Removal company idea

[Nathahan]

Hi guys, first post after spending hours searching through the forum.

A bit of background. I'm currently employed full time, 30 years old and looking to set up a business on the side which I would eventually move in to full time.

My idea is rather simple and includes setting up a removal company, starting off small and offering an online instant quote / guaranteed fixed price system. Prospective customer visits my website and enters in some information about their requirements and my algorithm gives them a fixed price taking everything in to consideration, rooms, packaging service, parking restrictions, pianos etc. The purpose being not everyone has the time for sales people who are asking questions that the customer can answer already. In this day in age everyone wants instant feedbac and I believe this is a way to move the industry forward, the main competitor would be AnyVan but they also do courier services where I would solely be reomvals. In the future I would look to get in to storage. It seems to me it's either Pickford's which are expensive, use sales reps but well known and established or man and van type job with a few employees and not much between. I think somewhere in the middle would be the sweet spot.

Clearly the whole business would rely on a reliable brand and online exposure.

I have not owned a business before and am nervous. Taking a plunge at a rough estimate of £20k start up is daunting but equally exciting. There is nobody I can turn to for guidance but in my head it seems right.

I'm looking for some feedback for my plan.

Thanks

 

[Mr D]

There appear to be tons of removal companies. I lived in a small town of a few tens of thousands of people last time I moved, I had 4 quotes from companies within 3 miles. Not one of them Pickfords.


Ok, at the very least you will need a truck? And a couple of employees?

The website idea I haven't come across before, you would be paying to get it built? Then spending money marketing the business - with all the millions of websites your problem is getting noticed. Spending far more marketing and continuous advertising than you will spend on the site build.

Perhaps start local in your area? You have figured out your target market, you have done leaflets / greetings packs / whatever - be prepared for some people to want to ring for a quote.

Not everyone wants to use a computer for everything. If I'm using mobile phone I'll find your company and dial, not enter a load of info on a small keyboard.

 

[Nathahan]

I'm thinking the info you enter would be really simple. A few clicks / 90 seconds. If you've ever used boxt.co.uk for a boiler quotw that's what I'm thinking in terms of the algorithm. I just have no idea how much something like that would be, how longs a piece of string. I certainly do not have the know how to do it myself.

I most certainly would be starting small / local. I used Pickford's as an example as they complete 250k moves a year, in my area, as with all cities, there are several well established companies but they're online presence is very small and they seem to generate customers through word of mouth

 

[Mr D]

There is also the corporate market - moving business stock and offices etc.

Load up on a Saturday, deliver on the Sunday, business back up and running on a Monday morning as normal.

 

[Mark T Jones]

Your assament if the market is somewhat limited. There are any number of removal companies - many well established and reliable. Some operating under national network arrangement which gives the advantage of optimising profits through backloads

Have you established a meaningful demand for instant quotes? The challenge I can see is that your algorithm will never match the skill of an experienced estimator so you could well end up underquoting or overquoting without really knowing where things are missing out.

 

[alan1302]

Would you want to trust your customer to be able to estimate a house move and the amount of space and time required? Had a man and van move a sofa recently and he says people never give him the correct info for house moves and can only price it up correctly when he goes and estimates it himself.

 

[MBE2017]

Would you want to trust your customer to be able to estimate a house move and the amount of space and time required? Had a man and van move a sofa recently and he says people never give him the correct info for house moves and can only price it up correctly when he goes and estimates it himself.

Used to have my own removals and courier company for a decade, and the above is true. Even experienced companies get things wrong, your biggest problem is people expect you to work for a fixed amount, which will always lead to large losses.

To a high sensible figure and too many will ignore your quote, go too low and too many will want to use you. Once you turn up you then realise that three hour job is a twelve hour job, but the client will refuse any price increase.

I would only personally work on an hourly rate, there is a huge difference loading a vehicle with everything packed by the front door when you turn up, to that occasion when you are asked to pack all little Timmy’s toys away in each individual box, when they are strewn around the house and garden.

Of course, I haven’t even mentioned the delays caused when keys or even the previous owners are not around, or have forgotten to move out the previous day.

There are good reasons not to reinvent the wheel sometimes.

 

[Nathahan]

Used to have my own removals and courier company for a decade, and the above is true. Even experienced companies get things wrong, your biggest problem is people expect you to work for a fixed amount, which will always lead to large losses.

