Read this article to learn more about how rising costs are forcing moving companies to raise rates. As a local San Diego Moving Company we have also experienced the increased costs of gas, staff, and operational costs.
There have been a lot of complaints about prices in every type of industry as of late. And this is not entirely unjustified since the sudden spikes have left everyone feeling like they need to save money. However, there’s a good reason why this is happening, more than one, to be precise, when it comes to the moving industry.
1. Rising fuel costs
The first reason rising costs are forcing moving companies to raise rates is how much fuel costs nowadays. It may not be immediately apparent to those who do not need to drive around a lot. However, moving companies need to do just that to do their jobs well. A reliable moving company cannot stint on their fuel. This goes double if they want their trucks to last since cheaper fuel brands are often highly harmful to an engine.
In other words, when fuel prices are unreasonable, movers still need to invest in quality fuel or pay a ton in repairs down the road. The choice makes it impossible not to prioritize their vehicles’ well-being, preventing them from possibly saving some money here.
2. Higher operation costs
Fuel costs are not the only thing on the rise. During a move, your movers will use a lot of equipment and miscellaneous items, especially if you are contracting a moving company that provides packing services. To do this part of the job, the moving company needs to charge you for the moving supplies, such as boxes, moving blankets, and similar items used during the move. However, the cost of all these has risen, too. This is because the cost of transporting goods and their demand have both shot up, driving up the prices of goods themselves too.
If a moving company wants to continue operating, they have no choice but to acquire these costlier supplies. The price increase then trickles down to the increase in moving costs, and naturally, it affects relocation quotes too. Unfortunately, there is very little that moving companies can do to affect the raw prices of fuel and supplies.
3. Finding qualified employees
An unexpected way rising costs are forcing moving companies to raise rates is by forcing them to compete for employees.
You see, qualified employees, especially truck drivers, are not simply people who are decent at their job. The driver of a moving truck knows all the most optimal routes to travel between work locations, how to maintain their vehicle and therefore lengthen its lifespan, and can even assist the other movers in a pinch. Similarly, a good moving company employee can expertly maneuver furniture, knows how to prevent it from getting damaged, and can complete their work quickly and efficiently while still paying attention to safety.
This is why one of the questions you need to ask movers is how experienced their teams are. However, since everyone wants such employees, movers are forced to compete over them. The rising salary costs trickle down and increase the moving costs.
4. The cost of upkeep
Another venue through which rising costs are forcing moving companies to raise rates is maintenance costs. We’ve touched upon it briefly when we mentioned that good employees need to be able to do basic maintenance. Well, no matter how good your employees are, they are in no way a replacement for qualified mechanics. And yet, if something goes wrong with a vehicle, the least you can expect to face as a moving company is having to reimburse the customer through insurance.
A worst-case scenario is when the vehicle breaks down catastrophically on a road or highway while moving at speed and genuinely hurting someone. In this scenario, you would be lucky to keep your business at all, and extreme monetary loss would be completely expected. As such, a moving company’s trucks must undergo regular maintenance checks. Which, again, are not cheap.
5. Running a legitimate business has many additional expenses
A lot of expenses go into running a legitimate business. If you find a moving company that is significantly cheaper than others, you can assume they are running their business illegally. A moving company must pay taxes, get all the proper licenses, pay for insurance, and issue workers’ compensations.
None of these expenses are low, and the costs have only grown even over recent months. If you encounter this scenario and want to ensure you are working with legitimate movers, you should check their licenses and insurance. You can go through the Bureau of Household Goods and Services at Transportation Carrier Lookup and search the BBB to see if there are any outstanding or unresolved complaints about the company in question. We highly recommend only working with movers who come with good references and are trusted professionals.
6. Increased interest in some markets
The final way rising costs are forcing moving companies to raise rates is the unexpected surge in people looking to move. There are many underlying causes why this is the case, with one of the frequent ones being the need to switch to a cheaper house or an apartment. After all, housing costs are rising, and people are forced to look for homes within their means to afford them. However, as a result, the demand for moving companies is surprisingly high right now.
People have great difficulties when it comes to securing the services of the best-known and well-equipped movers. As demand surges, supply falls, and prices go up. Of course, some moving companies refuse to change their prices, which is one of the benefits of hiring a small moving company. Still, most moving companies naturally follow the trend.
Why Movers are Increasing Rates
Now, you should understand a bit better how rising costs are forcing moving companies to raise rates.
Moving companies are almost entirely helpless when faced with costs almost enough to drive them into the red themselves. Some companies have been forced to raise their prices by over thirty percent to stay afloat as they strive to run a genuine and entirely legal business. So, do not be too quick to blame your movers for the increased costs you are facing.
Get a quote on our website to see what our potential costs would be for your move in San Diego.
