34 WESTERN PALLET
yard sections to compatible businesses, such as trucking dispatch offices or equipment repair shops, creates a steady revenue floor and helps share site overhead.
Franchising: Selling franchises is another potential way to generate revenue. Although we are not aware of franchises in the wood pallet sector, there is an example in the custom crating space. For example, Craters and Freighters operates a franchisee model, wih 65 locations in 2024. The initial franchise fee is $30,000 to $40,000, with a suggested full investment required of $173,350 - $287,500. There is a 5% royalty on sales and a 1% advertising royalty. The term of the deal is 15 years.
Branding and Advertising: A smaller but creative opportunity is offering local advertising on trailer side panels or yard fencing. For businesses with newer fleets or highway frontage, ad rentals can potentially provide low-effort supplemental income.
Data Capture and Analytics: As customers demand transparency and sustainability metrics, pallet providers perhaps may be able monetize information. Tracking repair rates, return cycles, or CO₂ savings from reuse can be packaged into paid reporting or built into higher-tier service contracts. What once was a record-keeping chore could become a product in itself.
Managing Volatility Through Diversification
Diversification is less about chasing every new idea than about managing exposure. When recycled cores are plentiful and lumber is expensive, recycling margins rise. When core supply tightens, new-pallet production can fill the void. Grinding operations turn waste into value, while other secondary revenue streams can help boost the bottom line.
The revenue picture for wood pallet and packaging companies is evolving. Traditional manufacturing and recycling will always form the base, but the growth lies in layered services and smarter use of assets.
Could truck and trailer exteriors be a secondary revenue stream for your pallet company if you have good quality road equipment? Photo source: