Choosing the right pricing model protects your margins and keeps customers confident. Price too low and you lose money; price too high and you lose the job. This guide covers the three main models and when to use each.
What this covers
The three pricing strategies used in moving, how to decide which one applies, and how to configure them in MoveRight.
Who uses this
Owners — you set the rates. Sales agents and estimators — you apply them. This guide helps both sides understand the strategy.
Before you start
- You know how to build an estimate: How to Create an Estimate
- Your rate cards are configured in MoveRight (or you’ll configure them as part of this guide)
Model 1: Hourly (local moves)
Best for: Local moves (under 50 miles). Most common model. Used by 70%+ of moving companies.
How it works:
You charge by the hour based on crew size. The customer pays for the actual time the job takes.
Example rate card:
| Crew size | Hourly rate |
|---|---|
| 2 people | $120/hr |
| 3 people | $160/hr |
| 4 people | $200/hr |
Plus flat fees for: truck, travel time, materials, surcharges.
Pros:
- Simple to explain and estimate
- You get paid for actual time — no under-estimating risk
- Easy to adjust for large vs. small homes
Cons:
- Customers fear the open-ended clock
- Unclear final price until the job is done
Tip: Always give an estimated range: “Based on your 3-bedroom home, a 3-person crew typically takes 5-7 hours, so you’re looking at $800–$1,120 plus the truck fee and any extras.”
Model 2: Flat-rate / binding
Best for: Customers who want price certainty. Small-to-medium homes where you can confidently estimate the time.
How it works:
You quote a fixed price. If the job takes longer, you absorb the cost. If it takes less time, you keep the margin.
Pricing formula:
- Estimate hours × hourly rate = base
- Add truck fee + materials + surcharges
- Add a buffer (typically 15-20%) for uncertainty
- Round to a clean number
Example: 3-person crew × 6 hours × $160/hr = $960 + $150 truck + $50 materials + $200 buffer (17%) = $1,360 flat rate.
Pros:
- Customers love the certainty
- You can win jobs over hourly competitors
- Higher perceived value
Cons:
- You eat the cost if you underestimate
- No upside if the job finishes early (though this is usually fine — you budgeted for the longer time anyway)
- Requires experience to price accurately
When not to use flat-rate:
- Very large or cluttered homes (too much uncertainty)
- Long-distance moves (weight/tariff pricing is standard)
- Customers who add items after signing (use hourly or add change orders)
Model 3: Long-distance (weight + tariff)
Best for: Moves over 50-100 miles, interstate moves, and cross-country relocations.
How it works:
Long-distance moves are priced by the weight of the shipment plus a tariff rate (price per 100 lbs based on distance and service level).
Example:
| Item | Calculation | Price |
|---|---|---|
| Weight | 8,000 lbs | |
| Tariff rate | $25 per 100 lbs × 800 miles | $2,000 |
| Packing service | 3 rooms × $300 | $900 |
| Specialty items | Piano | $400 |
| Total | $3,300 |
Weight is estimated in advance based on the inventory, then weighed on a certified scale on move day. The final bill is based on actual weight.
Key considerations:
- Origin and destination access — stairs, elevators, long carry at both ends
- Transit time — customers need delivery windows, not exact dates
- Storage in transit — if the customer can’t take delivery right away
- Valuation / insurance — long-distance moves carry higher liability
Configuring in MoveRight:
- Set up a separate rate card for long-distance
- Enter your tariff rates per 100 lbs by distance bracket
- Add origin/destination surcharges
- Configure weight estimate defaults by home size
Choosing the right model
| Situation | Use this model |
|---|---|
| Local move, typical home | Hourly |
| Local move, customer wants certainty | Flat-rate (with buffer) |
| Local move, very large home | Hourly (too much uncertainty for flat-rate) |
| Long-distance (100+ miles) | Weight + tariff |
| Long-distance to storage | Weight + tariff + storage fee |
Configuring rate cards in MoveRight
To set up your rates:
- Go to Settings → Pricing Rules
- Create a rate card for each pricing model (hourly local, flat-rate local, long-distance)
- Set crew size rates, truck fees, travel time charges, and surcharge rules
- Set your default rate card (the one that pre-fills when you create an estimate)
When you build an estimate, MoveRight pre-fills based on your rate card. You can always override individual line items.
See: Pricing Rule Configuration
Common questions
Should I offer both hourly and flat-rate? Yes. Let the customer choose. Some prefer certainty (flat-rate); some prefer to pay only for what they use (hourly). Offering both wins more jobs.
What if I underestimate a flat-rate job? That’s why you include the 15-20% buffer. If you consistently lose money on flat-rate jobs, your estimates are too low. Review your job profitability reports. See: Job Profitability Reports
Can I mix models? Yes. Example: hourly for the local move portion, weight-based for items you’re shipping separately. Just make sure the estimate shows each portion clearly.
What happens next
- Specialty items add to the price: Specialty Items and Add-On Triggers
- Configure your rates: Pricing Rule Configuration
- Understand profitability: Job Profitability Reports