Storage cost

[AdeTuono]

Anyone on here involved with warehousing? I've been asked to provide a quote for long term storage of some customer property, and would like a ballpark figure for a commercial rate per m2. I'm not talking the Big Box/Lok n Stor self storage but palletised surface storage. I already have the space. Any pointers? Ta!

[L9wul]

Hi, we have a self storage company which as you said is probably not where you want to be pricing but thought I'd let you know what we charge for comparison.

Obviously the larger the space being leased the cheaper it becomes per sqft/mtr in our faculty so our range is around 75p per square foot per week down to around 30p. Local facilities near us that provide pallet style storage are cheaper than this by around 20 - 40%.

As for long term and discounts with that, we give 15% off for 12 months as a guide but have done deals at 50% off for 4 years storage contracts.

Hope this gives you an idea and sorry I couldn't be more specific.

[dacouch]

How much are you paying in rent per year for each square foot to rent you own warehouse.

Work that out and then work out the profit margin you want

[Gr44]

Make sure you check any insurance implications as well - what happens if there is a fire and your customers property is damaged etc ?

[L9wul]

Yep, that's a good point about the insurance. There are specialist self storage insurance companies who deal with these sort of specifics. Easy to set up and relatively speaking good value

[berlintaxi]

Gr44 said:

Make sure you check any insurance implications as well - what happens if there is a fire and your customers property is damaged etc ?

Most pallet storage operations work on the basis of the customer insuring their own goods in storage, not relying on the warehouse provider to insure it.