When Goverment Regulations Go Wrong
In the moving industry, you see a lot of government oversight that tend to interfere with free trade. A lot of the transportation regulations date back to an era where belongings were transported by train. While it is true these agencies “protect” the consumers by dealing with the bad eggs in the moving industry, they also disrupt and hinder competition by companies that mean well and believe they know what’s best.
One of the most recent changes that has been made has affected state of Texas, where the Texas Department of Transportation (TXDOT), no longer governs household goods transport. The Texas Department of Motor Vehicles now acts as the governing body for the state. In the process, companies that have been audited and approved by TXDOT are now being re-audited by the DMV, with new issues they have to correct. It could be anything from the wording of contracts that was specifically required by TXDot, to now needing to be changed to TXDMV.
These minor changes that, frankly make no difference in protecting the customer and seem simply like ways for these government bodies to justify their paychecks, end up costing thousands of dollars to correct, either reprinting their contracts forms, or having software companies make alterations. In many instances the company is “fined” or threatened with fines if these issues are not resolved.
Another state government that is notorious for being extremely strict is California. You will find several regulations on how prices must be calculated, maximum price tariffs, etc. I can understand stepping in and protecting consumers who are being bullied by moving companies. However you need to retain an open and free market place and allow entrepreneurs to compete and be creative.
Competition shouldn’t just be on what percent discount your company offers from a state or van lines tariff. You should challenge the whole system to find new ways to price jobs that make sense to the business owner and consumer.
The government’s involvement in the moving industry should be narrowed in some states to create more competition and innovation. I know personally, I have no desire to open a moving company in California given the regulations of the state. While I might provide a great service to the people by bringing a company to California, there is little motivation to do such when you believe you are overly restricted with ridiculous rules and regulations.
Leave Your Response