Most moving supply businesses either underprice packing labor or charge flat rates that frustrate customers on complex jobs. A time and materials model—where you bill hourly labor plus material costs—gives you transparency, scalability, and a fair margin that grows with your expertise.
Why Time and Materials Works for Packing Services
Flat-rate pricing creates problems: a small apartment packing job shouldn't cost the same as a five-bedroom house full of fragile antiques. Time and materials pricing reflects actual effort and protects you when jobs run longer than expected. Your customers see exactly what they're paying for, which builds trust and reduces disputes.
This model also rewards efficiency. As your team gets faster at wrapping dishes or securing mirrors, you complete more jobs per day—higher profit per hour without squeezing margins.
Setting Your Hourly Labor Rate
Start by calculating your all-in costs: wages, payroll taxes, vehicle maintenance, insurance, and overhead. If you're employing a packer at $18/hour fully loaded cost, your billable rate should be 2.5× to 3× that figure to cover overhead and profit. That puts you in the $45–$65/hour range for most markets.
Check local competition. Call five moving or packing services in your area and ask for their hourly rates. Urban markets (Los Angeles, New York, Chicago) often charge $60–$80/hour. Suburban and rural areas typically run $35–$50/hour.
Your experience and specialization justify premium pricing:
- Basic packing (clothes, books, household items): $45–$55/hour
- Specialty packing (art, electronics, antiques): $65–$85/hour
- Full-service coordination (inventory, labeling, unpacking): $70–$95/hour
Pricing Materials and Supplies
This is where moving supply businesses make real margin. Create a material markup structure:
- Standard boxes (small, medium, large): cost + 40–50%
- Specialty boxes (wardrobe, dish packs): cost + 45–55%
- Packing paper, bubble wrap, tape: cost + 50–60%
- Premium materials (custom crating, museum-grade wrap): cost + 60–75%
If you buy standard medium boxes at $1.50 each, sell them at $2.25–$2.50. Bubble wrap costing $0.12/foot should retail at $0.18–$0.20/foot.
Track your supply costs monthly. Suppliers like Uline, Grainger, and local distributors offer tiered discounts at volume. Pass some savings to customers—this builds loyalty—but maintain your 50% markup as a baseline.
Structuring Your Quote
Present time and materials quotes in three sections:
Labor: 4 hours × $55/hour = $220
Materials:
- 30 medium boxes × $2.25 = $67.50
- Bubble wrap (200 ft) × $0.19 = $38
- Packing paper (2 rolls) × $8 = $16
- Tape and padding = $12
Total Materials: $133.50
Estimated Total: $353.50 (labor + materials, subject to actual time and supply used)
Always include a note that final charges reflect actual hours and materials consumed. This sets expectations and prevents sticker shock.
Handling Variable-Length Jobs
Some packing jobs surprise you—hidden fragile items, poor box access, last-minute changes. Protect yourself with a minimum charge ($150–$250 depending on your market) and update your customer when you've used 75% of estimated time.
For longer projects (estate packing, large commercial moves), offer tiered discounts: 10% off total if the job exceeds 16 hours, 15% off if it exceeds 32 hours. This incentivizes larger projects while maintaining healthy margins.
Growing With Mercoly
List your packing service packages and supplies on platforms like Mercoly to reach customers actively searching for moving solutions. Your time and materials pricing structure works particularly well in online listings—customers understand transparency—and multiple revenue streams (labor + products) increase your average transaction value.
Frequently Asked Questions
Q: Should I charge for travel time? Yes, but only for jobs more than 20 minutes from your base. Charge 50% of your hourly rate for drive time, or bundle it into a minimum service fee to keep quotes simple.
Q: How do I handle material overages if my estimate is wrong? Always quote as an estimate, not a guarantee. If a job needs 40% more materials than estimated, discuss the increase with the customer in real-time before proceeding; they can decide to scale back or approve the additional cost.
Q: Can I sell packing supplies separately without offering labor? Absolutely. Retail packing supplies at 50–60% markup as a standalone revenue stream. Customers buying your materials for DIY moves become leads for future full-service jobs.
Start using this pricing model today and watch your margins stabilize while customer satisfaction improves.