On: 17 February 2022 In: News

So, you’re thinking of upscaling your sales efforts and utilizing a third-party logistics company to help with assembling, packaging, shipping and delivery? It’s a good decision. This will allow you to increase your business potential instantly without having to rent more space or hire more staff. But, just how much do third party logistics cost? Here, we’ll aim to answer that question and let you know exactly what you’ll pay if you choose Red River Freight for your third-party logistics.

How much will I pay for third party logistics?

As you can probably imagine, 3PL is very broad in its definition so it follows that the price you’ll pay will vary depending on what you require. But, that doesn’t mean the pricing structure has to be complicated. At Red River Freight, we do our best to make our costing as transparent as possible. 

What affects the cost of third-party logistics?

The two largest factors that affect cost are the space required for the project and the time it will take a 3PL company to achieve your aims. 

At Red River Freight, we want to make costing as simple as possible. We don’t want to surprise you with bills at the end of each month, in fact, we want you to have a good idea of what your costs will be just by looking at our website. 

Here are some examples of customers we work with and what they pay:

Customer A sells small subscription boxes

Customer A sells subscription boxes and needs a third-party logistics company to fold, pack, store and deliver their goods. They want each box to contain two small items. At Red River Freight, we fold the boxes and insert the items for $1.50 per box. So, if they have 1,000 boxes, it will cost $1,500. Soon, their business grows and so does demand so they up their offering to 10,000 boxes and the amount they pay is $15,000. Along with this figure, there’s a standard storage charge of $30 per pallet slot. 

Customer B stores pallets of goods and needs a 3PL company to ship on demand

Customer B deals in larger items and needs the services of a third-party logistics firm for storage and shipping. Their orders are high in value and need to be shipped out one at a time to meet customer demand.

At Red River Freight, customer B will pay $30 a month for the pallet slot (our pallet sizes are …). Then, when the order comes in, they’ll pay a $10 fee to pull the corresponding serial number and the UPS shipping charge. We initially cover all shipping costs and then invoice them with one single free at the end of the month.

Customer C, a New Mexico-based sales company that ships to Canada, wants us to store and mail their literature

Customer C started life storing and mailing their own literature but soon realized there were big savings to be made (both time-related and financially) by using a border-town third-party logistics company.

At Red River Freight, customer C stores their literature with us and pays $30 per month, per pallet. When it comes to shipping, they then pay $2 per envelope and the USPS postal fee which we pay and then charge the customer for in their usual monthly bill. We’ll add it all up and send one simple monthly invoice for their convenience.

How do I work with Red River Freight?

If you’re looking for a simple, affordable and dependable third-party logistics company then get in touch. Our dedicated staff are industry experts ready to bring your store to your customer’s door.

For all enquiries, contact Tobi Seed

701 825 6951