How much do moving companies make? Moving companies make an average of $33,150 per year for each two-person crew in a van they employ.
Below, we’ll look at the finer details of a moving contractor salary and profit potential.
What moving contractors charge
Moving contractors generally charge by the hour. Most companies charge about $90 per hour for their labor and transportation. Sometimes, this fee can include packing and unpacking items if requested.
- Most 2-person crews will complete 1 to 2 jobs daily and produce $720 in revenue for the company.
- With 240 work days per week, that crew will produce $172,800 in revenue annually.
Employee wages
Moving company workers get paid $20 per hour on average. After accounting for payroll taxes and workers’ compensation, your “all-in” cost comes to about $25 per hour.
So a full-time employee working 240 days per year will cost $48,000. And a 2-person crew will cost $96,000 per year.
Transportation costs
The following costs are associated with a moving company’s vehicle fleet:
- Gas
- Maintenance & repairs
- Commercial vehicle insurance
- Depreciation
- State taxes
- Financing (optional)
- Extended warranties (optional)
Adding up these costs and dividing them by the number of miles driven in the same period will give you a per-mile cost of about 75 cents (not including financing).
One crew in a van will drive about 800 miles per week. That results in a yearly cost of $28,800.
Marketing costs
Marketing costs tend to be around 8% of revenue. So the marketing costs to keep a crew producing $172,800 per year will be around $13,824.
Profit
So how much does a moving company make? With the above figures, we can calculate that a two-person crew in a van will make roughly $34,176 in yearly profit.
Yearly revenue, expenses, and profit for a two-person moving crew and a van:
Revenue | $172,800 |
Employee Wages | $96,000 |
Transportation Costs | $28,800 |
Marketing Costs | $13,824 |
Gross Profit | $34,176 |
Overhead costs
The $34,176 per crew from above is just gross profit. Now we need to subtract overhead costs to find net profit.
Overhead costs for a moving company include the following:
- Accounting
- Insurance
- Equipment & tools
- Scheduling software
- Office staff
If a moving company only has one crew, these overhead costs will largely eat into the profits. But spread among multiple crews will result in a manageable 3% of revenue.
That leaves us with $33,150 in net profit per two-person crew in a van.
Factors Affecting Revenue
If you cannot fill your crew’s time five days a week, 8 hours per day, you will bring in less money. You must get as much work as possible in a day to maximize profits.
You can do this by offering discounts or special rates and deals. You can raise your rates as your reputation grows and word-of-mouth leads start to pour in.
Frequently Asked Questions
What are the average moving company profit margins?
Moving company profit margins are roughly 20%. The average two-person crew will produce $172,800 in revenue, and the company gets to keep $33,150 (roughly 20%) as net profit.
What expenses are associated with a moving company?
Expenses include employee wages, transportation, marketing, and general overhead costs.
How many jobs can a two-person moving crew complete per month?
A two-person moving crew will complete 30 jobs on average per month.
The Bottom Line
Moving companies can make a good profit if they can keep up with the service demand. On average, a typical move will take around 8 hours and generate $720 in revenue.
You could be in a great position to make even more money with the right marketing techniques and scheduling efficiency strategies.
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