The growth in construction volumes causes demand not only for building materials, wood products, etc., but also a growing need for packaging and containers. One of the most common types of “packaging” used in the transportation of various objects, as well as in construction, are wooden pallets. Therefore, in this article we will consider some issues related to the compilation.
The production of packaging products is sometimes more profitable than the production of the goods for which this packaging is produced. But as in any business, a number of questions can arise when starting a pallet manufacturing business. It is important to foresee them at the planning stage.
Key Features of a Pallet Manufacturing Business Plan
Pallet production planning
When deciding to start a new business, you should carefully analyze all aspects of this case. Analyzing the market situation, identifying the “pain” (a problem that needs to be solved) of the consumer, developing your own strategy - all these are necessary steps in compiling business plan For pallet manufacturing companies.
Moreover, project planning will show the prospects for creating an enterprise, as well as help develop a business development strategy. It is important to support all the conclusions drawn with reliable calculations.
Description
Files
Activities of a pallet manufacturing company
The main purpose of organizing such an enterprise is the manufacture of wooden pallets (pallets), which have a wide range of applications. Wooden pallets are actively used as "packaging" for the transportation of equipment and other goods. Recently, the trend has been the manufacture of furniture and various interior elements from pallets.
Simplified, the activity of the enterprise is as follows:
- Purchase of raw materials (boards or raw wood);
- Receipt of finished pallets and their further implementation.
The attractiveness of such production lies in the fact that the manufacture of products is carried out from only one type of raw material, which does not require complex processing.
IN pallet manufacturing business plan it is also necessary to highlight issues related to the sale of products. It is better to sell products directly from the enterprise - that is, through retail sales. Although it is also possible to conclude supply contracts with construction markets and supermarkets. It all depends on the specifics of the sales markets and the characteristics of the products.
1 - Summary
1.1. The essence of the project
1.2. The amount of investment to start the production of pallets
1.3. Work results
2 - Concept
2.1. Project concept
2.2. Description/Properties/Characteristics
2.3. Goals for 5 years
3 - Market
3.1. Market size
3.2. Market Dynamics
4 - Staff
4.1. staffing
4.2. Processes
4.3. Wage
5 - Financial plan
5.1. Investment plan
5.2. Funding Plan
5.3. Pallet production sales plan
5.4. Spending plan
5.5. Tax payment plan
5.6. Reports
5.7. Investor income
6 - Analysis
6.1. Investment analysis
6.2. Finance. Analysis
6.3. Pallet Manufacturing Risks
7 - Conclusions
The business plan for the production of pallets is provided in MS Word format - it already has all the tables, graphs, diagrams and descriptions. You can use them "as is" because it's ready to use. Or you can adjust any section for yourself.
For example: if you need to change the name of the project or the region where the business is located, then this is easy to do in the "Project Concept" section
Financial calculations are provided in MS Excel format - parameters are highlighted in the financial model - this means that you can change any parameter, and the model will automatically calculate everything: it will build all tables, graphs and charts.
For example: if you need to increase the sales plan, then it is enough to change the sales volume for a given product (service) - the model will recalculate everything automatically, and all tables and charts will be ready immediately: monthly sales plan, sales structure, sales dynamics - all this will be ready .
A feature of the financial model is that all formulas, parameters and variables are available for change, which means that any specialist who knows how to work in MS Excel can adjust the model for themselves.
Rates
Feedback from our clients
Feedback on the business plan for the production of paving slabs
The purpose of planning was, on the one hand, to attract funding, and on the other hand, we also wanted to have a clear picture of how we would develop. In the end, I liked the plan. In the business plan of the paving slab production workshop, I liked the financial model, I liked that it was convenient to use, it was easy to adjust it for myself, there were no questions about it in the bank either. So far, a loan of 19 million has been received. rubles. Thank you! This result was obtained, including with your help. Good luck!
