How to price your moving services

Pricing moving services is complex. Too low, and you're losing money. Too high, and customers go elsewhere. Here's how to build a profitable pricing strategy.

Understanding your true costs

Know your costs before setting prices.

Direct costs per job:

• Labor (crew wages per hour)

• Fuel (based on distance)

• Equipment wear and replacement

• Packing materials (if provided)

Overhead costs:

• Truck payments and maintenance

• Insurance (vehicle and liability)

• Workers' compensation

• Marketing and advertising

• Software and office costs

Hidden costs:

• Travel time to first job

• Time between jobs

• Administrative time

• Training and downtime

Hourly vs. flat rate pricing

Both models have pros and cons.

Hourly pricing

Structure:

• Base rate per hour (e.g., $120-180/hour)

• Plus travel time (one-way or round-trip)

• Plus materials and supplies

Pros:

• Fair for varying job complexity

• Protects against unexpected issues

• Industry standard, customers understand it

Cons:

• Customers fear "meter running"

• Harder to compare with competitors

• Revenue depends on crew efficiency

Flat rate pricing

Structure:

• Fixed price based on estimate

• Includes all labor and travel

• Add-ons priced separately

Pros:

• Customers prefer price certainty

• Easier to sell and market

• Rewards efficient crews

Cons:

• Risk if estimate is wrong

• Requires accurate estimating skills

• Less flexibility for surprises

How to build your pricing

Step 1: Calculate your hourly cost

Formula:

• Crew wages + truck cost + overhead per hour = Cost per hour

• Add profit margin (typically 20-40%)

• Result: Your minimum hourly rate

Example:

• 2 movers at $25/hour = $50

• Truck cost per hour: $30

• Overhead allocation: $20

• Total cost: $100/hour

• With 30% margin: $130/hour

Step 2: Estimate job time accurately

Use historical data and standard estimates.

Typical time estimates:

• Studio/1BR: 2-4 hours

• 2BR: 4-6 hours

• 3BR: 5-8 hours

• 4BR+: 8-12+ hours

Factors that add time:

• Stairs (per flight: +15-30 minutes)

• Long carry distance (+15-30 minutes)

• Bulky items (piano, pool table)

• Packing services (+2-4 hours)

Step 3: Add distance pricing

For long-distance moves.

Interstate pricing:

• Per mile rate (e.g., $3-5/mile)

• Or weight-based pricing

• Plus fuel surcharge if applicable

Deposit and payment terms

Protect your business with smart payment structure.

Recommended deposit:

• 20-30% of estimated total

• Required to confirm booking

• Non-refundable with late cancellation

Payment timing:

• Deposit at booking

• Balance due at delivery

• Or 50% at pickup, 50% at delivery

Payment methods:

• Credit card (preferred)

• Bank transfer

• Cash or check (with verification)

Pricing additional services

Expand revenue with add-ons.

Common add-on pricing:

• Packing service: $50-80/hour

• Packing materials: Cost + markup

• Piano/heavy items: $75-200+ per item

• Storage: Per week or month

• Assembly/disassembly: $25-50/item

Seasonal pricing adjustments

Moving has peak and off-peak seasons.

Peak season (summer, month-end):

• Higher demand allows higher rates

• Consider 10-20% premium

• Book out further in advance

Off-peak (winter, mid-month):

• Lower demand, consider discounts

• Offer incentives for flexible dates

• Use slower time for maintenance

Competitive analysis

Research your market.

What to research:

• Competitor hourly rates

• Flat rate pricing in your area

• Review competitor reviews for value perception

• Identify gaps in service offerings

Key takeaways

• Know your true costs before pricing

• Choose hourly or flat rate based on your market

• Build accurate time estimates

• Require deposits to confirm bookings

• Add revenue with add-on services

• Adjust pricing for seasonality