HOW TO SAVE ON STORAGE COSTS TO IMPROVE PROFITABILITY

As a small-medium size business, keeping business costs low can help improve the bottom line. Higher savings and profitability will leave you with more room to invest in further growth or be more price competitive. After all, rent or lease is usually the largest component of a business’ fixed cost. The lower it is, the better it will be for the business’ financial well being.

For businesses with inventory, it is important they move quickly. Ideally, you shouldn’t have too many unsold stocks in your office cum warehouse. They are cost centres. Having said that, it’s difficult to be precise in your inventory management. There are always unknown variables that can impact sales. You’ll need to respond to changing circumstances fast to build a sustainable business.

In an ideal scenario, your leased office space shouldn’t need to function as a warehouse for your stocks. The latter should be kept in a separate facility where you have the flexibility to increase or decrease capacity when necessary. So, it’s not only inventory you can manage but the size of the space that houses it too.

Self-storage facilities have grown in popularity amongst small-medium sized businesses with inventory or equipment. It is especially useful for those that are primarily in the eCommerce space. In this article, we’ll take a closer look at the benefits of using self-storage space.

1. Pick a size

A major advantage of using self-storage space is the availability of ‘boxes‘ in different sizes. You don’t risk getting ‘stuck’ with a specific size, either too big or too small. With the option of leasing more ‘boxes’ promptly when the need arises, this flexibility prepares the business for various circumstances.

2. Get organised

When leasing a storage space of a specific size, you’ll find yourself more diligent in keeping it neat and tidy. You’ll be ‘forced’ to optimise the use of the space. From the way you organise, label and stack the goods, not only will it be pleasing to the eye but it makes accessing them easier too. As part of their value add service, some self-storage facilities offer the equipment or tools to help you organise your ‘box’.

3. Receive goods

You’re unlikely to be at your self-storage facility always. As such, you may wonder how your goods will be received in your absence. The good news you can delegate receipt of goods to the self-storage facility’s personnel. And to add, ss the premises are well-secured, you’ll have the peace of mind knowing your goods will be looked after.

4. Scalability

You can scale the size of the boxes according to the size of the inventory on hand. You’ll not be held ‘ransom’ to a fixed size. This can shave a lot off your rental cost while offering the option of more space when needed. With this flexibility, the business can accommodate seasonal fluctuations efficiently.

If you’re looking for flexibility in your storage needs, self-storage facilities are a good option to consider. Book a tour of our facility today or give us a call.

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