Maksimov K.O., Nizhny Novgorod,
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To expand production, we needed to attract investors. More precisely, we had our own investor, but in order to work with him, we needed a business plan. Representatives of the site company provided us with invaluable assistance in compiling this document, as a result of which the investor was satisfied with the quality of the business plan. We received investments in the amount of 40 million rubles for the purchase of new equipment.
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We were satisfied with the business plan of the concrete plant. All formulas are easy to use and very simple, all explanations are clear, and any changes can be made to the finished model. In fact, this is the first business plan that has proven to be user-friendly and clear to understand.
M. L. Ivanova, Financial Director, OJSC "World of Construction"
Drawing up a business plan for the production of pallets
Market analysis of paving slabs
In general, the situation in recent years is favorable enough to open a business for the manufacture of wooden pallets. In addition, consumers of such products can be a variety of organizations and trading companies.
Until recently, the main competitors were foreign pallet manufacturers. However, domestic enterprises can compete with foreign ones due to the lower price (savings in import duties and shipping). At the same time, the production technology does not require high-tech equipment, which makes it possible to manufacture products at the quality level of foreign analogues.
At the same time, one should not forget about the analysis of regional competitors and consumers. Although the market capacity is quite large and, most likely, the product will find its consumer, it is better to carefully evaluate everything at the planning stage.
You can expand production volumes and increase the sales market if you launch an additional related direction for the production of sawdust pellets. will help you understand all the nuances of this case.
Production registration
When creating an enterprise for the production of pallets, it is necessary to register it. To do this, you can register as an individual entrepreneur or as a limited liability company. At the planning stage, keep in mind that you will have to spend time providing all the documents - to the tax office; to the Pension Fund and the Social Insurance Fund, open bank accounts, obtain other permits - conclusions from the labor protection inspectorate, fire safety, etc.
Production areas and equipment
At one of the first stages, you need to decide on the location of the company, select the necessary equipment, in accordance with the dimensions of which determine the size of production and utility areas.
To save money, production facilities can be located outside the city or in an industrial area, where the cost of rent is several times lower. Since raw materials and finished products are quite large, care will have to be taken to provide sufficient space on which to accommodate:
- Manufacturing facility;
- Warehouse of raw materials;
- Finished goods warehouse;
- administrative premises;
- Utility rooms.
IN production business plan pallets you need to specify the characteristics of the equipment used. The main equipment will be a production line with a nailer. As additional equipment you may need:
- Hydraulic conveyor;
- Corner framing machine;
- Milling machine.
The final list of equipment, as well as the main categories of personnel, will depend on the production program and staffing of a particular enterprise. At the initial stage, the following specialists will be enough:
- Manager;
- Production line operator;
- Handymen
- movers;
- Security guard;
- Other auxiliary workers.
Investment Calculations in a Pallet Manufacturing Business Plan
The main calculations depend on technological solutions and the production program of a particular enterprise, therefore it is usually difficult to designate a single structure and give specific figures for the necessary investments. But on our site you can download a sample pallet business plan, the financial model of which will automatically calculate all the necessary indicators, depending on the characteristics of your project.
- Equipment - xxx r.
- Premises (rent) — xxx r.
- Purchase of raw materials - xxx r.
- Working capital - xxx r.
- Marketing - xxx p.
- Unforeseen expenses (10%) - xxx p.
ABOUT It is rather difficult to name the total amount of investments, since the final figures depend on many factors. But it usually takes a lot of money to start a serious enterprise - about50 - 150 million rubles.
Operating costs in the production of pallets
In addition to investment costs, any business also has operating costs associated, as a rule, with the purchase of raw materials and the payment of wages. Their approximate structure for a pallet manufacturing firm is as follows:
- Rent - xxx r.
- Salary - xxx p.
- Raw materials - xxx r.
- Utility payments - xxx r.
- Depreciation - xxx p.
- Taxes - xxx r.
- Other expenses (10%) - xxx r.
- Total operating expenses for the month - xxx p.
