Warehousing & Logistics Blog

Warehouse Pricing Example: How to Calculate Costs for Your Storage

Written by Don Friddell | Apr 16, 2025 9:34:32 PM

If you're evaluating warehouse storage solutions for your business, understanding warehouse pricing is essential to budgeting and operations. In this post, we'll walk through a step-by-step warehouse pricing example, break down the factors that influence costs, and give you a clear framework to evaluate your options.

What Is Warehouse Pricing?

Warehouse pricing refers to the cost structure involved in storing and managing goods in a warehouse facility. This can include charges for space, labor, handling, value-added services, and more.

Depending on the provider, warehouse pricing can be calculated in several ways:

  • • Per pallet/month
  • • Per square foot/month
  • • Per order or per unit shipped
  • • Based on storage duration (short-term vs long-term)

Warehouse Pricing Example (Step-by-Step)

Let’s use a warehouse pricing example for a small-to-medium-sized business storing inventory in a 3PL (third-party logistics) warehouse.

Scenario:

  • • You need to store 150 pallets.
  • • Each pallet requires 16 square feet of space.
  • • You expect around 500 orders shipped per month.

Here’s a sample breakdown:

Cost Component

Rate

Quantity

Total Cost

Storage

$18 per pallet/month

150 pallets

$2,700

Inbound Handling

$5 per pallet

150 pallets (monthly)

$750

Outbound Pick & Pack

$1.50 per order

500 orders

$750

Labeling (optional)

$0.25 per unit

2,000 units

$500

Admin/Account Fee

Flat monthly fee

1

$250

Total Estimated Cost

—

—

$4,950/month

 

Factors That Influence Warehouse Pricing

When comparing warehouse pricing, consider these key factors:

  1. Location: Warehouses in metro areas usually cost more per square foot.

  2. Type of Goods: Hazardous, temperature-controlled, or high-value items may incur premiums.

  3. Volume & Turnover: High turnover can mean more handling fees.

  4. Technology Needs: Integration with WMS (warehouse management systems) or ecommerce platforms may come with setup or monthly fees.

  5. Contract Length: Long-term agreements may offer better rates than short-term storage.

How to Choose the Right Pricing Model

Different warehouse pricing models suit different business types:

    • • Flat-Rate Per Pallet: Great for predictable storage volumes.
    • • Cubic Footage/Square Footage Pricing: Ideal for bulk or irregular-sized goods.
    • • Transactional Pricing: Best for e-commerce brands with high order velocity.

Always request a warehouse pricing example tailored to your needs before signing a contract.

Final Thoughts

Understanding warehouse pricing doesn’t have to be complicated. Use the warehouse pricing example above as a template to compare providers and estimate your monthly costs. Whether you're a growing ecommerce brand or an established distributor, the key is to align your storage, handling, and shipping needs with the right pricing structure.

Want a custom warehouse pricing estimate for your business? Reach out, and we’ll help you find the best fit.
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