Business Idea

Start A Cold Storage Business

About

Starting a cold storage business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell cold storage, or selling cold storage online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a cold storage business ➜

Key stats

market size
$4.26B
starting costs
$24.5K
gross margin
34%
avg product price
$60000
time to build
9 months

About

Starting a cold storage business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell cold storage, or selling cold storage online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a cold storage business ➜

Key stats

market size
$4.26B
starting costs
$24.5K
gross margin
34%

 

avg product price
$60000
time to build
9 months

Startup Costs

Min Startup Costs Max Startup Costs
Equipment & Supply Expenses $550 $6,500
Retail Business Expenses $0 $16,150
Inventory Expenses $350 $14,750
Advertising & Marketing Costs $75 $9,636
Software Expenses $0 $425
Website Costs $17 $275
Other Expenses $0 $300
Total Startup Costs $992 $48,036

Successful Businesses

Business URL Rank
Cold Storage Online coldstorage.com.sg #117,058
Americold americold.com #397,490
AGRO Merchants Group agromerchants.com #1,190,005
USCS uscold.com #1,472,287
Diversified Transfer & Storage, Inc. dtsb.com #1,851,181
ALLEGHENY COLD STORAGE alleghenycoldstorage.com #2,100,290
Cold Hubs coldhubs.com #2,132,367
Tippmann Group tippmanngroup.com #2,151,544
Godamwale godamwale.com #2,175,650
Nebraska Cold Storage nebraskacoldstorage.com #2,352,387
Everidge everidge.com #2,768,564

Pros & Cons

Pros Description
Rewarding work Starting a cold storage business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Meaningful business connections You never know who you will meet as a cold storage business. This could be the start of an incredible business opportunity!
Daily physical activity Cold Storage Business's typically involve a much greater degree of movement than other lines of work. Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. This can have a positive impact on energy levels and your overall health.
Amazing perks and discounts Working in the cold storage business comes with its perks! As a seller for these products/services, you typically also get to enjoy industry perks and discounts.
You are your own boss! With starting a cold storage business, you are the one to make decisions for almost all of the operations. Calling the shots can be empowering and liberating!
Local Community One of the best parts of starting a cold storage business is that you can develop a local following by selling your products at craft shows, farmers' markets, or even local storefront businesses! This gives you access to additional revenue streams and loyal customers.
Cons Description
Crowded Space Competition is high when it comes to your cold storage business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.
Finding The Right Supplier Most businesses in this space go the supplier/manufacturer route, which isn't a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the "finding a supplier" section.
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Low margins The gross margins for your cold storage business are typically around 34%, which can make it more challenging to incur new expenses and maintain profitability.
High employee turnover In the cold storage business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Taxes As a cold storage business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

Marketing Ideas

  • 1

    Affiliate program

    Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

    Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

    The affiliate typically gets a unique link where clicks and conversions can be tracked.

  • 2

    Word of mouth

    The most tried and true way to grow a cold storage business is through word of mouth - some entrepreneurs would say it's more important than all social media.

  • 3

    Advertising on social media

    Social media advertising is one of the leading ways to get the word out when it comes to cold storage business.

    There are various different Social Media platforms available to you. Some may be more critical for your marketing efforts than others, however, it's important to have an understanding of what's out there and available to you.

    Learn more about advertising on social media ➜