Residential moving companies - have you reviewed them before?

March 04, 2021

by a searcher from Harvard University - Harvard Business School in New York, NY, USA

Close to LOI on a niche residential moving and storage company in the US

I like that it is a large mature market that is not being disrupted -- and this target has been quite successful in it for decades

But, it is a very competitive market as well with relatively low barriers to entry

Would love to chat with anyone who might have explored a company in the space before

Happy to provide more detail via direct message. Talk soon

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Reply by a searcher
from Northwestern University in Phoenix, AZ, USA

I started a residential cleaning company from scratch 3 years ago, happy to chat about the challenges of residential services that are low barrier to entry if you DM me. Your #1 challenge with a moving company is that unless you have strong partnerships with say apartment complexes, you have pretty much single digit recurring revenue, and your CAC will likely be high if you rely heavily on online advertising (unless they've optimized their SEO and ads already).. Because even if you do an outstanding job and your customers refer their friend to you, odds are, their friends won't remember to call you by the time they actually need to move. Because 'anyone can do it' you'll be competing heavily on price unless you have a good differentiator that increases your customers willingness to pay (typically that you'll pack, as well as move, and maybe even unpack). Unless you pay really well or are well connected in the area, finding reliable, low turnover talent will eat into your margins. Personally, for a residential moving company, I'd rather start from scratch than acquire. Storage is an entirely different beast

Reply by an admin
from Massachusetts Institute of Technology in Portland, OR, USA

Tagging ^redacted‌ and ^redacted‌ who might be able to comment here.

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