Lumber prices have been on the rise, with no sign of stopping any time soon. A combination of high demand and lowered infrastructural capacity has led to some of the highest lumber pricing in memory.
One unexpected consequence of these higher lumber prices: the humble pallet has become a cost consideration for many customers. As prices have skyrocketed, many companies are searching for ways to save money while still getting the same pallet performance.
Check out our top tips to reduce pallet pricing for small businesses to keep shipping costs low and profits high in this increasingly challenging business landscape. For more information on pallet pricing or to get a quote, call Unaka Forest Products in Jonesborough, TN, today!
Buy Reconditioned Pallets
Many pallet suppliers and transport companies have started reconditioning wooden pallets as a way to save of saving on new timber costs. Reconditioned pallets must still comply with international shipping regulations, making them an excellent choice for most small businesses. If you’re a high-volume pallet purchaser, even small savings on an individual pallet will create large-scale savings when translated into total pallet pricing.
Consider the Combo Pallet
Combo pallets contain a mix of new and used lumber. Although usually cheaper than brand-new pallets, these pallets still offer the same quality and performance. However, since these combo pallets still depend on new lumber, you can expect their prices to rise as long as lumber demand stays high.
Sell Pallets as Scrap Wood
Pallets have a defined lifespan, and there’s only so much you can do to fix damaged pallets. Instead of throwing these pallets away, why not sell them to reconditioning companies or as scrap wood to recoup costs? Individual pallet pricing will stay low, but economies of scale make this a worthwhile option for large-volume buyers.
Selling pallets also helps reduce recycling and removal costs. In most cases, you can negotiate with the reconditioning company to cover removal costs, saving you another expense.
Companies with the space to store large amounts of pallets should consider stockpiling them during a drop in pallet pricing. Staying informed on pallet pricing means that you can take advantage of any short-term price drops and have a steady supply to keep up with your pallet loads when prices increase later.
Create a Private Pallet Pool
Consider combining resources with other small companies to combat high demand pallet prices. Forming a private pallet pool makes sense for suppliers who only ship within a small radius because recovering pallets for reuse is easy and inexpensive. However, national or international companies may find the shipping costs of getting their pallets back higher than simply buying new pallets.
The high demand for lumber doesn’t show any sign of slowing down. The financial implications of this demand affect many different aspects of your business, including pallet pricing. While you can take steps to reduce their costs, don’t overlook the value of a strong relationship with your pallet supplier.
At Unaka Forest Products, we built a reputation as a premier pallet supplier for businesses nationwide with over 40 years of pallet manufacturing experience. Get in touch today by calling our Jonesborough, TN, team at (423) 753-9576 to find out how we can help keep your pallet costs low and your logistics chain running smoothly and affordably.