How Much Do Pallets Cost and Why
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How Much Do Pallets Cost and Why?
Pallet Prices Information
Many companies may not know that pallets have wholesale prices and retail prices. Pallet collectors sell pallets to pallet vendors at wholesale prices. Wholesale pallet prices are sometimes less than 80 percent of retail prices. For example, a $10 retail price, wood pallet may trade between a pallet collector and a pallet vendor for $2.00. An estimated 90 percent of businesses are buying pallets at retail prices.
Retail Pallet Pricing for Wood Pallets
Many factors go into determining the price of a wood pallet. The first factor is whether the pallet or is made from new wood or recycled wood. If the pallet is made from new wood the pallet price will be based on materials. If the pallet is made from recycled or reclaimed wood pallets, then the price is based on the pallets grade. The second factor for determining pallet price is whether the pallet is an A Grade Pallet or a B Grade Pallet. If you want to know how to grade a pallet we have created a guide for you. The third factor in determining the pallet price is the size of the pallet. If a pallet is standard size then it can sell for a higher price.
Typical Retail Prices for 48x40-inch Wood Pallets:
• Pallet Prices for New Pallets - $15 -$25
• Pallet Prices for A Grade Recycled Wood Pallets - $10.00 - $12.00
• Pallet Prices for B Grade Recycled Wood Pallets - $7.00 - $10.00
Typical Wholesale Prices for Wood Pallets:
• Pallet Prices for New Pallets - $10 -$12
• Pallet Prices for A Grade Recycled Wood Pallets - $7.00 - $10.00
• Pallet Prices for B Grade Recycled Wood Pallets - $5.00 - $7.00
Material and Labor Costs That Affect Pallet Prices
Lumber prices are the most relevant material that determines a wood pallet price. Pallets can be made of hardwood or soft wood. Several factors can affect wood prices. The 2 main factors influencing lumber prices are economic and environmental issues. Economic issues can range from industry demand for wood, trucking and transportation costs, lumber tariffs or trade issues. Environmental issues affect lumber prices could be forest health, government regulations, location of forests and mills.
Nails are an expense in making a pallet that most overlook. To make a very durable pallet you need to use a lot of nails. Nails that are used on pallets are the expensive ones because they are very good.
Recycled pallets that are missing boards or have cracks need to be repaired. Repairing pallets is labor intensive and is a major input for pallet prices. If a pallet needs significant repairs the labor cost can go up which will increase the price of the pallet.
For a new pallet the labor costs can be high or low based on whether the pallet manufacturer uses robots or machines.
Heat Treatment Costs:
Heat treatment is necessary for wood pallets that are shipped internationally. Heat treatment kills bacteria and pests that may be on the pallets. Pallets that are heat-treated are placed in a kiln and heated to 140 degrees for 30 minutes. Once the pallet is heat-treated the pallet must be stamped. The heat-treatment certification stamp can be burned into the wood or stamped with ink.
Prices on pallet wood can vary based on if it is hard wood or soft wood. If the wood is recycled wood it is cheaper.
Pallet Grade Price:
Determining the grade of a pallet is most likely the best indicator of what the pallet price will be. A-grade pallets have better durability and appearance than B-grade pallets but both will still do the job.
The standard size pallet is a 48x40-inch pallet. The prices for 48x40-inch pallets are pretty standard but custom pallet prices are variable. Very large sized pallets or pallets in odd shapes can be more expensive that a standard pallet.
More Pallet Prices
Plastic Pallets: Plastic pallets can be very expensive. There are more than 20 types of plastic pallets. You can get nearly any size and specification of plastic pallet. Prices are different on each type. Since plastic pallets have to be manufactured at a plastic plant, there is typically large shipping charges when buying pallets.
Corrugated Pallets: cardboard pallets are not very expensive because they can typically only be used once.
Metal Pallets: Metal pallets are very expensive and getting pricing is on a custom quote basis. A lot of companies like Michelin Tire are moving towards metal pallets.