When Adam Plati returned to the small family pallet recycling business in 2016, he had an idea about serving the growing upcycling pallet market with reclaimed lumber. He met resistance from his father, John Plati Jr., who had started the New Jersey company, now Expert Recycling LLC, back in 1971. After Adam told his dad he intended to sell the deck boards, his father told him he was nuts, that no one would buy them. “You know how small family businesses go,” Adam said wryly. “I spent the next 12 months arguing with him.”
Premium Pallet and Skid Corporation, as the company was initially called, began as an offshoot of the family sanitation business. The company gradually transitioned from new custom pallets to an emphasis on recycling. Then Adam’s father was first diagnosed with prostate cancer back in 2009.
As John Jr. continued to struggle with deteriorating health, eventually Stage 4 cancer, Adam returned to the business in 2016. He had been working in the public sector as a network administrator after graduating from university with a computer science degree.
Adam remembered, “Dad wasn’t thrilled about the upcycling idea. Like many pallet industry veterans, he saw it as a distraction.” Adam, however, was persistent about the opportunity.
“You see this grey pallet. You’re going to fix the stringer and put two boards on it, and then sell it for $4.75,” he recalled telling his dad. “I can take a hammer and tear it apart in 20 seconds. I’m like, that’s $13, so I don’t know why you want to get your $4.75 when $13 is right there.”
A few larger operations are also finding pallet upcycling to be profitable. Barhamsville, Virginia-based J.C. Pallet started servicing this niche about six years ago. Last year, Larry and Holly Miller-Bopp opened Two Swallows Boutique (www.twoswallows.com), a specialty shop that retails items including reclaimed wood projects. The boutique creates a good retail environment for waste wood coming from J.C. Pallet. Both Larry and Holly enjoy working with wood and selling wood-based specialty products as a side business.
Whether large or small, however, there are several things for pallet companies to think about when it comes to reclaimed boards.
Physically separate retail sales from your pallet recycling operations
Selling reclaimed pallet parts to builders, architects and hobbyists poses different risks than pallet companies might expect. Having customers onsite to pick out material opens companies to unwanted legal exposure. Most companies have restricted access and a visitor safety policy to keep vendors and other outsiders out of harm’s way.
J.C. Pallet keeps the upcycled part of the business separate through its Two Swallows Boutique, according to Larry Miller-Bopp, the company’s vice president of sales. When the company built an expansion a few years ago, at a time when its upcycling business was growing, it converted some of the intended new office space into its retail storefront.
Some pallet companies provide delivery of recycled pallet material bundles to local customers. That’s one way to keep visitors off-site. For its part, Expert Recycling offers delivery as well as pickup at the plant. Adam Plati has found that customers can be extremely interested in seeing the process. By appointment, he does provide supervised tours of his operation.
Choosing material that “pops”
Reclaimed lumber can be a good option for material under 40" but longer than 24 inches. One recycler sells 800-piece bundles of 36" material on Etsy for $400. However, Miller-Bopp has found that home builders increasingly are looking for longer material for feature walls and other applications. He reports that it can be a profitable niche, with builders driving from as far as two hours away to pick up material.
At Expert Recycling, nails are removed or sheared. Plati uses a grinder when necessary to eliminate exposed nails. At J.C. Pallet, material goes through a milling process. A dedicated shop has a jointer and table saws so that material can be accurately sized to meet customer needs.
While weathered wood sells at a premium, Plati encourages customers to go with a mix of grey and fresh-looking wood. He believes that a combination of brown, tan and grey results in a look that pops. “That’s my big seller,” he commented. Initially, Plati took larger contractor orders (several thousand board feet) but found that they were challenging for him to fill. As a result, he changed his focus to smaller orders of 250 or 500 square feet. He is, however, looking at revisiting the larger orders as his company continues to refine its processes.
Marketing considerations, and a passion for the product
Marketing doesn’t seem to be a large concern for either Expert Recycling or Two Swallows. Two Swallows has a frequently updated Facebook page, while Expert Recycling is active on Etsy, a large craft products website. Initially, Plati utilized Facebook, Craigslist and other platforms. For both businesses, word of mouth and repeat business seems to generate a steady stream of sales.
Another pallet recycler cautioned off the record that servicing retail can be a lot different than B2B. “Customers will expect the delivery driver to exhibit good grooming and manners, and to have a respectable condition delivery vehicle,” he said. Retail customers also tend to need help and ask a lot of basic questions such as “How many pieces will I need to cover an 8’ x 10’ wall?”
He suggested that companies considering upcycling choose a family, friend or staff member who is particularly passionate about the product, and to run it at arm’s length from the pallet business. Passion is clearly evident in talking to Miller-Bopp, who himself makes pallet signs and other craft items. Miller-Bopp enjoys sharing his expertise with others. He offers insights into best practices and mistakes to avoid.
“I think the most rewarding part of the entire experience has been cutting down on the waste we produce, giving our customers beautiful boards and a product that can’t be reproduced,” Plati added. “Every board is unique, and they come from thousands of different pallets.”
Plati, as a small recycler, sees board sales as an important part of his company’s future. For companies large and small, however, reclaimed boards just might be a value-added opportunity for your excess pallet material.
