Estimating Procedures & Pricing Strategies Flashcards
7 cards from real CMC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Estimating Procedures & Pricing Strategies flashcards as text
A consultant is preparing a competitive bid for a corporate relocation account. Which pricing strategy best helps win the account while maintaining profitability?
Answer: Volume discount pricing with tiered rates based on the number of moves per year
Volume discount pricing rewards high-volume corporate clients with better rates while ensuring the mover maintains profitability across the account.
Under the 110% rule for non-binding estimates on interstate moves, what is the maximum a carrier can require a shipper to pay at delivery before releasing the shipment?
Answer: 110% of the non-binding estimate
FMCSA's 110% rule limits what the carrier can demand at delivery to 110% of the non-binding estimate; any remaining charges above that must be billed within 30 days.
A customer's estimate includes 40 wardrobe cartons supplied by the mover. At $8 each, and the customer ends up using only 30, how should the final invoice be adjusted?
Answer: Charge only for the 30 cartons actually used, reducing the original estimate by $80
Packing materials are charged based on actual usage; the customer is billed only for the 30 cartons used, saving $80 (10 × $8) from the original estimate.
What is the purpose of a 'line-haul rate' in interstate moving pricing?
Answer: It is the base transportation charge calculated using the shipment's weight and distance traveled
The line-haul rate is the primary transportation charge on an interstate move, determined by a rate chart using the shipment's weight and the total mileage between origin and destination.
A homeowner tells a consultant they plan to pack their own kitchen items. How should the consultant handle this in the estimate?
Answer: Exclude packing labor and materials for the kitchen but note the customer's liability if self-packed boxes are damaged
Self-packed items are noted in the estimate as PBO (Packed by Owner); the carrier's liability for damage to PBO boxes is limited, and the customer should be informed.
When a mover offers a 'guaranteed delivery date' option on an interstate shipment, what is typically added to the estimate?
Answer: A premium charge for reserving guaranteed delivery capacity on a specific date
Guaranteed delivery dates require the carrier to commit exclusive resources, so a premium surcharge is applied to offset the operational commitment.
A consultant is reviewing a competitor's estimate that is 20% lower than their own for the same move. What is the most professionally appropriate response to the customer?
Answer: Explain the value of the services, insurance options, and reputation differences that justify the price
A professional consultant differentiates on value—services, valuation coverage, track record, and reliability—rather than engaging in a race to the bottom on price.