SIRVA Competition
Now Viewing SIRVA's competition in: Moving and Storage (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
Who is the company's typical customer? - Typical customers may include families, businesses, and government agencies.
How does the company get new business? - Getting new customers is the major concern for household movers, since most current customers are unlikely to produce repeat business, at least in the near term.
How do the company's relationships with residential and corporate customers differ? - Since residential customers seldom produce repeat business, moving companies build relationships with corporate customers, who often provide a steadier flow of business through frequent employee relocation.
What type of bids does the company give? - Most movers, or carriers, provide two types of estimates: binding and nonbinding.
How much of the companies business is derived from moving website services? - Online moving websites give moving companies the opportunity to bid for business outside their geographic region.
Who are the company’s largest local competitors? - Competition for movers comes from self-move rental operations such as U-Haul, from unregulated operators using rented trucks, and from freight carriers looking for new sources of revenue.
Competitive Landscape
Home sales, residential rental turnover, and corporate relocations drive demand for moving and storage services. The profitability of individual companies depends on good marketing, as services are largely the same. Large companies have economies of scale in marketing and in being able to consolidate loads on long hauls. Small companies can compete with large ones by specializing in local markets and by offering competitive prices and better service for local moves. The industry is labor-intensive: average annual revenue per employee is about $125,000.
Business Challenges
CRITICAL ISSUES
Dependent on Relocations, Home Sales - The moving industry depends highly on home sales and on corporate relocations, both of which tend to vary with the state of the economy. Swings in home sales and corporate relocations can be significant from year to year on a nationwide basis. In individual markets, changes in demand for moving services can be even more pronounced.
Vulnerable to Fuel, Insurance Costs - Changing fuel and insurance costs heavily affect profitability in the moving industry. During periods of increasing fuel prices, competition keeps operators from complete cost recovery. The industry is only marginally profitable because of strong competition from small companies.
Industries Where SIRVA Competes
- Transportation Services
- Trucking
- Moving & Storage Services(primary)
- Trucking
- Real Estate
- Residential Real Estate Brokerage
