# How do moving companies calculate costs?

## How do moving companies calculate costs?

Most long-distance movers charge by weight and mileage, so the cost of your move will depend on how large and heavy your shipment is, as well as the distance between pickup and delivery locations. The industry and its suppliers typically generate about \$85.7 billion in output annually. When you consider that the average cost of an in-state move is \$980 and that local movers make at least \$25 per hour, it’s easy to see how these numbers add up over time to provide substantial profits in the moving business. It’s best to rent a truck or use a moving container service for small, straightforward moves if you’re looking to save money — especially if you can get packing and loading help from friends and family. But for larger or more complicated moves, go with full-service movers. Monthly Revenue On average, small movers may charge \$50 – \$200 to move a furniture item, depending upon the size and miles traveled. Individuals dedicating 10 or 20 hours a week can easily earn an extra \$700 – \$1000 per month part-time when starting a moving company. Are you moving within 50 miles, 100 miles, or 450 miles of your home? A general rule of thumb for most moving companies is that if a move is over 400 miles, it is considered long-distance. A long-distance move can also be called long-haul moving or interstate moving if you are moving out of one state and into another.

## How much profit do moving companies make?

What is the average profit margin of a moving business? There is no clear benchmark online for how much profits moving companies make. One source mentions the average is about 10%, yet doesn’t cite any source. The industry and its suppliers typically generate about \$85.7 billion in output annually. When you consider that the average cost of an in-state move is \$980 and that local movers make at least \$25 per hour, it’s easy to see how these numbers add up over time to provide substantial profits in the moving business. On average, a local move can range from \$300 to \$1,500 depending on the move’s size. Long-distance moves can cost on average \$2,500 to \$5,000 depending on the move’s size and the distance, and that’s likely a conservative estimate because of the labor shortage’s effect on the moving industry in the last few years. How Much to Tip Movers. A good rule of thumb is 15 to 20 percent of the total moving bill for both a typical long-haul or a local move.