The total costs will be made up of investment and operating costs.
Project income
Income items will also depend on a number of factors. Among them are the elasticity of demand, competitors' strategies, market capacity, production scale, assortment.
In the case of the production of pallets, income generation is possible mainly through the sale of standard pallets in accordance with domestic GOSTs. Further, with the expansion of the production program, income is possible from the sale of the following types of products:
- Euro pallets;
- Europallets;
- Cargo pallets.
Sales of products are possible through different distribution channels - retail sales from a warehouse, the conclusion of contracts with construction markets or companies.
The planned revenue from the production of pallets for the xxx period will be xxx thousand rubles. This value is calculated based on the average prices in Russia per unit of product, which for the period xxx amounted to xxx rubles.
The average payback period for such production will be approximately 3-5 years.
The business plan has a clear structure, contains detailed financial calculations, and the financial model allows you to flexibly change any business parameter. This is the best solution for those who plan to attract investments, want to get a loan or have a ready-made template for developing their business plan.
Why do you need a professional development of a business plan for a pallet manufacturing company?
Launching even a production that does not require special technology is always a risky and responsible undertaking. Before proceeding to the registration of an enterprise, it is necessary to plan and calculate everything. The correct preparation of a business plan will save you time and money, as well as attract investment and credit resources. For example, on our website you can download a sample of the finished pallet manufacturing business plan. This business plan provides a clear structure of all the necessary sections and a financial model that allows you to automatically calculate all investment indicators. In addition, with the help of a professionally developed business plan, it is easier to convey the idea of the project to the investor, to convince him of the expediency of investing in your business. You can also order the development of an individual turnkey business plan, taking into account the characteristics of your business, by clicking on the link below.
Thus, the production of pallets is a profitable, relatively new and low-tech undertaking. But the success of the activity will depend on a reliable analysis of the market and a competent strategy of the enterprise.
In this material:
The profitability of pallet manufacturing as a business today is very high. You should start such entrepreneurial activity with wooden pallets.
Business project concept
The entrepreneur organizes the search for raw materials, the production of pallets, and the sale of finished wooden containers. Pallets, pallets are flat-shaped carts with side boards and a hard bottom, created from various materials. The goods are placed on pallets. During loading and unloading operations, they are fastened together. For this, heat-shrinkable materials, stretch films, belts, fastening tapes are used. When moving goods, the use of a pallet can significantly save labor costs and time.
Often, human muscle power is sufficient for the job, but it is impossible to achieve such speed and efficiency when manually placing individual packages. Such pallets of the same dimensions and shape can easily move warehouse floor transport. For this, hydraulic warehouse carts, forklift trucks are used. Such europackage is used in trading floors, warehouses, industrial workshops when moving goods by road, sea or rail. For warehousing, pallets with cargo are placed on pallet racks.
Benefits of this business:
- the organization of such a technological process does not require significant start-up capital;
- highly skilled workforce is not required;
- extremely simple pallet production technology;
- no problems with sales;
- Euro containers are in high demand among consumers.
First steps in the pallet business
The main condition for the successful opening of the production of pallets is the analysis of the need for this product to consumers and the activities of competitors in this market segment. For a successful business, a competent business plan will be required before the start of production activities. This document reflects the analysis of profitability, prospects for the development of the entrepreneur's activities. Official status is necessary for your company to enter into long-term contracts.
Using waste, you can manually create cargo pallets at sawmills. This gives the entrepreneur the opportunity to start a business without actually serious start-up capital. In your own garage, you can start small-scale production of flat coasters if you have the necessary amount of cheap raw materials. To begin with, at any sawmill you can buy inexpensive boards, edged material.
With the development of the business for the creation and sale of wooden containers, production volumes are significantly increasing. This gives you the opportunity to move to the next level. Purchasing equipment is an important issue. You can buy used lines, machines in good condition or new ones. GOST 9557-87 contains all the requirements for lumber.
