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Warehousing Rates

Discussion in 'Business Strategy' started by mac, Nov 23, 2016.

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  1. lowmiler88

    lowmiler88 Site Supporter

    Turns is the biggest factor, if they turn 6+ times a year you will be able to charge a lower storage rate and do ok. Biggest mistake people make is product that does not move as you do not make money on it.
     
  2. MikeJr

    MikeJr Moderator Staff Member

    As a customer for short or long term warehousing:
    in fee (per skid or per TL)
    out fee (per skid or TL)
    weekly/monthly storage fees (per skid or TL)
    they do range as others have said based on 'stackability', are they 'rackable'
    also additional charges for things like pick and pack, bar code and online inventory control...
    Make sure you know all the details of the expectations so you can cost/quote it properly.

    Congratz, sounds like a nice piece of business and good for your client too!

    Keep well,
    Mike
     
  3. theman

    theman Well-Known Member

    Not every job is the same, it's kind of like asking someone to give you a dollar per mile rate as a blanket. If product doesn't turn very high, you have to charge more for storage. Certain things that turn very fast can have a lower storage amount attached to them because the revenue is coming from the handling. If it's strictly pallet in/pallet out, then industry custom is to charge an initial storage rate, a monthly storage rate, and a handling rate in/out. Additionally, there is a BOL processing charge associated with outbound shipments from the warehouse, but when a carrier is doing it and managing the outbound freight it's common for that element to be waived or buried in the transportation rates.

    To cost it, you need to figure out your fixed costs (rent, light, heat) in the warehouse and add elements for labour and equipment. You probably know that though.
     
  4. loaders

    loaders Site Supporter

    It has been a few years since I was involved in warehousing so I can't suggest a dollar figure. However, I believe the formula is still the same. There is a per skid charge for every skid entering your facility and every skid leaving. There is a monthly rent charge per skid. If the skids are stackable this helps as it takes up less floor space but every skid still pays the monthly rent charge. There are different ways to charge for your employee, but an hourly rate is easiest. The heat, pest control and possible new forklift are part of the service, so perhaps increase the monthly skid charge to help with those added expenses. There're many ways to "skin this cat"' but it all boils down to what additional costs are you going to incur, and how much profit you need to make it worth your while.
     
  5. mac

    mac New Member

    Just checking to see what we should be charging for warehousing these days. A customer wants to take 12,000 square feet at our facility located near Barrie. There would be roughly 1000 skids in and out per month. There would be some set up on our end. A warehouse employee, pest control, heat and they requested that we seal the floor to keep the dust down. My current fork lift is old and it's inevitable that it will need to be replace sooner then later plus several other associated charges that will come up along the way. How would you rate this kind of job?
     

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