Wednesday, October 11, 2017

When is a Mover NOT a Mover?

By Scott Boone 

Image courtesy of Wikimedia
Riddle me this, Batman, when is a mover, not a mover at all? When said mover owns no trucks.  Believe it or not, there are companies that advertise online looking to book your next move that fit this description to a tee.  In fact, should you respond to their ad, they will ask all the same questions any mover would ask.  They will give you a quote to move your belongings as would any mover.  They will even send you a contract that promises to move you from Point “A” to Point “B” on a specified date.  Are these entities con artists?  No.  They are what is referred to in the industry as Moving Brokers. 

Brokers are nothing new in the business world.  If you have ever booked an airline ticket with Expedia or ordered a show ticket from StubHub, you have worked with a broker.  What brokers do is provide a service that works with a number of specified businesses to provide the best prices for their customers.  The client benefits by getting the lowest possible price and the broker benefits by receiving a commission for every transaction made. 

While this arrangement works well for commodities such as ticket sales, when it comes to the moving and hauling industry, the results can be anything but win/win.  Unlike commodities, all movers are not created equal.  Since a moving broker is only responsible for booking a move, the job of completing the move is going to be passed onto any moving company with which the broker works.  In essence, a moving broker is nothing more than a middleman between the person looking to have their cargo hauled and the company contracted to perform the move.

The Good, the Bad and the Ugly

Image courtesy of flickr
This arrangement can have its ups and downs.  On the plus side, a broker can solicit bids from numerous moving companies to find the best deal.  Having relationships with multiple movers can also help clear any last-minute bottleneck that occurs should a contracted hauler be delayed or experience a breakdown.  Having connections to other movers also provides the broker with leverage that can be used to settle any grievances in the client’s favor, since the broker can threaten to stop doing business with the mover.

On the other hand, since brokers do not own any trucks, there is always the possibility that a contracted mover could cancel the move at the last minute should a better job come along.  There is also a much higher probability that the price offered to you by a broker could be too low, forcing the mover to increase your cost come moving day.  Even worse, the ugly truth is that should something go wrong during your move, you could wind up in a situation where the mover blames the broker, and the broker blames the mover.  As a result, you may find yourself in the middle of a tug of war over damaged or lost goods that never gets resolved to your satisfaction. 

Another problem that consumers have when working with brokers is performing their due diligence.  Since a broker deals with any number of movers, how can you possibly determine whether you are dealing with a reputable mover or a fly-by-night operation?  Even if you ask for a list of moving companies the broker works with; there is no guarantee which of those companies the broker will wind up being contracted for your move.

Image courtesy of Wikimedia
Just as with moving companies, not all brokers are created equal.  Most will not inform you in advance that they are brokers.  It is up to you to ask.  Some will ask you for a large deposit in advance.  This deposit may or may not be given to the mover hired to perform the move itself. Last but not least, a “broker” may, in fact, be a con artist looking to take your money and run.
The trick to avoid getting burned by a broker comes down to several points.  First and foremost, always ask anyone you are dealing with whether they are a mover and a broker.  Secondly, if you find yourself dealing with a broker, ask for their Department of Transportation and their Motor Carrier Number, which they should be able to provide if they are in fact a licensed broker.  Take either of these numbers and head over to the DOT’s Safety and Fitness Electronic Records System.  https://ai.fmcsa.dot.gov/hhg/search.asp or 
https://safer.fmcsa.dot.gov/CompanySnapshot.aspx

SAFER was designed to help consumers weed out the chaff from the wheat when it comes to dealing with moving companies and moving brokers.  Entering the DOT# or the MC# will reveal vital data.  You’ll want to pay particular attention to the first two lines in the report, Entity Type and Operating Status.  A moving company will be listed as a “Carrier, ” and their status will be listed as “Authorized for HHG.”  HHG is shorthand for House Hold Goods. 

Image courtesy of Pixabay
A broker will also be clearly delineated under Entity Type as well.  Their status should read, “Authorized for Broker Property, HHG.”  Occasionally, entering the DOT# or MC# will elicit a status that reads, Carrier/Broker”.  This designation means you are dealing with a company that owns trucks, but also outsources moves to other moving companies.

The SAFER system will also note any complaints registered against the company, along with safety information and contact information for the company in question.  If the contact number you have does not jibe with the one given to you, this is a bad omen.  If the company has numerous safety violations or consumer complaints, avoid contracting this company.

To avoid confusion that can lead to customer dissatisfaction, here is what you need to do any time you find you are dealing with a moving broker:

      1.      Ask if your move is going to be brokered.
      2.      Find out the name of the firm to whom the move is going to be contracted.
      3.      Perform your due diligence to vet the selected moving firm.
      4.      Insist on a written agreement.  Never accept a non-binding or verbal estimate.
      5.      Only use movers that are registered with the FMCSA.
      6.      Insist that the contracted moving company perform a physical survey of your goods before the move.
      7.      Provide you with FMCSA’s “Your Rights and Responsibilities When You Move” booklet.   
      8.      Never agree to pay a large upfront deposit.

Your other option is to cut out the middleman by working only with companies capable of performing your move.   This way you will know with whom you are dealing and will avoid becoming the one who could inevitably wind up being broker.

With over 4,000 moves, Scott's Discount Movers has handled moves of all sizes, including local and cross country. If you are looking to move your home or office, you can depend on Scott's Discount Movers to provide a stress-free relocation. 


3 comments:

  1. I never realized there was such a thing as a moving broker until I read this blog. Lesson learned.

    ReplyDelete
  2. Ask the manager to bring a copy of the moving company's standard commercial moving contract so that you can adequately read and understand its clauses before you're called to finally sign it. des moines moving

    ReplyDelete