The Ultimate Guide to Selling Pallet Racking

The dramatic growth in eCommerce over the past few years has led to increased demand for warehouse equipment, and changing consumer behavior continues to shift the landscape. This has left many warehouse operators needing to modernize their equipment, change layouts, or clear space to accommodate the changes.

Regardless of the reason, when you want to sell used warehouse racking, this guide will walk you through the steps and help you make decisions that will optimize your returns. Liquidating your warehouse racks doesn’t have to be a hassle.

What Pallet Racks Are Worth Money?

One of the reasons pallet racks can command top prices is that well-maintained equipment has a long lifespan. So, just because you don’t need it anymore doesn’t mean your equipment isn’t valuable to other warehouse operators.

How long does pallet racking last? Some systems can last for 15–20 years. Depending on how it is used and the care it gets, we’ve seen pallet racking systems that can serve you well for more than 20 years, which is why used equipment is incredibly valuable.

There’s a sizeable market for just about any type of racking system, including:

• Selective pallet racking systems
• Push-back racking
• Drive-in pallet racks
• Drive-through pallet racks
• Cantilever racks
• Pallet flow racks

There is also a market for pallet racking components, such as uprights, breams, supports, wire decks, row spaces, column guards, and other material handling equipment. Besides pallet racking, there are options for selling used conveyors, mezzanines, and warehouse automation systems.

And the market is big. Worldwide, sales exceeded $9.4 billion in 2023, according to Precedence Research, and is forecast to grow by nearly 50% by 2033.

Warehouse operators are taking a harder look at used equipment as well. Steel, material, and product costs have risen significantly over the past few years, so buyers are often considering used equipment instead of buying new, especially if they are expanding operations and need additional pieces.

Used warehouse equipment often produces a great proposition for both buyers and sellers. Buyers can often reduce their costs by up to 60% by buying used equipment, allowing them to save money or invest it elsewhere. Sellers can recoup much of their initial investment and keep the cash or invest in warehouse modernization, reducing their overall costs.

How Do I Sell My Used Pallet Racks?

Selling used warehouse racking can be a profitable way to free up warehouse space and recover some of your initial investment. Here’s a step-by-step guide to how to sell your pallet racking efficiently and maximize your returns.

1. Assess the Condition of Your Pallet Racks

The first step is assessing the condition of your material handling equipment. Check for signs of damage, rust, or wear, which could affect resale value, such as:

• Structural integrity: Ensure the racks are free from bending, cracking, or significant wear.
• Condition of components: Inspect beams, uprights, braces, and decking for damage.
• Cleanliness: Clean racks are more appealing to potential buyers.

Take note of the brand, model, dimensions, and weight capacity, as this information will be critical in creating a detailed and attractive listing.

2. Take High-Quality Photos

High-quality photos are essential when you are selling used warehouse racking, especially if you are listing them online. Make sure that you capture:

• Close-up images of individual components
• Any damage or wear, so buyers know what to expect.
• Full images of the racking system in its current configuration.

Clear, well-lit photos from multiple angles will help ease the concerns of buyers who may worry about hidden flaws.

3. Determine the Value

When you want to sell your pallet racking, there are several key factors that can influence the value. So, how do you calculate pallet racking prices? Here are some of the biggest ones:

• Condition: Racks in good condition, free from rust, structural damage, or bending, are worth significantly more than damaged or poorly maintained racks.
• Brand: Certain brands are known for their durability and quality. Well-known brands like Interlake, Steel King, and Unarco generally command higher resale prices.
• Age: Newer racks tend to be worth more, but well-maintained older systems can still have significant value.
• Market Demand: The value of your pallet racks will also depend on the current market. If there’s a high demand for warehouse equipment, especially during warehouse expansions or market booms, your racks will be worth more.
• Customization: Racks that are highly customized for a specific warehouse layout or industry might be more difficult to sell. However, universal or adjustable racks tend to retain higher resale value due to their adaptability.

It’s best to get a professional evaluation when you plan to liquidate warehouse racks. It’s easy to undervalue your material handling equipment, especially if you are using local pallet racking companies near you, that may not have national reach or experience to get you the best return.

4. Gather Your Documentation

The more detailed documentation you have, the smoother the sales process will be. Anything that supports your case for a higher price should be included, such as:

• Dimensions: Height, width, and depth of the racks
• Capacity: The load weight each level can handle
• Brand and Model: Reputable brands increase buyer confidence
• Condition: Accurate assessments, including any damages or repairs
• Quantity: The number of units available

Documentation is also essential to mitigate the possibility of disputes, lawsuits, or potential liability. Accurate documentation, including noting any damage or modifications, provides greater transparency and can help if you are questioned. Consider having the equipment evaluated by a professional liquidation company to verify conditions. Inspection reports can give buyers confidence and demonstrate your transparency.

