Throughout the removals industry, companies have been forced to increase their prices in order to stay in business. This is a bitter pill to swallow but those that resist increasing their prices soon find it impossible to stay afloat.
Though varying from company to company, the main reasons for the increases are related to fuel prices, materials, staff wages and increased static overheads.
Fuel
In June 2020, the average price for diesel in the UK was 112p per litre. As of June 2022, the average price is 188p per litre. That’s a 68% increase in fuel costs, which not only apply when considering the distance of a move, but also to the journey to the loading point and the return to depot after unloading.
Staff Wages
The National Living Wage in the UK has increased this year, from £8.01 to £9.50 per hour. The vast majority of professional movers pay more than the minimum for their general staff and significantly higher for more skilled workers. When the minimum wage increases, the knock-on effect means everyone gets a pay rise. But this is not the whole issue. It’s an employees market at the moment, particularly for drivers, so staff can demand higher wages and new applicants require better starting salaries or hourly rates.
Materials
The cost of packing materials is at an all-time high, with some movers seeing an increase of over 40% in the cost of standard moving boxes. There has been a shortage of cardboard in the UK for over a year. Maybe this is related to the increase in demand during the pandemic measures, when online sales required huge quantities of packing materials, or maybe it’s another supply chain issue. Whatever the underlying reason, packing boxes are significantly more expensive than usual.
Static Overheads
Before a removals company even books a job, there are a wide range of overheads that need to be paid. Some of these are legal requirements, such as insurances and strict vehicle maintenance schedules. Most of these overheads have seen a sharp rise in recent months.
Insurance premiums have increased by as much as 30% for some policies, without a clearly defined reason. Heating and lighting costs for offices and warehouses have risen sharply and the cost of replacement equipment and vehicles have seen unprecedented rises. This is largely due to a shortage of materials used to make micro-chips, (which are in almost everything).
All in all, as stated at the beginning of this page, moving companies have no choice but to put their prices up. That is, if they want to remain professional and operating legally.
For these reasons, if a mover offers to complete a job for a price that is significantly lower than their competitors, it would be prudent to ask yourself where they may be cutting corners.
