Most of the time, a full-service moving quote either comes as a flat rate or hourly rate. A flat rate mover will give you a guaranteed fee using their estimate based on the distance of the trip, items to move and the size of the house. On the other hand, an hourly rate will charge you on how long will the move take.
What is a flat-rate quote?
A flat rate moving company will gather as much information about your move and needs before providing their quotes. Hourly fee is much simpler as the number of movers needed will simply bill you on how long did it take to complete the move. This article will give you some guidelines so that you can make an informed decision on whether an hourly rate or flat rate is best for you.
Most flat rate movers offer a guaranteed quote, or the final bill will be at least close to the initial estimate provided. Typically, there is a contract with all the terms and conditions explained. In case of a flat rate quote, you need to give as much information about the items that you are going to move and your other requests early on so that you can get the most accurate quote. Moving companies will initially rely on the information that you provide so the more detailed it is, the better the estimate will be. Although this can be a bit of a hassle, it will also be beneficial for you since you will have a better idea about the things that you will move and it will avoid unexpected charges when the final bill comes. This type of moving contract is best suited to some situations such as an extremely short move or a long distance move. In those cases, an hourly move will be more costly.
Generally, it is observed that movers tend to work carefully and quickly when hired flat rate than when paid by the hour. They work more efficiently because their situation is different compared to hourly rate. The reality is incentives has great influence on how a business is run.
Let us check the hourly rate scenario.
Hourly rate movers don"t have the motivation or financial incentive to finish efficiently or quickly. They will be paid the same regardless of the number of moving jobs they get in a day. Furthermore, they lose money in doing more than one job because they have to spend time on traveling and money on gas and labor hours.
Due to some business inefficiencies in hourly rate such as the time gap, while traveling from one client to another, this type of residential moving company tend to provide a smaller crew to a task. Instead of assigning extra staff to you, it is better for them to send that person to another moving task. Hourly rate companies will be paid more anyway if the moving job will take longer to finish.
This is one of the secrets of moving companies. They need to do this so that they will make money; otherwise, their business won"t survive. With this strategy, they can handle the more moving task in the same amount of time. Time is on their side, the more time it takes to complete a moving task, the more they will be paid.
Advantages of flat-rate quote for both parties
With a guaranteed flat-rate, customers have the peace of mind that there won"t be unexpected charges. They know that they get the service that they will pay for. You will see that your movers are doing their best to efficiently get the job done so that they can go to their next moving task. They will assign the appropriate number of staff to complete the move so that the can work on multiple moves in a day.
Although they have to work quickly, they still need to work carefully so they won"t break your things. The most full-service move includes moving insurance for your cargo so they will be obligated to pay for the stuff they break. It"s still best to review your contract and make sure that damages are included in the insurance coverage. However, you can also get additional insurance from a third part company for your move.
The incentive for the moving company
Generally, flat-rate movers get a more positive review from customers. One of the main reason is that customers have a good idea how much they will pay and what is included in the service. For moving companies, they have the financial motivation to make their staff move more efficiently. Both types of movers though are encouraged to provide an excellent service so that they can get referrals for another job.
Even though flat-rate movers has some advantages, it is still best to asses your situation then compare the different type of quotes.