Why is the sale of warehouse rack not explicit price tag

Rarely will you see a warehouse racking supplier selling racks through an explicit price tag, why is that? Next, share a few of my views.

01. warehouse racks procurement process 

Usually, the main reason we purchase racks is that we want to improve the utilization of space in the warehouse.

When with this idea, the first thing to make a comparative analysis, that is, the use of racks to store, its storage capacity is much higher than the storage capacity of flat warehouses, and cost-effective than flat warehouses (because once the use of racks to store, logistics companies in addition to racks, but also to allocate a certain number of high forklifts and forklift drivers, these are the cost increases).  

After rough calculations, if the overall relatively suitable, the next need to enter a relatively refined stage, that is, the procurement of racks tender. The storage department will report the specific needs to the procurement department, the procurement department to use the invitation to bid or open tender form sent to the rack company.

pallet rack system
pallet rack system

02. factors affecting the price of racks 

Warehouse racks in the procurement, in essence, the procurement of a full set of material handling solutions.

Let’s start with the racks themselves, the rack types including: beam type rack, drive-in rack, shuttle rack, gravity rack, cantilever rack, mold rack, mezzanine rack etc.), the maximum load capacity of a single pallet position, the specifications of the pallet (length and width), the seismic level requirements of the racks. Different racking companies, according to the actual needs of customers, give different racking solutions, which is one of the factors affecting the price of racking.

In addition to the racks, the price quoted by the racking company will include: logistics costs, installation costs, and the cost of supporting protective facilities. We take logistics costs as an example, if the rack company has a production plant near the warehouse, the logistics costs will be less, on the contrary, the more distant the cost will be higher. These will also affect the purchase price of racks.

chile drive-in-pallet-racks
drive-in-pallet-racks

03. the premise of purchasing a batch of racks

Earlier we analyzed why racks can not be marked with an explicit price tag, in this part, I want to make a supplement, the warehouse into the racks to store, in fact, there are prerequisites, that is, not all warehouses, all cases, are suitable for the use of racks to store goods.

Cargo specifications. Irregular goods, such as, for example, the size of extra wide, super high, extra long, too heavy, etc., are not suitable for the use of racks to store, for example, steel. Most of the goods that are usually stored on racks can be placed on pallets first and then stored on racks as storage units.

Business characteristics. To three-party logistics to provide storage services for example, if the contract cycle is short, such as 1 year, it is not recommended to install racks, because the racks are usually based on the characteristics of the customer’s product design, a one-time investment is usually depreciated in financial terms for at least 5 years, once the contract expires, the customer does not renew the contract, for three-party logistics companies, the risk is greater (racks of universal risk, the warehouse did not recruit in time to Depreciation of the racks will still occur during the gap period when the right customer is not recruited in time)

mezzanine floor
mezzanine floor

rack products are manufactured by the factory, according to the needs of customers to do, each customer’s warehouse situation is different, if the manufacture of some specifications of the rack inventory to sell, for different warehouse size of the customer is not applicable. In the warehouse area, building structure, staffing, other equipment, etc., have a direct impact on the purchase of warehouse racks. These factors then determine the racks used in almost every home is not the same. So it is only possible to design a drawing scheme and then quote for customization.

The price of warehouse racking is influenced by many factors. Purchasing warehouse racking is actually purchasing a complete warehouse storage solution, including: the type of warehouse racking (e.g. beam, drive-in, shuttle, gravity, etc.), the maximum load capacity of individual pallets, the specifications of the pallets (length and width), and the seismic rating requirements of the racking. Different racking companies have different racking solutions according to the actual needs of customers, and these are the factors that affect the price of racking.

Summary: The reason why warehouse racks can’t be priced explicitly, mainly lies in the fact that each customer’s warehouse specifications are different, resulting in the need for different types and sizes of racks, different production processes of racks bring different costs, in addition, the logistics costs of racks, installation costs, supporting protective facilities costs, etc., will also have an impact on the price of racks, so to meet the different storage needs of customers, we recommend that customers from We recommend our customers to customize racks from us to maximize the use of warehouse space.

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