We understand that business needs can change, which is why we offer flexible spaces that allow you to easily adjust your space requirements as your business grows or scales down. This flexibility enables you to expand or reduce your space with minimal hassle, ensuring you only pay for what you need.

Using a Commercial Storage Unit for Stock Overflow

The cost-of-living crisis affects small businesses just as much as individuals. Both energy costs and the price of raw materials have been rising steadily over the last 12 months or so and seem to show little sign of abating. This makes the final products that are set for retail more expensive, whether you are making them yourself or selling the finished items. Those additional costs have to be recouped somehow, and regrettably, that’s often by passing the cost onto the consumer by way of higher retail prices.

Every trader knows that keeping their prices affordable is one of the keys to customer retention, but with so much stacked against manufacturers and retailers, it’s almost impossible to keep prices low without taking a major financial hit in the process.

Fortunately, there is a way to mitigate some of those cost increases and pass those savings on to your loyal customers. In this article, we will discuss the benefits of using commercial storage space to hold stock overflow.

Tax Deductable

What is causing the increase in material prices?

Opinion is divided on the root cause of the steady increase in production costs. Certainly, energy prices haven’t helped, nor have labour shortages at every stage of the supply chain or rocketing inflation rates. The problem with trying to identify the core issue is that most of the likely suspects are highly contentious subjects. The economic impact of Brexit, national (and global) lockdown, pandemic response, and the war between Russia and Ukraine are common talking points on the matter. Unfortunately, many of them are seen as being highly political in nature. What we know for certain is that costs have risen sharply over the last 1–3 years, which is when all of these major economic incidents took place. All most companies can do is attempt to reduce the impact that these increases have on their business.

Warehouse Storage

What is stock overflow?

Simply put, stock overflow involves holding an excess amount of stock with the intent of using it in the future. That stock can be finished products that are ready for sale or raw materials that you buy now to make your own products later down the line. It’s a form of speculation, but with physical items rather than market interest.

How can stock overflow reduce my costs?

Companies use stock overflow to maximise savings. If the cost of materials is steadily rising, you can buy as much of them as your budget permits now rather than waiting until you need them, when the price will be more expensive. When you come to manufacture your products (or sell your retail stock), you can keep your sale prices lower than those of your competitors. This gives you an advantage among your customers, many of whom are also looking to save money as living costs rise.

Where do I keep this stock overflow?

This is where we come in. At Weston Centre Business Hub, we provide you with all the commercial storage space you need to keep your product or material stocks safe and secure until you need them. Whether your business is large or small, we have the right storage solution for you, with storage units ranging in size from 10 to 250 sq ft. For larger businesses in Crewe and the surrounding area, we also offer drive-in warehousing facilities up to 11,000 sq ft—more than enough space to keep all the overflow stock you need to prepare for the future.

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