Introduction
Pricing moving services is one of the most challenging tasks in the moving and storage industry. Many new owners set their rates by calling competitors and undercutting them. Others simply “pick a number” that sounds reasonable. Both approaches can lead to disaster. Why? Because without understanding the true costs—labor, trucks, supplies, insurance, and overhead—you risk working hard for little or no profit.
In this episode of the Movified Podcast, host Mark Hirschi (owner of Salmon’s Moving & Storage, Vancouver, BC) sat down with Steven Reed (ReadyRoles.com & Big League Movers, Memphis, TN) to unpack the numbers that actually drive profit. Steven shared how he moved away from competitor-based pricing and learned to break down labor, truck, and insurance costs while managing supply margins.
If you’re a moving company owner, franchisee, or industry professional, this guide will help you stop guessing and start using data to grow profitably.
Key Takeaways
What You’ll Learn:
- Price from your numbers, not competitors. Every market is different, and only your true costs reveal sustainable pricing.
- Job cost every move. Use QuickBooks, CRMs, or spreadsheets to track margins on every job.
- Manage supplies like inventory. Mark up smartly, control waste, and bonus crews for efficiency.
- Treat insurance as a direct hourly cost. Start renewal 150 days early and force brokers to compete.
- Profit is a system. Build rates that fund growth, cover overhead, and reward owners—not just cover payroll.
Table of Contents
Why Pricing Moving Services Matters
Many movers think they’re profitable because they see cash after jobs. But when trucks break down, insurance renewals spike, or crews waste supplies, that “profit” evaporates.
Pricing moving services correctly is about building a safety margin into every hour billed. Without that, growth is impossible—you’ll always scramble to pay for repairs, compliance, or marketing.
From Competitor Calls to Cost-Based Pricing
When Steven Reed launched Big League Movers, he did what many new owners do: he called local competitors, asked about rates, and undercut them. It worked for winning jobs, but not for building wealth.
Quote from Steven Reed:
“At first I undercut competitors, but once I saw my expenses, I knew I had to reprice to survive.”
The problem with competitor-based pricing:
- Competitors may already be undercharging.
- Larger movers may have lower costs through economies of scale.
- Your local costs (fuel, insurance, payroll taxes) may differ significantly.
The solution is job costing:
- Record payroll + truck time for each job.
- Compare billed revenue vs. actual cost.
- Calculate margin percentage.
- Adjust pricing if jobs fall below 40–50% gross margin.
This gives owners hard data instead of guesswork.
Supplies: Hidden Costs and Smart Markups
Supplies are often seen as “small costs,” but they add up quickly. Mark Hirschi recalled offering free tape and shrink wrap, only to discover crews wasting rolls and leaving them half-used in trucks. Those wasted rolls destroyed margins.
Steven’s strategies for managing supplies:
- Markup wisely. Small/medium boxes: ~200%. Wardrobes/dish packs: lower margin.
- Use as negotiation tools. Instead of discounting labor, offer a few boxes at no charge.
- Bonus crews for efficiency. Reward those who stretch shrink rolls to the end.
- Inventory control. Track supplies in/out of trucks with your CRM.
Why it matters: Supplies are the easiest profit center when managed correctly—no sick days, no insurance, no HR challenges.
Breaking Down Labor and Truck Costs
Here’s where many movers fail: combining labor and truck into a single hourly rate.
Example calculation:
- Labor:
- Base pay = $20/hr.
- With taxes/benefits = $30/hr.
- Add $20/hr margin → $50/hr per mover.
- Base pay = $20/hr.
- Truck:
- Insurance = $10/hr.
- Maintenance/tire wear = $10/hr.
- Fuel/body damage reserve = $10–20/hr.
- Total = $30–40/hr.
- Insurance = $10/hr.
So instead of $100/hr for “two men and a truck,” the true profitable rate is $130–150/hr.
Pro tip: Break rates into separate line items:
- Per mover hourly.
- Per truck hourly.
- Additional charges (stairs, shuttles, specialty items).
This makes costs transparent and prevents underpricing.
Buying in Bulk and Partnering with Competitors
Supplies are cheaper in volume, but not every mover can afford pallets of boxes. Steven suggests teaming up with competitors.
Why it works:
- Packaging plants price based on annual volume.
- Sharing orders reduces per-box costs.
- Customers don’t choose movers for saving $0.30 on a dish pack.
Pro tip: Go direct to the box plant. Middlemen only add logistics markup. Every metro area has a plant within ~2 hours.
Quote from Steven Reed:
“You’re not gaining an edge with cheaper boxes. Partner up and save thousands.”
Insurance: How to Protect Margins
Insurance is often the largest hidden cost in pricing moving services.
- In BC, Mark saw fleet insurance nearly double overnight when carriers were restricted.
- In the U.S., Steven experienced DOT compliance violations and CAB score issues that skyrocketed premiums.
Steven’s rules for insurance:
- Never lapse. A single lapse follows you for years.
- Start renewal 150 days early. Get brokers working in advance.
- Force competition. Assign carriers to different brokers so they don’t overlap.
- Treat as direct cost. Build insurance into your per-truck hourly rate.
Ignoring insurance leads to underpriced services and slim margins. Treat it as part of your COGS, not overhead.
Tools Every Mover Should Use
Steven recommends two must-haves:
- QuickBooks Online – Clean chart of accounts, classify transactions, and run job costing.
- 60 Minute CFO (book) – Explains accounting in plain language with dashboards for movers.
Mark notes that the book’s website includes free Excel templates that look dated but deliver clarity. He had his leadership team read it to ensure everyone understood the numbers.
Bonus tools:
CRMs like Supermove or SmartMoving for real-time job costing.
Inventory control apps for supply tracking.
Why Choose Movified
Movified is built for movers by movers. We bring insider access to the strategies that separate profitable companies from struggling ones.
- Host: Mark Hirschi, owner of Salmon’s Moving & Storage, one of Canada’s oldest moving brands.
- Guests: Industry leaders like Steven Reed, who scaled Big League Movers and launched ReadyRoles.
- Content: Real stories, practical numbers, and honest insights you can apply immediately.
If you want to grow without sacrificing profit, Movified is your competitive edge.
Conclusion
Pricing moving services isn’t about copying competitors—it’s about knowing your costs and building margins that sustain growth.
From job costing to insurance planning, Steven Reed’s blueprint shows movers how to stop guessing and start profiting. By managing supplies, breaking down labor/truck costs, and negotiating insurance smartly, any moving company can secure margins that fund the future.
Final Quote:
“Price to grow, not just to survive. Your rates must cover labor, trucks, supplies, and the future.”
Meet The Host
Mark Hirschi is the founder and host of Movified. With over a decade in the moving and storage industry, Mark combines real-world leadership experience with a passion for mentorship and elevating industry standards.