For the manufacture of pallets, it is required to purchase raw materials brought to the required state. These are unedged, semi-edged boards of the 2nd and 3rd grades or solid bars. It is enough to purchase pneumatic hammers and 2 sawmills to open a full-fledged production.
Potential users of pallets: 
- shipping companies;
- set of trade enterprises;
- agro-industrial complexes;
- transport and logistics companies;
- manufacturing enterprises.
All suppliers need to be carefully examined to find out what consumers are satisfied with, what does not suit them.
Calculation of business profitability
The average price of lumber is 1.5 thousand rubles. for 1 m³. Sawing the trunk into boards is most often performed using the RM-50 multi-saw machine, which costs from 500 thousand rubles. Taking into account the price of building materials, wages of employees, taxes, rent of premises and other expenses, the cost of 1 pallet is 125 rubles. The income from each transport container will be about 75 rubles, since its price is approximately 200 rubles.
Features of pallet production
The production technology does not require special knowledge. Using a pneumatic hammer, a full-fledged wooden pallet can be made in a few minutes. For the purpose of assembling wooden pallets from harvested parts, the PalletsLine machine line is used. The cost of this professional conductor is from 260 thousand rubles. Its productivity per shift is 550 pcs.
Automated lines should be preferred to produce quality pallets. It is necessary to produce products in accordance with the requirements of GOST. All pallets should be of the same size, making optimal use of the transport area. In today's world, different pallet standards are used. Compliance with European standards for shipping containers is carefully monitored by specialists, taking into account the relevant regulatory documents.
Any type of freight warehouse transport is fully compliant with euro pallets having a size of 1200x800 mm. It is optimal for international cargo transportation. The use of such euro containers makes it possible, using mechanical means, to group boxes with goods, ship a lot of goods, and transport them.
Firm staff
At least 500 units a day are required to produce in order to maintain a good turnover, so a sufficient labor force is needed. It is not possible to make several hundred pallets a day with 1 or 2 workers. The staff of your company should consist of at least 5 auxiliary workers, 3-4 masters. If the production is located close to the sources of wood, the cost of transportation will be significantly reduced.
Pallet production, if properly organized, is a very promising business option.
The client will find you himself, subject to adequate prices and high quality.
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What production is now the most cost-effective and profitable in the difficult realities of the Russian economy? It is impossible to give an unambiguous and specific answer, but it can be said with confidence that, first of all, this is the production of all kinds of containers. That's right: not the goods themselves, but their packaging. Although at first glance it sounds a little strange, it is explained quite simply.
Firstly, the production of any product requires the use of diverse raw materials. For containers, this is most often one main component. The very same production of packaging materials is also an incomparably simpler process that does not require the use of high technology.
Why is it beneficial
If we talk about what kind of “packaging” business is most profitable to develop in Russia, then here, undoubtedly, the production of wooden pallets (the so-called pallet) is in the lead.
This is beneficial not only due to the fact that the demand for packaging is high and constant in almost any type of activity that requires loading, unloading and transporting something, but also because one of the main wealth of Russia is wood, and, as a result, the domestic manufacturer does not have to spend exorbitant amounts on it, as a raw material.
In addition, the production of pallets does not require any particularly high skill level of workers, even if the assembly is done by hand. Therefore, a very significant item can be added to the business plan for the manufacture of wooden pallets - a relatively small costly part for labor costs.
The result of the analysis of these and other factors is the conclusion that the import of wooden pallets from Europe simply does not make sense, because. it is associated with transportation through customs and mandatory sanitary control, which, of course, significantly increases the purchase cost of the goods. And pallets made of plastic and metal, which are in demand in Europe, of course, have proven themselves excellently, but in Russia they have not taken root because of the high price.
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What to take as a basis
What should be guided by when drawing up a business plan on the topic "Production of pallets" for an average Russian city? First of all, on the methods of obtaining raw materials and the technical equipment of production. Of course, we are talking about an automated, not a manual process.
