How We Started Our $30M A Year Commercial Moving Company Back In 1993
Hello! Who are you and what business did you start?
My name is Avi Oz and I started Oz Moving & Storage in 1993. We started in New York City where our headquarters is still based. In the very beginning, I wanted Oz to be strictly a commercial moving company, I wanted to focus on office moving, which was my specialty.
That didn’t last long, once word started to spread many of our commercial clients wanted us for their residential moves, and it just made sense to branch out. Our clients then were mostly New Yorkers, and we were New Yorkers, we knew what they wanted and we gave it to them. Good service, fair prices.
New Yorkers are always pressed for time, so our model has always evolved to make sure we are a one-stop shop, we anticipate the client’s needs before they have them, and they appreciate it. We started with a hand-painted truck and a little storefront on W 47th Street in Hell's Kitchen. Today we are a $30M a year organization with locations in NY, NJ, CT, and CA.
What's your backstory and how did you come up with the idea?
I always wanted to own my own company, be my boss, to have full control over what the company was doing. In the '80s and '90s, the moving industry in NYC was a mess, it was the Wild West, and moving companies were known for taking people for a ride. The stories were crazy, customers being held hostage, being walked to the ATM for tips, entire truckloads driving off never to be seen again.
I loved moving but I hated what companies were doing. Even the so-called good companies had some sneaky practices, and I hated it, I didn’t have it in me to rip people off. The company I worked for was bought by another larger company, and at first, I went along with the new owners, but I wasn’t willing to play the games so I quit.
That’s when I decided to go it on my own. I borrowed some money, I called some of my former colleagues, and together we started the company doing things my way and the right way.
It was not easy, it's hard enough to open a new company with no referrals, and no reputation. We had to build it. We had to convince customers they could trust us. When we got our license, I started talking to some of the guys at the DOT, that’s the NYS Department of Transportation, the regulatory body in NYC, and as I said, NY in the 80s and '90s was the Wild West.
These guys had their work cut out for them, they were frustrated and fighting an uphill battle against these thieves that were just literally stealing every day. So I decided, I was going to help them. We were all frustrated that these thieving companies were ruining things for all of us, and I thought if I couldn’t convince clients to stop calling these notoriously bad companies, maybe the DOT could.
So I started telling people to call the DOT, check the record of the companies they are considering, make sure they have a license, make sure they have insurance, make sure they aren’t going to load their stuff in a truck and drive away never to be seen again. People appreciated it, the DOT appreciated it, my competition not so much. Now there was heat on them.
I turned up the heat, I put the DOT phone number in every ad, I put it on the back of my truck, and I earned the trust of the people, and for over thirty years I still do everything to keep that trust.
Take us through the process of building the first version of your product.
In the beginning, I was hands-on, I was doing everything, hiring, training movers, going out on estimates, driving trucks, changing oil, and whatever needed to be done. We all were, we all wore 5,6,7, 20 hats, we had to. At night we would forward the calls to a mobile phone so that if any customers called after the office was closed, we could give them a quote and book the job.
We had to, we needed every single job to survive. The bottom line was we needed to get the job done keep the clients happy and make sure we had clients for tomorrow. I worked 14-hour days, 7 days a week. I loved it, and I was so grateful for the people who worked for me. I wanted to be the boss I always wished I had.
I knew then and I still know the people are what makes Oz Moving, it’s not me, it’s the movers, it’s the salespeople, it’s the dispatchers, it’s the ones that wake up at 4 am to make sure the gate is open and the trucks are on the way, the ones that pay attention to details to make sure your grandmother’s china is around for the next generation.
Happy employees do the best work, and I try to make people happy. I would always bring in food, and make coffee. Our office on 78th Street had a kitchen, I used to cook breakfast for everyone. It was great fun, I loved that time. We all worked so hard but it didn’t feel like work because we were young and building something we knew was going to be great.
Surround yourself with good people, take the time to find the right people, and hold onto them. Most of our upper management have been with Oz for over 20 years, we are all lifers here.
I always loved moving, I am a very hyper personality. I love rearranging furniture, and switching things up. I love that moving every day is a different job, new people, a different building, a new set of challenges. I love making people happy, and it feels good to know I helped make a stressful life event have a happy ending.
We knew moving, and that was it. We worked, we paid bills. I think that was the key, you have to do something you love. We had no money, we did everything ourselves, and we designed our ads. We made deals whenever we could, like, we made deliveries for free in exchange for t-shirt printing and stored boxes for the local deli in exchange for discounted coffee and sandwiches for my guys, anything to help save a few dollars.
I also made sure people noticed us, and I made Oz approachable. Most moving companies were, and still are, based in the outer boroughs where there is parking and warehouses. You never see who you are talking to, you have no idea if they even really exist - do they have an office, or are they sitting in their living room?
It was a big expense for us, but around 1998 we moved into a storefront on E 78th St between 2nd and 3rd Avenue. I wanted people to be able to walk in the door and see a face if they wanted to. When we opened our store on E 78th St, we painted it bright yellow. A customer gave us a huge fish tank they didn’t need so I filled it with fish and put it by the front window. I noticed people, especially kids, would like to stop by and watch the fish.
So, I bought another tank and a few hamsters. Then we adopted a parrot. The office was a zoo, it was fun, and people, and kids would stop in, chat and have a coffee, talk to the birds, and pet the hamsters. We had fun, we spent so much time in the office we made it feel like home. And we opened our door to our neighbors, these were our customers, our neighbors.
We still have an office in the city, on E 45th St. People can still stop in, say hi, and put a face to the name on the other end of the phone.
Describe the process of launching the business.
