FitX warehouse costs are estimated as $2,368.36 monthly, starting on the 12th month. For previous months, FitX will use its existing onsite storage capacity for the maximum of 2400 units of inventory. Here's how we came up with that cost estimate:
Rates and Area
Maximum Required warehouse area: 6300 sq ft
Monthly warehouse cost per sq ft: $7.00
Monthly operations cost per sq ft: $3.00
Annual Costs
Warehouse: $43,953.98
Warehouse operations: $17,267.64
Forklift/Truck Rental: $9,600.00
Total: $70,821.62
Monthly Overall Cost
$5,901.80
*Salary, Warehouse Manager: $72,000.00
This salary is included in the new hires costing, not in inventory storage costs.
Methodology:
Monthly Warehouse area assumes 8ft/12ft of usable height, at a 2/3 area use rate, a free-standing product with outer box of dimensions 9.6*7.3 * 4.5 inches, and efficient stacking.
Source linked for storage monthly cost estimates.
Rates and Area
Maximum Required warehouse area: 6300 sq ft
Monthly warehouse cost per sq ft: $7.00
Monthly operations cost per sq ft: $3.00
Annual Costs
Warehouse: $43,953.98
Warehouse operations: $17,267.64
Forklift/Truck Rental: $9,600.00
Total: $70,821.62
Monthly Overall Cost
$5,901.80
*Salary, Warehouse Manager: $72,000.00
This salary is included in the new hires costing, not in inventory storage costs.
Methodology:
Monthly Warehouse area assumes 8ft/12ft of usable height, at a 2/3 area use rate, a free-standing product with outer box of dimensions 9.6*7.3 * 4.5 inches, and efficient stacking.
Source linked for storage monthly cost estimates.
Shipping Costs
Ocean Freight
One 40ft dry container fits 2377 cu. ft., or 13,023 Om units. At a market cost of $1800 for freight with customs and fees, we estimate around $0.14 per unit.
Ground Shipping
The cost of shipping 20 Pallets by truck from Neenah, WI to Seattle, WA is approximately $2,500. Based on the estimated shipping amount of 80 pallets per month to locations that will be closer to Wisconsin than Washington, we predict that the total shipping cost will be 4 times that estimate where the additional cost of smaller shipments will be offset by the smaller costs associated with shorter shipping distances.
A standard American pallet (40x48in) stacked 5 feet tall fits about 365 Om units. This gives us a cost of about $0.35 per unit for U.S. ground shipping. We've included these costs in our product expenditures per unit.
One 40ft dry container fits 2377 cu. ft., or 13,023 Om units. At a market cost of $1800 for freight with customs and fees, we estimate around $0.14 per unit.
Ground Shipping
The cost of shipping 20 Pallets by truck from Neenah, WI to Seattle, WA is approximately $2,500. Based on the estimated shipping amount of 80 pallets per month to locations that will be closer to Wisconsin than Washington, we predict that the total shipping cost will be 4 times that estimate where the additional cost of smaller shipments will be offset by the smaller costs associated with shorter shipping distances.
A standard American pallet (40x48in) stacked 5 feet tall fits about 365 Om units. This gives us a cost of about $0.35 per unit for U.S. ground shipping. We've included these costs in our product expenditures per unit.