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.
I never realized there was such a thing as a moving broker until I read this blog. Lesson learned.
ReplyDeleteDid not know this - great stuff! ;D
ReplyDeleteAsk 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
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