Planning Your Relocation Budget
By Bobbi Maniglia
Nov 5, 2018
Creating a corporate moving and relocation budget can be challenging. With so many factors involved in evaluating providers, being able to accurately compare pricing can take considerable time and resources. Blueprint, an RFP tool, offers mobility professionals moving pricing transparency, simply and quickly.
Whether you are a human resource professional or procurement executive, you are likely in the midst of creating your company's 2019 relocation budget. And as this dynamic industry continues to change, there is much to know and learn. Here are some tips for planning your budget and keeping up with the mobility industry.
Number of Moves and Typical Cost of a Move
The number of moves that take place per year varies from one company to the next, but according to the United States Census Bureau's 2016 Current Population Survey Annual Social and Economic Supplement (CPS ASEC), relocations decreased compared to the levels they once were. That said, with the current strong economy and job market, the number of moves is likely picking up again. And since moving is the second most expensive part of an employee relocation, being able to accurately compare moving quotes is key to developing a cost-effective mobility program for your company.
As you assemble your relocation budget, you need to know how much a move will actually cost. There are many variables that go into the total cost of a move, so the cost is different for each move. The distance between the old and new locations, as well as the total weight of the items being moved, affect how much a move costs.
For example, moving the contents of a 4-bedroom house from Houston to Denver will likely cost significantly more than a move of a 2-bedroom apartment from Houston to Dallas, because the move is over a much longer distance and with many additional items that weigh more all together.
Industry Pricing: Comparing “Apples to Apples”
Planning a relocation is a major endeavor, and there are some key points regarding moving industry pricing to keep in mind. For one, there is no price transparency or standard pricing model across moving providers. This aspect comes into play even more with international moves because of the extended geography and varying modes of transport available for completing a move. Also, different units of measure are used to construct pricing which adds a level of complexity to ensure price comparisons are available.
Blueprint RFP Toolkit Simplifies the Process
At northAmerican® our goal is to help you simplify and streamline not just your relocations but your budget planning. We also aim to save you money on relocation expenses. With that in mind, northAmerican has introduced an RFP toolkit called Blueprint. This toolkit can collect RFPs and pricing from various vendors and help you analyze the data to better discern which are the best vendors, by providing true pricing transparency. Blueprint is designed to organize pricing information into weight and mileage while taking into account all of the various fees a typical HR executive or procurement professional faces every day.
Blueprint addresses the complex relocation industry by designing a simple mileage and weight formula while also calculating the tariffs and customs fees that are incurred with international relocation. The Blueprint RFP Toolkit truly is a one-of-a-kind tool.
Special Demonstration of Blueprint
We will be holding a special 30-minute webinar demonstration where you can learn more about Blueprint, including how this RFP toolkit can save you hours on collecting RFPs, help you accurately analyze the data from both domestic and international moving providers, and save your company a significant amount of money on each move. During this informative webinar you will also learn how to choose the right vendors and standardize the price you pay for moving services.
Please join us for this webinar on November 14th at 1 p.m. Eastern time. Get more details and sign up at northAmerican Webinar Registration.
Let northAmerican partner with you in planning your 2019 budget. We look forward to helping you navigate relocation industry complexities with simplicity and clarity.