Warehouse Pricing: Per Pallet vs Per m³ vs Per SKU — Which to Choose
Three schools of storage billing — each with different consequences for margin and client satisfaction. Concrete numbers, real examples, and a decision framework based on your client profile.
Table of contents
Contents
- Three schools of storage billing
- Per pallet: simplicity at the cost of precision
- Per m³: accurate but hard to explain
- Per SKU/day: true scale, high overhead
- Hybrid: best for most operators
- How to choose the right model
Three schools of storage billing
Talk to a few fulfillment operators and you’ll quickly find that everyone bills storage differently. Some charge per pallet, others per m³, others per SKU. There’s no single “correct” model — but each has different implications for your margin, client transparency, and operational complexity.
Here’s a breakdown of each method with concrete pricing examples from the Polish fulfillment market.
Per pallet
How it works
Count how many pallets a client occupies at a given moment or as a monthly average. Multiply by a daily or monthly rate.
Example pricing: 0.40–0.70 PLN per pallet per day. A client occupying an average of 20 pallets for 30 days pays: 20 × 0.55 PLN × 30 = 330 PLN/month.
Pros
- Clients understand it. “You have 20 pallets, you pay 330 PLN” — no questions.
- Simple for you. Count pallets once a week or import from WMS.
- Market standard. Most small and medium 3PLs in Poland charge per pallet.
Cons
- Doesn’t differentiate contents. A pallet of light textiles and a pallet of heavy appliances take up the same space but have different handling costs.
- Clients pack tightly. Some clients stack pallets 1.8m high to pay for one instead of two. Address this in your contract.
- Awkward for small clients. A client with 0.3 pallets of inventory — do you charge for half a pallet? This is a frequent point of friction.
Per m³
How it works
Measure (or estimate) the volume occupied by each client in cubic meters. Apply a daily or monthly rate per m³.
Example pricing: 1.00–1.50 PLN/m³/day. A client with 15 m³ of goods pays: 15 × 1.20 × 30 = 540 PLN/month.
One Euro pallet (80×120×150 cm) occupies ~1.44 m³. Per pallet at 0.55 PLN × 30 = 16.50 PLN/month. Per m³: 1.44 × 1.20 × 30 = 51.84 PLN. You can immediately see why per m³ is attractive when dealing with irregular dimensions.
Pros
- Precise for oversized goods. Appliances, furniture, bicycles — per pallet undercharges you because these goods take up a lot of space relative to their stack density.
- Works across diverse client types. One rate works for both small parcel clients and large-format clients.
Cons
- Complex for clients. The client needs to understand what m³ means and why 20 cartons equal 8.4 m³. Expect regular questions.
- Expensive to measure. You need either physical measurement or SKU dimension data in your system — often unavailable in smaller warehouses.
- No market standard. Different operators calculate m³ differently (actual volume vs. racking space occupied). Clients can’t easily compare offers.
Per SKU/day
How it works
Count how many units per SKU a client has in your warehouse each day. Multiply by a per-unit rate.
Example pricing: 0.002–0.005 PLN per unit per day. A client with 2,000 units pays: 2,000 × 0.003 × 30 = 180 PLN/month.
Pros
- Most accurate reflection of actual usage. A client with fast-moving inventory pays less than one storing slow-moving goods.
- Rewards active clients. High turnover means lower storage cost — that’s fair.
Cons
- High operational overhead. You need daily stock snapshots per SKU. Without a WMS or Base integration this is practically impossible.
- Clients don’t understand the invoice. “Why does the amount change every month?” — hard to explain.
- Error-prone at scale. A client with 500 SKUs generates a massive calculation sheet. Any counter discrepancy leads to disputes.
Hybrid
The most sensible approach for most operators: pallet as default, m³ correction for anomalies.
Set a base rate per pallet (e.g., 0.55 PLN/pallet/day). For clients with high-volume-low-density goods (pillows, foam products, large toys), add a surcharge per m³ above a standard volumetric threshold. For small-item clients (jewelry, electronics), consider a half-pallet minimum or a per-SKU rate.
Practical example: Client A (clothing, 15 standard pallets) — 0.55 × 15 × 30 = 247.50 PLN/month. Client B (flat-pack furniture, 6 pallets but each stacked twice the standard height) — 0.55 × 6 × 30 + 20% oversized surcharge = 198 PLN/month.
How to choose the right model
Mainly e-commerce clients (fashion, beauty, electronics): Per pallet. Standard dimensions, clients understand it, easy to implement.
B2B or multi-channel clients (furniture, appliances, sporting goods): Hybrid pallet + m³ correction. You have diversity that per pallet doesn’t accurately reflect.
High-turnover clients with small items: Consider per SKU/day, but only if you have a WMS or Base integration that gives you daily stock snapshots.
Key principle: a billing model your client understands is a model that doesn’t generate disputes. Complexity has a cost — not just in calculation, but in trust.
v5v lets you configure any of these models per client — pallet, m³, SKU, or hybrid. You can have a different pricing structure for each of your 10 clients, and the system generates invoices automatically. See pricing or book a call.