The moving industry slowdown continues. Although interest rates have decreased, home sales are still low. In fact, the National Association of Realtors (NAR) says existing-home sales decreased by 1.0% in September, down from 3.5% a year earlier. Hopefully, this will turn around soon, but in the meantime, moving companies need new ways to cope with the moving industry slowdown.
Here are three strategies that can help your moving company survive the current slump.
1. Think Outside the Box to Add New Revenue Streams
If your current revenue streams are drying up, it’s time to look into adding new revenue streams. Even if each new revenue stream only provides a little additional income, it may be enough to keep your business going strong when you put everything together.
Centers of influence may provide some opportunity. These are other companies or professionals that provide service for customers like yours. For example, appliance and home improvement stores, delivery services, realtors, commercial real estate brokers and loan officers could all be centers of influence for moving companies. While you are slow, take time to nurture these relationships. Here are a few possibilities:
- Move/Load boards. Subscribe to industry Move/Load boards which fit your business model and may have shipments you might be able to handle.
- Furniture and appliance deliveries. People might not be moving, but they may still need help moving furniture and large appliances that they buy. Reach out to local companies and find out if they may want to subcontract delivery services.
- Commercial real estate moves. Many offices are moving as leases come up. In some cases, workforces are transitioning to remote work. In other cases, they’re returning to the office, or simply changing offices. By connecting with local businesses, and local commercial real estate brokers, you might land some opportunities.
- Holiday deliveries. Many companies will experience higher delivery demand through the holiday season. Explore subcontractor opportunities with Amazon, FedEx and others.
- Special events: Theatres, galleries and productions all host special events that require the movement of large props and equipment. Connect with these types of venues to become their go-to moving partner. You could even offer a complimentary one-time service, in exchange for a free ad in their event program.
2. Focus on Inexpensive Marketing
During slow cycles, many moving companies cut back on their marketing. This is a chance to stand out. Instead of cutting back, you can invest in more advertising.
You need to get the most bang for buck, so consider low-cost options that can target the right audience. For example, placing inexpensive ads in high school yearbooks might be a good way to advertise to recent graduates who are moving out of their parents’ place. Local team and band sponsorships could also be worth pursuing.
You can also leverage digital marketing. This is a good time to focus on improving your website’s content or growing your social media presence. In addition to attracting some business now, a strong online presence can help your long-term strategy, ensuring that your company is top of mind when home sales and moving activity picks up again.
Also, don’t neglect the importance of referral and word-of-mouth advertising. Reach out to your past customers and ask them to recommend you if they know anyone who needs moving assistance.
3. Assess Your Pricing
People are broke, and they may hesitate to spend money on professional movers even if they could use the help. By offering discounts, you may be able to attract more business. You could also consider offering skinny moving services, where you take care of the big, hard-to-move items and people handle the small stuff themselves.
Alternatively, you could price higher to account for inflation and focus on businesses or wealthy individuals who can afford premium moving services. To stand out in this market, you may need to show why your services are worth the extra cost. Focus on how you can deliver premium services that make moving hassle-free. For example, can you add services to help customers donate or dispose of items they don’t want to move? Can you offer checklists and additional services to help them get settled in their new location?
The Light at the End of the Tunnel
The current moving industry slowdown has been hard on all moving companies. However, slowdowns are cyclical, and things will improve eventually. In the meantime, all of us in the moving industry may need to get creative.
In addition to the three strategies above, make sure you’re protecting your customers and your company’s reputation by offering moving insurance. It’s a smart way to earn additional revenue, and it can also prevent disputes and bad reviews if something is broken or damaged during a move. Learn more.