Just a year ago, the moving business was booming like never before. There were low interest rates, covid, and political drama, then moving was trending upward, with the population experiencing a thrust of economic mobility. Moving companies were opening up in greater numbers with such a high demand for moving services. Existing moving companies couldn’t handle the volume and were often booked to capacity. Now in 2022 the economy has taken a trip to the forest and has turned into a bear. This has had a major effect on the moving industry in a handful of ways.
Diminished Customer Base
In the face of a downward economy, people are saving their nuts and making particular moves. This is the making of a slow churning economy. With low economic mobility comes low morale and, thus, low production. Middle class Americans and real estate journeymen can’t afford houses, and larger companies are not incentivized to purchase homes with interest rates skyrocketing. Homeowners and landlords are the predominant purchasers of moving services. Without the purchase of homes, the moving industry takes a heavy hit with a lack of furniture and goods to relocate.
A Crippled Economy
The economy is running on fewer engines these days than in the recent past. According to Rocket Mortgage, the average housing mortgage is ranging from 5% – 6.4% which makes for a big decline in the rate of home purchases. We saw a near 11% increase in everyday grocery purchases over the course of a year, according to Forbes, but this simply means less money in the pockets of consumers to spend on luxury goods and services like moving services. As a result sales reps are forced to compete with pricing as close to operating costs as possible.
The Bottom Line
There are simply fewer moving customers in the market. As a consequence, sales reps in the moving industry are a long way from the bountiful season of the past. Then, reps are now having to become more competitive than ever before in the face of their fierce competitors.
Solutions for Cost
If your sales team appears to have hit a glass ceiling, then it can become an overwhelming feeling. Most sales managers and business owners make the mistake of putting all of their faith in sales training. They try the usual methods like boosting morale, and buying more leads. The problem here is that we are basically throwing good money and time after bad. Sometimes there is nothing you can do in the short term to boost sales and alternative solutions are required to save money and thus maintain company revenue.
For example if sales aren’t breaking past a certain closing ratio, but it’s wise to keep lead purchasing capped at the appropriate maximum to not waste. MoverXPro 360 is the industry leading software that was designed by industry guidelines. The main concern is the savings of moving company owners. The software is packed with features. It contains tools that eliminate the need for 3rd party applications, save money, and lead to an increase in sales via automation and process assistance.
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