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Factors That Affect Pallet Prices<br><br>In light of the myriad of factors that influence pallet prices, it's important to understand why the question "how much do pallets cost?" is so difficult to answer.<br><br>Many factors contribute to the cost of pallets, for instance, whether they're new or used, whether they are made of wood or plastic and how often they will be used. The function of the pallet will also help determine which material is best suited to meet your needs.<br><br>Cost of Lumber<br><br>The cost of lumber is the single most significant factor that determines the price of pallets. Pallet producers purchase wood by the foot of a board, and even small variations in lumber costs could influence prices. Pallet companies that purchase lumber in large quantities typically get better prices and lower costs. Costs are also affected by the kind of wood used to make pallets. Most pallets made of wood are made of southern yellow pine. However, buyers who wish to reduce their shipping costs can opt for hardwoods.<br><br>The size and dimensions of the wood used to build a pallet, as well as the type of wood utilized, can affect the price. For instance larger boards, such as stringers and blocks require more components to construct pallets than smaller ones. This could result in an extra cost to the customer.<br><br>As the e-commerce industry rebounded in 2021, the prices of raw materials began to fall, but pallet prices did not fall in line with. The ease of online shopping was a major draw to consumers during the pandemic. A few have returned to their old routine of shopping. This has kept the demand for pallets rising and prices volatile.<br><br>It's also more expensive to build a new pallet than to use recycled pallets. When a pallet manufacturer creates a new design for their pallets, they must hire employees to construct the initial batch of pallets, and then train those employees how to build additional pallets in the future. While this is a necessity expense for a business, it increases the overall cost per pallet that the company has to pay to operate its factory.<br><br>Pallets must be transported to the warehouses of customers from the manufacturing facility. The cost of fuel, distances to shipping and availability of drivers can significantly impact transport costs.<br><br>When the pallets are delivered to the customer's premises after which they have to be cleaned and inspected before they can be used to ship products back out again. 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This is especially true if the pallet manufacturer purchases its materials directly from lumber producers which often use different grading standards than the average lumber purchaser. For instance, lumber graded for construction or furniture typically has a superior quality than the industrial grades used for the manufacture of pallets.<br><br>The cost of pallets is also affected by regional variations in the prices of pallets. While softening lumber and transportation costs have improved overall pricing for pallets, a lot of regional companies are still struggling to stay competitive. This is due to the fact that they're still not fully recovered from the price hikes last year.<br><br>Buying pallets that are built using top-quality raw materials can save companies money over the long term. 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