Wednesday, April 17, 2019

Household goods shipments and pricing options

The ever changing household moving business has created so many different variations in pricing options in the last several years.  Every different pricing option has a different twist that must be considered to truly understand what the end cost of a move will be!  Additionally, we are seeing a building demand for containerized shipping options, which has certainly come a long way offering many full service options in this area.

For many years household goods pricing basis was a tariff called the 400n; published and maintained by the Household Goods Bureau.  Variations from the tariff had to be filed; but were normally minor.
Discounting off this tariff was huge, and mostly rates were discounted upwards of 55 to 60% off the tariff.  National account agreements, like what Consumers Relocation enjoys, offered other benefits in addition to a predetermined discount.  These other benefits, which we still have, include full value protection up to a certain level, performance promises for crew quality, pick up and delivery windows, claims settlement periods, and overall quality of service assurances. 

Now, most Van Lines have developed and filed their own tariffs which slightly resemble in some cases the 400n, but in many cases to do not.  Some very attractive features are now built into these new pricing models which provide interesting price protection and simplify what you will pay. 
It is VERY important to understand these nuances since they in the end could save thousands of dollars!  One great example is eliminating the cost of a shuttle at destination if needed.  At least one company builds this cost into their overall pricing so that if a shuttle is needed, they will not charge your for it! 

Picture this, you are moving to a location that the mover has not seen during the estimate process at origin, and therefore have not idea what the access to your new home is. The company gave you a binding not to exceed price for "the services listed in your estimate"   Your 3 bedroom home worth of belongings shows up at your new home, which happens to be a narrow road and the truck will not fit down the road, and there is not place for it to turn around even if it did fit.  The driver tells you; you need a shuttle!  They rent a small truck and shuttle all of your things to the new home from a parking lot location 2 miles away.  At the end, the driver adds an additional $1500 for the shuttle and added labor time to move your things.  They had no choice. And, since shuttle services were not listed in your binding price as bound, you have to pay this added amount!

Had the move been completed by the company that had the cost of shuttle at no charge in their pricing, there would be no extra bill and your price remains the same as you expected. 



So in the end, choosing the company that appeared less expansive initially, ended up to be the more expensive option.

The variations of pricing are too numerous to list in this article.  The best way to sift through all the pricing options is to work with your CRS Consultant in comparing estimate options, and potential outcomes of the pricing and features. 


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