There is no shortage of price comparison websites for domestic removals, but how do we know if they provide us with the best options? Do comparison sites exist for our benefit, or is there something else going on?
To answer these questions, we need to look at the business model and incentives of the price comparison sites.
With many free online services, the private individual is not the customer but is the product. In the case of comparison sites, the consumer creates the product by requesting a quote. The quote request is then sold to any service providers in your area that wish to buy them. You provide the product (the potential for work income) which the site sells to their customers, (the removals companies) for a small fee. The quote request is sold to multiple customers who then compete for the work.
From the perspective of the comparison site, their work is done. They have introduced the removal customer to several removal providers and received payment for doing so. They have no responsibility for (and usually no knowledge of) the professionalism or operational competence of the removals company that will eventually carry out the work.
From the customer’s perspective, they have been introduced to several moving companies that agreed to pay for the introduction. Not necessarily the most local companies, the most professional companies or the most reliable companies, but only those companies that were willing to pay for the lead.
"...when a customer chooses their remover based on price alone, they are likely to get the lowest quality standard of service."
As the removals customer used a comparison site that focuses primarily on price, this often becomes the most important factor in choosing between the four or five removals companies presented.
From the removal company’s perspective, competing on price alone can be destructive to their business. The costs associated with running a competent and professional business prevent them from offering the cheapest services. Professionalism costs money in training, equipment, vehicle maintenance, insurances, consumer protection measures, etc. Only those companies with low overheads can afford to engage in a price war, or race-to-the-bottom pricing strategy.
This means, when a customer chooses their remover based on price alone, they are likely to get the lowest quality standard of service.
Some of the price comparison websites are fully aware of this issue and have taken steps to reduce the risk of race-to-the-bottom pricing and service quality. While still using the lure of saving money to get consumers on their websites, they insist that their customers (removals companies that buy the leads) have appropriate insurance and are not of ill repute. This doesn’t eliminate the problem, but it is a step in the right direction.
So, is it worth using a price comparison site?
Putting your information into the site once and then being introduced to several companies can, of course, save time. But it would be wrong to assume that the best company for the job is the cheapest, or that the companies listed on the site are your only options.
Before choosing which company will move all your prized possessions, consider whether they are competing for the work based on price or quality.
