3rd Party Delivery & Storage

Depending on the frequency and volume of your orders, investing in cold storage and shipping larger quantities at once might make sense. Shipping a full truckload (FTL) can often be much more cost-effective than shipping multiple small shipments or single pallets (LTL, or Less Than Load). By shipping a full truck, the shipping cost per unit drops significantly, and you can distribute that cost across more pops, improving your overall unit economics.

When evaluating whether to invest in cold storage and ship in bulk, it’s important to consider both the storage costs and the shipping costs, both with and without storage. Here’s how you can break it down:

Pallet Information

Our Pallet Configuration maxes out at 10 layers consisting of 29 cases per layer.

Layers	Cases	Pops	Weight
3	29	2175	435
4	58	2900	580
5	87	3625	725
6	116	4350	870
7	145	5075	1015
8	174	5800	1160
9	203	6525	1305
10	232	7250	1450

Currently, our pallet configuration for bulk shipments consists of 10 layers with 29 cases per layer. This results in a total height of 56 inches, including the 40x48" pallet. I recommend a minimum frozen space height of 60 inches for slotting, with average temperatures ranging from 0°F to -20°F. The total weight of a pallet with this configuration is 1,450 pounds.

Third-Party Logistics (3PL) Options

For orders outside the P10 delivery radius or for large orders, it may be necessary to engage third-party logistics (3PL) services. There are many 3PL providers available, and selecting the right one depends on factors such as shipment size, delivery times, and required services. Below are some popular options:

•Uber Freight

•Coyote Logistics

•C.H. Robinson

•XPO Logistics

•Total Quality Logistics (TQL)

•FedEx Supply Chain

•Kuehne + Nagel

Each provider has its strengths, and depending on your specific needs (such as temperature control, expedited service, etc.), you can choose the one that best suits the order requirements.

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Cold Storage Rate Estimates

Cold storage refers to the practice of storing temperature-sensitive products, such as food, pharmaceuticals, or chemicals, in controlled environments to maintain their safety, quality, and shelf life. These environments can range from refrigeration (typically between 35°F to 45°F) to freezing (below 32°F), depending on the needs of the product.

Lineage & Americold are the biggest cold storage options.

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How many pops should I buy?

Assumptions:

• You are selling 2,000 pops per month.
• Each pallet holds 7,775 pops.
• Storage Costs:
  • $25 to place a pallet in storage
  • $25 to pick up a pallet from storage
  • $35 per month for storage per pallet
• Shipping (FTL): $1,500 for any number of pops (flat rate for 5,000, 10,000, or 24,000 pops).

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• For 5,000 Everyday pops, the total cost per pop after all discounts, shipping, and storage is $1.7345 per pop.
• For 10,000 Everyday pops, the total cost per pop after all discounts, shipping, and storage is $1.47075 per pop.
• For 24,000 Everyday pops, the total cost per pop after all discounts, shipping, and storage is $1.43617 per pop.

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For 5,000 Pops:

Every Day Pop Price per Unit: $1.575

• Total cost for 5,000 pops (before discount):
  $1.575 x 5,000 = $7,875

• 10% discount on 5,000 pops:
  10% x $7,875 = $787.50 discount

• Total cost for 5,000 pops (after discount):
  $7,875 - $787.50 = $7,087.50

• Shipping (FTL): $1,500

• Storage Costs (for 1 pallet for 1 month):

  • $25 to place the pallet in storage
  • $25 to pick up the pallet from storage
  • $35 per month for storage

• Total cost for 5,000 pops (including shipping and storage for 1 month):
  $7,087.50 (pop cost) + $1,500 (shipping) + $25 (place in storage) + $25 (pick up from storage) + $35 (storage for 1 month) = $8,672.50

• Cost per pop after discount:
  $8,672.50 ÷ 5,000 = $1.7345 per pop

You'll need to order ever 2.5 months.

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For 10,000 Pops:

Every Day Pop Price per Unit: $1.575

• Total cost for 10,000 pops (before discount):
  $1.575 x 10,000 = $15,750

• 19% discount on 10,000 pops:
  19% x $15,750 = $2,992.50 discount

• Total cost for 10,000 pops (after discount):
  $15,750 - $2,992.50 = $12,757.50

• Shipping (FTL): $1,500

• Storage Costs (for 2 pallets for 5 months):

  • $25 to place the pallets in storage
  • $25 to pick up the pallets from storage
  • $35 per month for storage per pallet

Since 10,000 pops equals 2 pallets, the storage costs for 5 months are:

• Storage cost for 2 pallets (for 5 months):

  • $25 to place in storage per pallet = $25 x 2 = $50
  • $25 to pick up from storage per pallet = $25 x 2 = $50
  • $35 per month for storage per pallet for 5 months = $35 x 2 x 5 = $350

• Total cost for 10,000 pops (including shipping and storage for 5 months):
  $12,757.50 (pop cost) + $1,500 (shipping) + $50 (place in storage) + $50 (pick up from storage) + $350 (storage for 5 months) = $14,707.50

• Cost per pop after discount:
  $14,707.50 ÷ 10,000 = $1.47075 per pop

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For 24,000 Pops:

Every Day Pop Price per Unit: $1.575

• Total cost for 24,000 pops (before discount):
  $1.575 x 24,000 = $37,800

• 19% discount on 24,000 pops:
  19% x $37,800 = $7,182 discount

• Total cost for 24,000 pops (after discount):
  $37,800 - $7,182 = $30,618

• Shipping (FTL): $1,500

• Storage Costs (for 4 pallets for 12 months):

Since you're selling 2,000 pops per month, you'll sell through 7,775 pops (1 pallet) in the first month and 7,775 pops in the second month. You will store 2 pallets for the first two months and then only need to store 3 pallets for the remaining 10 months.

Here’s the breakdown of storage for 12 months:

1. First 2 months: Store 2 pallets.
2. Next 10 months: Store 3 pallets.

So, the storage costs are:

• Storage cost for 5 pallets (for 12 months):

  • $25 to place in storage per pallet = $25 x 5 = $125
  • $25 to pick up from storage per pallet = $25 x 5 = $125
  • $35 per month for storage per pallet for 12 months = $35 x 5 x 12 = $2,100

• Total cost for 24,000 pops (including shipping and storage for 12 months):
  $30,618 (pop cost) + $1,500 (shipping) + $125 (place in storage) + $125 (pick up from storage) + $2,100 (storage for 12 months) = $34,468