Why Choose a 3PL? Signs It's Time to Outsource Warehousing
Storing and shipping your own product feels manageable right up until it doesn't. Here's how to tell when it's time to hand it off, and what actually changes when you do.
Most small brands start out storing product wherever they can — a garage, a spare room, a corner of a friend's warehouse. It works until the volume grows, and then every part of it starts costing more than it looks like: the time spent packing orders, the space you're paying rent on, the trip to the post office that used to take ten minutes and now takes an hour.
A third-party logistics provider — a 3PL — takes storage, receiving, and shipping off your plate. This guide covers what a 3PL actually does, what self-storage really costs once you count everything, and the signs it's time to make the switch.
What a 3PL Does
At its core, a 3PL stores your product and handles the logistics around it: receiving inbound freight, storing it correctly, and getting it back out the door — to a distributor, a retail account, or directly to your customers. Depending on the provider, that can include:
- →Pallet storage — dry, refrigerated, or both
- →Receiving and put-away for inbound freight
- →Pick-and-pack order fulfillment
- →Cross-docking — moving freight through without long-term storage
- →Inventory tracking through a warehouse management system (WMS)
- →Rework and repackaging — relabeling, re-stacking, damaged pallet recovery
- →Compliance-specific storage — FDA registered food facilities, licensed alcohol storage
Not every 3PL offers every service — some specialize narrowly, others (like FMG) run a broad enough operation that a single small brand can get storage, fulfillment, and rework all under one roof instead of coordinating multiple vendors.
The Real Cost of Self-Storage
"We'll just store it ourselves" feels free right up until you add up what it actually costs:
Space — square footage you're paying for whether or not it's being used efficiently, plus racking, forklifts, and the equipment to move pallets around.
Time — hours spent receiving, organizing, picking, packing, and shipping that could go toward sales, product, or growing the business.
Compliance risk — if you're storing food or alcohol, self-storage means you're personally responsible for FDA registration, cGMP standards, or Colorado liquor licensing requirements.
Scaling pain — outgrowing a space means finding, leasing, and building out a new one, which takes months, not weeks.
None of that shows up as a single line item, which is exactly why it's easy to underestimate. A per-pallet 3PL rate looks like a new cost, but it's usually replacing several hidden ones.
Signs It's Time to Outsource
A few common signals we hear from brands right before they make the switch:
- →You're turning down orders or delaying shipments because there's no more room
- →Fulfillment is eating time that should go toward sales or product development
- →You've outgrown a garage, storage unit, or informal space
- →A retail or distributor account requires compliant, professional storage before they'll work with you
- →You need real inventory visibility and you're currently tracking it in a spreadsheet
- →Seasonal volume spikes are impossible to handle with your current space
What to Look For in a 3PL — Especially as a Small Brand
Larger 3PLs are built around large accounts, and small or growing brands can end up an afterthought — locked into contracts, minimums, or fee structures built for someone shipping ten times their volume. Look for:
Is there a long-term contract, or can I start small?
At FMG, it doesn't matter what size you are — we work with customers ranging from a few cases to hundreds of pallets. All customers are month-to-month unless they specifically ask for a contract. We want you to stay because you're happy with the service, not because you're locked in.
Is pricing transparent and all-in, or full of add-on fees?
We wrap everything into one storage charge per month — $30–$57.50/pallet/month depending on volume, pallet type, and temperature, with an additional picking charge only if we're pulling orders for you. We take inventory as of the 1st and add receipts throughout the month, unless you request it laid out differently. No surprise charges. Accounts with 10 or fewer pallets are billed a flat monthly minimum instead of a per-pallet rate — $535 (dry stackable) or $550 (refrigerated stackable), $600 for non-stackable either temperature. The rate steps down automatically above 10 pallets.
Can they actually handle a few pallets, or only full-truckload accounts?
Small brands and startups are explicitly welcome — this business was built on small, growing companies. About 90% of our customers are small, and they get the same attention as our larger accounts.
Do they offer more than one service, so I'm not coordinating multiple vendors?
Storage, cross-docking, pick-and-pack, rework, food storage, and beverage alcohol storage are all handled under one roof at FMG's central Denver facility — including the odder, one-off requests that don't fit a standard service line.
Why Brands Choose FMG Specifically
We're a small, family-run business in central Denver — we've been around for 30 years, and our priority is our customers. Got a last-minute order? We'll do our absolute best to make it happen same day. We're not the warehouse that says we can't take a load without an appointment, or that needs 24 hours' notice to get your order ready. We say yes, and we make it happen. If you need to talk to someone, we answer the phones — you can easily reach a person who actually knows your business, not a call center.
That's why brands pick us, and it's why we don't need contracts to keep customers. We care about your business, and we work to show it.
This article is for general informational purposes only. Every business's logistics needs are different — talk to a provider directly about what makes sense for your volume and product.
Start with a few pallets. Scale when you're ready.
Family-run 3PL in central Denver since 1995. Storage, fulfillment, cross-docking, rework, and beverage alcohol logistics — all month-to-month, no long-term contracts.
- →Family-run since 1995
- →86,000 sq ft — central Denver, I-25/I-70 access
- →Transparent, per-unit pricing
- →Month-to-month — no long-term contracts
- →Small brands and startups welcome