High warehouse rental costs can drain a business. As a business owner, being clever with your money is really important for doing well especially if you want to save warehouse rental costs. One tricky thing to manage is how much it costs to rent a warehouse. It’s like finding a balance between challenges and good opportunities. That’s exactly why you are here, to get clever ways to handle warehouse rental costs. We’ll talk about paying for what you need, negotiation and location. Let’s dive in.
1. Hire a company that has the right equipment for your needs
Warehouse rental costs can add up quickly, especially if the warehouse space is not right for your needs. You may have a great location, but if you don’t have the right equipment, you could be wasting money.
That’s why you need to rent a warehouse that has the right equipment for your needs. You may not need all of the equipment that they have, but knowing what they have will help you determine if it meets your needs and if it will work in the space you have available.
A video showcasing one of ALP Warehouse’s tenant space with equipment
In the case of ALP warehouses, you can get access to speculative warehouse development for the occupier lease market and build-to-suit (BTS) solutions where occupiers have specific requirements. A build-to-suit investment is a warehouse facility designed and constructed specifically for a dedicated user. Click for more information.
Inside ALP warehouse Build to suit solution
There’s no harm in asking for multiple quotes from different warehouses. This will help you compare their prices and how much space they supply with each quote. That way, you can decide which company would best meet your needs and budget without wasting time or money on anything unnecessary.
2. Negotiate with other tenants in the building
Negotiating with other tenants in the warehouse facility can help you save rental costs. You may be able to get a discount if you are willing to share space or if you can make them move into the same area. If they have their own storage space, then this can be an opportunity for you to negotiate a lower rental rate due to the fact that they are sharing the space with someone else.
In some cases, it may not be possible for you to share space due to company rules. You can opt to build yours for a long-term solution.
3. Negotiate with your landlord
Negotiating with your landlord is one of the most important things you can do to save money and make sure that your landlord is treating you right.
Landlords will be more likely to rent to you if they know that you have negotiated a good deal. Here are some tips on how to negotiate:
a) Have a list of what you want and need.
b) Make sure your offer is fair and reasonable.
c) Always ask for more than what initially appears in the lease or rental agreement.
d)If there is any doubt about what will happen to your deposit, always make sure it does not go into the landlord’s pocket!
4. Take advantage of free shipping programs and promotions
Many companies take advantage of free shipping promotions and programs to help them avoid these costs. If you’re not sure what type of program is available, ask your supplier. Most will offer some sort of promotion where they’ll ship your order for free if you order a certain amount or buy multiple items from them.
A ship transporting goods
You can also compare shipping prices across different merchants and retailers. This is a great way to find out what it actually costs for different retailers to ship products. You might be surprised by how much it costs to ship something from one vendor compared to another!
Asking your supplier if they offer bulk discounts for items or when shipping can also be a way to save on warehouse rental costs. Many suppliers have special deals or incentives in place that allow them to offer better pricing on larger orders.
5. Order Supplies when they are needed
To save rental costs and make your warehouse as efficient as possible, it’s important to order supplies when they’re needed. For example, if you have a lot of inventory sitting in your warehouse, you’ll want to ensure that the materials for each shipment are ordered in advance so that they can be delivered as soon as possible.
The key to this is ensuring that the materials are ordered when they’re needed and not before. By doing this, you’ll be able to avoid wasting time on re-order orders. This saves you money by reducing the amount of inventory being held in your warehouse because it means that less material needs to be purchased and stored.
6. Rent only what you need, not what you want cuts on rental costs
If you rent only what you need, not what you want, you will have a much smaller number of items in your storage facility and therefore a lower cost per square foot.
We have all been there. You buy a bunch of stuff, but then realize that it is not the right fit for your business or just doesn’t work out as planned. You can’t just throw it away because after all, it was free!
The best thing about renting only what you need is that if something does not work out as planned, you can always return any unwanted items with no questions asked.
This means that no matter how much inventory you have in storage at any given time, it still costs less than renting things that don’t fit your business needs or are not useful for your customers’ needs.
7. Move closer to customers to save warehouse rental costs
Moving closer to customers can help save rental costs in a smart way. Imagine if a store or warehouse is located near where people buy things. This makes things easier because stuff doesn’t have to travel far. When things don’t need to travel a long distance, it saves money on transportation. ALP West Warehouses are 35 minutes to Nairobi CBD and Westlands, 45 minutes to Embakasi / JKIA.
ALP Warehouses along Nairobi-Nakuru Highway
If a business sets up a shop closer to where people live or shop, it reduces how much they spend on moving things around. This way, they can use the money they save for other important things. It’s like living closer to work – you spend less time and money getting there.
In a Nutshell
I hope these recommendations will help you make better decisions when it comes to saving on warehouse rental costs for your business. We hope to see you soon on our blog and if you find it helpful, please share it!
