How to Make Money Selling Used Wooden Pallets
Are you looking for an innovative way to make some extra cash?
Do you want to find a side hustle that has the potential to develop into a full-fledged business?
Selling used wooden pallets might be for you.
Though it may seem random, this process has helped make several individuals serious money.
And it can work for you, too.
If you’re wondering how you can get started in this lucrative field, we’ve got you covered.
Our comprehensive guide below will walk you through everything you need to know in order to get started selling wooden pallets for a profit.
Even if you don’t know the first thing about this business, don’t worry.
We’ll make sure that you have the knowledge it takes to start selling pallets in no time—even if you don’t know what a pallet is now.
Remember to follow this advice carefully and adapt it to your current situation for maximum benefits. And don’t forget that if done right, this can become a serious business in and of itself.
What Are Wooden Pallets?
Before you can start breaking the shackles of a 9-5 job life by selling wooden pallets, you’re going to have to know what they are.
Wooden pallets are used by manufacturing companies to transport products.
Large quantities of product are put on these pallets and are then transported by forklift to other areas of the warehouse or loaded onto trucks to be delivered elsewhere.
Pallets offer incredible convenience in product transport and delivery, but once they have been used, it’s often the case they can’t be used again.
Because the weight of the products can be so heavy, many of these pallets break under the pressure. Unskilled forklift use also helps damage pallets, making them unfit for repeated company use.
When this happens, these pallets will likely accumulate in a business’s warehouse or outside its doors until it they’re busted up and thrown away.
This can be a lengthy and costly process for businesses, as their employees have to take time from important work in order to discard of these pallets.
Additionally, what most businesses don’t know is that it can even cost them thousands in potential earnings.
Several companies exist that buy and recycle old pallets—meaning that this could be a goldmine for forward-thinking businesses.
Because these businesses recycle these old pallets, it’s also good for the environment—making it a popular choice for some companies.
The truth is, however, that many businesses have yet to buy into these effective services.
Instead, they are left dealing with unnecessary pallets littering their warehouses and walkways.
This is where you can come in.
By being able to take these pallets off business’s hands, you can start turning a profit for yourself. Once you’ve collected enough pallets, you’ll have a supply of profitable material of your own.
This means that you can locate a pallet recycling company and start making serious money. And because businesses are getting new pallets in every day, you’re sure to have a constant stream of materials coming your way.
Learning how to take advantage of this process, however, isn’t easy.
Keep reading below to see how you can start making money from collecting and delivering others’ wooden pallets.
If done right, you can even develop this into a profitable business of your own.
Who Buys Wooden Pallets?
Before you get started, you’re going to need to know who, exactly, is willing to buy wooden pallets.
Chances are there’s a company in your area.
But you’re going to have to know where to find them.
Your best bet is to search for pallet recycling companies in your area. You can check the local phone book or do an online search to find the right company for you.
Because there might be several in the area, it’s important that you don’t simply choose the first one that you see.
Get an idea of what they will pay you for the different pallets that you bring in. You’re going to want to choose the one that will bring in the most money.
There are several factors that may affect how much a company is willing to pay you for a pallet, including:
- Size—Larger pallets will typically bring in more money. Though this may seem like a no-brainer, it can actually get quite complicated. Generally speaking, however, you can expect to get more money for a larger pallet in good condition than a smaller one in a similar condition.
- Condition—Which leads us to the most important determinant of how much you’re going to get paid: the pallet’s condition. Pallets that are still in fairly-okay shape can be repaired and sold again for reuse. This makes them worth a lot more to recycling companies than those that are in bad shape. Don’t get discouraged, however, as these pallets can make you some extra money, too. Many recycling services will offer lower rates for pallets in bad condition—and some will even pay you so that they can turn them into mulch.
- The Number You Have—While this doesn’t determine how much you will get paid per pallet, it’s a safe bet that the more pallets you can bring in, the better. Though it stands to reason that a shipment of good-condition used pallets will make more than that with a mixture of good and bad, you can be fairly certain that you can get more money with more pallets. This means securing more clients can help you gain more traction to starting a business of your own.
With this information in mind, you can start to get a better idea of how much you can make per haul. You may even find that once you’ve gotten into the swing of things that you can predict how much you’ll get with each delivery.
