SmartMoving, Michigan Moving Association, New Jersey Warehouse & Movers Association, Massachusetts Moving Association, Arizona Moving Association, and Remedy Payment Solutions surveyed more than 400 moving company owners nationwide to gather insights on business performance in 2023 and expectations for 2024 and beyond.

While 2023 was challenging for moving companies, with less than half meeting their revenue goals, the majority of moving companies are optimistic about the year ahead. To increase profitability, moving companies plan to increase prices, improve marketing, and diversify their business.

2023 Snapshot: A Challenging Year

2023 was a tough year for moving companies, with less than half (40%) meeting their revenue goals. Rising interest rates had a negative impact on 76% of moving companies. In addition, 33% of moving businesses had to take a business line of credit or a cash advance loan.

2024 Snapshot: Optimistic About 2024

Despite the challenges of 2023, the majority of moving companies (79%) are optimistic about the year ahead. To increase profitability, 56% plan to increase prices, 40% plan to improve marketing, and 24% plan to diversify their business.

In 2023, less than half of moving companies achieved their revenue goals, and many grappled with issues like hiring, operations, and marketing. The impact of rising interest rates cast a shadow over most businesses, leading to stagnant or even declining revenue. To conquer these challenges head-on, some companies had to take out a loan of some type.

Nevertheless, the majority of moving companies are looking ahead with optimism. They are determined to find effective strategies that will boost their profitability in 2024. These strategies include pricing adjustments, enhanced marketing efforts, and expansion of their service offerings.

Key Findings

Our study illustrates business performance for moving companies in 2023 and industry trends for 2024, as indicated by the following results:

• 2023 was a challenging year for moving companies with less than half (40%) meeting their revenue goals.
• Most moving companies (76%) agree that the impact of rising interest rates had a negative or somewhat negative impact on their business.
• 32% of moving businesses had minimal change (-10% to 10%) in their revenue trend over the last 12 months. While 24% saw a decrease by 10 to 20%.
• In addition, 33% of moving businesses had to take a business line of credit or a cash advance loan in 2023.
• Despite the challenges of 2023, the majority of moving companies (79%) are either generally or very optimistic about the year ahead.
• As moving companies look for ways to increase profitability, 56% plan to increase prices, 40% plan to improve marketing, and 24% plan to expand service offerings.
• While software usage is already prevalent among the majority of moving companies, 18% plan to invest in additional software this year as a tool to achieve their goals.

Last year posed several challenges for moving companies. Rising interest rates resulted in fewer moves, while staffing, operational, and marketing issues presented their own challenges.

However, in 2024, moving companies are adapting with new strategies to overcome these challenges and drive profitability. This section highlights the top trends and actionable strategies that will help moving company owners thrive in the changing landscape of the industry.

Top Challenges Faced in 2023

In 2023, moving companies encountered several hurdles that impacted their business. Rising interest rates led to a decrease in residential and commercial moves, limiting revenue opportunities for companies. Other challenges included:

• Staffing Difficulties: Finding skilled staff was a major pain point, with 66% of moving companies reporting challenges in recruitment and turnover.
• Operational Inefficiencies: 60% of moving companies faced inefficiencies in their day-to-day operations, hindering productivity and profitability.
• Limited Marketing: 56% of companies struggled with executing and optimizing ongoing marketing programs, impacting their ability to attract new customers.

Business Strategies for 2024

Moving companies have a unique opportunity to thrive in 2024 by being proactive and opportunistic. It's no secret that challenging economic times naturally filter out poorly run businesses. Movers can capitalize on discounted equipment from companies going out of business, allowing them to upgrade their resources at a fraction of the normal cost. And these companies often have skilled workers who are now available for recruitment.

Other key strategies include:

• Price Adjustments: In response to the challenges of the previous year, 56% of moving companies plan to increase their prices. This strategic move aims to maintain profitability while balancing customer value.
• Enhancing Marketing Efforts: Recognizing the importance of marketing, 40% of companies are focusing on improving or expanding their marketing initiatives. Top areas include search engine optimization (SEO), adding or expanding paid advertising, and increasing word-of-mouth marketing.
• Diversifying Services: To broaden their revenue streams, 24% of moving companies are diversifying their services, expanding beyond traditional moves to offer specialized services like military and international moves. They’re also looking to offer profitable ancillary services like packing and storage.

1 | Boost revenue with thoughtful price adjustments

In the competitive landscape of the moving industry, pricing strategies play a key role in maximizing profitability while maintaining value for customers. With more than half of moving companies planning to raise prices by around 5% this year, evaluating pricing strategies is important.

Looking at aggregate data from SmartMoving software users, move prices remained steady in 2023 for the majority of moving companies. This is a good sign for increasing prices in 2024. By finding the right balance between reasonable price adjustments and value delivered, moving companies can increase revenue and lay the foundation for long-term sustainable growth.

Best-in-Class Comparison

We also looked at the pricing strategies of top-performing moving companies and found that they charge higher prices for all their services. These industry leaders also plan to increase their prices by 5% this year. By carefully evaluating their pricing structure and making thoughtful adjustments, these companies are setting themselves up for continued success and profitability.

2 | Invest in Marketing to Fuel Growth

For moving companies seeking to maximize growth and brand awareness, it's crucial to allocate an adequate budget for marketing efforts. Surprisingly, many companies currently spend only a small percentage of their revenue on marketing, with over a quarter allocating just 5% or less. However, industry experts recommend investing 10-12% of revenue into marketing for growth and brand awareness.

It's encouraging to note that 42% of moving companies have recognized the significance of marketing and are planning to boost their marketing budget this year. Top areas of focus
include search engine optimization (SEO), adding or expanding paid ads, increasing word-of-mouth marketing, improving their online presence, and optimizing current marketing programs.

While many companies are knowledgeable about their lead to booked job conversion rate, a key business metric, it's worth mentioning that 39% of moving companies have yet to leverage the benefits of email marketing software for automating and executing consistent marketing programs.

Best-in-Class Comparison

We found that top performers prioritize their marketing investment, allocating more budget to enhance their success. It's worth noting that a higher percentage of these leading companies are also planning to increase their marketing budget this year. This demonstrates their commitment to growth and the recognition of the critical role marketing plays in achieving their goals.

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