Hourly Rated Movers vs Flat Rate Movers



Posted: Tuesday, December 18, 2007

by Joseph Clements
Big Apple Moving


I have been involved in the moving industry for over 28 years and I must say that I think the flat rate is the worst thing that the DOT ever allowed.

Why? Because it makes people feel that they have got the price that the move will cost and they will not be surprised. Bad/unscrupulous movers love flat rates because they can change the flat rate if anything is not as the mover thought at the time of the estimate. Many times the mover will take advantage of these situations. They will look for, and find "problems" in the old or new apartment. The small elevator, the few steps before your elevator, the long walk from the truck to the elevator, the long walk from the elevator to the apartment, weather conditions, the customer not being completely packed, etc. They then change the estimate on moving day when the customer has no choice but to go along with the new hourly estimate, or additional costs.

If I come to your home and estimate that the job will cost $1,000, my flat rate must go up 30% because I must take into account that the day will not go as perfectly as we would want. When does it? For example take the person who gives you an estimate on a new bathroom; he can only give you an estimate on what he can see. If he takes down your old walls and finds the plumbing needs to be replaced, your cost changes. It is the honest company that explains that the price can change. The flat rate mover rarely tells you that it's only a flat rate if nothing goes wrong. And most flat rate movers find a way to 'up' the estimate.

In many instances what Big Apple Moving can do is offer a dropped rate after the estimated hours. This protects both the customer and the mover. The hourly rate drops in half so a few more hours over the estimate will not cost much. It also protects Big Apple because a job that takes longer than our estimate does not eat into the profits. The last thing the customer or I want on move day is a screaming match about the "new estimate". But we want to get paid for a job well done.
 
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