Short instructional segment (SPEAKER A) from a YouTube video by Louis Massaro explaining that one cause of losing money is a high labor payroll percentage on moving jobs. The speaker uses a per-job "pie" analogy (e.g., a $1,000 job) to show labor's share of revenue and recommends increasing rates or average revenue per move rather than reducing movers' pay.
The third reason that you're losing money is a high labor payroll percentage. So if you look at each job that you do as a pie, right. There's only 100% of that pie. Certain percentage has to be allocated to certain things. Right. But one of the biggest areas is the labor percentage. Right. How much of the whole job? Again, let's say we're talking about a thousand dollar job. How much of that job are you paying out to the movers? Right. And so when I see companies with high labor percentages, the answer is not, you know, reduce their pay. Right. Because that doesn't ever turn out good. That doesn't work. Typically, what you're going to need to do is raise your rates and get more, more money per move. Right. You need to get a higher average dollar amount for each move in order to balance that out.
