Switching from new to used pallets is often described as a simple price comparison. The real comparison includes how long pallets last, how many you reject on arrival, the risk of product damage, what you can get for surplus pallets and what it costs to manage them. This guide gives you a framework for working out the numbers for your own operation.
The True Cost of a New Pallet
Most businesses look only at the purchase price. The true cost covers everything from purchase to disposal or resale.
- Purchase price, which varies with size, wood, quantity and market conditions
- Delivery, which depends on distance and order size
- Receiving inspection labor
- Storage space for pallet inventory
- What happens at the end: disposal cost or resale value
The True Cost of Used Pallets
Used pallets have a different cost profile. They usually cost less to buy, you may reject a few more on arrival, and good-condition pallets can often be sold when you are done with them, turning a disposal cost into a small return.
- Purchase price for the grade you need
- Delivery
- Storage
- An allowance for pallets that do not meet your standard on arrival
- Resale value or pickup of surplus pallets at end of use
Building Your Comparison
For each option, add up the monthly costs above, subtract any resale value, and divide by the number of pallets or the number of trips they make. Comparing cost per trip, rather than price per pallet, gives the fairest picture.
Quality Considerations That Affect the Calculation
The comparison assumes the used pallets perform as well as new ones for your application. For many warehouse and shipping uses, a good-condition used pallet does. Some uses justify a higher grade or new pallets.
- Top-grade used pallets suit retail, automation and high-value loads
- Lower grades can cut costs further for light internal use
- New pallets may be required for some export, regulated or customer-specified uses
- Mixing grades across different uses often gives the best overall result
What You Need to Run the Numbers
Gather how many pallets you use each month, what you pay now, what share of your uses need top-grade or new pallets, and how many pallets you currently throw away versus sell.
Pricing through Pallet Wichita is by quote from partner suppliers. Request a quote with your volumes and grades, and a partner supplier in our network will follow up so you can plug real prices into the comparison.