Sometimes customers get sticker shock when they hear of a pallet costing $60, $70, or $125. This initial cost must be ignored.
The return on investment must be the priority. For instance, a $70 plastic pallet that lasts for 3 years in an operation is far cheaper than a $6 wood pallet that lasts for 3 weeks, and payback is received in approximately 8 months. These types of plastic pallets are purchased because internal operations are looking at cost reduction strategies.
We usually call these types of pallets reusable pallets
, distribution pallets, racking pallets, warehouse pallets, captive pallets, and so on. The plastic material, design, and processes for these pallets are different than those for single use pallets
, because the pallets have to be stronger and more durable to yield an effective ROI.
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Go to Part 3 in this series.
Read about Pallet Materials and how you can avoid a common mistake!