You recognize, for instance, that pallets from one client generally bring in more money than those from another, giving you a better eye for which business is best for your bottom dollar.
By playing your cards right and being open to accepting challenges, you can quickly grow this into a sizeable and profitable operation.
By effectively becoming the middle man in the situation, you’ll position yourself in a money-making sweet spot. Because both your clients and the recycling companies will depend on you, you can be sure to make a good profit provided that you have good business practices.
With this in mind, let’s examine what else you’re going to need in order to get started making money by selling used pallets.
What Do You Need to Get Started?
Before you can get started doing this, however, you’re going to need a few things.
First, you’ll need to make sure that you have an appropriate plan.
Second, you’re going to need the right equipment.
Therefore, planning to have the right equipment should be at the top of your priority list.
Without the right tools and vehicles, you’re going to be unable to transport any real volume of wooden pallets.
With standard pallets being 48”x48”, you’re going to have a tough time fitting them into a regular vehicle—even a truck.
With that being said, it’s important that you look into securing a vehicle that will allow you to transport a high quantity of wooden pallets.
If you’ve not got the income for such a vehicle, it may be possible to store some pallets in your current car or truck—preferably a truck.
You must keep in mind, however, that if you go this route, the number of pallets you’re going to be able to deliver will be low, so you’re going to have to make multiple trips to get a real profit.
This will eat time and gas, cutting into your profit margins.
Still, if you’re unable to obtain a better vehicle at first, don’t let this put you off. If you’re just looking to make some money on the side, this should do more than enough.
And if you’re looking to go even further, you can use this income and experience to help you get a proper vehicle in the future. By laying the foundations for your business here, you’ll be able to make sure that you’re getting off on the right foot.
By knowing just what type of vehicle you’re going to need to do this professionally, you’ll be better equipped as you look to enter this business on more solid footing.
If you do plan on going professional, however, it’s generally recommended that you obtain a vehicle that can accommodate the size and the volume of the pallets that you’re transporting.
It’s also important that you don’t damage the pallets even further during transport, as this can cost you money.
Some suggest that in order to combat this, you build walls around your vehicle in order to protect your cargo. Stacking them vertically in a truck bed may also be an option—and if you’ve got a trailer that you can pull, you can load them there, too.
By taking the steps to secure proper transportation, you can begin a professional career in selling used wood pallets.
As your business begins to take off, you might even look into securing commercial-grade vehicles that will allow you to safely transport a massive number of wooden pallets at a time. Though this is quite an investment, it will prove to boost your profit margins over time.
What Steps Should You Take to Make Money?
What other steps should you follow in order to start making real money by selling used pallets?
For starters, once you’ve found the recycling company and vehicle of your choice, you’re going to need to find clients.
If you live in a high-manufacturing area, you shouldn’t have any problems finding companies that will be more than happy to get their used wooden pallets off their hands.
Just make sure that you’re presenting yourself well when you make your offer.
Because you’re getting paid for their materials, it’s probably your best bet that you don’t charge the business.
In this way, you provide a free service that’s hard for them to turn down.
Once you’ve got your foot in the door with one business, it will be easier to get others to follow.
For this reason, you may want to start with the biggest business in your area. If you can secure them as a client, you can be sure that others will want your services, too.
Be sure to present yourself professionally and be able to sell your service to businesses without a hitch.
If you’ve never sold anything before, you might want to consider practicing in the mirror or by yourself so that you can make a more confident pitch.
Remember, you’re selling points are:
- You will remove their used pallets for free
- You will save the company time and money
- You will free up the time their employees spend doing this work
- You won’t come with any cost
By making sure that you’re selling these points to manufacturing businesses, you’ll find that you will get more clients than you thought possible.
Some businesses might want to see the equipment you’ll be transporting it in. If that’s the case, it’s better to have viable transportation early so that you can secure more clients.
Make sure that you sell yourself confidently so that you can get your new business off the ground.
What If You’re a Business Owner?
If you’re the owner or manager of a manufacturing plant, you can get started saving your company money by recycling your wooden pallets, too.
You can cut the middle man and go straight to the recycling company and get paid for your used pallets.
In this way, you’ll be able to enjoy all the great benefits of a recycling service and get paid to do so.
By taking advantage of these great opportunities, both businesses and individuals can start turning greater profits by selling used wooden pallets.