Difference between a Binding Estimate and Not-to-Exceed Price
Actually,
There is a difference between "Binding estimates" and "Not to exceed estimates". In fact, although both deals benefit the customer, the later is a much better deal.
Binding estimate is basically a flat deal, meaning that if you agree with a company on $2000 binding fee (given of course that you do not add more items on the day of the move) then that is exactly how much you will pay in the end.
Not-to-exceed deal means that the company agrees that your final price will not exceed the sum you agreed upon. At the same time, it might be even less, if the estimator overestimated the weight of your shipment.
For example: lets assume that your shipment was estimated at 4000 lbs, the company offers you $0.50 per lb and offers a not-to exceed deal of $2000. On the day of the move the foremen verifies that your item list is similar to the visual estimate, and after weighing your shipment comes to 3500 lbs - you will only pay $1750 in that case. Have your shipment weighed 4500 lbs instead - your final fee will still be $2000.
Keep in mind that no matter what kind of a deal you close with a company by law you are not required to pay upon delivery more then 110% of the estimated price.
Good luck with your move,
Alex Z. @ MovingAnswers.org
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FINANCIAL SIDE OF MOVING
-> Moving estimatesJul 02, 21:15
Question by OKCnurse (Lisa Krivenki)
What is the difference between a binding estimate and a not to exceed price, if any? I thought that they were different, but the woman from United Van Lines cam to my home today and quoted me the price, which on the paper says "binding estimate," but she said it is the same as a "not to exceed price."
Jul 02, 21:31
Answer by alexzehn (Alex Z.)
There is a difference between "Binding estimates" and "Not to exceed estimates". In fact, although both deals benefit the customer, the later is a much better deal.
Binding estimate is basically a flat deal, meaning that if you agree with a company on $2000 binding fee (given of course that you do not add more items on the day of the move) then that is exactly how much you will pay in the end.
Not-to-exceed deal means that the company agrees that your final price will not exceed the sum you agreed upon. At the same time, it might be even less, if the estimator overestimated the weight of your shipment.
For example: lets assume that your shipment was estimated at 4000 lbs, the company offers you $0.50 per lb and offers a not-to exceed deal of $2000. On the day of the move the foremen verifies that your item list is similar to the visual estimate, and after weighing your shipment comes to 3500 lbs - you will only pay $1750 in that case. Have your shipment weighed 4500 lbs instead - your final fee will still be $2000.
Keep in mind that no matter what kind of a deal you close with a company by law you are not required to pay upon delivery more then 110% of the estimated price.
Good luck with your move,
Alex Z. @ MovingAnswers.org
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Related questions:
1. Transport Boxes from DC to CA
2. Adding extra time for local moves
3. Moving from Detroit to Minneapolis
4. Moving from Philadelphia to San Francisco
5. Relocation cost from Long Island, NY to Chicago
6. Moving from Long Island to Las Vegas
7. Moving from CA to NY, what would be the price range?
8. Moving small shipment from Pennsylvania to Kansas
9. The cost of piano move
10. Order for Service
See all questions from FINANCIAL SIDE OF MOVING->Moving estimates
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