Moving Words – Nimble

Timothy Brady

“Small businesses are more nimble and innovative than large corporations, and as a result are much more likely to develop the breakthrough ideas we need for global competitiveness.” – John Delaney

Being a smaller moving company means you’re more nimble, giving you the ability to react to market changes more quickly than larger van lines. As a smaller moving operation, you can provide levels of service a larger mover would have a difficult time achieving. Both you and your van operators can add those personal touches to your customer service which the big boys are unable to accomplish. But in order to do this, you must look for shippers who will appreciate and require this level of service. This means looking for shippers who are not happy with the current level of service they’re getting from their current HHG moving company.

Here are services which you could provide:

1. Uncrating and set-up
2. Small shipment consolidation
3. Pad-wrap
4. Unassemble/Reassemble
5. House cleaning after the move-out or before the move-in.
6. Home decorating and interior design services
7. Moving day child care
8. Hauling odd-shaped loads which most conventional carriers don’t want to handle.
9. Think of other services the majority of moving companies don’t or won’t provide.

Become unique and specialized. By providing services a traditional moving company isn’t interested in doing, you’ll acquire both market security and much greater control over your moving rates while creating additional revenue streams from these services. Be sure you think through the service or services you want to provide. Remember, to be a success you need to be an expert in your niche and you must possess the skills to do the requirements of the job. Know what you’re getting into.

1. Find a service you can provide which encompasses the smallest geographic area possible. This reduces your costs by placing you closer to your origin and destination points.
2. Locating loads that require out of the ordinary care will reap higher revenues for your operation.
3. Look for loads which require disassembly and reassembly of equipment, crating and uncrating, etc. These are services which can add to your revenue without the high cost of fuel.
4. The more you believe in what you’re hauling, the more care you’ll provide your customer. Haul your passion.
5. Think personal service, something larger movers have a more difficult time providing in the same way you can. Use this to give you a greater competitive edge.

Being a smaller mover can be to your advantage, as you adjust to changes more quickly than your larger counterparts. The entire industry is changing: fuel costs won’t be going down any time soon and consumers are noticing how much energy is used for moving services. The adjustments shippers and receivers are making in how they do business means a moving company needs to be on top of the market he/she serves.

If you’re going to compete with the larger carriers you’ve got to know the rules of the game.

• Rule # 1: Large carriers set and quote their hauling rates to the customer. Market forces may dictate price, but individual customers do not. You must do the same.
• Rule # 2: Market forces include what it costs you to do business along with what supply and demand is for the services you provide or the products you haul.
• Rule # 3: Letting shippers, or relocation companies set your hauling rates will not bring you the level of revenue needed to operate and grow your company.
• Rule # 4: You must know the market you serve in order to succeed.
• Rule # 5: To set your rates you must know your costs, your one, three, five and ten year growth goals, and the capital required to reach each goal.
• Rule # 6: Knowing what your customers need is important, knowing what they want is paramount; providing them both is success.
• Rule # 7: Understanding that all segments of the moving industry have economic vicissitudes, knowing the economic cycle of the market you serve is a must.
• Rule # 8: There will always be someone who will haul a shipment cheaper than you are willing or able to haul it. Sell service, not price.
• Rule # 9: The best paying shipments come from diligent planning, knowing the correct rate for the services provided, distance traveled, and time required; and knowing when and how to say “No” to shipments which don’t meet your revenue criteria.

Being competitive in this industry for the best paying tonnage means you don’t compete on price. If you provide top quality, go-out-of-your-way service, that “Can Do” approach will make it impossible for a competitor with a lower price to succeed in taking your customer. This also requires you to be selective of the shippers with which you choose to do business. Always look for the value-conscious, not the ‘price and discount shopper.’ A discount shopper will always go looking for a lower price every time you’re required to increase rates. A value-conscious shipper will give you an opportunity to show him why the rates need to be increased, and if justified, will stick with you. This means simply showing your shippers what it’s costing you to do business and what you need to grow and capitalize your business to better serve them in the future. You should always have the facts and figures in hand, ready to demonstrate why a rate increase is necessary.

To be successful in the moving business you need to be nimble, prepared to provide the services the most discerning customer wants, and the best there is in those carefully tailored services you provide.

“Future companies will be smaller and more nimble.” – Peter Diamandis