We’re going to be talking about how much movers make, how much movers profit.
Man, we’re going to go over, we’re going to show you how much you can make as a labor only mover, as a small moving company and then as a full service moving company.
I’m going to show you how much you can make, how much you can profit.
Let’s get into it.
How Much Do Movers Make?
So today we’re going to be talking about how much do movers make? How much do they profit?
That’s all we’re really starting to do in this business, is to make profit, to create the lifestyle that we’ve always wanted to live.
And that’s a great aspiration to do.
Now I did a video where I talk about “what is profit?”
I talk about gross profit, net profit and profit margin.
And if you haven’t seen that video, you really need to see it.
Based on the views of that video, you have not seen it, which means you don’t think it’s worthwhile, but it is.
And it has a lot to do with how much you’re going to make.
How Much Do Labor Only Movers Make?
Assuming that you’re a moving labor company, right, you should be making on average gross… Well, you can be making 50 to 60%, right?
That is your profit margin, 50% to 60%.
That’s your net profit. That is your profit margin.
Hypothetically, if you’re charging $100 per hour, which is quite low, actually, but that should be the basic minimum.
I don’t care what market you’re in, $100 an hour for labor is the basic minimum and you should charge.
You should profit after you pay your guys anywhere from $50-$60 per hour. Okay?
That’s what you should be making as a labor only company, because you don’t really have a heck of a lot of overhead. You don’t have a lot of marketing expenses.
Again, if you haven’t seen that video where I talk about gross profit, net profit and profit margin, you really should.
That’s right up there.
Well, obviously you can see, you can make a lot of money if you’re in labor, if you’re keeping your overhead down, right.
Labor only, you can pay your guys a little bit more and lower your profit margin and still make a good amount of money.
So what if you’re a small moving company and you’re actually working on the truck?
What Do New And Small Moving Companies Make?
What can we expect there?
Well, if you’re doing a small moving company, two man crew, right, should be making around $150 an hour, right.
That’s $150 an hour, right?
Again, you’re probably going to be paying your guys $20-$25 an hour, right?
So let’s just do 20 each. So out of that 150, you’re going to minus 40, right?
That’s going to give you $110, but now you’ve got to take out the truck because most of you guys, if you’re a small moving company, you’re probably renting moving trucks.
A moving truck is about $100.
So per hour, your expenses on that are $50.
That gives you $60 for the hour. Right?
So now out of that $60, what comes out of that again is your marketing, your website, your SEO.
All that has got to come out and you’re probably paying your guys under the table, plus you’re not paying yourself.
So if you’re on the crew, guess what?
Wait…We’re Done Just Yet
I said $40 for the crew…
Well that’s actually 20.
We’re actually going to change that up a bit.
So that was if you’re paying two guys that’s not you.
You still got to minus your truck, right? So what is that? That’s going to be $80.
Good, because now it’s you and one other guy.
So now you see by doing that, by having less, you’re going to be making, is going to be different.
You got 80 and we’re going to say out of the 80, you’re probably going to spend another $20 or so off of this stuff, depending on…
Regardless, we’re doing averages, right?
Your marketing is going to be an average of all your jobs, your website, again, an average of all your jobs, SEO, an average.
And because you’re small, you’re probably going to be doing a lot of it or most of it yourself.
Out of that you got to minus another $20, probably even up to 30.
But in this example, we’re going to do it.
So your profit margin is going to be about 60%.
Now, depending on what your expenses are, you can expect 50 to 60% of what you could be making.
You see how that is?
So there you go.
So that’s how much you’re going to be making if you’re a small moving company where you’re on the trucks yourself, and you really don’t have anybody else, you don’t have somebody answering the phones or anything like that.
It’s just you, one other guy or anything.
That’s a pretty good profit margin.
But what happens when you’re full size, right? How much are you going to do?
How Much Do Full Size Full Service Movers Make?
Remember that video I talked about, How Much You Going To Charge? I’ll put that video right up here on that one.
Teaches you, it gives you that equation, right?
Based off of that video with that full equation, that really is geared towards full service. It can help you with the small things, because then it’ll actually probably make you more money by the way, if you use that formula.
But with the full service, that formula, you’re going to be making 10-20% profit margin, which means if you’re doing a two man crew and hypothetically, if you’re doing 150 an hour, you’re making 15-20 bucks per hour if you’re charging 150 for two guys, right?
That’s only if you’re charging 150 in this hypothetical claim.
You can expect to make 10 to 20%, right? It should be 15-30.
That’s $15-$30 per hour you’re making off of a $150 job with two men if you’re doing a full, licensed and insured moving job. So, how much are you making?
And that’s what happens.
What happens is people don’t realize where they go from… They scale up from a small moving company where they’re working on their truck to a full service, I’m off the trucks and I’m just concentrating on sales.
They don’t realize because of overhead, payroll, trucks and all that good stuff that your profit margin goes down considerably.
So you gotta be making up in bulk.
You gotta be making up in quantity.
And this is why if you want to go from this level to this level, you have to have systems and processes.
Because if you want to get into the 20% range as a full service, licensed and insured mover, you’ve got to really understand your numbers.
You have to know where you can cut costs and save on taxes and things like that.
Wrapping it Up
This is what you can expect with a full service of 10-20%.
If you’re a small company, you can be thinking right around 40% is where you’re going to go minus all your expenses.
Again, with the labor only, depending on how you structure your labor only, you can go as low as 20%, or you could go up to as high as 60%.
So hopefully guys, this has answered your questions of how much movers make, how much movers, profit.
Again, if you haven’t seen that video about profit, go check it out right here. Guys. I like you. I love you.
Hopefully you learned something.
I like you. I love you. Go do something great today.