When building a puzzle, every piece has a place. Your warehouse or trucking company resembles a puzzle, an organized assembly of important parts. Discovering which parts are best for your company and provide an excellent ROI is important. What trucks do you drive? Which storage racks are utilized in your warehouse? Do you use wood pallets or plastic? If you’re using wood, are you contemplating switching to plastic? By examining both wood and plastic pallets in honest comparison, you can determine a true ROI for your pallets – a simple, important piece to your puzzle.
Pros: At least in the short-term, wood pallets are more cost-effective than some plastic options. They are durable, supporting and transporting large loads. If broken or damaged, they can often be repaired instead of replaced.
Cons: While certainly strong, wood pallets are less durable than plastic and readily experience damage in a variety of ways. Compared to plastic, wood pallets also pose safety hazards. Wood pallets can easily break or splinter and can even warp in moist weather. They are also prone to fungal and bug infestations. They must be stored in a dry, cool environment and can be challenging to clean. Sanitation, of course, is an important step before transporting any items with hygiene concerns. This limits the applications that wood pallets can be utilized for. Finally, wood pallets are significantly heavier than plastic, increasing travel costs, risk of injury, and negativity in the workplace.
Pros: Plastic pallets are more durable and long-lasting than wood pallets. This means that, while the immediate investment can be greater than that of wood, the long-term investment is more cost-effective. All the damage that wood pallets readily receive is nonexistent for plastic pallets. Splintering and warping are no longer serious safety concerns. Fungal and bug infections are absent. Plastic pallets are easy to thoroughly clean and sanitize, are lighter than their wooden counterparts (reducing travel costs), and are recyclable.
Cons: As mentioned, plastic pallets can have a higher upfront cost than wood pallets and are more difficult to repair.
Determine a True ROI
Facts are helpful. Pros and cons lists can assist in decision making. But tried-and-true numbers can be even more convincing when determining a true ROI. Therefore, let’s use a simple equation that will be useful in numerically determining a return on investment. The basic ROI equation is ROI = (Net Profit/Cost of Investment) x 100. With a bit of customization, this calculation can help demonstrate the true ROI of plastic versus wood pallets.
Plastic pallets range in price from about $7 to about $150, typically depending on the quantity purchased and the durability or type of pallet. Generally, plastic pallets can last for up to 10 years, or about 250 trips. Wood pallets range in price from about $6 to $25, once more depending on the variation of pallet chosen. Generally, these last for about 6 trips. For our calculation, we will substitute Net Profit for the number of trips and Cost of Investment for the average cost of the pallet.
Wood Pallets: ROI = (Number/Average Cost) x 100. ROI = (6/17) x 100 = 35.29
Plastic Pallets: ROI = (Number/ Average Cost) x 100. ROI = (250/79) x 100 = 316.46
This simple calculation assists in demonstrating the true ROI of plastic pallets versus wood pallets. Without a question, the ROI is significantly greater for plastic pallets.
Which Plastic Pallet is Best for Your Business?
Now that the ROI of plastic pallets has been determined, you may decide to switch from wood to plastic. But which should you choose? Plastic pallets come in many varieties. Understanding the basics of each variation will help you determine which is best for your company.
- Economical Pallets: Economical pallets are budget-friendly. Because they are more inexpensive, they serve as an excellent choice for companies looking to “test the waters” before making a final change from wood to plastic pallets. Like most pallets, economical pallets come in many sizes. Finally, they feature a low tare weight. If you’re looking for pallets for air cargo or one-way shipping, economical pallets are an excellent option.
- Nestable Pallets: Nestable pallets are excellent for saving space. Because they stack, transport costs and storage fees tend to lessen. Reduced storage space does not equate to poor quality. Nestable pallets can be durable and perfect for transporting heavy loads. Nestable pallets are often utilized in distribution or retail centers, factories, and warehouses.
- Rackable Pallets: As the name implies, rackable pallets are perfect for racking systems and heavy loads. These pallets are resilient and strong. Once more, rackable pallets are typically utilized in storage environments, distribution centers, warehouses, and anywhere large racking systems are used.
- Export Pallets: Looking for a pallet suitable for long-distance transportation? Something durable and cost-effective? Export pallets are a great choice. They are both durable and budget-friendly, are often made from recycled plastic, making them ecological.
- Used Pallets: Used pallets are an extremely cost-effective option for any company. While sometimes limited in availability, consistently keeping tabs on a used plastic pallet seller is worth the savings.
Your Plastic Pallet Resource: Plastic Pallet Pros
Plastic Pallet Pros is dedicated to providing effective pallet solutions that are cost-effective, durable, and worthwhile. At Plastic Pallet Pros, we sell a wide variety of pallets, from economical and nestable to hygienic and used, ideal for any application. Don’t see something perfect for you? We can build custom plastic pallets as well! Simply, get in touch with one of our professionals to begin a conversation. Lastly, do not hesitate to negotiate with our prices; we strive to sell at a fair price to any buyer. To consult a pro about your plastic pallet needs, contact us today!