A Discussion Pallet Buyers Should Have with Their Supplier
Over the past several months I have been spending a lot of time with pallet buyers. Most of these conversations started about pallet pricing. During my interactions, I gained a better understanding of what is important to companies that use pallets. And, in turn, I was able to explain the challenges facing pallet businesses and external factors impacting the pallet market. The discussion for both sides was extremely helpful, which is why I would like to share some of it here on our blog.
Supply & Demand
Both the new and used pallet markets have had price pressure and lumber supply issues. I was surprised that most decision makers were unaware of the complexities of the pallet marketplace. By exchanging information and being transparent about the issues facing the industry, pallet buyers acknowledged the importance of allowing more lead time when ordering.
While Rose Pallet is proud of our 97% on-time delivery record, we face challenges when supplies are low and demand is high. Obviously when supplies are tight, “just-in-time” delivery isn’t always possible. A production line that runs out of pallets, for example, won’t be able to ship finished goods and sometimes is forced to shut down the entire production process. As a result, we have advised clients to carry an extra supply of pallets. Our goal is to help clients prevent supply issues through open communication and working together on alternative solutions. It’s a team effort that creates more than results, it also fosters loyalty.
Lumber, transportation, and even the price of nails have risen, which drives up the cost of pallets. Pricing is never a fun topic to discuss, especially for companies who work on fixed budgets and low margins. But, as president of Rose Pallet, I feel it’s important to reveal information about our direct raw material costs. When everyone is dialed in, buyers understand fluctuation in price.
Rose Pallet is grateful for our client relationships and the opportunity to assist organizations for the long haul. Whatever challenges the market may bring, we promise to always deliver strong communication, a high level of service, high-quality pallets, and fair pricing. If you’re reading this and you’re not working with Rose Pallet, I invite you to give us a call so we can start a discussion with you, too.