Help pricing drop ship & storage
Discussion
Can anyone help me with rough pricing for drop shipping & storage?
A supplier of mine wants us to store and ship stock of theirs for their other distributors. (so large delivery to one location instead of a few).
They have said they want me to store 20 pallets and ship around 3 pallets per week.
We already distribute so it won't be a huge amount of extra work however I want to charge the going rate for storage and picking (whilst also making sure it's worth our while).
I've seen some really low prices for pallet storage! Maybe this is for large volumes my next job is to call up to get more accurate quotes.
Anyone in this area or use such a service?
I'm looking for a weekly pallet storage fee and then price per pallet to ship. Anything else I should consider?
TIA
A supplier of mine wants us to store and ship stock of theirs for their other distributors. (so large delivery to one location instead of a few).
They have said they want me to store 20 pallets and ship around 3 pallets per week.
We already distribute so it won't be a huge amount of extra work however I want to charge the going rate for storage and picking (whilst also making sure it's worth our while).
I've seen some really low prices for pallet storage! Maybe this is for large volumes my next job is to call up to get more accurate quotes.
Anyone in this area or use such a service?
I'm looking for a weekly pallet storage fee and then price per pallet to ship. Anything else I should consider?
TIA
VEIGHT said:
Can anyone help me with rough pricing for drop shipping & storage?
A supplier of mine wants us to store and ship stock of theirs for their other distributors. (so large delivery to one location instead of a few).
They have said they want me to store 20 pallets and ship around 3 pallets per week.
We already distribute so it won't be a huge amount of extra work however I want to charge the going rate for storage and picking (whilst also making sure it's worth our while).
I've seen some really low prices for pallet storage! Maybe this is for large volumes my next job is to call up to get more accurate quotes.
Anyone in this area or use such a service?
I'm looking for a weekly pallet storage fee and then price per pallet to ship. Anything else I should consider?
TIA
There is not a standard pricing template for such activity. It all depends on the activity you are doing and your cost base.A supplier of mine wants us to store and ship stock of theirs for their other distributors. (so large delivery to one location instead of a few).
They have said they want me to store 20 pallets and ship around 3 pallets per week.
We already distribute so it won't be a huge amount of extra work however I want to charge the going rate for storage and picking (whilst also making sure it's worth our while).
I've seen some really low prices for pallet storage! Maybe this is for large volumes my next job is to call up to get more accurate quotes.
Anyone in this area or use such a service?
I'm looking for a weekly pallet storage fee and then price per pallet to ship. Anything else I should consider?
TIA
For storage, in simple terms, it's a case of working out your building costs and overhead, then dividing it by the number of pallets you can store in your building, minus flex.
Large buildings store a lot of pallets in a relatively small footprint. Another poster mentioned £8 per pallet. That is very, very high in comparison to 3PL large shed prices, but it may be right for your cost base.
Handling prices depend again on your cost base, how many pallets you are handling, how long it takes to pick pallets from your racking, whether those pallets need shrink-wrapping, etc.
You are talking about a very small operation here so keep it relatively simple - get a full spec of what you're required to do, in what timeframe and with what products.
Don't forget the stock will need to be controlled by some form of stock system - be that manual or not. You need to know what you've despatched, to where and when. You also need to know where it is located in your warehouse.
Don't forget to also cost in MHE to handle pallets (if applicable)
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