cost of package deliveries in apartment buildings

You already know that managing package deliveries to your building can be tedious and time-consuming. But did you know it can also be expensive?

In 2019, more than 10 billion packages were delivered in the U.S. That number will double by 2025. Said another way: Last year, on average, each American received 33 packages. So if you happen to own or manage a residential property with 200 units, couriers delivered a whopping 6,600 packages to your building!

You might be counting on property staff to manually process every package that’s delivered. But is that the most efficient way to handle all those packages? Yes, time and money come to mind when considering the administrative waste that comes with manual package processing — but what else are you losing? Read on to find out.

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How much does managing package deliveries cost your multifamily building?

It depends on the number of packages you receive per day, the number of minutes it takes to process that package, and the hourly rate of the employee managing those packages.

Every time a package is delivered to your building, your front desk needs to accept it, store it, and then retrieve it when your resident comes to collect it. This takes away time from more important tasks such as greeting residents, managing visitors, and maintaining overall building security.

Let’s use the example from above. This 200-unit building receives about 19 packages per day (minus holidays when deliveries aren’t made). It takes the front desk approximately two minutes to process each package. This includes accepting, storing, and distributing each package. The person at the front desk has a salary of $15.00 per hour. In this example, this building’s monthly cost of managing package deliveries is $270 and 18 hours of labor.

When viewed in absolute terms, it’s not necessarily ‘expensive’. But viewed in relative terms, expenses add up. Consider all of the other things that a staff member could have done with those 18 hours: delight a resident, verify a visitor, or secure the property.

These are the tasks that deliver the value your residents pay for, and the reason they continue to call your property their home.

 

A better package management solution

The most time- and cost-efficient package management solution is a package room. Package rooms are rooms specifically dedicated to storing packages and processing package intake. A spare office or an unused closet is a perfect space for a package room. Setting one up could be as easy as installing an intercom at the door.

The best package rooms come with an array of features that make delivery and pickup even easier. For example, in a package room equipped with delivery PIN entry access, couriers can easily drop off packages without requesting access from property staff.

Under a package room system, couriers no longer have to wait at the front desk for a staff member who has a dozen other responsibilities to juggle. All a courier has to do is place their package in the package room and leave. Some smart package rooms can even notify residents when their packages arrive, further freeing up property staff to focus on the well-being of residents.

 

How do I know how much package management is costing me?

If you’re still not convinced, here’s how you can get a closer look at the true impact of package management on your bottom line. With our package calculator, you’ll get an accurate estimate of the costs associated with package management.

This calculator gives you a concrete picture of the minutes and dollars wasted by employees stuck with managing package deliveries. With a ButterflyMX package room, you’ll save both time and money on package management.

 

package management calculator

Jon Tamn

Author

Jon Tamn

I enjoy writing about real estate, property management, and proptech. I live and work in New York City.

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