The first important condition under which the production of pallets will become really profitable is the purchase of raw materials directly from sawmills.
Since ready-made "semi-finished products" immediately make the cost of a pallet several times higher.
- the technical plan for the production of pallets should be based on such a "base of all bases" as GOST-9557-87, which, in terms of technical issues, almost completely corresponds to the European UIC-435-2;
- the main point on which the business plan for the manufacture of pallets is based, of course, is the equipment of the production hall. And here the main dilemma is as follows: buy new equipment or choose a decent option among used ones. Of course, there is no better limit. But such a plan is not always a rational decision.
Therefore, the best advice that can be given regarding the purchase of a production line is to buy machines manufactured in the 90s of the last century. They are not considered obsolete and produce products that meet all standards, but at the same time they are several times cheaper than their counterparts, released 10 years later.
For comparison: a line manufactured in 1995 will cost 0.7-6 million rubles (depending on the condition). Released in 2003 (not new!) Will cost between 4-12.5 million rubles.
New pallet production lines cost from 11.5 to 18 million rubles, depending on the number of nailers.
In addition to the main line, the cost of purchasing the following equipment must be included in the business plan:
- hydraulic conveyor (it will take an average of 500 thousand rubles);
- machines for trimming the catch (800-900 thousand);
- milling machine (450 thousand).
The production of this equipment is very small, so buying new devices simply does not make sense.
Own business is good because every future entrepreneur can find something of his own, according to criteria known only to him. For example, choose a business according to interests, the size of financial investments, proximity to sources of raw materials.
In cities where many enterprises are located, for example, it is good to open a pallet business or. The company that produces the container will never be idle. Even if production in the country is in its infancy, there is always something to scatter, pour, and transport. But how profitable is the manufacture of wooden pallets, we will try to find out now.
Idea Analysis
Analyzing the need for the chosen business is the first step towards its successful opening.
The production of pallets can definitely be considered profitable, because:
- Such production has a wide range of customers interested in products;
- Our country is very rich in forests. The main raw material for the manufacture of pallets is wood, and therefore, you do not have to spend sky-high capital on the material;
- The production process does not require the participation of a highly skilled workforce, so wages will not be very high;
- Businesses using this product prefer to buy it locally rather than import it. Pallets from abroad are more expensive, they are inconvenient to transport, and why?
- The product described often needs to be updated, and its relevance has nothing to do with the seasons or the weather.
Each novice businessman should not only consider the profitability of the business, but also make an overview of prospective buyers, at least in his city.
The target audience of the firm will consist of:
- Large companies involved in production;
- Large and not so markets;
- Warehouses;
- farms;
- Shops and supermarkets;
- Companies operating in the transportation industry.
When negotiating with them, remember: competitors are not asleep. Offer the best conditions - and the production of wooden pallets as a business will go like clockwork.
Production technology
Pallets can be both typical and non-standard, but they all have approximately the same structure:
- bottom boards;
- Wooden cubes connecting the top and bottom;
- Cross boards and flooring on top of them - this is where the load is laid;
- The structure of the pallet is specially thought out so that it is convenient for a special machine to capture it.
The production of such things as pallets refers to certain standards. One of the main ones is GOST-9557-87.
Materials for manufacturing are usually bought. They can be made on the spot if you master the technology. Such materials should be stored in dry rooms in packages with ventilation. The main requirements and production technologies are described in GOST, where you can also find the dimensions of boards and nails.
Pallets are produced in several ways:
- The first is the use of waste from the timber industry. It is the most affordable and widely distributed in sawmills. Pallets are constructed by hand, with a hammer and manual labor. It's cheap, but the product is of very poor quality.
- The second method involves the use of a pneumatic hammer. The process goes much faster, but the output product is still of the same poor quality.
- The third method is used in small firms and is a semi-automated line.
- The fourth method is a fully automatic system. It is much more expensive, but the products are produced in large quantities and of good quality.
