I’ve been doing a lot of research into the wooden pallet market, and the business model behind collecting unwanted used pallets from companies, and then selling them directly to other companies who need them.
From what I’ve gathered, I’ve figured that the hardest part of the business is finding actual customer businesses who will buy these pallets off of you. Pallet yards will always buy off of you, but they pay rates so low that it wouldn’t be worth it, because they would effectively be your middle man between you and customer businesses who need pallets, where these pallet yards would then sell directly to companies at the attractive rates. The other hard aspect of this business, which goes hand in hand with finding customer businesses, is actually competing with the already established pallet yards who can handle a much higher volume of pallets.
Now here’s where my scam radar is going off. I’ve come across a few YouTubers filming themselves doing this, and then trying to sell an online course about this business model teaching you how to do it. If I see someone online showcasing their business, and then selling a course about it, I just automatically assume that the actual business model it’s self isn’t as good as they make it out to be, hence the fact they’re selling a course. They’re advertising the fact that they make over 1k a day, doing it a few days a week.
I know that actual profit will entirely depend on the condition of the used pallets, and with a full truck of hundreds of pallets, if you are profiting atleast £/$3 per pallet, with volume in the hundreds, then sure in theory you’ll be making a good profit. I just don’t know if that is very unrealistic, partly because people selling courses is a giant red flag for me.
My main questions about the business model now is
-Can you actually collect decent condition used pallets for a max of 2.50 per pallet
-Do companies actually buy good condition used pallets for £/$6+?
If they do, will they actually buy these in high enough volume amounts, in the hundreds for example
-Would these companies actually be willing to buy from me, instead of buying from a pallet yard who can offer the same thing, but in higher volume?
I have been saving for some form of business venture attempt, and I have my HGV license (CDL equivalent in the U.K.), and I have experience in the haulage industry. I am willing to cold call hundreds of businesses, and walking in and talking to them face to face, I just wanted to ask here first.
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I know someone that used to do this. They got huge amounts of broken pallets, fixed them, and resold them. It’s hard work fixing pallets all day long though
Would these companies actually be willing to buy from me, instead of buying from a pallet yard who can offer the same thing, but in higher volume?
That’s where saying the word “entrepreneur” turns out not to be all there is to becoming one. The answer is going to be “no” until your ingenuity comes up with a very good reason for the answer to be a “yes.” It’s called competition, cupcake.
You don’t get the customers the internet owes you just for showing up in a browser. Something a lot of people who “just did it” were horrified to discover.
Finally, people will ask is something “possible” here. The correct word – for businesspeople and for real entrepreneurs – is probable. You put the odds on your side or they automatically stack up against your success. It’s that simple.
I’d mention development of a USP but who would I be kidding with something about business in a wantrepreneur forum.
Damn … that sounds suspiciously like work.
I operate a pallet yard. People do what you are describing. If you can get some good sources and customers its very viable.
Don’t plan on delivering when you feel like it or just moving pallets from one place to another. Most businesses expect you to deliver on demand and send them straight stacks of good condition pallets.
I charge $9-12 each for a full truck load, delivery included