Big Al 's Hourly Rate Up At $ 350 Per Hour For The Three Movers And A Truck

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I would increase Big Al’s hourly rate up to $350 per hour for the three movers and a truck. The business could be relocated to a location with lower costs, and a 60-month lease in order to lock in their rates. The number of trucks could be decreased to six, which would increase the effective utilization of available assets. They could reduce their surplus of labor, which in concert with reducing the number of trucks, would increase their profit margins substantially. In order to maintain their current level of business with the increased prices, they could increase their advertising budget as well, to educate the consumer.

After doing market research on Fairfield County based movers, I found that the hourly rates for three movers and a truck varied from $130 to $212, exclusive of packing fees and fuel surcharges. Two companies were able to provide estimates of 75 percent and 100 percent of the cost of the move for packing fees. The prices obtained for the two full service companies were $260 and $330. The majority of companies contacted noted that there were a variety of additional charges that were frequently tacked on to a move, such as additional costs for navigating stairwells and for having to carry boxes across lawns. This, along with Big Al’s high conversion rate of calls to contract, suggests that the total level of business could be maintained at all inclusive rate of $350 per hour, increasing revenue by 16.67 percent to $3,500,000.

The business is also over

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