Nowadays, when you request a free quote on any movers’ website, you get an average of thirteen different moving companies calling your phone off the hook, some calling from your state, or your surrounding area, and some calling from across the country. How do you know who is an actual mover and who is a broker, and why should you care?
What Does Brokerage Company Mean?
According to the INVESTOPEDIA.com, a Man and Van Forbes Digital Company, a brokerage company is a business whose main responsibility is to be an intermediary that puts buyers and sellers together in order to facilitate a transaction. Brokerage companies are compensated via commission after the transaction has been successfully completed.
So how does this relate to the moving industry?
Well, just like any other money making industry, the moving industry has “buyers”- the people that are moving, and “sellers”- the movers. Logically, any other source squeezed into the equation is highly unnecessary.
It is fairly reasonable to feel comfortable with what a certified broker says. Though it is extremely important that you understand why they are such good sales people. Broker companies hire very good sales people that are very well trained to sell. For the most, they do not own trucks (nor lease/rent them), and have never seen any of “their” moves take place. In fact, it is highly unlikely that they have any idea of what actual movers really do on a job site! Their job is to sell you a service, just as a marketer can sell any product his clients want- soda pop, clothing designer, car dealers… you name it, they’ve done it. In moving, the service is your relocation. They provide you with an estimated cost for your move. A cost which they can never bind, since they do not know what it is that you are moving, or who it is that will eventually “pick you up”.
Once they earn your business they require a deposit, which is normally much higher than a standard deposit ($50-$150), and put your information (name, phone number, pickup location, final destination, and desired move date) in a database for truckers, and the trucker that has available space, and will be in your area around that time frame will be assigned to your move. They do not background check whoever chooses to pull you out of that database. Furthermore, they do not sign any agreement with the trucker, stating he must stay at or close to the initial price agreement they came to with you. In other words, once you give the deposit, their job is done, and you remain to deal with whoever picks you up. If they have insurance, what type of insurance, if they are background checked and medically checked… all of these and more will be unknowledgeable to you up until the day of the move itself. If you have problems on the day of the move, you may file a complaint. Once they have too many complaints under their name they will “close” the business and simply open a new D.B.A to work under. Is this the best way to start a journey of which you are depositing your entire house hold goods with a company? Hardly.
What is a Moving Company?
A licensed and insured moving company is registered with the government, and much easier to look up. Since a moving company usually owns its own trucks, it will be more difficult for one to close their business and reopen under another name.