Business plan
The business plan for the production of pallets already habitually begins with the search for a room. Let me tell you right away: you need a large room. Ideally, a warehouse or hangar, so that the production line, the warehouse of materials and the department of finished products are freely located there. There are special requirements for the building: it must be dry, well ventilated, convenient access routes must lead there, and all communications must be connected. The sun, wind, dampness - all these factors can damage the appearance of the goods or affect the strength, and therefore reduce the price of products.Repair and equipment
Did you manage to find and rent a small warehouse? Great, now we need to fix it. Repair, as such, is not required, but it is necessary to insulate the walls and carry out a ventilation system.
This production is a fully automated process and it is necessary to buy equipment.
Pallet making equipment
- A hydraulic nailer (there is an option to use one or two) is the main equipment.
Other machines are considered optional:
- Apparatus for cutting corners;
- Milling machine;
- Hydraulic conveyor.
Also, do not forget about shelves, a table and chairs, an equipped bathroom and a rest room for employees.
If you also make the material (boards) on site, you will need to purchase a sawmill, an edge-shaped installation (for cutting the edges of the board) and a trimming machine for trimming the cubes connecting the two halves of the pallet.
The main thing to pay attention to is do not buy new equipment. Of course, you can fork out for a production line that has never been in operation, but why spend a few million more? If you buy machines made in the 90s of the last century, they will function no worse than machines manufactured 5-10 years later.
Of the materials, you will need to purchase boards cut according to GOST, or sawdust, nails. Regular nails won't work. Pallet nails are called ruffs and are a cross between a nail and a self-tapping screw. They are thick and have special notches for a strong entry of the nail into the wood.
Equipment for the production of wooden pallets
Staff
For work, you will need to hire people serving the production line, an accountant, a manager whose duties will include communication with customers, a security guard and a cleaner.
You will need 2 to 4 employees per line. There are no special requirements for their work experience or professionalism, so you can limit yourself to a salary of 150-200 dollars. You can not hire an accountant on a permanent basis and limit yourself to his services in preparing reports. The manager will keep records of clients, work with Internet resources, answer questions and calls.
Advertising
Pallet manufacturing advertising is, first of all, an offer of your services to the target audience that you have defined in the “Analysis” paragraph. The person responsible for advertising should contact representatives of these companies, offer them mutually beneficial cooperation. TV, the Internet and leaflets in this case are almost useless. It will work, perhaps, an advertisement in the specialized press.
Pallet making as a business is not very suitable for a novice businessman. Here it is undesirable to open small semi-handicraft enterprises, expensive equipment is required. The production line alone will cost the business owner about $80,000. In the same time
The business idea associated with the production of pallets is quite relevant in our time. In this article, we will reveal the most popular questions about calculating costs, profits, and finding clients.
The production of packaging and containers, such as pallets for goods, is often more profitable than the creation of the goods themselves. Simple technological operations, the same type, usually inexpensive materials and a steadily growing sales market make the container manufacturing business the most demanded direction. In this article, we will try to understand the pallet manufacturing business, calculate the profit and profitability.
Overview of the wooden pallet market
One of the business ideas with high profitability is the production of pallets or euro pallets. They can be made from various materials (metal, wood, plastic), but wooden pallets are the most promising. Metal and plastic pallets also exist, but they are expensive to produce.
Wooden pallets are actively used in various areas of production, retail and wholesale trade. They quickly wear out and lose their presentation, so organizations have to constantly update the fleet. Wooden pallets are historically more popular in the Russian Federation than plastic and metal counterparts, therefore they are in stable demand.
Mandatory customs checks for compliance with phytosanitary standards make it difficult to bring imported pallets into our country, so we will have to compete exclusively with local producers. At the same time, the quality of domestic products is in no way inferior to foreign ones, as it is regulated by GOST 9557-87, which almost completely repeats UIC 435-2. This allows you to officially call the products "Europallets" and increases the credibility of potential customers.
