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How are storage costs calculated?

  • Updated

To help you understand your storage costs, here's how they are calculated. First of all, it’s important to note that only storage locations with stock are considered.

Types of storage

We use different types of storage locations based on the size of your items:

  • Pallets (Honeypot)
  • Large Boxes (Workerbee)
  • Medium Boxes (Bumblebee)
  • Small Boxes (Babybee)

The calculation process

We calculate your storage costs based on how many storage locations you occupy during the month. Here’s the process we follow:

  1. Old Method (for reference): Previously, we calculated the average number of storage locations occupied by checking your stock on the 1st and the last day of the month. We then took the average of these two days and divided it by 30 to get your monthly storage cost.
  2. New method (current): Now, with bi-weekly invoicing, we check your storage locations on:
    • Day 1 and Day 15 for the first half of the month
    • Day 16 and the last day of the month for the second half of the month

Instead of halving the price for each half of the month, we calculate the average number of storage locations occupied for each period, and then we split it in half and charge this amount full price.

Example:

  • On Day 1, you have 20 pallets and 10 large boxes (Box L).
  • On Day 15, this changes to 10 pallets and 5 large boxes.
  • On Day 16, you have 15 pallets and 8 large boxes.
  • On the last day of the month, this drops to 5 pallets and 3 large boxes.

Here’s how we calculate the averages:

First falf of the month:

  • Average pallets = (20 pallets on Day 1 + 10 pallets on Day 15) ÷ 2 = 15 pallets
  • Average large boxes = (10 large boxes on Day 1 + 5 large boxes on Day 15) ÷ 2 = 7.5 large boxes

Second half of the month:

  • Average pallets = (15 pallets on Day 16 + 5 pallets on the last day) ÷ 2 = 10 pallets
  • Average large boxes = (8 large boxes on Day 16 + 3 large boxes on the last day) ÷ 2 = 5.5 large boxes

Storage cost calculation:

  • For the first invoice (covering days 1-15), we bill you full price for half of the storage locations occupied on average: 15 ÷ 2 pallets and 7.5 ÷ 2 large boxes.
  • For the second invoice (covering days 16-30), we bill you for 10 ÷ 2 pallets and 5.5 ÷ 2 large boxes.

This bi-weekly method gives the same overall result as it would if we were splitting the monthly price.

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