Choosing the right pallet or pallet box will reduce costs and grow profit
Evaluation into the true cost benefits of a paper pallet
We were asked recently why our customers choose our Pallite® pallets and pallet boxes over their incumbent choice (usually wood). It’s a hard question to answer in one go. Why? Because for many of our customers, it appears to be for very different reasons.
Very rarely do we respond to that question with the answer “because it saves them money”. But should we?
Our pallet range is comparable and often cheaper when compared to wooden pallets that have been heat treated. Our pallet boxes are certainly cheaper when compared to wooden crates, so for those customers, it’s a logical choice.
But often we have customers who have made the choice to move from a cheaper wooden pallet or a cheaper cardboard pallet box. Price isn’t the obvious reason – so why have they moved and how has that decision saved them money? David Rose, Pallite®’s sales director explains two of the reasons.
IT DOESN’T CONTAMINATE
Pallite® have food ingredient and pharmaceutical customers who were getting issues with their products getting contaminated from splinters and nails. This was costing them money to compensate their end customers, replace lost stock, time to investigate, add protective sheets between the wooden pallet and their load, etc. Pallite® products are made from paper and glue. Nothing there to taint or damage the load it is carrying and immediately negates those adjoining costs – cost analysis for these customers shows it saves them money and raises their profit margin.
THE PALLET WEIGHS FROM 5KG
Many Pallite®’s customers were using wooden heat-treated pallets for airfreight. For many airfreight loads, the cost to fly is linked to the weight of the load. This weight includes the weight of the pallet. “I was with a customer in December and asked him how much he thought his wooden pallet weighed.” Rose explains. “10-12kg came the reply. I suggested it was more 20-25kg”. The customer weighed the pallet. 24kg. “He was shocked. It’s easy to forget about the cost of the pallet and just focus on the load weight” continued Rose.
He was charged £1.50 per kilo by the airline. The Pallite® airfreight pallet that would have been suitable for his load weighed 6kg and would cost him a similar amount (£6-£7) to his wooden heat-treated pallet. Moving to a Pallite® saves his business £27 per load.
AND THERE’S MORE
When we explore some of the other reasons for change, cost saving or wanting to make more profit comes back as the root cause.
No nails / splinters – Less work place injuries and time off work/compensation
No nails sticking up – Saves product damage
Recyclable – Generates revenue
Less susceptible to mould compared to wood – less product damage and loss
More protective than cardboard – saves product damage
Lighter than wood – reduces transport costs
Stronger than cardboard – ability to double stack and utilise space
Bespoke sizes – Maximise space for airfreight
IMPRESS YOUR FINANCE DIRECTOR
If a business is looking at a way to save money and increase profits in 2017, don’t just look at the unit cost of your pallet or pallet box. Consider the other benefits and see what that might deliver to your business bottom line.
“We’re here to help and we love helping customers save money. We’re also a friendly bunch so if you wanted to contact us, maybe we can help you be your finance director’s best friend!” Rose concludes.
The Pallite® brand is part of The Alternative Pallet Company’s portfolio, a British based manufacturer.