Design and types of wooden pallets
The production of wooden pallets does not require unique equipment and complex technological operations. Their design is clear at first sight: several boards connected with wooden checker cubes and fixed with special nails. Fasteners are called "ruffs" and look like a hybrid of a self-tapping screw and a nail.
There are several types of pallets:
Disposable packaging created for a certain type of cargo without complying with standards.
Collapsible and non-collapsible structures. The former are used in the transportation of tires and in several other areas, the latter are ubiquitous.
With one- and two-sided placement of cargo.
With the possibility of automatic loading from 2 or 4 sides (two-way and four-way).
According to GOST 9557-87, the flooring consists of 5 boards 145x22 mm and 100x22 mm. The boards are laid with a gap of up to 45 mm alternately - wide, then narrow. Attached with 9 pins. The central cubes have a size of 145x145x78, the outer ones - 100x145x78 mm. The structure is connected with ruffed or screw nails 2.5x55 mm, 3.5x70mm or 3.5x90 mm.
Potential Clients for a Pallet Making Business
Retailing pallets will not bring financial success, because the payback of such a business will be many years. If you consider pallet production as a business, even with manual assembly and small volumes, focus on large customers:
regional and international transport companies;
wholesale and retail markets of any profile;
supermarket chains and shopping centers;
construction companies;
large-scale warehouses providing rental services for premises and equipment;
any industries that need such packaging for transportation (furniture, machine tool, glass, electrical households);
greenhouses and farms, including small ones.
All of these potential buyers are interested in the continuous supply of the same type of product. Basically, they can't afford to use pallets more than a few times in a row, so you can secure yourself a clientele for several years ahead by signing contracts with several companies.
Production process for the production of wooden pallets
Unlike European, domestic legislation does not regulate the way wooden pallets are created. You can choose manual, semi-automated and automated production of wooden pallets based on the initial capital and business plan. You can start implementing the idea by renting a garage or a small warehouse. It will only be necessary to carry out ventilation, insulate the walls and purchase equipment.
Manual pallet manufacturing technology
You can start a business in the garage, using a hammer and nails. The rest of the equipment can be purchased as production grows. Ideally you will need:
a table for assembling and manufacturing pallets, the cost is from 50,000 rubles;
a set of equipment (pneumatic stapler, pneumatic tool, compressor, etc.) for the production of euro pallets costs 115,000 rubles.
Other equipment - 2,000 rubles. In total, about 170,000 rubles will be required for equipment. The compressor motor power is 3 kW/h. Slowly in 5 minutes one person can make one pallet. We count nails at an average of 300 rubles per 1000 pieces.
We conditionally believe that we will purchase the material. For the production of one of the most common pallets, 800 * 1200 in size, you will need 2 boards 150 * 1200 * 22 in size, 6 boards 100 * 1200 * 22, 3 boards 22 * 100 * 800, a bar of 9 pieces 78 * 100 * 100. Nails L90 - 27 pieces, L65 - 18 pieces, L40 - 12 pieces. A total of 57 nails are required. The cost of a pallet board is 3800 rubles/m3. From 1 m3 of a pallet board, on average, 27 pallets are obtained.
On average, 12 pallets can be made in 1 hour, 96 pallets in an 8-hour working day. The cost of materials for this number of pallets will be:
pallet board 96/27 * 3800 = 13,511 rubles;
the cost of nails is 300/1000 * 57 * 96 \u003d 1,641.6 rubles;
the cost of electricity is 8 * 3 * 0.5 * 5 \u003d 60 rubles.
In total, the cost of manual production of 96 pallets will be 15,212.6 rubles, or 158 rubles per pallet. Our costs conditionally do not include the cost of rent for the production premises, we believe that we carry out production in one of our garages, and store finished products in a neighbor's garage. If you want to calculate the cost in full, divide the amount of rent by the number of working days and get the cost of rent per day.
