What causes discrepancies in home removal pricing?

Home removal companies now offer several pricing methods such as "all-inclusive" packages and "per item" charges.

The Consumer Council highlighted significant discrepancies in pricing of home removal services, which can lead to disputes and budget overruns.

“As the increasingly diversified service packages and quotation methods offered by removal companies could be confusing, the final bill may differ from the quotation thus exceeding consumers’ original budgeting, and may even lead to disputes with traders,” it stated. 

The survey, conducted between May and June, received responses from just 20 out of 126 local home removal companies, a response rate of only 16%. This reflects ongoing issues with transparency in the industry, the council said.

Amongst these companies, pricing methods include "per item," "per vehicle," and "all-inclusive" packages. However, detailed terms and surcharges are not always clear.

The survey indicates that "all-inclusive" packages, which should cover all moving costs, can vary widely. For a typical two-person household move, prices ranged from $4,800 to $11,200, a difference of over 1.3 times. 

About 75% of companies using this method charge extra if the actual number of items exceeds the estimate, though only 30% provide a clear price list for additional items.

Conversely, "per item" pricing, which charges based on the quantity and type of items, showed a disparity of over seven times. For instance, charges for combination cabinets ranged from $70 to $1,800. This method can also exclude additional costs such as cardboard boxes or surcharges for moving on weekends.

Whilst "per item" pricing might seem straightforward, actual costs vary significantly. Charges for small items ranged from $6 to $80 each, depending on the company. Additional fees for weekends and holidays can further increase the total cost.

Meanwhile, consumers are encouraged to carefully review service terms and conditions before finalising a contract. This includes understanding potential surcharges, handling of damaged or lost items, and additional costs for stairs or holiday moves. It also advised to avoid providing identifiable personal information in photographs or videos used for quotations.

The report also noted that half of the surveyed companies lack privacy policies, and data retention practices vary. Additionally, the council supports practices such as recycling and encourages the industry to adopt more sustainable materials.

To manage moving costs and avoid disputes, consumers should compare prices and methods, ensure all terms are clearly outlined in the contract, handle valuables personally, and avoid sharing sensitive personal information.