Binding Estimate Loophole

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eileens
Posts: 19
Joined: Tue Apr 17, 2007 7:59 am

Binding Estimate Loophole

Postby eileens » Thu Apr 26, 2007 1:18 pm

I read a previous post that states "the major loophole with Binding Estimates is that they are only binding if your stuff was viewed by a company employee, and just about BEs that result in scam moves were done by online inventories provided by the customer, leaving themover open to "un-bind" the estimate and charge whatever they feel like."

My question/concern is: I have been given a few binding quotes and none of these movers has seen the entire inventory; only what's at my home. I also have items in storage and another location. Are these quotes really binding? What is this loophole? These quotes are from 'supposedly' reliable trustworthy movers (on the okay list).

farrah7031
Posts: 4619
Joined: Sun Jun 11, 2006 5:08 am
Location: Tallahassee, FL

Re: Binding Estimate Loophole

Postby farrah7031 » Thu Apr 26, 2007 1:29 pm

If they're an agent of a major van line, you're probably ok.

blue
Posts: 274
Joined: Thu Jun 03, 2004 10:51 pm
Location: USA

Re: Binding Estimate Loophole

Postby blue » Thu Apr 26, 2007 2:39 pm

Major van line or not, I would never bind anything I haven't seen. If you have multiple pickup locations, you better make certain each company quoting has physically visited the site and seen the items to be shipped. If you don't insist on it, I guarantee somebody (carrier, driver, or you) is going to be unhappy on load day.

MusicMom
Posts: 19323
Joined: Wed Feb 25, 2004 11:51 am
Location: DC Metro

Re: Binding Estimate Loophole

Postby MusicMom » Thu Apr 26, 2007 2:55 pm

It comes down to trust. If you, the customer, accept a Binding Estimate given by a mover, site unseen, then you better darn well trust them and believe that they won't screw you over in the end.

There's only a few movers discussed here that will
1. do BEs site unseen (like mentioned just above), and
2. not screw you over with it in the end.

Most movers won't Bind the estimate unless they've seen it. They can get screwed, too, by inscrupulous customers.

moverjim
Posts: 217
Joined: Thu Feb 23, 2006 5:16 pm
Location: LOS ANGELES

Re: Binding Estimate Loophole

Postby moverjim » Thu Apr 26, 2007 4:46 pm

eileens

I have been given a few binding quotes and none of these movers has seen the entire inventory; only what's at my home. I also have items in storage and another location. Are these quotes really binding? What is this loophole?


blue

Major van line or not, I would never bind anything I haven't seen. If you have multiple pickup locations, you better make certain each company quoting has physically visited the site and seen the items to be shipped. If you don't insist on it, I guarantee somebody (carrier, driver, or you) is going to be unhappy on load day.


I ditto what blue has stated

Ruges
Posts: 437
Joined: Mon Aug 01, 2005 10:41 pm

Re: Binding Estimate Loophole

Postby Ruges » Thu Apr 26, 2007 9:51 pm

Most of the jobs that I pick up out of a mini storage are non binding. However I have done a couple where I suppose the salesman thought the only way he could get the job was to garuntee it. Even thow the salesman was never able to see all the items he did go to the storage to view it and have the customer help him with a cube sheet (a list of every item it the storage)

On loading day the salesman (or dispather) would tell me of the situation and inform me to keep a close eye on the cube sheet.

Now I have not had this happen. But if I was to start spoting items that are not listed on the cube sheet and ite apeared that I had more weight then what was estimated. I would call customer services at the vanlines, I would also call the booking/orgin agent who would then asses the situation. They would either dismiss the overage (no money out of there pocket) and allow the xtra items. Or they would talk to the customer and possible make a new contract for the new estimated weight.
Ruges

Diane
Posts: 15824
Joined: Tue Oct 07, 2003 12:18 am
Location: Los Angeles

Re: Binding Estimate Loophole

Postby Diane » Thu Apr 26, 2007 10:15 pm

And there would be no money out of the sales rep's pocket because the weight was 110% or less of the estimate, right, Ruges? And you would have to load it for no extra money.

Ruges
Posts: 437
Joined: Mon Aug 01, 2005 10:41 pm

Re: Binding Estimate Loophole

Postby Ruges » Thu Apr 26, 2007 11:41 pm

Here is how it works for one company,

The van operator will automatically be compensated for the excess weight over 10% of the estimated weight for GP and GNTE shipments only.

Example: Registered estimated weight: 10,000 lbs.

Actual reported weight: 15,000 lbs.

Van operator compensated weight: 14,000 lbs.

(10,000 lbs. @ 10% = 1,000 lbs. Van operator is required to haul 1,000 lbs. of free weight. Actual weight is 15,000 lbs. minus the 1,000 lbs. free weight; the van operator is compensated for 14,000 lbs.)

Booking agent, origin agent and van line commissions to be distributed on amount collected by customer.

7. On GP and GTNE shipments, the additional compensation required to pay the van operator on the excess weight over 10% will be deducted from the origin agent commission first (up to their O/A commission). Should additional compensation be required in excess of the O/A commission, a 70%/30% split between the origin agent and booking agent will apply. 70% from the origin agent and 30% from the booking agent (same as the current Variance policy).
Ruges

PMueller
Posts: 860
Joined: Fri Dec 02, 2005 8:50 am
Location: Florida (Tampa Bay area)

Re: Binding Estimate Loophole

Postby PMueller » Wed May 02, 2007 9:24 pm

Eileens - the reliable trustworthy companies you are dealing with should also be looking at your self storage unit with you. For several reasons:

1. To get an idea of what is in storage for space reservations and more accurate estimate.
2. To confirm access for the type of truck required for loading at self storage.
3. To see if additional packing or repacking is required for proper shipping.

They also need to add a fee associated for loading or unloading at a self storage facility as well as an extra stop fee for the 2nd pick-up location. This would not apply if you are moving the items from the self storage unit to your residence for loading.

If they have failed to do this with you, then your binding estimate could be challenged by the driver and most likely would result in an addendum being presented to you for additional charges since it was not included in the original estimate. If you are telling them about the storage - they should be indicating the need to view it with you!
"Amateurs practice until they get it right. Professionals practice until they can't get it wrong."


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