Busy Season Blues? How To Stay Afloat

A Conversation with Hunter Munroe of MoveUp Consulting

As we hit peak summer time, the sun is shining brighter and temperatures continue to soar.  Traditionally, summer is also the time when moving companies see a bustling hive of activity. However, this particular summer, the industry seems to be experiencing an unusual lull. Moving company owners are scratching their heads, wondering why they are not witnessing the usual surge in moving volumes as they have in the past. 

We recently sat down with Hunter Munroe, Business Development Manager for MoveUp Consulting, a firm that specializes in recruiting moving company talent at all levels of an organization, from drivers to team managers.

What Are Some Reasons for the Decline in Moving Volume?

Economic Factors:

One of the primary reasons for the decline in moving volumes can be attributed to the prevailing economic conditions. Economic uncertainties can dissuade individuals and families from making big moves, as they may opt to hold off until they feel more financially stable. For example, while inflation has come down in recent months, the general outlook on the economy remains mixed at best. In addition, fluctuations in housing markets, high property prices, skyrocketing mortgage costs and the cost of living in certain areas can deter potential customers from relocating.

Remote Work Revolution:

The COVID-19 pandemic has reshaped the way people work, with many businesses adopting remote work policies. As a result, employees no longer need to be tied to a specific location, reducing the urgency to move closer to their workplaces. According to Forbes, 12.7% of full-time employees work remote, and this number is expected to climb to over 25 million workers in 2024. This shift has contributed to a decreased demand for relocations, particularly among urban dwellers who used to move for work-related reasons.

Extreme Weather Events:

It’s no surprise to anyone that weather can impact moving volumes. Frequent hurricanes, wildfires, or other natural disasters in certain regions may discourage people from relocating. As of July, 2023, there have been 12 confirmed weather/climate disaster events with losses exceeding $1 billion each to affect the United States. Even from a common sense perspective, some may choose not to move (or choose to work!) during the summer due to concerns about extreme heat waves or other weather-related challenges.

Other External Factors:

While summer has historically been a peak season for moving, other factors may be influencing the trends.  According to Hunter, how a moving company approaches demand generation can also be a significant factor in determining how it will be able to ride out any particular downturn. “Companies who are overly reliant on paid ads, or ones who haven’t developed a good outbound sales motion, may be struggling, while those who are well diversified tend to be more resilient during slower periods of business.”  

What Are Some Strategies to Boost Moving Company Volume?

Diversification of Services:

Moving companies can consider expanding their service offerings beyond traditional residential relocations.  According to Hunter, “we typically see the more successful companies have a good mix of local and long distance, or maybe a good mix of residential and commercial.  For example, commercial real estate is a year-round business, not subject to seasonality, and those contracts tend to be longer,” he said.

Targeted Marketing Campaigns:

Revamp marketing strategies to align with the current trends and challenges. Target individuals who are looking to downsize or need assistance with storage due to the economic uncertainties. “Data really is your friend here,” added Hunter. For example, if you moved someone into a one-year lease apartment, make a note to follow up with them eleven months from now when they might be considering a move again,” he suggests. Having a moving software system like Oncue can easily keep track of all of your leads, quotes and booked moves so you don’t need to go hunting for that information when you really need it.

Partnerships and Referral Programs:

Collaborating with real estate agents, property management companies, or storage facilities can be mutually beneficial. Referral programs can incentivize these partners to recommend your moving company to their clients, thereby increasing your customer base. “This is a great way to diversify your lead sources,” said Hunter. “Think outside of the box – landscapers, roofers, realtors – all of these businesses work with homeowners, and the opportunity to share leads is really wide open.”

Stay Ahead of the Competition:

Offering competitive pricing and attractive incentives can entice potential customers to choose your moving company over others. Consider promotional discounts, loyalty programs, or complimentary services to sweeten the deal. But you don’t always need to throw money at the problem. Never forget the power of great reviews! “I’ll talk to a company that’s been in business for 10 years. And they only have 40 reviews on their website.  Now compare that to a company that has 400 reviews in a much shorter period of time… which one would you want to work with?” asked Hunter.

Conclusion:

This summer’s slower moving season may be a cause for concern, but understanding the underlying factors and adapting to the changing landscape can help moving companies thrive. From his vantage point, Hunter suggests that a combination of the above strategies can help moving companies stick around for the long term. “We know that the industry isn’t going anywhere, there will always be people that need to move,” said Hunter. “You just need to be smart and think a few steps ahead for what comes next.”