in the comments if you found them useful.
How to grow a moving company?
- Lease a Truck
- Hire Part-time Employees
- Grow Your Networks
- Shorten Your Receivable Period
- Use Credit Cards Wisely
- Empower Your Employees & Control Fuel Costs with Business Prepaid Cards
- Get Social & Ask for Reviews and Testimonials
Is owning a moving company profitable?
Yes, owning a moving company is profitable.
How to start a moving company?
Steps to start a moving company:-
- Draft a business plan
- Moving and transportation permits
- Purchase moving equipment
- Moving and transportation insurance
- Advertise your new moving company business
- Purchase moving leads
Must have tools for startups - Recommended by StartupTalky
Subscribe to Startup Talky
Get the latest posts delivered to you right in your inbox