Since you are selling equipment as is, you will also need to include the appropriate disclaimers in your sales agreement. You should seek legal counsel to make sure this is done right. If they are legally enforceable in your jurisdiction, you will want to include liability waivers to protect against claims from improper use or installation.

Another thing to check is whether your business or liability insurance covers the sale of used equipment. You do not want to find out after the fact that you aren’t covered if you liquidate warehouse racks.

You’ll want to keep date-stamped photos of the equipment before it leaves your facility, including any wear or damage. You may also want to grab some videos of the equipment in use to demonstrate its working condition. This can help in case of claims down the road.

5. Choose Your Sales Method

If you are ready to liquidate your warehouse racks, you will have several options.

Sell to a Warehouse Liquidation Company

National warehouse liquidation companies often buy used pallet racks outright, offering you a quick and convenient way to sell. These companies may dismantle and transport the racks themselves, saving you the hassle. This creates fast and straightforward sales, and you’re paid faster.

List on Online Marketplaces

You can sell your used pallet racks on platforms like Craigslist, eBay, Facebook Marketplace, or specialized equipment marketplaces. These platforms can help you reach a wider audience and sell directly to other businesses. However, it can be time-consuming and tie up your team handling inquiries, dismantling, and logistics—plus it can take much longer to sell and there’s no guarantee it sells.

Sell to a Local Buyer

You may be able to find buyers by contacting local pallet racking companies, material handling suppliers, or pallet racking companies near you. This might save you on shipping costs, especially if the buyer can pick up the rack themselves. However, you will have a much more limited buyer pool compared to the other methods.

Before you decide to work with a pallet racking company near you, consider the major advantages of working with a national warehouse liquidator.

Sell Faster

National companies often buy equipment outright, saving you the time and effort it takes to sell on consignment or find a buyer that needs what you have for sale. National liquidators that handle high volume generally have the capital on hand to facilitate purchases faster. That puts money in your pocket more quickly.

Provide Turnkey Services

A national warehouse liquidator may also provide turnkey services that include specialized skilled labor to handle dismantling, boxing, shipping, and warehouse cleanup after the process is complete. Local companies may not offer these services, meaning you either have to do it yourself or outsource to another third-party provider.

Work With Dedicated Project Managers

Many large warehouse liquidation service providers will also have dedicated project managers to guide everything from start to finish. Because they have the infrastructure in place to manage projects efficiently, you can get fast responses to your questions.

More Accurate Valuations

Because national liquidators have a broader reach and deep connections across markets and industries, they have a better handle on demand. You may be located in a market where demand is low. A local provider may not have the reach to find qualified buyers in other areas.

Because they handle large volumes of transactions, national warehouse liquidators, like Conesco Storage Systems, have significant insight into fair market pricing, making your valuations more accurate and preventing you from leaving money on the table.

Get Better Deals

One prevalent myth is that local pallet-racking companies will offer better deals because they don’t have the administrative overhead of large organizations.

Not true.

National warehouse liquidation companies have more resources, market reach, and in-house expertise. This creates economies of scale that streamline operations.

6. Coordinate Logistics

Once you have agreed to terms with your buyer, you will need to handle the logistics. This can include dismantling and transportation of the racks.

You will want to be very careful if you plan to do this process yourself. Teardowns can be dangerous if you do not have experience. If you damage the equipment during the dismantling process, it can reduce your payout or even kill deals altogether. So, you will want to work with an experienced warehouse liquidation company that can handle the logistics and provide specially trained labor to avoid damage.

You may consider requiring buyers to handle logistics, but this may limit your options. Even worse, they might damage your facility or fail to hit your deadlines for removal.

Frequently Asked Questions

Can you use old pallets and pallet racking?

Yes, used pallets and pallet racking systems can still have considerable value if they are well-maintained. Many businesses prefer buying used systems because they offer significant cost savings without sacrificing quality.

How much are used pallet racks worth?

The value of used pallet racks depends on several factors, such as the brand, age, condition, and type of racking system. Well-known brands in good condition can fetch a higher price, while racks that are older or have structural issues may be worth less.

Can I sell damaged pallet racks?

It depends. Some damaged racks may still have value but will not command top dollar. Damaged pallet racks may need to be sold for parts or scrap metal, and most buyers will expect significant discounts. If the damage is minimal and can be repaired, you may still be able to sell them but be transparent with potential buyers.

Do I need to dismantle the pallet racking before selling it?

Some buyers may prefer that you handle the dismantling, while others (especially national liquidation companies) will offer turnkey services that include dismantling, transportation, and cleanup. If you plan to do it yourself, make sure you have the proper equipment and safety protocols in place.

How long does it take to sell used pallet racks?

The timeframe depends on the sales method you choose. National warehouse liquidators can buy your racks outright, allowing for a quick sale. If you opt for online marketplaces or local buyers, the process could take longer due to the time it takes to find a buyer.

Are you interested in evaluating and determining the fair market value of your warehouse material handling equipment? Contact the experts at Conesco Storage Systems and get a top-dollar bid.