How do I check a pallet maker’s lumber and cutoff supply sources?

Pallet shops live on timber and offcuts, so the supply list matters as much as the customer list. Ask for the supplier names, the grades or sizes bought from each, and how often deliveries arrive. Match that against the purchase records to confirm the list is real and not a sample.

Look for dependence. If one mill supplies most of the stock, ask whether that arrangement is written down or simply habit. Ask what the shop did the last time a supplier ran short, raised prices or stopped selling. A seller who can describe a backup source in detail is more reassuring than one who says it has never come up.

Cutoffs deserve their own questions. Ask whether they are bought, received free or traded, and whether the supplier could start charging or sell them elsewhere. Walk the yard and note how much raw stock is on hand, how it is stored and whether it is dry enough to use. Your accountant can tell you how stock is counted in the books. Finally, ask whether any supplier has quality problems, such as wet or undersized stock, and how the shop handles returns. Ask how seasonal weather affects deliveries, and whether the shop could sort and resell scrap itself if a supplier changed terms.

Key takeaways

• Ask for supplier names, grades bought and delivery history, then match them to purchase records.
• Find out whether one mill is the only dependable source and what the backup is.
• Ask how cutoffs are obtained and whether that arrangement could change.