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Crate Hire Charges: Is There a Better Way?

12-08-2010 09:15 AM CET | Logistics & Transport

Press release from: Pluscrates

/ PR Agency: The Words Workshop
There are few experienced facilities managers who, at some time or another, have not had their fingers burned and their budgets blown by lengthy extended crate rental charges and unforeseen loss charges. John Mitchelll, Managing Director of Pluscrates, wants to see these charges made a thing of the past in favour of a fairer costing system.

The rental charges for crate hire is one of the few things that have remained constant over the past 20 years or so. In fact, in some cases, the cost has reduced. In 1987 Eurocrate - then London’s largest independent crate hire company - charged 54 pence per week for a standard un-lidded A3 crate, plus 12 pence per week for a lid to fit. John said that there are few facilities managers paying as much as 66 pence per week for a standard lidded crate nowadays. “With raw material and production costs, vehicle running, staffing and overhead costs all increasing significantly over the last 20 years, it is only the hidden costs in equipment replacement charges, consumables and transport charges which have enabled crate rental companies to continue trading.”

As all facilities managers will know, the physical move of a business to a new premises is far from the end of the story. The unpacking and re-organising can continue for months after the move itself. In fact, many crates may never get unpacked and are simply stored instead. This generates further crate rental hire charges for unreturned crates - charges which can continue for years until the crate is returned. Also to be considered and built into the budget are transport charges, any equipment replacement charges and charges generated by the purchase of consumables for the move such as security seals or IT bubble bags.

With all of these unpredictable costs to take into consideration, it is little wonder that facilities managers find themselves tearing their hair out over unexpected charges that have built up over and beyond the period of the move. John believes that this is neither a fair nor constructive way of charging and would like to see a change in the system based on building these things into the initial. “I would like to see an open, fairer and more realistic rental charge for the standard lidded crate in the planned hire period,” he said. “This might be three times what is currently being charged but it would facilitate much fairer extended crate rental charges and a discounted and reducing replacement charge for equipment not ultimately returned. It would be a far more honest, fair and up front billing platform with no sting in the tail.”

This alternative way of charging would mean facilities managers could base their budget on far more predictable charges leaving them 100% in control of their crate rental charges.

Pluscrates is the fastest growing provider of returnable transit packaging (RTP), containers and packaging consumables in the United Kingdom, providing a premium crate rental service to the commercial relocation and facilities management markets, as well as to the domestic removals market.

All editorial enquiries to:

Steve Jordan
The Words Workshop
26 Swanwick Lane, Milton Keynes, MK10 9LD.
Tel: 01908 695500 Fax: 01908 690099
E-mail: steve@thewordsworkshop.co.uk
Web: www.thewordsworkshop.co.uk

All business enquiries to:

John Mitchell
Pluscrates Ltd.
Unit 9, Towers Business Park, Carey Way, Wembley, HA9 0LQ
Tel: 020 8900 0321 Fax: 0208 903 0188
E-mail: JohnM@pluscrates.com
Web: www.pluscrates.com

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