Factors Influencing Pallet & Crate Price
First -- The Bottom Line
You may be a buyer whose primary concern is price. Or you may be a buyer looking for the best value. You may be looking for a supplier who can handle the tough requirements and take the worry from your shoulders. You may be looking for a relationship with a trusted supplier that's always there when you need them, providing consistent and reliable service. Whatever your focus we are here to help you achieve your objective.
Volume-Volume-Volume
Most common size pallets can be produced on automated equipment. It takes time to configure the machinery for a specific order......so the more you order at one time the less impact that configuration time has on the price
Dimensions--Dimensions--Dimensions
Believe it or not, depending on the size you order the amount of unused material generated can vary between 10% and 50% of the lumber in the pallet. We have to charge you for the unused material....it's a cost of doing business. So if price is your main concern and you can be a little flexible on size we can often save you money by shifting to a size with a higher lumber yield.
Size--Size--Size
Many odd-size pallets can only be assembled by hand. That costs more than automated methods. Since we specialize in custom work at least 70% of the pallets we produce are built by hand.
Tolerance--Tolerance--Tolerance
When working with green hardwoods the wood tends to shrink quickly as it dries. A pallet can easily shrink by as much as 1/2" as the wood dries. If you have exact dimensional tolerances we have to anticipate the shrinkage and actually make the pallet a little larger to start.
Softwood (common construction lumber) is dry when we receive it so shrinkage is not usually a factor. But setting up machinery and cutting for exact tolerances takes a more highly skilled worker. That adds to your cost and ours.
How we Keep Costs Down
"This is not your ordinary pallet company"
At Portland Pallet & Crate we run a tight ship. We know the exact cost of every operation, including labor, materials, and overhead. We know how much waste is produced in each order. We know the most cost efficient use for that waste and how to minize it.
One of our secrets at Portland Pallet & Crate is our Lean Manufacturing process. Lean Manufacturing keeps the cost of inventory down and our docks clear of unsold product. We work with a commited group of suppliers that provide what we need when we need it. Raw lumber received from our suppliers is typically out the door as product within 2 days or less.
Manufacturing wood products creates wood waste in the form of scrap and sawdust (wood fiber). Portland Pallet & Crate sells scrap and sawdust to local companies who recycle these products. Scrap and sawdust don't have the same value as lumber but it does keep our waste out of landfills and the small revenue helps cover our overhead.
We work on quality at every step in the manufacturing process. Quality control keeps customer issues and returns to a bare minimum.
Our workers participate in an incentive program that gives them extra pay in return for higher output. The result is a motivated work force and higher productivity.
Machinery, truck and facilities need constant care to keep running smoothly. We have an extensive preventive maintenance program that aims to preserve our investment while minimizing any lost time due to machinery downtime. In addition, we employ skilled workers who can perform 95% of the maintenance without outside contractors. As an example, a recent 2400SF addition to our building was constructed entirely by our own workers. They are an amazing group, for sure.