Here are the top three misconceptions about wood pallet prices we hear all the time:
- Pallet prices should go down when volume increases
This is not always the case. Sometimes it actually costs more for a pallet manufacturer to increase production. For example, a pallet manufacturer may have to reach out to more distant sources of raw materials to meet production requirements. Other considerations for the manufacturer include spending more on overtime to meet project deadlines and the added costs of increasing wear and tear on equipment. All of these factors (and more) can contribute to increased prices for high-volume pallet manufacturing.
- Cheaper pallets cost less
As they say, cheaper is not always better. A pallet that is “cheap” may not be designed properly for its intended application. Studies have proven that stronger and stiffer pallets will reduce other packaging costs, reduce product damage and lead to increased safety. - Softwood pallets should be cheaper than hardwood pallets
Not necessarily so. While softwood may be less expensive than hardwood in some parts of the country, this does not necessarily equate to cheaper pallet prices. Softwood pallets may need to have more lumber in them to compensate for the use of weaker material. Additionally, softwood is often figured on full board footage counts (1x4, 2x4, etc.) whereas, hardwood is many times figured on a lower board footage count (actual dimension plus yield factor).
Are there any pallet misconceptions that you are aware of? Please share them with us by commenting below.
Post by: Rich Reiher, Vice President
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