40-47%
Average cost savings switching from new to reclaimed GMA pallets
4-8 mo
Typical payback period when switching to reclaimed pallets
$43,750
Annual savings for 5K pallets/year @ $8.75 cost reduction per pallet
Calculate Your ROI
Enter your costs to compare new vs reclaimed pallet options
Volume & Mix
Purchase Price (per pallet)
Operating Costs
Repair & Maintenance
Loss & Theft
Disposal & Haul-Off
Inputs Required for Accurate ROI
Volume & mix
- Annual pallet orders (units).
- Percent requiring ISPM-15 heat treatment for export.
- Average pallet lifecycle (trips before retirement).
Cost factors
- Current new pallet purchase price (delivered).
- Reclaimed pallet quotes (Grade A or #2 quality).
- Repair/refurbishment costs per unit per year.
Operational costs
- Monthly storage cost per pallet position.
- Loss and shrinkage rates (typical: 3-5%).
- Disposal fees or buy-back credit values.
Cost Breakdown per Pallet Cycle
| Cost component | New Pallets | Reclaimed Pallets |
|---|---|---|
| Purchase price | $18.50 | $9.75 |
| Repair & maintenance | $1.25 | $2.10 |
| Storage & handling | $0.85 | $0.85 |
| Loss/theft cost | $0.56 (3%) | $0.49 (5%) |
| Disposal/buy-back | $1.50 | -$1.00 (credit) |
| Total per pallet | $22.66 | $12.19 |
ROI Scenarios
Scenario A · 5,000 pallets/year (regional distributor)
Switching from new to Grade A reclaimed 48×40 GMA pallets.
- New pallet TCO: 5,000 × $22.66 = $113,300/yr.
- Reclaimed pallet TCO: 5,000 × $12.19 = $60,950/yr.
- Annual savings: $52,350; 46% cost reduction.
Buy-back credits reduce end-of-life disposal costs by $5,000/year.
Scenario B · 12,000 pallets/year (manufacturing facility)
Switching from new wood pallets to reclaimed for outbound shipping.
- New pallet TCO: 12,000 × $22.66 = $271,920/yr.
- Reclaimed pallet TCO: 12,000 × $12.19 = $146,280/yr.
- Savings: $125,640/year; reduces working capital by $105,000.
Higher repair costs on reclaimed offset by 47% lower purchase price and disposal credits.
Sensitivity Analysis Checklist
- •Loss rate % (change by ±2 points to stress-test shrink exposure).
- •Repair cost per pallet (labor and lumber volatility).
- •Inbound/outbound freight differential for pooling depots.
- •Supplier compliance charges for late pallet returns.
- •On-site labor hours dedicated to pallet sorting and repair.
Implementation Roadmap
- 1Benchmark current pallet spend by SKU, customer lane, and damage reason codes.
- 2Segment pallets into critical specs (GMA, block, export) to identify reclaimed viability.
- 3Request quotes from at least two reclaimed suppliers plus one pooling provider.
- 4Run ROI scenarios using conservative loss and repair estimates; validate with pilot.
- 5Negotiate buy-back or loss protection clauses to de-risk transition.
Need help building your pallet ROI model?
Repackify connects you with verified reclaimed pallet suppliers, negotiates buy-back agreements, and provides data-driven cost analysis to maximize your ROI on every pallet purchase.
Related resources
Pallet Specifications & Technical Guide
Verify load capacity, grades, and ISPM-15 requirements for each scenario.
Recycling Program Setup Guide
Build downstream recycling or resale programs for retired pallets.
Sustainability Impact Calculator
Quantify CO₂e reductions and circular economy benefits from using reclaimed pallets.