7 Factors That Affect the Price of Your Wooden Pallets

I get it. But pallet prices are influenced by a bunch of different factors you probably haven’t considered before. Let’s break them down for you.

1. The Price of Lumber and Nails

A major element in determining the price of any product is the cost of raw materials it’s made from. For pallets, that’s primarily wood and nails. Both lumber and steel (which nails are made of) are commodities. Like any other commodity, their prices can be affected by any number of factors like supply and demand, tariffs, government regulations, weather, economic conditions and more. For lumber, pallet price is also impacted by quantity of lumber needed, which is usually determined by the size and type of the pallet being built. Obviously, bigger pallets require more lumber. But pallets can also come in a variety of designs (for example: block pallets, stringer pallets, wing pallets, solid deck pallets, double face pallets). Each pallet type has a custom design, requiring varying levels of lumber and nails to build.

2. How Much Labor is Needed

Some pallets are built by hand , while others are built using machines . The more custom a pallet is, the more labor intensive the build will probably be, and that has to be factored into the overall cost.

3. Order Size

If you’ve ever shopped at Costco, Sam’s Club, or any other warehouse store, you already know that buying in bulk can be a big money-saver. This is true for pallets as well – they usually tend to be cheaper when bought in larger amounts. It makes sense, if you think about it. To build a higher volume order, workers basically set up an assembly line and start churning them out. Each person does a specific part of the assembly and then passes it to the next person in line. It’s quick, efficient, and spreads the labor expense over a longer period of time which in turn lowers the per pallet price.

4. Shipping

While shipping technically isn’t part of the pallet production process, it definitely contributes to the overall price . It’s another one of those pricing components that can be impacted by several different factors like fuel costs, driver shortages, shipping distance and volume shipped.

5. Heat Treatment

Pallets shipped internationally require heat treatment to kill and bacteria and pests that may be on them. This involves placing the pallets in a kiln and heating them to 140 degrees for 30 minutes. Heat treating usually adds anywhere from $1.00 - $2.00 per pallet to the overall price.

6. Overhead Expenses

Like many other businesses, pallet builders have overhead expenses like rent (or property taxes), insurance, employee salaries, and utilities. While these expenses may seem minor, they still play a role in pallet pricing.

7. When You Buy Them

The time of year you buy your pallets definitely has an impact on the overall cost of your pallet order. For example, demand for pallets increases significantly around the holidays and during seasonal harvests. More stuff being shipped leads to a bigger need for pallets and as a result, prices tend to go up. -------------- Thanks for checking out our post! While it may seem like pallets are simple products, there’s a lot more that goes into making them than just wood and nails. Whether you need new, used, or custom wood pallets, The Pallet Pro has you covered. We’re an Orlando-based pallet supplier, and love helping Central Florida businesses like yours get the pallets you need to ship your products safely and quickly. Contact us today!

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