When it comes to the cost of moving, almost every company takes fuel prices into account. This is because fuel costs are a significant factor in the overall cost of moving. In fact, many companies have even raised their prices in recent years due to the increased cost of fuel.
DTC Movers is well aware of the issues facing movers and what to keep our business going. Despite the increase in gas prices, we want to do everything we can to ensure that our customers are still able to move with ease. We are committed to providing quality service, and we hope that our current and future customers will appreciate this effort.
How Movers Apply Fuel Charges
All moving companies will pass on the fuel cost to their customers, but they may have different ways of going about it. Some companies may raise their rates across the board, while others may only increase prices for long-distance moves. Regardless, your moving estimate will include the cost of fuel one way or the other:
Integrated Base Price
Some moving companies include the cost of fuel as part of the baseline price in their quotes. This means that the quoted price is not reflective of just the actual cost of moving, as it would be if fuel prices were to rise. This can lead to customers being overcharged for their move in some cases.
Fuel Surcharge
Many other moving companies apply a fuel surcharge, usually a percentage of the baseline price. For example, if the baseline price is $1,500 per hour, the surcharge would be 8 percent or $120. This surcharge helps offset the increased cost of fuel and helps to keep prices fair for consumers. So, if fuel prices go up, the surcharge will as well, and vice versa.
While either option may seem more expensive, it’s important to remember that fuel prices constantly change. It’s salient to stay up-to-date on the latest rates, so you know exactly what you’re paying for. Be prepared to ask your mover about their fuel policies and how they will impact your move.
How Will Gas Prices Affect Moving Companies
As gas prices continue to rise, it is having a significant impact on the moving company industry. Many potential clients are choosing to stay put and not move because of the increased cost of moving. This is causing many moving companies to go out of business. Additionally, those companies that are still in business are having to raise their rates significantly in order to cover their costs. This is making it very difficult for people to afford to move, which is resulting in fewer moves being made.
Business Closures
As gas prices have continued to soar, many local moving companies have been forced to close their doors and shut down. This is due party to the fact that moving companies rely heavily on gas-powered vehicles to transport peoples belongings from one location to another. With gas prices reaching record highs, many companies have found themselves struggling to stay afloat.
This has been particularly difficult for small, independent moving companies, which often do not have the same financial resources as larger national van lines. As a result, many of these businesses have been forced out of the market leaving customers with few options for getting their belongings from Point A to Point B.
Rising Rates, Fewer Customers
In addition to business closures, many moving companies have been forced to raise their rates in order to cover the increasing cost of fuel. This has made it even more difficult for people to afford to move and has resulted in a steady but conspicuous decline in the number of moves being made.
Some companies have reported that they are moving 50 percent fewer customers than they were this time last year. And, as gas prices continue to increase, it is likely that this trend will only continue. This means that people may find it increasingly difficult to relocate, whether it’s across town or across the country.
Layoffs
As gas prices continue to soar, moving companies are finding it more and more difficult to keep up. Many companies have had to choose between retaining their current roster of employees and affording the high price of gas. This has resulted in many companies being forced to lay off employees.
Labor Costs
In addition to increased gas prices, labor costs are also rising. Movers require higher wages to cover the cost of their own personal fuel consumption. The moving crews may live across town from their place of work so they must economize to cover their own fuel expenses.
How We Can Minimize The Impact
While it is unfortunate that gas prices and labor costs are rising, some good news is.
GPS Tracking
Technology is helping to offset some of these costs. For example, movers are now using GPS systems to track their trucks and optimize their routes. This helps to reduce the amount of fuel used during a move.
Hybrid Fuel Trucks
Hybrid trucks are pickups that run on two types of fuel: gasoline and electricity. They have an engine that switches between the two depending on the needs of the truck. This allows them to use less fuel and save money.
Hybrid trucks are becoming more and more popular, especially with businesses that need to transport goods. They’re an excellent option for companies that want to save money on fuel costs. Hybrid trucks can help reduce expenses by as much as 30%.
Electric Local Trucks
Fully electric box trucks are becoming more common for local moves. This is because they are cheaper to operate and maintain than diesel trucks. Electric trucks also produce zero emissions, which is excellent for the environment.
However, the drawback is that they have a smaller range than diesel trucks. This means that they can only cover shorter distances without needing to recharge.
This limitation could pose a problem for long-distance moves. For example, if you are moving from Los Angeles to New York, your electric truck would likely run out of juice before making it to your destination.
However, electric trucks are an excellent option for shorter moves within a city or metropolitan area.
So, How Will All This Pertain To You?
If you’re contemplating about moving in the near future, it’s important to stay up-to-date on the latest fuel prices. This way, you can get a perception of how much your move is likely to cost.
If you’re not comfortable with the increase, you may want to consider hiring a different company. However, it’s important to recall that not all movers raise their rates when fuel prices go up. It’s always astute to get several quotes before choosing a mover.
In addition to fuel prices, you should also be aware of the current labor costs. This will help you better budget for your move.
Less Competition to Choose From
Customers love a competitive market because it gives them more choices. If smaller moving companies are forced out of business, customers will be faced with less choices and higher prices.
Since the inception of our country, supporting local businesses has been part of the American way of life. By spending our dollars at businesses in our own communities, we are able to create jobs and keep money circulating within our neighborhoods and towns. This helps to build a strong economy and promote a sense of community.
When it comes to moving, choosing a local company can be especially beneficial. Not only do you get the personal attention and care you deserve, but you’re also supporting your neighbors and helping to strengthen your community. Plus, local companies typically have lower rates than big-name competitors.
With gas prices leading to a reduction in the number of local businesses to choose from, you may be stuck choosing a national carrier. While this may offer some stability, it often comes with a reduced level of customer service and support.
DTC Movers Are Prepared
If you are moving during a time when the gas prices have increased, there is no need to worry. DTC movers will still provide you with the same quality of service, despite the price hike.
At DTC, we understand that budget is a concern for many of our customers. That’s why we will work with you to find ways of keeping your costs to a minimum. We have an assortment of services that can help you save on your moving costs.
We despise companies that shamelessly raise prices just to line their own pockets. Unfortunately, we are sometimes forced to adjust our prices in line with fuel expenses and inflation.
This means that we have to pass on some of the increased costs to our customers. We sincerely apologize for any inconvenience this may cause, but we hope you understand that these price hikes are out of our control.
DTC is working hard to keep our prices reasonable while also staying solvent. We understand that the high gas prices are affecting everyone, but we don’t want to have to raise our prices needlessly and lose your valuable business.
Should you have any uncertainties about any of our services or how the price of fuel may impact your move, please don’t hesitate to contact us. We’re available to help make your relocation as smooth and affordable as possible!
