CMC Estimating Procedures & Pricing Strategies 2 — Questions and Answers
Question 1: A customer requests a binding estimate but later adds several large pieces of furniture on moving day. What is the mover's correct course of action?
- Refuse to move the additional items without a revised binding estimate or order for service (Correct answer)
- Move all items and charge the original binding price with no adjustment
- Charge the customer double the rate for all added items automatically
- Cancel the entire job and issue a full refund
Correct answer: Refuse to move the additional items without a revised binding estimate or order for service
A binding estimate covers only the items listed; additional items require a new binding estimate or separate order for service before they can be included.
Question 2: Which factor most directly distinguishes a 'non-binding estimate' from a 'binding estimate' under FMCSA regulations?
- A non-binding estimate is not a guaranteed price and the final charge may vary (Correct answer)
- A non-binding estimate cannot be given in writing
- A binding estimate always costs more than a non-binding one
- A non-binding estimate requires a deposit before the move begins
Correct answer: A non-binding estimate is not a guaranteed price and the final charge may vary
Under FMCSA rules, a non-binding estimate is an approximation; the final charge is based on actual weight and services, whereas a binding estimate guarantees the price.
Question 3: When conducting an in-home survey, a consultant notices the customer has a disassembled pool table stored in a garage. What is the best estimating practice?
- Include all pieces of the pool table in the inventory with specialty item notation (Correct answer)
- Ignore it since pool tables are always excluded from household goods moves
- Estimate the pool table weight at a standard 200 lbs regardless of actual size
- List only the playing surface and exclude the frame and legs from the estimate
Correct answer: Include all pieces of the pool table in the inventory with specialty item notation
All pieces of a specialty item like a pool table must be inventoried and noted as a specialty item requiring professional disassembly/reassembly services.
Question 4: A customer's shipment weighs 6,400 lbs. The mover's tariff rate is $0.85 per pound for the first 5,000 lbs and $0.70 per pound thereafter. What is the transportation charge?
- $5,230 (Correct answer)
- $5,440
- $4,750
- $5,980
Correct answer: $5,230
(5,000 × $0.85) + (1,400 × $0.70) = $4,250 + $980 = $5,230.
Question 5: What is the primary purpose of a 'cubic feet pricing' model compared to a 'weight-based pricing' model for local moves?
- Cubic feet pricing avoids the need for certified scale weigh tickets on local moves (Correct answer)
- Cubic feet pricing is always less expensive for the customer
- Cubic feet pricing is required by federal law for intrastate moves
- Cubic feet pricing eliminates the need for an in-home estimate
Correct answer: Cubic feet pricing avoids the need for certified scale weigh tickets on local moves
Local moves are often priced by volume (cubic feet) or time rather than weight, since weigh station costs and logistics are impractical for short-distance moves.
Question 6: A customer wants to move from New York to California and requests a not-to-exceed estimate. Under FMCSA rules, what does this mean for the final charge?
- The final charge cannot exceed the not-to-exceed amount even if actual charges are higher (Correct answer)
- The customer must pay the not-to-exceed amount regardless of actual shipment weight
- The not-to-exceed provision applies only if the customer pays in cash
- The mover may charge 110% of the not-to-exceed estimate
Correct answer: The final charge cannot exceed the not-to-exceed amount even if actual charges are higher
A not-to-exceed estimate (also called a binding not-to-exceed estimate) caps the customer's maximum charge; if actual costs are lower, the customer pays the lower amount.
Question 7: Which of the following costs is typically NOT included in a standard transportation charge on an interstate move?
- Long carry fee when elevator access is unavailable (Correct answer)
- Fuel surcharge
- Line haul based on weight and distance
- Origin pickup service
Correct answer: Long carry fee when elevator access is unavailable
A long carry fee is an accessorial charge added when movers must carry items an excessive distance from the truck to the door, and is separate from the base transportation charge.
CMC Estimating Procedures & Pricing Strategies 2
A customer requests a binding estimate but later adds several large pieces of furniture on moving day.
What is the mover's correct course of action?