Don't Throw Pallets in the Dumpster
It happens every day: damaged pallets get tossed into commercial dumpsters and hauled to landfills. It's wasteful, it's often illegal (some jurisdictions prohibit bulk wood waste in commercial trash), and it's unnecessary. Nearly 100% of pallet wood can be recycled or repurposed, regardless of condition. Throwing pallets away is literally throwing money and resources into the ground.
Option 1: Sell to a Pallet Recycler
The simplest and most financially rewarding option is selling your damaged pallets to a recycler. Companies like Universal Pallet Supply purchase used and damaged pallets through buyback programs. Even severely damaged pallets have value — if the individual boards are salvageable, they can be used as repair stock for other pallets.
What recyclers typically pay:
- Grade A (lightly used, no damage): $3–$6 per pallet
- Grade B (moderate wear, minor damage): $1–$3 per pallet
- Grade C (significant damage, still repairable): $0.50–$1.50 per pallet
- Scrap/dismantle only: Often free pickup with no charge to you
Even at the lowest end, free pickup and disposal beats paying dumpster fees. And many recyclers will pay you for the privilege.
Option 2: Donate or Give Away
Local businesses, farmers, crafters, and community organizations frequently seek free pallets. Listing damaged pallets on Craigslist, Facebook Marketplace, or community boards often results in rapid pickup. Farmers use pallet wood for fencing, compost bin construction, and animal shelter building. The DIY and craft community uses pallet wood for furniture, shelving, and home decor projects.
While you won't earn revenue from donations, you avoid disposal costs and support your local community.
Option 3: On-Site Grinding
Large-volume pallet users sometimes invest in their own wood grinding equipment. Horizontal grinders or tub grinders can reduce damaged pallets to wood chips on-site. The resulting material can be used as landscape mulch on company grounds, composting feedstock, erosion control material, or sold to biomass energy facilities.
This option requires significant capital investment and is typically only viable for operations generating hundreds of damaged pallets weekly.
Option 4: Professional Disposal Services
If you can't sell, donate, or grind your pallets, professional wood waste disposal services will haul them away for a fee. These services typically deliver a roll-off container to your facility, let you fill it with pallet waste, and haul it to a licensed recycling or waste-to-energy facility. Costs vary by region but are generally lower than standard commercial trash hauling because the wood has recyclable value.
What NOT to Do
- Don't burn pallets: Burning pallets releases harmful chemicals (from treated wood, paint, or chemical residues) and violates air quality regulations in most jurisdictions. Open burning of commercial wood waste can result in significant fines.
- Don't leave them in piles: Abandoned pallet piles are fire hazards, pest attractants, and potential code violations. They also look unprofessional and can draw complaints from neighbors.
- Don't mix with regular trash: Bulk wood waste in commercial dumpsters can result in overweight charges, rejected loads, and surcharges from your waste hauler.
The Smart Move: Set Up a Recurring Program
Rather than dealing with damaged pallets ad hoc, set up a standing recycling arrangement with a company like Universal Pallet Supply. We'll schedule regular pickups, pay you for reusable pallets, and handle disposal of the rest. You get a clean yard, a small revenue stream, and the satisfaction of keeping wood out of landfills. Contact us to set up a free consultation and site assessment.