To a high sensible figure and too many will ignore your quote, go too low and too many will want to use you. Once you turn up you then realise that three hour job is a twelve hour job, but the client will refuse any price increase.

I would only personally work on an hourly rate, there is a huge difference loading a vehicle with everything packed by the front door when you turn up, to that occasion when you are asked to pack all little Timmy’s toys away in each individual box, when they are strewn around the house and garden.

Of course, I haven’t even mentioned the delays caused when keys or even the previous owners are not around, or have forgotten to move out the previous day.

There are good reasons not to reinvent the wheel sometimes.

Thanks for the replies. Using my example - boxt.co.uk, they generate their quotes based on the data you input. It's a really simple way of self quoting, it's illustrated with simple questions and explanations and if people are owning the process I believe they will be truthful when the price reflects their expectations. Why would somebody mis-quote if they are relying on your service to move house. It's quite an important process, having already paid a deposit or balance for the service? The problem is people abusing it but the model implemented by boxt, which deal with boilers which most people have little knowledge about, works. I've used it.

I just see people wanting things instantly what with working then having someone come over to your house for a chat and hard sell as an unnecessary step. There will inevitably be those times where more work is required as there is more furniture etc but I would hope to minimise this.

Thanks again for the feedback it is really helpful

 

[Mark T Jones]

Thanks for the replies. Using my example - boxt.co.uk, they generate their quotes based on the data you input. It's a really simple way of self quoting, it's illustrated with simple questions and explanations and if people are owning the process I believe they will be truthful when the price reflects their expectations. Why would somebody mis-quote if they are relying on your service to move house. It's quite an important process, having already paid a deposit or balance for the service? The problem is people abusing it but the model implemented by boxt, which deal with boilers which most people have little knowledge about, works. I've used it.

I just see people wanting things instantly what with working then having someone come over to your house for a chat and hard sell as an unnecessary step. There will inevitably be those times where more work is required as there is more furniture etc but I would hope to minimise this.

Thanks again for the feedback it is really helpful

I’m sorry to say that your base assumptions are unbelievably naive

Even when the customer fully intends to be honest they will grossly miscalculate the stuff in the attic, shed and under the sink.

 

[Mark T Jones]

Used to have my own removals and courier company for a decade, and the above is true. Even experienced companies get things wrong, your biggest problem is people expect you to work for a fixed amount, which will always lead to large losses.

To a high sensible figure and too many will ignore your quote, go too low and too many will want to use you. Once you turn up you then realise that three hour job is a twelve hour job, but the client will refuse any price increase.

I would only personally work on an hourly rate, there is a huge difference loading a vehicle with everything packed by the front door when you turn up, to that occasion when you are asked to pack all little Timmy’s toys away in each individual box, when they are strewn around the house and garden.

Of course, I haven’t even mentioned the delays caused when keys or even the previous owners are not around, or have forgotten to move out the previous day.

There are good reasons not to reinvent the wheel sometimes.

In my student days I was a removal man for Pickfords. So many stories but the one that stands out is turning up with 2 fully loaded pantechnicons to move a family in to a 4 bed house

The outgoing family were sitting down to breakfast like it was just another day. Outside was the borrowed Transporter van they intended to move out with.

2 old boys trying to lift a grand piano

Needless to say, we pocketed lots of extra tips for helping out and the job went on til midnight - lots of overtime

 

[MBE2017]

Yes, happens all the time where something goes wrong. A long standing client asked myself to help him move just 350 yards into another road, he reckoned three hours would be enough time. He had used myself seven times in a year taking bookcases to his home, I pointed out just moving those items would take half a day minimum.

He explained he had hired a van, so with my help it would be enough time between the two of us. On the day we took the first load to find the other removal company had arrived late, their clients had not packed anything in advance. They had underestimated the vehicle space required and had to get more vehicles.

We had to wait fifteen hours until we could start to unload, that half day job took twenty nine hours between two vehicles. I got paid for twenty nine hours work plus a large bonus on top for not deserting my client at the edge of the road.

The OP’s idea of automated quotes will work approx 10-15% of the time IMO, which leaves a very large percentage of potentially unhappy clients and underpaid work. Still, it would be a steep learning curve.

 

[Businessquotes]

Boxt have invested over £3 million pounds and have over 40 years experience of the boiler market - they also have only a few variables to consider. Lots more to consider with removals plus online quotes tend to attract a lot of tyre kickers and people who want a base price- you'd be appealing to about 5% of the market in a market with pretty low margins.