Is Commercial Warehouse Pricing Simple?

Well, yes and no.

At one level, commercial warehouse pricing is very simple in that it considers just two things:

• the amount of SPACE needed
• the TIME it takes to perform certain tasks

So, if you know your space costs and labor costs, coming up with a warehouse cost per square foot should be straightforward. 

Hold on Flash Gordon….not so fast.

Tasks can be performed in different ways:

• with or without automation
• with or without computer systems
• with or without engineered process flows

All of these impact time. 

And products can be stored in different ways:

• unstacked on the floor
• stacked several levels high on the floor
• in racks as high and deep as the building and business profile will allow

The storage method will dramatically impact space required and, ultimately, the storage rate.  

Detailed information is required to determine how much space and labor will be required.  Gathering this data can be tedious, but the more information that can be extracted and shared, the more accurate the pricing will be. 

Weber Logistics has developed a simple guide to commercial warehousing pricing.  Download it for free.