Storage charges

[Jack May]

Hey guys, wondering what everyone does for contents handling.

I've always charged storage but usually only once the goods are cleaned, deodourised and ready for storage.

I
m finding we're getting some biggish packouts and contents handling jobs and sometimes the cleaning process can be 6 weeks long. Also, I'm finding more and more adjusters are pressureing the clients into prepping an area of the dwelling and then self storing. So as soon as I have the contents processed, they want them back. I'm using all this space, but not getting any clear return on it :roll: (Of course I raise security, cross contamination, builders dust etc very loud and clear.)

So how do you do it?

Do you charge for volume the moment it arrives?
A facility fee during cleaning and then storage from there onwards?

I'm looking at investing $20,000 into upgrading our contents processing facility so need options to help recoup the investment, as well as sell it to the bank manager for a business loan.

John

 

[Desk Jockey]

I think Xactimate is $1.80 a sq/ft :shock:

We charge $.75 sq/ft, the meter starts the day it enters our plant.

 

[Jack May]

square foot or cubic foot? Daily, weekly or monthly?

We've charged our storage out for 6+ years now. I set my prices about 10-15% below the local storage facilities to make it more attractive to the adjusters. It also makes my job simpler, having the contents right where we need them, as well as having time on our side for processing them.

For the past 4-5 years, i've had pallet racking in my warehouse and have charged it out on a weekly basis per bay used. It would work out to 30cents a sq ft :shock: or 6 cents a cubic ft :shock: :?

BUT, normally (and don't ask me why, I don't know) I only charge from the time they go INTO storage, after we've processed them completely.

Like I said above, I need to restructure. On Monday, we just got our third full house packout for the year. All fires. I have a female technician employed almost full time for the past 4 months doing this type of work.

Obviously the job dictates the speed of action, but once the initial emergengy work is done, the extra temps are let go and then it's just done as we're able around other jobs.

The other thing I stuggle with is the packout, usually handled inhouse can take from a few days to a couple of weeks, and sometimes, as the last areas are coming in, the original contents are already on their way out the door so it's sometimes difficult to get a handle on what total volume and for what timeframe.

John

 

[Desk Jockey]

It's a monthly rate. You're still well below Xactimates rate, whether you raise it or not you need to begin your charges once those contents hit your facility.

We have 4-fulltime girls processing contents and we still begin our charges once they enter our plant.

You are justified in the charges, they help offset the increased costs associated with having a facility to process and store contents.

 

[Jack May]

Ok, that makes it a bit better then.

Monthly, that works out to $1.25/sq ft.

I got to go to work on a new and improved system of calculating total usage.

John

 

[dealtimeman]

when you all speak of these facilities you use to process and clean everything what are you sqft of these biuldings?

can anyone take any pics of their facilities? very interested :mrgreen:

 

[Desk Jockey]

We have 18,000 sq/ft plant in Topeka, 4500 sq/ft in Lawrence

 

[ken horvath]

We also charge storage from the day the contents enter our warehouse. Regardless of what we are doing with the contents after we take them in. Never had an adjuster question this.