Getting your pricing right is the single biggest lever you have over profitability. Quote too high and you lose the job. Quote too low and you win it — but lose money. Here's how to build a pricing strategy that's fair to your customers and sustainable for your business.
Hourly vs fixed-rate: which model works?
Most removalists in Australia and New Zealand use one of two models:
- Hourly rate — charge per hour per truck (typically $120–$180/hr for a 2-person crew). Simple to explain, but customers dislike the uncertainty of not knowing the final cost.
- Fixed rate — quote a total price upfront based on volume, distance, and access. Customers prefer it because they know exactly what they're paying.
The best operators use fixed-rate quoting backed by hourly cost calculations. You estimate how long the job will take, multiply by your hourly rate, add travel and access surcharges, then present a single price to the customer. This gives them certainty while protecting your margins.
What to factor into every quote
A thorough quote accounts for more than just "how many rooms." Build a checklist that covers:
- Volume of items — get a detailed inventory or photos. "Three-bedroom house" means different things to different people.
- Travel time — use Google Maps for the actual drive between pickup and delivery. Don't guess.
- Access difficulty — stairs, tight hallways, long carries from the truck, lifts that are too small. Each adds time.
- Packing and unpacking — if you're providing this, quote it separately so customers see the value.
- Special items — pianos, pool tables, artwork, and fragile items need extra care and time.
- Time of year — peak season in Australia and New Zealand runs from November to February. Demand is high, so your rates should reflect that.
A worked example: pricing a 3-bedroom house move
Here's how to price a typical 3-bedroom house move in Sydney:
- Estimated volume: 35 cubic metres
- Estimated time: 5 hours (including loading, driving, and unloading)
- Crew: 2 movers + 1 truck
- Hourly cost: $150/hr × 5 hours = $750
- Travel surcharge: 45 minutes each way from depot = $110
- Access: ground floor to ground floor, no stairs = $0
- Total quote: $860
If the delivery address had two flights of stairs, you'd add $80–$120 for the extra time and effort. If it's peak season, add 10–15% on top.
VanMan tracks your actual job costs against your original quotes. After a few weeks, you'll see exactly where you're underquoting and can adjust your rates with real data instead of guesswork.
Binding vs non-binding estimates
A binding estimate locks in the price — the customer pays exactly what you quoted, regardless of how long the job takes. A non-binding estimate is an approximation that can go up or down.
For most residential moves, a binding estimate wins more jobs because customers want certainty. The key is to quote accurately enough that binding estimates are still profitable for you. If you find yourself consistently going over on binding quotes, your estimation process needs tightening — not your pricing model.
Common underquoting mistakes
Watch out for these traps:
- Ignoring travel time — the drive from your depot to the pickup and from the delivery back to depot is real cost
- Underestimating stairs — one flight of stairs can add 30–45 minutes to a move
- Not asking about access — a long driveway, narrow gate, or no parking near the front door all add time
- Quoting low to win the job — you might win it, but if you lose $100 on every job you're going backwards
- Forgetting peak season surcharges — if everyone else is charging more in December, you should too
Review your pricing regularly
Your costs change — fuel goes up, wages increase, insurance premiums rise. Review your rates every six months at minimum. Compare your average job profitability over the last quarter and adjust accordingly.
The removalists who stay profitable long-term are the ones who know their numbers and price accordingly. Don't compete on being the cheapest — compete on being reliable, professional, and worth the price.
Accurate pricing isn't about charging more. It's about understanding your true costs and building quotes that cover them. Get this right and every job contributes to your bottom line instead of eating into it.
Quote with confidence
VanMan tracks job costs against quotes so you can see exactly where your margins are — and where to improve.
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