Culture Change to Independent Pricing

Culture Change to Independent Pricing

Moving companies were long attached to the household goods industry for pricing and confidence in the breakdown of dollars and cents.  Then, in 2007, the household goods industry lost its ability to make joint rates with the moving industry in order to better serve the public. The STB’s decision was critical for the moving industry, and it changed the way moving companies related to the public forever.

The end of joint rate-making coincided with the end of a collective tariff. The moving industry had to make big changes on how they did business and break its business down to dollars and cents.  The value

Moving companies were forced to create their own independent “tariffs” by January 1, 2008.  These tariffs were essential to each company and customer.  Tariffs explain base rates, charges and service rights, values, and responsibilities.  The higher the price, in theory, the higher the quality.  It was essential to really set the best base for pricing and for value.

Independent pricing was necessary and long overdue according to Linda Bauer Darr, AMSA president and CEO.  Darr believes “We need to recognize that services need to be sold at an adequate price to provide a return for the mover, allowing them the funds necessary to re-invest in their business for growth and for improvement-which in turn will provide more value to the customer in the end.”

The entire moving industry was forced to make a change, and, in turn, society as a whole was forced to make a change.  The public’s thinking about price and value and how movers combine the two was challenged and altered to match the new independent pricing.  Instead of associating moving with a simple price, they now associate moving with a value.

A moving company is a business that provides services to the public.  Movers cannot be shy to talk about pricing or value.  After all, the two are highly correlated and in order to provide the best service to your customer, they should be well informed of the value they are getting for their money.