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How to Find a Reputable Mover: Understand Each Aspect of the Pricing

Posted 04-10-2009 at 10:51 AM by RikkiTikki
Updated 02-20-2010 at 09:58 AM by RikkiTikki


Use the terms ‘MSRP’ or ‘base price’ in retail and everyone generally understands that the amount being considered for a box of chocolate, custom draperies, or new car probably won’t be the price actually paid. The same should be true when you see or hear the phrases ‘estimate’ or ‘estimated cost of services’ when pricing relocation services.

Unfortunately many folks shopping for a mover, an equipment rental or material supplier, or fixed or portable storage option for the first time are drawn to the low, low prices advertised to get them in the door.

Moving is expensive. The desire to save money sometimes clouds a consumer’s understanding of what’s actually included in the final bill. To make things worse, pricing issues are often complicated by unclear or conflicting information. - especially when you can’t do an apples-to-apples comparison.

If you’re moving locally, expect most reputable full service moving companies to quote you based on an hourly rate. The price is usually determined by the number of laborers, type of equipment and amount of supplies, and the level of liability protection selected. Individiaul prices are based on the scope of defined services and degree of risk each individual is willing to accept. Don’t forget to ask about travel time(s) to and from the job and how break periods are handled when making your comparisons.

Some companies use a minimum charge in their pricing - either a fixed amount (i.e. $250.00), an hourly rate (4 hr mini.), or mileage radius (up to 25 miles). The $19.99 price you see for the rental truck is just FOR THE TRUCK. Expect to pay extra for moving pads, packing supplies, insurance and gas. The $6.00 per month storage locker is for the room the size of your closet.

The pricing used to rate most intra- and interstate moves is usually based on tariffs that the household good (HHG) motor carrier is required to maintain based on applicable licensing requirements. Some state and municipal authorities stipulate what movers can charge.

A decision by the Surface Transportation Board, an adjudicatory and a regulatory agency of the U.S. Department of Transportation, to remove the collective rate ability in the household goods moving industry in 2008 means that each of the 8400 licensed interstate carriers must now maintain their own separate tariffs. This action was taken to increase competition in the marketplace.

Interstate household goods motor carriers are required, by law, to provide either a 1) binding* or 2) non-binding estimate according to the provisions outlined in the federal Consumer Protection Regulations using the unique definitions in their individual tariffs. Most prepare their estimates using a combination of dimensional size and corresponding weight to calculate the linehaul transportation cost, accessorial service charges (material, packing, shuttle, stairs, storage, elevators, excessive distance, …etc.), and selected valuation costs using the results of in-house visual surveys.

Some interstate HHG carriers and move brokers insist that a visual estimate isn’t necessary if the customer submits their own list of items to be shipped. Although this exception may be true under the applicable regulations, the lack of a physical survey prepared by a carrier’s qualified representative is the biggest area of contention in most consumer disputes. Many reports involve a customer’s inability or unwillingness to pay for unexpected charges. Frequently these result in ‘hostage load’ complaints.

When moving long distances, the best insurance against potential problems is to get several estimates from reputable, well qualified industry professionals. Do not trust the prices you’re quoted based on a list of items or services that you submit online or over the phone!

Most people contemplating relocation will admit to having a heavy queen size mahogany sleigh bed and overstuffed pillowtop mattress. Frequently, however, they forget to list the two bed pillows, four oversized designer pillows, the mattress bolster, floor-length down comforter, and fancy knit dust ruffle that complete the ensemble. To them, they’re all part of the same piece of furniture. They’ll list the double dresser and its contents yet forget the 60” x 44” x 8":attached mirror and full-sized jewelry box sitting on top. See the problem?

Intentional or not, these types of oversights not only create pricing inaccuracies (and often unwarranted criticism) for full service movers but also wreak havoc on capacity estimates required to arrange many do-it-yourself (DIY), “you pack, we drive” truck rental, mobile/portable storage, or general freight options.

Unlike licensed household goods carriers which are required to comply with Federal oversight regulations, however, consumers using these types of DIY relocation options shoulder the responsibility when a mis-estimate results in a personal injury incident, worker’s comp claim, or unbudgeted pricing or capacity problem.

* Guaranteed-Not-To-Exceed (GNTE), MaxPrice, or similar pricing products are all variations of binding estimates developed by the established interstate HHG moving industry. Carriers using these sales tools must still comply with all of the applicable Consumer Protection Regulations regarding binding estimates.

Still at your wit’s end? Join me at RELORoundTable – a gathering place where interested visitors can participate in a mutually supportive but commercially neutral learning environment that deals with the trials and tribulations of movin’.
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    Posted 04-12-2009 at 05:31 PM by 2goldens 2goldens is offline
 

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