Warehousing Storage: Hundred Weight vs. Square Footage
By Matt Walker, Sales and Marketing Coordinator
When soliciting a bid for warehousing, we often see estimates based in hundred weight or by square feet. It can be confusing to compare them. But in reality, the process by which the estimates are calculated is nearly identical. If this is the case, then why use different methods? Hundred weight estimates are given per one hundred pounds (cwt). Usually the same rate is charged for receiving and outbound handling. In most cases, there is a sliding scale of rates for deliveries based on the total weight delivered. Usually the more weight going out, the lower the delivery rate per hundred weight will be.
Square footage estimates are based on the area that items being stored will take up. Each warehouse has its own method of devising the amount of space required, but a good rule of thumb is 1,000 lbs = 36 square feet. As with pricing based on hundred weight, warehouses that charge based on square footage use a similar sliding scale for pricing. So which is better? One of the benefits of charging by weight is that the warehouse does not profit by spreading items out in order to take up extra space. Also, when items are shipped, they are shipped by weight, giving the client a way to verify charges. If the shipping and storage weights do not match, the inconsistency is easy to spot. Additio ally, some items, such as granite table tops, might not be large but can be extremely heavy. In this case it is more accurate to charge by weight. However, the opposite is also true. Lighter items – box springs, for example – are large and require two people to carry though they are fairly lightweight. Box springs and mattresses take up much more space in the warehouse, so charging by square feet is a more correct method in this case. Each method attacks storage issues from a different angle, but the result is often similar. Understanding how the warehouse charges for storage, however, empowers the customer with the knowledge to ask the right questions and effectively compare rates.