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What Is Pallet TCO (Total Cost of Ownership)?

Pallet TCO is the 5-year total cost of pallet ownership including acquisition, freight, repair/replacement, leakage, and end-of-life recovery, used to compare pool vs purchase models.

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Quick Answer: Pallet TCO is the 5-year total cost of pallet ownership including acquisition, freight, repair/replacement, leakage, and end-of-life recovery, used to compare pool vs purchase models.

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Detailed Answer

TCO formula: (Acquisition cost × pallet count) + (Freight in × cycles) + (Repair/replacement × annual rate) - (Recovery value × end-of-life rate) ± Leakage. Industry-typical 5-year TCO: pool model = $40-60 per cycle position; purchase model = $20-35 per cycle position. Use USP's ROI calculator at /tools/pallet-roi-calculator/.

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