Price elasticity in the moving and storage business

U-Haul's moving billboards, deployed nationwide by willing customers.
U-Haul's moving billboards, deployed nationwide by willing customers.

I recently completed a pretty intense cross-country move. I rented a 24 foot Budget truck (that’s the size of the box, not counting the cab) and when it still wasn’t big enough I shipped an extra container of stuff with Door To Door Movers.

I was amazed at the price differential. The Budget truck cost half what I was quoted by U-Haul. And on a square foot basis Door to Door was 60% of the price of a competitor, Pods.com.

How come the disparity? I don’t know enough about the pods type containers to have a strong opinion, but when it comes to trucks it’s definitely MARKETING. Every U-Haul truck or trailer on the road is emblazoned with ads about how easy it is to load, to drive, etc. If I’m thinking about a move, I sure am going to notice those free ads… being driven down the road by customers like me. And sure, I’ll check U-Haul first. But I assume most consumers go no further, or they couldn’t charge this kind of premium.

As a mover, I’m glad I took the extra time to find the low priced spread. But as a marketer, I’m pleased to recognize advertising that seems to be working so well.

2 thoughts on “Price elasticity in the moving and storage business”

  1. I am glad that you found that there was a company with prices that are better than PODS. I have been calling for quotes, and the only ones that I have been getting have been way more expensive than I was hoping that they would be. After reading this, I called Door to Door (I am assuming that we used the same http://www.doortodoor.com ) and their price was half of the pods quote! Thanks for helping me save money!

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