If there is a sales market, when picking up pallets and when selling a piece for at least 200 rubles, you can earn about 4,000 rubles in one day. With transport costs, profits can be reduced to 2,500 - 3,000 rubles.
Hand-made pallets made with a hammer and nails do not meet all standards, therefore they are considered to be of poor quality. They are difficult to sell to large buyers. But the simplicity and cheapness of this method makes it easy to enter the business. In the presence of skilled workers, hand-made pallets are similar to those created on an automated line. In this case, many do not inform the buyer about the features of the production of pallets.
Pallet business on a semi-automated line
If you plan to hire several people, it is better to equip a complex assembly line right away. On it, each employee will perform his technological operation on a separate table.
An example of such a semi-automatic line is the pallet assembly line, which consists of three modules - conductors, configured for each operation. To place such a line, you will need at least an area of 13 square meters. In addition, you need a place for storing blanks and finished products. You can’t do such a business in a garage anymore; you will have to rent a room next to the sawmill.
The cost of such a line, with a compressor and a set of pneumatic tools, will be from 470,000 rubles. Other equipment 50,000 rubles, total 510,000 rubles. When working on a line of three people, for an 8-hour working day, 550 pieces of pallets can be made (information is confirmed by the equipment manufacturer). You can work alone, then productivity will drop.
Let's calculate the cost of manufacturing 550 pieces of pallets:
the cost of a pallet board 550/27*3800 = 77,407 rubles;
expenses for nails 300/1000*57*550 = 9,405 rubles;
electricity costs 8*3*3*5 = 360 rubles;
the cost of renting a room per day 50 * 200/30 \u003d 333 rubles;
labor costs for 3 people per day 20,000*3/22=2727 rubles.
Total expenses 90,232 rubles. The proceeds from the sale of 550 pallets for 200 rubles a piece will be 110,000 rubles. Profit per day is about 20,000 rubles, excluding transport and other expenses, taxes.
Starting a business using an automatic line
Thousands of pallets per day can be produced exclusively on an automated line. Domestic automatic line is sold for 5 million rubles and more. An imported analogue will cost 10 million rubles, but it will work up to 11 years without a major overhaul. You can buy not only new, but also used equipment, which is cheaper.
The cost of a used line varies significantly. With proper operation, the equipment fails extremely rarely, so you can even take machines created at the end of the last century. Since then, there have been no major innovations in pallet production.
How to increase profitability further?
The main cost of materials is the purchase of boards. Run your own sawmill. Beveling and trimming machines, a standard band frame are not too expensive, but will pay for themselves in a few months. In parallel, you can use them for other woodworking work.
Materials are a serious expense item, so saving on it is always relevant. Sawed boards and bars of 1-3 grades are essentially waste in other industries. It is more profitable to start manufacturing pallets as a business in the forest-steppe zone, near a sawmill or a woodworking enterprise. Another way to reduce the cost is to buy a bar and cut it. The boards can be sold separately and the waste can be used for pallets.
Why is a pallet business idea profitable?
Pallet manufacturing as a business is considered an idea that is easy to implement. High profitability, loyal standards, restrictions on the import of products and an abundance of potential customers make the payback of production quite fast.
A wide range of customers interested in pallets allows you to immediately start wholesale production. Finding distribution channels will not be a problem regardless of the region.
Low requirements for workers will allow hiring low-skilled personnel for a small salary.
The abundance of forests makes the purchase of wood profitable, since in our country the cost of a tree is considered one of the lowest on the continent.
The off-season nature of the business creates a steady stream of profits.
Pallets are a product that needs constant replacement. Once you have found a client and interested him, you can be sure of the loyalty and stability of orders.
Legislation strictly regulates the import of euro pallets, so you only compete with locals. Until now, in some regions there are free niches for business growth.
Conclusion. Pallet production is a profitable business idea that does not require special knowledge. With start-up capital, you can open a workshop in any region and build a successful business.
