How warehousing is actually priced.
Almost every warehousing quote resolves to three lines. Once you can read them, comparing two providers stops being guesswork.
How is warehousing priced?
Warehousing is normally billed on three lines: storage per pallet position per month, inbound handling per pallet or container received, and outbound handling per pallet or order released. A quote showing one blended number is hiding one of the three, and it is almost always handling.
| Line | Billed on | What moves it |
|---|---|---|
| Storage | Per pallet position per month | How long inventory dwells |
| Inbound handling | Per pallet or container received | How freight arrives, floor loaded or palletised |
| Outbound handling | Per pallet or order released | How often stock is touched |
What is a pallet position?
A pallet position is one standard pallet footprint in racking. It is billed whether or not it is full, which is why quotes ask for pallet count rather than square footage. A half-empty pallet costs the same to store as a full one, so cube efficiency shows up directly on the storage line.
This is also why square footage is a poor comparison between providers. Two buildings with the same floor area can hold very different pallet counts depending on rack height and configuration.
What makes one quote higher than another?
Four variables: dwell time, touch frequency, handling requirements and volume predictability. Slow-moving stock is cheap to handle and expensive to store. Fast-turning stock is the reverse. Special handling and segregation add to both lines.
| Variable | Raises | Lowers |
|---|---|---|
| Long dwell time | Storage | Handling |
| High turn frequency | Handling | Storage |
| Floor-loaded inbound freight | Inbound handling | |
| Committed, predictable volume | Storage | |
| Segregation or special handling | Both |
Two figures are enough to price most warehousing accurately: pallet count and expected dwell time. If a provider needs a discovery call before giving you any number at all, they are qualifying you, not quoting you.
Four things to check before you compare two numbers.
Is the rate held?
A contract rate is fixed for the term. A public rate is whatever the market is doing that month. The same headline number means two different things.
What counts as a position?
Rack height and configuration decide how many pallets a floor area holds. Square footage is not comparable between buildings; pallet positions are.
Are handling lines included?
Storage is one line of three. A low storage rate beside high inbound and outbound handling can cost more on the same freight.
What releases the stock?
Notice periods, minimum terms and exit handling are where a cheap quote gets expensive. Ask what leaving costs before you sign what arriving costs.
Tell us what you need to store.
Pallet count and dwell time are the two figures that set the price. Send those and you get real numbers back, not a discovery call.
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