Recycled vs. New Pallets: TheTrue Total Cost of Ownership

The sticker price of a pallet tells only part of the story. To understand the true cost, you need to consider the total cost of ownership (TCO) — which includes purchase price, lifespan, disposal costs, and indirect costs like product damage and supply chain disruption.

Purchase price: A new GMA pallet costs $15-25. A Grade A recycled GMA pallet costs $8-14. A Grade B costs $5-10. Right out of the gate, recycled pallets save 30-60% on procurement.

Lifespan: A new pallet lasts approximately 5-7 trips before needing repair or replacement. A Grade A recycled pallet lasts approximately 4-6 trips. The marginal lifespan difference doesn't offset the significant price advantage of recycled.

Disposal costs: At end of life, pallets need to be disposed of or recycled. With Riverside Pallet Co., recycling is free for bulk quantities — and we may even pay you through our buyback program. New pallet disposal through waste haulers costs $2-5 per pallet.

Environmental cost: Increasingly, companies are assigning internal carbon costs to their operations. A new pallet generates approximately 31 kg CO₂e, versus approximately 5 kg for a refurbished pallet. At $50/ton internal carbon pricing, that's a $1.30 difference per pallet.

When you add it all up, the TCO of recycled pallets is typically 40-65% lower than new pallets. The math is clear: for the vast majority of applications, recycled pallets deliver better value.