Making wooden pallets as a business
Manufacturing is always much more profitable than reselling finished products. The main problem with which it is important not to be mistaken is the choice of products. Today we will learn how to organize the manufacture of wooden pallets as a business.
Wooden pallets are containers for transportation and storage of a wide variety of goods. Using various methods, the cargo is attached to the pallet. The cargo is loaded onto pallets in order to make it easy and simple to load with special loaders.
Pallets are widely used. They are very often used for the storage of building materials, in supermarkets for the placement of goods, in warehouses and industrial plants.
How profitable is it to make pallets
It should be noted that there are a number of reasons why the production of pallets as a business is a very profitable enterprise. There are several reasons for this.
- The recent growth in production in the Russian Federation implies an increase in production. And any product needs packaging and handling. This is where pallets come to the rescue.
- Manufacturing pallets is a fairly straightforward process. In such a production there is no need to use complex equipment and multicomponent raw materials. It's pretty simple.
- The demand for wooden pallets is quite high. Moreover, the demand for these products is not subject to seasonal fluctuations.
- Pallets are made of wood, which means there are no problems with finding and supplying raw materials. Wood is a fairly affordable material.
- Such production does not require hiring workers with serious knowledge and skills. This implies the ability to hire fairly low-paid employees.
As you can see, this business has plenty of advantages.
Registration of business ownership
In order for the company to work legally and there are no problems with regulatory authorities, it is necessary to register the ownership right before starting work. There are two ways to do this:
- register as an individual entrepreneur;
- register a limited liability company.
To register with the Federal Tax Service as an individual entrepreneur, you must contact the tax service at the place of registration. In this case, the following documents must be submitted:
The production of pallets is an actively developing area of business, which is associated with the widespread use of wooden packaging. It is used for transportation and interior design (tables and chairs in cafes), which allows organizing production on various scales. This can be a manual creation of products in a small space of your own, or a fully automated line in a production workshop.
Provided services and assortment
Selecting a production method
Plastic pallet production
Step-by-step instructions for starting a business
How much does it cost to start a pallet business?
Services and assortment provided
The main services provided by the manufacturer of this packaging are the production of pallets from wood or plastic and the restoration of finished products. Additionally, pallets can be made according to customer measurements.
GOST 9557-87 specifies the main characteristics and requirements that the manufacturer must follow.
Various models act as assortment:
- P2 - single-layer two-way (orientation towards the loader);
- P4 - single-layer four-way;
- 2P4 - two-layer four-way (according to the location of the load );
- 2PO4 - two-layer four-way with windows in the lower deck;
- 2PV2 - two-layer two-way with ledges.
Models produced can be:
- disposable and reusable;
- collapsible and non-collapsible.
There are several types of pallets, or they are also called pallets: plastic, made of wood, and metal. Due to the low surface of the pallet, on which the goods or raw materials are placed, they do not come into direct contact with the floor.
Why is this business idea such a profitable investment? Even despite the fact that pallets are in demand by manufacturers, warehouses and other organizations (and by the way, the service life of pallets is short-lived and therefore they have to be periodically renewed), there is another, very important factor related to the production of pallets in the Russian Federation. When trying to bring imported pallets across the border with Russia, one encounters some difficulties, in particular, expensive phytosanitary control. This increases their cost several times. As for plastic, metal pallets, they do not pass this control at all, and they are more expensive.
Prospects and benefits of pallet production
Good clearance in pallet production, as in any other type of business, depends on the cost of the procurement material. So it is worth considering in which region it is more profitable to install equipment for the production of pallets. In order to reduce shipping costs as well as raw materials. If located, production at a sawmill or in a woodworking enterprise, it would be just ideal. Significant savings in investment and time, due to the fact that you will not need to bring raw materials from far away. This will greatly affect the profitability of your production
GOST 9557-87 is a standard that should be followed by a Russian manufacturer of pallets. This GOST, in practice, repeats the position of the standard, European UIC 435-2. Due to this factor, pallets produced in the Russian Federation can be safely called "Euro pallets". This is another factor that increases the demand for domestic pallet production. The equipment of Chinese and European manufacturers is designed in such a way that the products manufactured by them set the required standard for Euro pallets of 800 x 1200 mm format. Therefore, the size of such a template will be in great demand.
Manufacturing of pallets, according to technological requirements, must be collected from raw wood. After the pallets are assembled, they are sent to a special drying chamber. The standard size should hold 400 cubic meters of raw materials or more. While the pallets are being dried, they are treated with a special antiseptic.
Pallets are manufactured on two types of equipment, semi-automatic and automatic assembly. Also, for the assembly of pallets, you need to purchase the accompanying tools. To organize the production of a small volume of products, it is enough to purchase a semi-automatic line. Its price fluctuates around 5-6 million rubles.
The productivity of this equipment is approximately 1. pallets per minute. The equipment must be serviced by at least two machines, nailing requires two operators as well as a loader. An automatic line for the production of European pallets is a more serious approach to this type of business. One shift on an automatic line can produce about 650 pallets. An important quality of this equipment is, a guarantee of its operation for 10 years, without resorting to major repairs. However, the acquisition will cost about 10 million rubles.
Short payback period
Based on these figures, you can deduce the cost of a pallet, the price of which will be from 200 to 250 rubles, and the average 225 rubles. The most important thing is the ability to sell pallets at a price of approximately 270 rubles. Based on the above figures, it is not difficult to deduce the approximate level of income. From the production of one pallet, the income will be 45 rubles. If we calculate the line with the production of 3 pallets in 2 minutes, then 720 pallets in an 8-hour shift.
