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Understanding Oregon's Moving Industry and Tariffs

Moving in Oregon is a regulated industry (2023)

The rate structures and general complexity of the quotes you are receiving are a reflection of an antiquated governance model. In fact most of the regulations in this industry date back to days to a booming timber industry in Oregon in order to regulated the many logging companies and their distribution. There is a connection between the Oregon Department of Transportation (ODOT) and the timber industry in Oregon, as ODOT's regulations have been shaped in part by the state's logging history. Ormsa.com/tariff.

Read more about our hourly rate: Moving Costs and Oregon Regulations

Here are some challenges customers face due to the industry's regulations and complexities:

1. Complexity in comparing quotes: Imagine a customer comparing quotes from two moving companies, Company A and Company B. Company A charges $145/hr for two movers and a truck, with a 2-hour minimum and a 30-minute terminal-to-terminal drive time. Company B charges the same hourly rate, but with a 1-hour minimum and a 45-minute terminal-to-terminal drive time. This complexity can make it challenging for customers to determine which company offers the best value, as they must calculate and compare the total costs based on their specific moving needs and the drive time differences.

2. Terminal-to-terminal pricing challenges: Suppose a customer is moving from Location X to Location Y, which is 10 miles apart. Company A has a terminal close to both locations, while Company B's terminal is 20 miles away from both locations. The terminal-to-terminal pricing model may result in higher costs for the customer when choosing Company B, even though the actual distance of the move is the same. The lack of a flat rate can cause confusion for customers trying to understand how the pricing model affects their overall moving cost.

3. Discount restrictions: Imagine a scenario where a moving company accidentally damages a customer's furniture during the move. The customer expects compensation or a discount for the damaged furniture. However, the moving company cannot offer any discounts without approval from ODOT. This restriction can lead to customer dissatisfaction and may damage the moving company's reputation.

4. Tight restrictions on materials: Due to ODOT's specific pricing approvals for packing materials, a moving company may only offer a limited selection of boxes and materials. For instance, a customer requires a specialized box for their large flat-screen TV, but the moving company does not have the required box size approved by ODOT. This can force the customer to purchase the specialized box elsewhere, leading to inconvenience and additional expenses.

5. Different rates for different days: A customer is trying to decide whether to move on a Wednesday or a Saturday. The moving company charges $145/hr from Monday to Thursday and $160/hr from Friday to Sunday. The customer may find it challenging to weigh the potential savings of moving on a weekday against the convenience of moving on a weekend.

6. Varying hourly minimums: Let's say a customer is comparing moving companies for a small move that would take approximately 2 hours to complete. Company A has a 2-hour minimum on all days, while Company B has a 2-hour minimum from Monday to Saturday but a 4-hour minimum on Sundays. The customer may find it difficult to decide whether to schedule their move on a Sunday with Company A or choose another day to avoid the higher minimum requirement with Company B. This variation can create confusion for customers as they compare services and pricing between moving companies.

In light of these challenges, moving companies endeavor to outperform one another. However, they are unable to compete based on price due to their adherence to the tariff rate structure. As a result, moving companies frequently offer customers low bid quotes. This is possible because accurately estimating the duration and cost of a move is infamously challenging. In fact, no moving company globally can consistently achieve over 85% precision across hundreds of moves. While some companies maintain an average of 15% accuracy on estimates, they occasionally encounter moves that surpass this range. For instance, I have personally experienced moves that took longer than expected due to various uncontrollable factors, such as a customer losing their keys, an item being too large to fit through a stairway, or a pet escaping from the house.

This difficulty in providing precise estimates contributes to negative moving experiences and horror stories often found in reviews on the Better Business Bureau (BBB) and Google. For a long time, moving companies in Oregon have operated in this manner, leading to a race to the bottom in an intensely competitive and challenging industry.

Although no studies have directly explored this issue, it is conceivable that customers would receive more accurate quotes and increased transparency if moving companies were allowed to operate in a free market. This approach could foster fair competition, promote innovation, and potentially enhance customer satisfaction within the moving industry.

I’d like to assist you the best I can. Feel free to contact me: (971) 420-0554 / Email: kayl@fellowservices.com