Pallet Pals Recycling will specialize in the repair and manufacturing of wooden shipping pallets, offering new and used units to local industries. Our services will also include the delivery of products as well as the removal of old or damaged units. Custom size or load capacity specification options are also available.
We are starting out as a small operation with only the two of us until we get properly established, myself and a good friend from grade school days. Building on experience earned from the previous couple of years puttering around with a pickup and trailer after work, collecting pallets to sell at local businesses as a way to make a little extra cash. Now, we’re both interested in taking this to the big leagues. So to speak.
Why Pallets?
Well, with around two and a half billion pallets in circulation in America alone and with ninty percent of all freight goods being shipped on them it’s no wonder that this is an ever growing industry. Shipping and manufacturing rely on pallets and those who provide them in a self sustaining engine of supply and demand that only ever runs faster.
The nich we found is that most, if not all, of the local pallet companies have grown to the point that they no longer want nor even have the ability to provide services to smaller or some mid size businesses, their large multi trailer semi trucks having difficulties in the tight confienes of Portlands older industrial areas. Further compounding the issue is most of these smaller clients simply don’t have a place for such a vehicle in their lots. Lots overflowing with pallets and shipping crates…
This is where we always found great success, swooping up the stacks of unwanted pallets and then just calling up companies that follow certain criteria. They ALWAYS need pallets or pallet related services. Manufacturers, machinists, warehouses, distribution centers, etcetera. The list goes ever on and we have many previous buyers on ours that would happily buy again once we can supply properly. We just need a few finishing touches to get off this runway.
Where we are now:
Pallet Pals Recycling is already an official business in the state of Oregon! Located just west of Portland in the quiet town of Banks (Zip 97106) we have secured our LLC, EIN, Google Domain with website coming soon, Insurance, business bank account, an extensive potential clients list and a small rental lot out of which to operate. The lot belongs to an existing business under the name of Cops Towing, the owner of which is slowly retiring and has been wonderful to work with. Over the next year or so, depending on our rate of success we will be able to take over more and more of the location. There has even been talk of possibly purchasing the lot at some point in the future.
As far as assets are concerned we already possess a fairly solid foundation including a one ton pickup truck, fifth wheel trailer for transport, Second smaller trailer, forklift, air compressor, new PD200 Pallet Dismantler saw from Wood Mizer, radial saw for trimming parts and most of the various hand tools required for the breakdown and assembly process.
What we need: $15,000 - $20,000
The amount we are looking for would cover some basic needs such as securing the next few months rent of $2,500. There is one big machine expense left to cover, that being a Pallet Stringer Notcher, a decent used one is around $5,000 or about $20,000 for new. After that the next big expense would go towards some repairs for the truck; it’s old but has always been exceptionably reliable. It has several oil leaks that need to be addressed before it ever drives onto a customer’s property, ontop of that it needs fuel injectors and a few minor electrical components. Estimated at $4,500 by a local shop. After that the forklift could use a few things. Again it’s an older machine, a Clark from the eighties. Motor needs some work and the brakes need work / replaced. Around $1,000 Estimated by a local shop. Lastly would be another $500 - $1,000 for some additional hand tools and safety equipment. Additional fire eqxtinguishers, a new seatbelt equipped seat and horn for the forklift, cameras and fence repairs, a flood light. Things of that nature to improve safety, security and keep the insurers happy.
What we want: $25,000 - $30,000
Things we would like to do if we had the funds. Most of it would go towards equipment improvements such as the truck could use a paintjob and some minor cosmetic fixes, the forklift could use some new hydraulic lines and wiring work, the trailer could use a new wood deck as well as some fairly expensive modifications to convert it from a fixed beaver tail into a lowering beaver tail to prevent scraping.
The yard could use some gravel and leveling work as well as the removal of some soil left over from when a retaining wall was installed. The fence could use some work or replacement as it is old and beginning to collapse in places. The electrical in the buildings is good but could use some updating, new breakers and some outside plugs.
We need a cover for our outdoor work area to keep the sun and rain off, plus some fans / heaters as it will be busy out there year round and I would like it as comfortable as possible. I want the ability to offer all employees a full set of safety gear on us, two pair steel toe boots, lots of gloves of their choosing, ear protection, safety glasses, face shields, the works. We’re having safety vests, shirts and coats made with the logo on them. A local company just down the street is going to make us some signage for the truck and the yard gate.
Depending on what would be left over there are two main things I would like to do in order to improve company resiliency if something broke down. First would be to secure a second forklift. Is it currently necessary? No. But a second machine would eliminate the potential of our operation becoming crippled if the one lift ever goes down with something major.
The second thing would be my other truck. It is currently sitting with its engine removed and the cab removed. Long story short it’s a project I’ve been forced to sit on for a while but a few thousand would see it finished and operational again providing two trucks with similar capabilities. Just saying.
In summation, we’re not looking for anything too fancy, just a little help to get the wind under our wings. A hand to fix the things we have and a means to aquire what we don’t.
If you can help provide that I know we can make some money at this; it already did well as a pastime and I can only imagine where it could go from here.
If you still have reservations and need to see some numbers though I do have some rough figures here. Also, keep in mind we mostly remanufacture out of older used or newer broken units and we collect most of them at little to no cost.
Our original operation could collect up to 220 pallets at one time as that was the capacity of our old trailer. Depending on the quality of the pallets that would typically result in around 200 usable units at the cost of about $1 each. These numbers vary of course. We could then turn and re-sell at anywhere between $5 - $8 each. That’s also assuming they are all the standard size of 48 X 40. Some odd sizes are also worth good money but typically these are what everybody wants. Though we also have had success building large heavy duty specialty sizes.
With our current setup we will be able to process the product faster and in greater numbers. For example, our “new” trailer has a much greater capacity of 320 standard 48 x 40.pallets. 320 x say, $8? $2,560. New units can go for $20+. Three or four of those a week and you’ve got a good profitable business.
Operating costs are minimal, looking at the price of fuel to collect and then deliver which will typically be reduced by collecting while out making deliveries. The forklift burns about half a gallon of propane an hour. All of the other equipment runs on electricity and insurance is cheap because we are purposely staying below the 26,000lbs threshold of commercial vehicles.
And don’t forget, this is a green company because our largest output is recycled material. ;)
Where could this thing go in the future? Who really knows, the sky is the limit! Logan is a loyal hard working man and I like solving other people’s problems. In a market that has nowhere to go but up and with so many opportunities out there to grab I can see us growing quickly. Who knows, we could be the next A-1 Pallets or 48 x 40 Solutions.
In any event, we both really appreciate your time and thanks for the opportunity!
~Jason @ Pallet Pals Recycling