House moving is a bothersome business for many, as it is not easy to find a reasonably priced and reliable home removal company. As the increasingly diversified service packages and quotation methods offered by removal companies could be confusing, the final bill may differ from the quotation thus exceeding consumers’ original budgeting, and may even lead to disputes with traders. According to a market survey conducted by the Consumer Council, home removal companies more commonly charged by “all-inclusive” pricing nowadays, but the definition of “all-inclusive” varied among service providers. Taking the mock scenario of a 2-person household moving on a weekday, the charge could vary by over 1.3 times; if on the service day the amount of furniture and cardboard boxes, etc., was found to be more than estimated, 75% of the companies offering “all-inclusive” packages would charge more accordingly, but of these, only 30% provided a clear price list. As for the “per item” pricing popular in recent years, although companies claimed to have no hidden charges, the charges for each item could vary by over 7-fold, whereas the seemingly lower charges listed by some companies might not include cardboard box charges or holiday surcharges. As for the 4 companies offering “per vehicle” packages, charge differences could be more than doubled (for occupying half a vehicle). Consumers are reminded that each charging method has its own pros and cons, and before signing a contract with a home removal company, they should check details of the terms and conditions, ensure that items and quantities to be moved are clearly set out in the contract, as well as ask about the criteria for additional fees. Home removal companies should also provide consumers with a detailed contract and receipts to facilitate a fair transaction.
More Quotation Methods Versus 5 Years Ago Yet Transparency Not Improved
Between May and June this year, the Council sent questionnaires to 126 companies providing local home removal services enquiring about their terms and conditions, including quotation and charging methods, minimum charges, surcharges, and arrangements in case of inclement weather, etc. In the end, only 20 companies responded, while the remaining 100 plus companies either refused to take part in the survey or never responded, representing a response rate of only 16%, even lower than that of a similar survey in 2019 (19%), reflecting that the lack of information transparency in the industry has not seen any improvement. Among the 20 companies that responded, they mainly charged customers in 3 ways, namely “per item”, based on the number of items such as furniture, electrical appliances, and cardboard boxes to be moved; “per vehicle”, based on the distance of the journey, the number of vehicles required, or the space occupied by the items in vehicles; and “all-inclusive” packages with a flat rate that includes a designated quantity of items, dismantling and reassembly, manpower and time required to complete the task, and so on. As for quotation methods, 80% (16) of the companies offered a quotation either after on-site inspection by their staff, or by the consumer’s submission of a completed form, with uploaded photos and videos of the items to be removed. Compared to the survey conducted 5 years ago, there are more variety in quotation methods offered to consumers.
“All-Inclusive” Package Prices Could Vary by Over 1.3 Times
Beware of Additional Charges for Extra Items
As the name suggests, “all-inclusive” packages encompass all costs incurred in moving of all furniture and miscellaneous items, which includes packing items and materials, transportation, dismantling and reassembling of furniture, etc., avoiding the tiresome procedure of adding up the cost of each item. 80% (16) of the 20 surveyed home removal companies offered “all-inclusive” packages, among which 12 offered only this charging method. The study found that the price of “all-inclusive” packages could vary by over 1.3 times among companies. The Council put forward 2 simulated scenarios and asked the 20 home removal companies for a quotation. Assuming a 2-member household moving from a village house in Lei Yue Mun to a flat in Tseung Kwan O on a weekday, with a total of 22 pieces of furniture and electrical appliances, 8 cardboard boxes, and 10 plastic boxes, “all-inclusive” package quotations ranged from $4,800 to $11,200, a difference of more than 1.3 times. In another scenario, a 5-member household moving from North Point to Mei Foo over the weekend, along with 40 pieces of furniture and electrical appliances, 20 cardboard boxes, 15 plastic boxes, 2 laundry bags (“red-white-blue bags”), and 2 duffle bags, “all-inclusive” quotations ranged from $6,800 to $12,000, a difference of about 75%.
