Unfortunately, the removals industry in Australia is not regulated at all, so this is one of the industries you just choose the cheapest quote. A lot can go wrong in a simple local move especially when you have a lot of precious household items and antiques.
If Brisbane Removalists are charging below $143-$170 an hour you should be very wary and make sure you read their terms and conditions and look at any online reviews. However keep in mind removalists companies have been caught out by the ACCC previously for posting fake reviews online, so if a small company has a lot of good reviews, that is something you should check out.
The $143-$170 hourly rate comes from all the expenses removalist companies have to look after. Some of the expenses include insurance, Workers Comp, minimum wage, overtime, Sunday/public holiday wages, vehicle sizes and maintenance, staff training and recruitment.
The average staff turnover rate is 500% which is ridiculously high which means new movers are continually leaving and being hired. In order to keep up with a high turnover, you need to continually recruit, which means you are continually seeking new employees or paying a recruitment company to find employees and interviewing/training them. You usually find a lot of backpackers in the industry which means little training is spent by companies to train them prior to them moving your precious items.
Removalists in Brisbane have to pay one of the highest workers comp in the country. The price starts from 5.7% of wages if you have no claims and then bounces up to 8% with high claims.
Another expenditure removalists need to take into account is vehicles and vehicle maintenance. The average removalist company in Australia spends 6-9% of their turnover on new vehicles and vehicle maintenance. This obviously increases the larger the vehicles are the companies purchase. Most cheaper moving companies only have smaller trucks as they are more affordable, which means if you have more than a 2 bedroom unit, it is likely there will be multiple trips for your move.
Did you find your moving company on Google Adwords or through a compare website? If so, it is highly likely the removalist paid at least $100 for your enquiry, as the removalists industry is very competitive on Google Adwords which raises the cost per click. If they are charging less than $100 an hour, that is definitely something to question. Generally, Brisbane Removalists spend 4-20% on advertising costs.
The most expensive expense a removalist company in Australia has is its wages if they are paying their staff correctly. The minimum wage for an offside removalist who has a normal motor license is $24.03 an hour not including super, workers comp, etc. That rate is for Mon – Fri for 8 hours between 5 am – 5pm, their wage then goes up if they work longer than 8 hours and then if they are working before or after 5am and 5pm.
The hourly rate for an offsider is $33.64 on a Saturday and then $43.25 on a Sunday. If your removal company is charging less than $143 on a Saturday or Sunday they are definitely not paying their staff correctly. Which makes you question their morals and how they usually treat their employees. The average removal company pays 38-60% of turnover for wages.
It is definitely true in the removal industry that you pay for what you get. If you opt to save $100 be very wary of the movers who turn up at your door and make sure your items are safe.
If you have any other questions please contact us today as we are always happy to help..
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