While short distance moves remain consistent, long distance relocations have declined significantly during the past decade. According to Jed Kolko, Chief Economist of Trulia, Americans are no longer moving every five years but in fact are keeping their homes for an average of eight and a half years. Kolko quoted the most recent US Census report, which revealed that only 11.7% of the population is moving across counties or to other states as compared to 14% during the early 2000s.
There are many reasons for this downturn in the moving industry according to CityLab. High unemployment causes people to hang on to their current homes or downsize to more economical housing. Aging boomers tend to stay put. And, upside-down mortgages and low home values add to the reluctance to make a change.
Interestingly, the biggest shift has been in long distance moves, possibly because there are fewer jobs worth the cost of a long distance move. Additionally, the dog days of employer-sponsored relocations are mostly gone and employees are less likely to personally absorb relocation costs.
It’s tempting to become discouraged by this information. The moving industry is fiercely competitive and moving business owners are already under pressure to maintain and grow market share. However, by reinforcing solid business practices, you can keep your business healthy and even thriving despite the negative market trends.
Below are five tips to keeping your moving company strong:
1. Keep Your Business Plan Current. The most important step you can take to keep your business thriving is to review and update your business plan on a regular basis. If it’s in your file cabinet gathering dust, take it out and start reading. Your business plan should reflect everything your business is doing – or should be doing. Keep in mind what changes you see in your sales that could require a change in your direction and therefore a change to your business plan. Imagine you are an investor. Based on your current business plan, would you invest in your company? Your plan is your compass, so make sure daily processes keep you on target toward your goals.
2. Manage Customer Satisfaction and Reviews. It is always important to have happy customers but during a downturn, it is critical to be in touch with your customers’ needs and satisfaction. You can’t afford to let even one customer walk away unhappy and spread the word that your business is undesirable. Regularly troll consumer review websites like YELP and MovingScam to be sure you are receiving positive reviews. View each customer as an avenue to important referral and repeat business.
3. Assess Your Ideal Customer. Pay close attention to who is showing up at your front door – and why. Is there a segment of the market you have ignored? Now is the time to investigate the narrow niche you may have subconsciously ignored.
4. Create Alliances. Partner with complementary businesses that can serve as valuable referral sources. Opportunities may include storage facilities, retirement facilities and corporate relocation companies.
5. Offer one-stop shopping. Customers are time-starved and appreciate the ability to take care of all their needs in one place. With this in mind, be sure to offer moving insurance, boxes, packing supplies, packing services and referrals for small moves and storage needs.
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