Consumers usually do not have all their belongings already packed when asking for a quote, and can only rely on the experience of the moving company’s staff to make an assessment before quotation. In case the number of items present on the day of the move exceeded the original estimate, only 3 out of 16 companies offering “all-inclusive” packages indicated that the total bill would remain unchanged, while 12 companies (75%) would increase charges which may ultimately exceed consumers’ budgets. Among them, 4 companies provided clearly defined surcharge criteria and would charge extra items proportionately to the quoted price, for example, if the actual number of items is 20% more than quoted, it would result in a 20% surcharge. Another 6 companies only indicated in general terms that there would be a surcharge without specifying the amount, and among them 3 specified that a surcharge would only be levied if there was a large discrepancy of miscellaneous items or furniture but not in case of small excesses. However, there may be a disparity between consumers’ perception of “small amount” and “large amount” and the moving company’s usual practice, making it difficult to predict the extra costs charged by removal companies in the end, which may affect the removal schedules or even lead to disputes. The Council recommends that, with the consent of both parties, a moving company should strive to send staff for on-site inspection before giving a quotation, as this would also minimise discrepancies between the quotation and final charges due to consumers’ underestimation of the number of items to be moved in self-filled forms. Both parties should also specify beforehand how to handle disparity between estimated and actual number of items to be moved and include this in the contract to protect the interests of both parties.
Price Difference “Per Item” at Most Over 7-fold
In recent years, some home removal companies have introduced “per item” charging methods, pricing each item and claiming no hidden surcharges. While this seems to be more clear-cut, the actual price was found to vary substantially among companies. Among the 6 companies offering “per item” packages, the greatest price difference was for “combination cabinets” (e.g. living room cabinets, tall cabinets, wardrobes, etc.), with 1 company charging $70-$220 for each item while another charged $500-$1,800, a variance of over 7 times. In addition, companies had varying methods of calculating basic charges. Taking the cheapest category “small goods” (e.g. red-white-blue bags, plastic storage boxes, suitcases, etc.) as an example, it cost $6 to $12 per item for the lowest charging company while at the highest it cost $40 to $80 per item, which was a 6-fold difference at face value, but as the higher charging company provided complimentary cardboard boxes while the cheaper one charged $15 per box, the cost for the latter would jump to $21 to $27 per item. In addition, this lower charging company levied a surcharge of $200 for moving on weekends and holidays, and another 30% surcharge of the total bill for every floor travelled. Consumers should pay special attention to these details and carefully estimate the final cost when making price comparisons.
On the other hand, 4 companies offered “per vehicle” service. For example, the charge for transporting a 5.5 tonne semi-truck load ranged from $2,000 to $4,800, a disparity of more than twofold.
Each Charging Method Has Pros and Cons
Shop Around and Ask for Surcharge Details
Among the 5 companies offering more than 1 charging method, 4 indicated that consumers were free to choose which service to use, and the home removal companies would provide suggestions based on experience. Taking the Lei Yue Mun to Tseung Kwan O removal simulation as an example, the lowest price quoted was the “per item” option ($3,242) and the highest was “all-inclusive” ($11,200), with a difference of nearly 2.5 times. Consumers are advised to compare prices, enquire about and specify clearly in contracts the surcharges to protect their rights and interests.
Strengthened Privacy and Environment Protection Measures Urged
Consumers using home removal services may be required to provide detailed personal information such as their name, telephone number, and address. However, half of the 20 surveyed companies had no privacy policy in place. Consumers may have to provide home removal companies with photos and videos for quotation, which may contain personal data such as their own or their family members’ faces, and 1 company indicated that they would retain photos and videos for as long as 10 years, which is probably more than necessary for the purpose of collecting such data. The Council opines that home removal companies have the responsibility to take practicable measures to preserve and protect relevant information from leaks or unauthorised use, and to delete the information in a timely and appropriate manner upon completion of the relevant use.
Furthermore, house moving involves a large amount of packing and transporting materials, which may easily lead to wastage. 11 companies indicated that they would recycle cardboard and plastic boxes; and 3 would assist in the recycling of second-hand furniture and electrical appliances for donation to those in need. The Council commends these practices and encourages the industry to introduce more environmentally friendly packaging and transport materials to reduce waste.
Consumers should also pay attention to the following when choosing home removal services:
- Pay attention to the service terms and conditions and contract details before signing up a moving company, in particular surcharges for change or cancellation of service, handling of damaged or lost items, whether there will be a surcharge for travelling up or down staircases, moving during weekends and public holidays, etc.;
- Handle valuables such as jewellery by yourself;
- Some home removal companies require a deposit with no refund for cancellation of service. Consumers should give more consideration before committing to the service;
- When providing photographs and videos for quotation enquiry, consumers should avoid recording identifiable information such as their faces or those of their family members. Home removal companies should also clearly state their personal data policy for consumer reference.
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