In a month for 24 working days it will be 17280 pallets. From here we calculate the profit from production, which will be above 700 thousand rubles. For the year, approximately 8.5 million rubles. from here it is necessary to subtract the payment of utility bills, tax, payment of wages and other necessary expenses. Then the approximate net income will be at least 4.5-5 million rubles. in year. This is only a calculation for one shift. But there is a variant of using a line with two nailers, which produces 5 pallets per minute, and working in three shifts, we multiply the net profit by three.
It's no secret that the production of additional components for goods (containers, packaging) is sometimes many times more profitable than the production of basic products. In the field of packaging materials, the leading position is occupied by the manufacture of wooden pallets - the so-called pallets. Pallets represent a special shipping container with a rigid platform, the size of which is enough to create a full-fledged cargo unit. With the help of pallets, the process of loading and unloading goods is greatly simplified, as well as the storage area of goods is optimized.
The pallet business is recognized as one of the most relevant among aspiring entrepreneurs. This is due, firstly, to the high demand for products: regardless of the type of business, pallets are universal containers. Secondly, the launch of a small production line does not require a huge investment. Thirdly, the production process is quite simple, there is no need to attract a highly qualified workforce. Finally, the cost of raw materials for the manufacture of pallets is quite low, it is quite easy to purchase it, and the profitability of the finished product allows you to get excellent profit.
When planning the scale of pallet production, it is necessary first of all to determine the size of the pallets to be produced. It should be borne in mind that according to the standard, there are 6 classic standard sizes of pallets. However, the most widespread are pallets of sizes 120 by 80 cm and 120 by 100 cm. Production of pallets of other sizes is advisable only for individual orders.
No less important nuance of the "pallet" business is production technology. In Russia, unlike the countries of the European Union, there is no prerequisite for the machine assembly of pallets, therefore, manual production is also allowed. However, all work on the assembly of wooden pallets must be carried out in strict accordance with GOST 9557-87 and, preferably, be automated. In this case, our domestic pallets can also be called the proud name "Euro pallets", thanks to which we will be able to significantly increase the demand for such products, and as a result - provide ourselves with an impressive income.
So, starting your own business for the production of pallets involves the choice of technology, as well as equipment for their manufacture.
Depending on the size of the start-up capital, production technology and overall productivity will vary greatly. The cheapest, but at the same time the lowest quality is completely manual production. It involves preparing wood and assembling pallets by manual labor of workers using tools. At the same time, for businessmen who do not have the opportunity to invest money at the start, manual pallet assembly may be the only way to start earning. A semi-automatic line will cost much more (about 4 million rubles), but its use will allow avoiding routine and laborious operations involving manual labor, and will also significantly increase productivity. However, the labor of workers will also be necessary; an operator and auxiliary workers are required to maintain the line.
Finally, fully automated production will cost an entrepreneur a lump sum, but it will make it possible to minimize manufacturing defects, the number of manual operations, and also significantly increase the volume of manufactured products. The automatic pallet production line consists of a hydraulic nailer, the cost of which will be overwhelming. Thus, a new line will cost no less than 10 million rubles, while a used machine can be purchased for 600-700 thousand rubles. In any case, you need to invest a lot in the organization of automated production, so not every novice businessman will take such a step.
Sample business plan for setting up a pallet business
The organization of a pallet business begins with the registration of its owner with the tax authorities. To simplify the maintenance of financial statements, as well as the possibility of using the simplified tax system, it is worth choosing registration as an individual entrepreneur under OKVED 20. "Production of wooden containers".
Pallets are used to store products and transport them using forklifts. Not a single large enterprise, shopping center or warehouse is complete without pallets: the demand for them is very high. Therefore, the business of making them is a profitable business. According to statistics, the production of various types of containers and packaging is even more profitable than the manufacture of the goods themselves, due to their daily need, ease of creation and lack of sophistication in decoration.
First of all, you need to register your future company. There are two options here.
Usually, start-up entrepreneurs register their business as an individual entrepreneur, with a taxation system of the simplified tax system. As the OKVED code, point 20 must be specified, under which the production of wooden containers is listed. Required documents:
- Power of attorney (if you submit documents through an authorized person).
- A receipt for the state duty paid by you in the amount of 800 rubles.
- Passport (or a copy certified by a notary) and its photocopy.
- Help about the selected taxation system.
- TIN certificate (photocopy).
The collected documents must be taken to the tax office located in the area where you are registered, or to the MFC (regardless of registration).
If you want to produce large batches of goods, intending to supply them to industrial enterprises and shopping centers, register your business as an LLC. This will give you the opportunity to wholesale the product, paying the regular tax including VAT. This will require:
- Receipt of paid state duty (4000 rubles).
- The document on the establishment of the LLC (if the founder is presented in the singular) or the minutes of the meeting (if there are several founders).
- Agreement of establishment.
- Charter of the organization.
- Information about the presence of a legal address.
Documents are submitted to the tax office.
It is unprofitable to import wooden pallets from abroad, since when passing through customs inspection they undergo phytosanitary inspection, for which you have to pay, which increases the cost of goods. Plastic and metal pallets do not pass this control, but their price is too high for the Russian consumer. Hence, it is clear that it is the production of wood pallets that is the most demanded and profitable direction in the business of manufacturing packaging goods. In terms of competition, market saturation is average.
The production of wooden pallets is beneficial because the cost of raw materials is low, and it will not be difficult to find them
If you adhere to the rules of GOST 9557–87 in the manufacture of pallets, which impose requirements on goods that are almost identical to European quality standards, then you can rightfully call them "Euro pallets". This will raise the status of the goods and increase the demand for them.