The secret to John Charles Wilker’s success is one word – pallets. He has become a YouTube sensation of sorts by showing thousands of people how to make money buying and selling pallets. This isn’t a get rich quick scheme. It requires a lot of work. But he claims his approach is the simplest way to make big money without having any employees, facility costs, or excessive overhead. Plus, his business model allows people to control their own schedules and have plenty of time for things like golf. Over the years, Wilker has made millions of dollars selling pallets. He has come up with his own unique formula that is a different twist on brokering, scavenging and supply pallets to customers.
While Wilker still supplies pallets to customers, he also produces videos and has developed a course and online community for people who want to get into the pallet business. There are a lot of get rich schemes on the Internet, but this isn’t one of those. Instead it takes a new look at a very traditional business. What started as something to do on a day when a business job fell through has become Wilker’s life passion. And he loves it so much, he teaches others how to do it too.
The Pallet Enterprise sat down in an interview with John Charles Wilker and discussed what has made the Simplest Business such a success. Currently, he has more than 1,200 people who have bought his course. In addition to the 13-module video course, Wilker also has developed a website with documents and resources and a private Facebook community where people share tips, ideas and answer each other’s questions.
So, what is this new wrinkle on an old business? Read on to find out.
Pallet Enterprise: How does your model work better than the traditional pallet yard model?
Wilker: Well, I don’t have any employees, no expensive lease or equipment or overhead. I don’t have storage. My suppliers are my storage. I’m only picking up when I’m delivering to a business going from point A to point B. And I get 95% of the stuff for free because I am taking the pallets that nobody else wants. Sometimes I am able to convert customers from a 48×40 to another size. They didn’t need a GMA pallet. And this move saves them money. I have switched them to the mixed load concept.
Here’s how this work. Yesterday, I worked about two hours and 20 minutes to move three loads. The pallets averaged around five bucks a piece. Um, one was a little less, so it was around $1,400 bucks and I’m done. I like having free time to do other stuff. Some students do this all day long. My approach is a simpler way of supplying pallets without much overhead.
Pallet Enterprise: Do you take other industrial packaging products besides pallets, such as containers?
Wilker: Yes, I take a variety of packaging, such as totes crates, drums, dunnage, 55-gallon barrels, industrial bags, gaylord boxes and corrugated. So, a lot of the same customers are buying pallets for me too. They also need corrugated boxes, right? So, you have multiple revenue streams per customer and solve more packaging problems for them.
Pallet Enterprise: What is the reaction you get when you tell people what you do to make money?
Wilker: After I explain what I do, people say that they start seeing pallets everywhere. They can’t escape them. This business opportunity has been right in front of them all along. But it never occurred to them.
Pallet Enterprise: Let’s cut to the chase. What’s your pallet business model?
Wilker: There are two aspects to my approach. Most people who do what I do just look for the 48x40s. But I have built a better business focusing on the odd-sized pallets. These are small lots (usually far less than a truck load quantity). I create relationships with pallet suppliers and buyers. And I basically take all the odd-sized pallets you can supply and then transfer those to customers who need them. Companies may get small number of odd-sized pallets in a mixed load. This eliminates sorting and repair. Customers then sort through the pallets to find the ones that fit various items they ship from their warehouse or factory.
We also have customers that need custom built pallets as well. So, we team up with a pallet builder and become the middle man and deliver the pallets to the end customer.
Pallet Enterprise: What is the scope of your training clientele? How do they help each other?
Wilker: My students have come from all over the world from Europe and Asia to the Americas and even Australia. The private Facebook group is a great place for students to learn from each other by sharing questions/answers and tips.
Pallet Enterprise: It sounds like while you do some work with 48x40s, your system primarily focuses on odd-sized pallets…right?
Wilker: Right. That’s on purpose because the scavengers are going after the 48×40 pallet accounts. Most pallet sources have a wide variety of sized pallets. Customers have a variety of needs as well. Some might even need six-foot pallets. My customers love the fact that I bring them mixed loads and small orders. Many of the more established pallet recyclers have minimum order quantities. The suppliers like that I will take their odd-sized pallets that are a pain to most scavengers and recyclers.
I get to know what each pallet supplier and customer needs and try to match as best as I can. I get a variety of sized in a mixed load and will simply take them from the supplier to a customer. I don’t sort or repair. My pricing is based on an average price per pallet, which makes it easy to tabulate. I’m not sitting there measuring and writing invoice out for 35 minutes.
Now, if a customer has a special request, I will charge a little more to coordinate the delivery of the specific sizes and quantities. Most customers are small orders, typically 150 or so per week. I’m not trying to go after Fortune 500 companies. If I do happen to run into a larger order, I may end up brokering that business. When it comes to brokering pallets, I prefer going after custom-built orders where my markup can be a lot larger. Sometimes 2-6 times bigger than a more standard sized pallet. Brokering provides recurring revenue, which is a win-win situation for me, the pallet builder and the buyer.
Pallet Enterprise: Beyond the initial course, how do you earn additional revenue from trainees?
Wilker: I have a team that helps companies develop websites and online marketing campaigns. We provide training and services for everything from creating WordPress websites to social media campaign and pages. I sell that training and services separate from the pallet business module.
Pallet Enterprise: How do your students find their pallet account leads?
Wilker: I give them a massive list of suppliers and buyers. My training also helps them identify the types of companies that fit well with my model. I help trainees learn how to construct a deal, guide on what questions to ask, and how to identify the sweet spot that meets supplier and customer needs. My videos take them out in the field to show them the ins and outs of creating good customer relationships. I show them how to handle various scenarios.
Pallet Enterprise: How do you handle rental pallets that you come across?
Wilker: In my model, we don’t really get into rental pallets. Of course, there’s some times where you have 200 pallets, and there are 13 blue or red pallets mixed in a load. My course explains the rental model and encourages students to steer clear of them. You can participate in the CHEP buyback program if you want. But that doesn’t really fit my model. I focus on white-wood pallets.
