Last month we told you how Fred got back one of his major accounts, ADM Chemical, by building combination pallets. He was able to compete with recyclers in the area and give his customers a better product.
Fred realized that while bringing in the old pallets to tear apart for reclaimed lumber, he had a lot of pallets he could sort and repair for resale.
So he made a few phone calls and got some orders for the 48 X 40 pallets. Fred called Bronco to find out what equipment he would need to sort and repair his incoming used pallets efficiently.
The Bronco rep recommended that he purchase 2 pallet stackers, a workstation table with
leadboard remover,1 out feed roller conveyor and 1 in feed roller conveyor at a cost of about $20,000. Bronco's representative explained that the new system would work like this: The pallets would be unloaded off the truck onto the in feed roller conveyor at the workstation where the pallets would be sorted. The odd sizes and 48 X 40 too damaged for repair would go on the out feed roller conveyor to the dismantler: The reusable 48 X 40 pallets would be inspected and repaired if needed and stacked, ready for resale.
Using the Bronco Repair Station, Fred was able to get the deckboards he needed for the combo pallets and he added an additional $216,000 per year to his income with only one man and a $20,000 investment.