When we first opened in 1993, the Yellow Pages was the place to be if you wanted customers to call you. And the closer to the front the better, the bigger the better. We dreamed of having a full-page ad in the Yellow Pages, it was the best way to set yourself apart from the other companies.
A full-page ad was expensive, it meant you were a successful, legitimate company! So the book was published once a year, and we had to wait months before our first ad was printed. That first year without an ad and a list in the phone book was tough. With so many terrible thieves, it was the best way to show you were a legitimate business.
We were so broke and so excited when our first little ad was there in the big book. We worked up to a quarter page, a half-page ad, and then finally we made it to the full page! It took years, and we were still in the back. The pages were in order of seniority, so the companies that were far more established than us were in the front.
Every year we would wait impatiently for the books to be delivered, and when it arrived, split it down the middle straight to “M” for Moving to see where we landed! Who stopped advertising? Which companies bumped up from half to whole pages? That told you all you needed to know about your competition.
If a company went from a full page down to a half page that spoke volumes. They were not doing well! Then they started to add color - it was more expensive but so much more impressive. Which companies added color? It was so important then, it seems so archaic now, that the world is digital.
At the time, we just did everything we could to book every single job, no matter what it took. It was like being on those merry-go-rounds the kids have in the playground, where you have to push it and push it and run as fast as you can to build momentum so that you can jump on and enjoy a bit of a ride.
We had to build a reputation, we had to make promises and see them through, we needed to work weekends, and we needed to work nights. We needed customers, and we needed to convince them to give this company with a funny name a chance. It was so hard to build that trust, but we did.
Since launch, what has worked to attract and retain customers?
We are still pushing that merry-go-round! We do not sit back on our haunches. We don’t answer the phone at 11 PM like we did 30 years ago, but we still make and keep promises to our customers.
In business it takes years to build a reputation, it takes nothing to tear it down and destroy it. You have to constantly be monitoring the environment, and the markets that impact your business. We are directly impacted by the housing market, we need to keep on top of what is happening to be prepared and best serve our clients.
During the pandemic, there was a mass exodus out of the cities, we saw this and acted on it. We ramped up our long-distance lines to meet the demand. People were confused, they didn’t know what to do or where to go, and we needed to make sure we had plenty of storage available to meet the demand. We always are a step ahead of our clients, always trying to come up with ideas to meet the demand before it comes. Our customers know and appreciate this.
One of the things that separates our company from the others is our restoration department. We are the only company we know of that has an antique restorer on staff, a master carpenter, and a furniture expert. Why? First of all, it allows us to provide direct services some of our clients need.
We can take apart a sofa, we can dismantle a built-in bookcase, and break down a Murphy bed. Our clients don’t need to coordinate a third party because we do it. We can take the crown off an antique armoire so it fits in their new apartment on the day of the move. That’s the difference between Oz and the competition. Also, accidents happen, even to the most well-prepared and well-experienced. A nick or chip, we can fix it, no problem.
We may have started with Yellow Pages ads, but we have always worked to stay up to date with the latest technology, frequently beta testing new products and implementing tech other companies don’t even know exists yet. We recently implemented an AI technology in our trucks that monitors and talks to the driver - hey, eyes on the road!
The tech relays reports to our dispatcher so they can see which trucks make hard stops, tailgate, or have eyes off the road in real time. This keeps our employees safe, and our client’s property in the back of the truck safe.
How are you doing today and what does the future look like?
Right now, the housing market is taking a hit and there are simply fewer moves than normal. We are still very busy, but we feel it in the air that people are just not eager to move. They are waiting to see what happens next in this post-pandemic world.
We are in a time of staying put, of waiting. That’s ok. Over the last 30 years we have seen this many times, after September 11, everyone wanted out! During the 2008 global financial crisis, the world stayed put, no banks were lending, no one was buying, and no one was moving. 2012, Hurricane Sandy, again, out! Like any business, we have to ride the waves.
We’re also in a place now where we are seeing multiple generations moving. We have always had repeat customers that come back to us over the years, and now we are seeing those clients move to Florida to retire, empty nesters downsizing. It’s amazing when people tell us, “Hey, you moved me when I was a kid!”
These are the relationships that mean the most. We also have next-generation employees, some of our mover’s adult children work for us, and my own daughter works for the company and I love it. I love that we are keeping it going, passing the torch.
Through starting the business, have you learned anything particularly helpful or advantageous?
I have learned that running any business is hard work. It’s very scary to rely on only yourself and to have other people and their livelihoods relying on you and your decisions. Many, many sleepless nights. Strong relationships, and trust, and so important.
The relationships you forge with your employees, with your clients, with the vendors and buildings you interact with. You have to keep your word, you have to build that trust. Without it, you have nothing. One time you disappoint someone, they will always remember it, and they will always question that trust. So don’t say it unless you can follow through and do it.
Transparency and clear communication are also important. Let your customers and your employees know what to expect - not only what they can expect from you but what you expect from them. No one can read each other’s mind. We want your move to be successful, and that means you need to be fully aware of what you can do and what we can do to make sure it is.
What platform/tools do you use for your business?
We love social media, some of the movers get into it, posting videos of their day, it’s fantastic. It’s such an amazing way to connect with our customers in a way we never could before. We use AI technology on our trucks, cameras, and GPS. We will be implementing a brand new CRM software this fall.
Advice for other entrepreneurs who want to get started or are just starting out?
Make sure you love what you do. Put yourself in your customer’s shoes, and be the company YOU would hire and rave about. Be prepared to be flexible, things rarely go as planned.
Surround yourself with good people, take the time to find the right people, and hold onto them. Most of our upper management have been with Oz for over 20 years, we are all lifers here.
Where can we go to learn more?
If you have any questions or comments, drop a comment below!
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