The Economics of Purchasing Used Pallet Racks for Your Warehouse

A well-designed and well-run warehouse can be the difference between problems and profitability. When you have the right equipment, a solid plan, and a smart workflow, you enhance efficiency and reduce operational costs. This often requires rethinking your layout and material handling equipment as inventory and demands shift.

For example, many retailers and manufacturers transition from a just-in-time (JIT) strategy to a just-in-case (JIC) approach when faced with supply chain disruptions. This means more inventory on hand and more storage space. For many, used pallet racking for sale is the perfect solution to expand operations without a large initial investment.

So, if you’re thinking about buying pallet racks (used or new), expanding your current operations, or making other changes, let’s take a closer look at the economics and how it impacts your bottom line.

Pallet Racks-Used or New?

Used pallet racking for sale is less expensive than new, and in many cases, you can find high-quality material handling equipment with years of life remaining. Top brands are built to last. On average, buying pallet racks used can save you between 30% and 50% upfront. This can allow you to buy more than you might otherwise be able to afford (or want to spend) or use funds elsewhere in your business.

However, other economic advantages go beyond the purchase price, including:

• Availability: When you buy new, there may be a wait time for manufacturers to build out the equipment you need. Used pallet racking for sale is generally available quickly. This gets your operation up and running faster, and improves your throughput or volume.
• Reduced Depreciation: Used racks have already undergone the steepest part of their depreciation curve. This means their resale value is relatively stable, offering better long-term value.
• Cost-Efficiency for Expanding Operations: For businesses scaling up, used pallet racks provide an affordable way to test and adapt to increased storage demands, without a heavy financial commitment.
• Negotiation Opportunities: The used equipment market often provides room for price negotiations, giving buyers additional leverage to secure deals that align with their budgets.

Sustainability Benefits

When you buy pallet racks used, it reduces waste and supports the circular economy. This eliminates the need for manufacturing new racks, thereby reducing the consumption of raw materials and energy. It also avoids racks ending up in landfills and the associated environmental impact.

When You Should Choose New Over Used

Your decision to buy pallet racks used shouldn’t just be about saving money, however. There are times when spending a few more dollars upfront is a better long-term decision. For example, if your warehouse requires racks with customized designs, specific dimensions or features, you might not be able to find used equipment that fits the bill.

Certain industries also mandate specific equipment to meet regulatory requirements, and you might face similar problems getting what you need.

For any equipment purchases, you want to think about the lifecycle of your business and focus on the total cost of ownership (TCO). If you’re planning to stay in your location and use your pallet racks for decades, the durability and longer lifecycle of new equipment may justify the higher initial cost.

Tips for Buying Used Pallet Racks

Whenever you buy used, you take on some level of risk. You can minimize your risks greatly by working with a reputable seller like Conesco Storage Systems. Conesco is one of the nation’s largest warehouse liquidators and suppliers of new and used material handling equipment. With a stellar reputation for sales and service, the experts at Conesco Storage Systems can find you exactly what you need for your warehouse.

We’ll work together to understand your requirements-size, weight, load capacity, design specs, etc.—and create a custom plan for your warehouse needs. We provide fair and transparent pricing and inspect all used pallet racking for sale so you know its condition before you purchase.

Purchasing pallet racks used can save you money and help you hit your bottom-line goals. But that only works if you buy the right equipment at the right price. Whether you need new or used pallet racking, get in touch with the material handling experts at Conesco Storage Systems, and let’s discuss your needs.

For new or used pallet racking for sale, call Conesco Storage Systems at (303) 690-9591 or contact us online for a free consultation.