Complete Guide To Corporate Finance

The Business Finance Guide

When you own your own business, limited storage space is one of the aspects that can influence productivity, especially if your company has taken off quicker than expected and you no longer have enough room to fit merchandise. Pallet racking is a term what you might have heard associated with financial savings, but what exactly is it and, more importantly, can it turn into a profitable investment? If you don’t know the financial ABC of racking systems, the tips below might come in handy.

Warehouse expansion costs

Pallet racking is a type of storage that involves the use of pallets, or skids. It comes in the form of long, horizontal rows where loads can be added on multiple levels. This structure is what makes pallet racking so profitable. Without it, you would have to expand your warehouse or even rent a bigger space as soon as the old one no longer fits all your merchandise. With pallet racking, you can take advantage of every square inch, including the one above ground, unlocking the storage potential that you didn’t even know your warehouse had. Instead of placing all the merchandise on the floor, you can store it on levels, organise it better and postpone warehouse expansion. The cost of buying and installing pallet racking is much lower than the one of expanding the warehouse or renting a new place, plus it will not affect your day-to-day operations. You won’t need to pay more on energy and heating, nor invest in new insurance. Basically, pallet racking is the fastest, cheapest way to store commercial and industrial loads without compromising on productivity.

Second hand racking – a false friend

Buying second hand items of any kind has become the go-to money saver for just about any field, but racking not one of them. You might be feel tempted to buy used pallet racking systems to save money, but beware of the long term risks. People rarely sell industrial grade shelves and racks just because they want to upgrade to larger units. Most of the time, they sell them because they have worn out and are no longer sturdy. Installing pallet racks that are in bad condition puts your staff and merchandise at risk, so analyse things in the long run and go for the safest options. New racks cost more, but they last more than second hand ones.

Talk to the manufacturer for bespoke advice

There are many types of pallet racking systems out there and all this variety can be very confusing for a first-time buyer. For example, if there is a lot of traffic in your warehouse or you use forklifts, you’ll need specialised pallet racks. Ordering pallet racks without knowing their features and recommended uses is financially risky, so make sure you ask the manufacturer to do a site visit, inspect it and recommend a racking option that matches its requirements. This way, you have the guarantee that you get your money’s worth.

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