How to Resell Used Pallets for Profit: $1,000 a DAY Flipping Pallets w/ Simplest Biz Course Student

hey everybody how you doing my name is varney sambola from baltimore maryland and yeah i mean the palette business is making about a thousand dollars a day yeah how does this all work like how did you get into it i got into it back in the end of 2020 almost like in the middle of the pandemic you know no money coming in uh everybody's shutting down and i needed to sponsor this guy support this guy so you know i went surfing on youtube you know like we all do and uh i found him i found john worker having another interview on another platform and he was saying how much money he made uh within a couple hours and you know i said well you know what dad i'm not want to just put a selfie too good to be true i always want to find out for myself before i can make that assumptions so i just went out anyway and say you know what let me let me uh watch him a little bit more and find out if this is something i want to get into as i kept watching i realized it made a lot of sense you know because of uh the product that he had and i just reached out to him said listen you know i don't know you and you don't know me but whatever you know i need to know the same thing and that's how the relationship started yeah so my understanding of at least the way john described the business on the podcast several years ago was building this database or directory of buyers and suppliers companies that need pallets and drums and you know kind of these shipping by-products for their businesses in the industrial parts of your town and then on the flip side creating this a similar list of buyers you know people who need this stuff for their business and just trying to play matchmaker he called himself a middleman and that was that was that but my question was always like well you know these companies already have a process in place if they've been in business for any length of time so you know what is the what is the intro pitch or what is like how did you get on these uh companies radars or how do you kind of go about sourcing this initial inventory you know a lot of companies need our help they're hoping that someone's going to walk through that door to ask them uh how they can help them and in the business like john say it's a matchmaking business they need our help really really bad and when you go to talk to these companies that's when you realize oh they have a problem and you can come in as a problem solver and the funny thing is nick these two companies they may be literally a few blocks one or two blocks away from them from each other right never did not communicate and even when john said that i said well how is that possible if if company a is next to company b well why don't they just communicate and help each other out but they don't you know and that's when we come in we make that match match making uh uh magic happen so to speak so it's happened to me too and i'll share this with you if i may um i had a company reach out and say you know we need you know uh 200 pallets and i said okay at the time i had you know i still have my van i had a cargo van i couldn't fit like 30 in it so i delivered i told him i could give him the the 200 i had the 200 but i can only deliver 30 so what i did was i delivered the first 30 and then okay let's say uh the company i delivered to was in building a and then they have built in b and then building c building c had over like 440 uh pallets right and then company a needed 200. so as i was leaving company a going and right to building c there's all these pilots that they need so i just stopped in and you know acts and they're like well go ahead help yourself out so i load up my van i load up the van right there and turn around came back and dropped off those pallets and the company was like wow that was really fast i said yeah i know right so i told myself you know give me another like 10 or 20 minutes and i'll be back and i went back there and load up another um another 30 but this time i can't go i can't just drive back and make it out of here so i had to go around the building and after they parked the van wait like a few more minutes and then come around that's how crazy it was yeah but i made that was two grand in uh 45 minutes wow and i was just yeah i was i was literally blown away by the whole uh uh experience to make this matchmaker for 45 minutes to make two thousand dollars music is it common to get inventory for free just people trying to get rid of this stuff it was and towards the extent it still is but it's getting a little bit tighter companies that used to give it give it to you for free there are now trying to get into the market as well were there any types of locations or industries that you targeted early on yes so there are companies around that they receive a lot of pallets every day with their products on it so those are the companies at target because for example if company a has receiving you know 1 000 a day so i just go there and what i do is i duplicate whatever that company is because every company always have a competition a competitor so i always go to their competitor as well because they will have the same amount of pallets if not more and that's how i source finality okay and then on the buying side what did you find effective there oh man facebook the power of social media is insane i mean i get buyers from california i get buyers from chicago i get buyers from everywhere um just from a facebook post you know oh so it's not always just local not always just driving four blocks down the street too no i started with local and i still do local but i've expanded to different states where i have buyers coming with tractor trailers as a matter of fact right after our interview um our tractor trailer should be pulling up here um today yeah so we have buyers of other states how do you figure out the the pricing on something like this where it's you know one man's trash is another man's treasure in a way where it's like you're getting it for free or for very cheap from the suppliers and then these other companies need this stuff like how do you figure out the like pricing and margins that you're aiming for so how i do it is basically uh make i would go to a company that have pallets and if they are keeping their pallets i would usually ask them hey you know if you don't mind me asking what do you uh what do you purchase a pallet for maybe i can try to save you a few dollars you know and usually they're open to tell you you know what they pay and then based on that you can adjust your price to basically fit their knee and save them a couple of dollars as well what's typical these days with the price of lumber especially during the pandemic going crazy like what's what's typical pallet cost the typical pallet costs about 12 bucks okay and that's a b grade very much a volume game where you've got to be moving hundreds of these things at any time to make any significant money and it's like a big bulky thing i can only fit 30 in the cargo van what's the logistics setup look like i mean you're talking to me from your warehouse today but is that how it started like i'm curious just if i'm oh no i'm dealing with bulky stuff like like okay well it's cool i can make a good margin on it but where do i where do i keep it in the meantime when i started i just had a van and i'll keep him in the van and sell you know 10 year 20 there and so forth but then i realized the potential of the business so i decided to like really take it and run with it so i went and rented a parking lot where you put one car so guys i want to show you nick i want to show you where i started and where i am okay yeah so when i started you know again i was in that putting my stuff in that van because i had nowhere to put it and then what i did was um i came to a commercial space and i rented this parking space right here it was like 60 70 bucks a month and that's all i had was this one space right here yeah you know but i just kept being consistent and just kept working until i went from this spot to the next one to the next one until i got all of this here all of this space and then this spot came available so i grabbed this as well where the van is here uh all the way here yeah look at all this stacked up stacked up yeah and uh into my warehouse here slash my office companies were reaching out to me on social media and saying hey listen do you have 616 pallets we need those uh if you can get it and what is your price and my price is like 10 bucks a piece so when i was able to get 616 pallets in about two three days and sew all of those in less than four hours for six thousand one hundred and sixty bucks yeah that was a major game changer i had no background in this but i didn't even i would see pilots on the street when i'm driving and just look at him as trash i never really pay attention to it until after talking with after talking with john in that episode a few years ago every time i would see a flatbed truck like stacked up with pallets i'd like take a picture and text him like palette money he'd text back be like well that's probably 600 bucks right there you know it's like yeah you totally never look at it the same way but it's just one of these like kind of businesses that run in the background a lot kind of these by-product type of things that you don't really think about but yeah these pallets and other shipping materials are changing hands all the time and there's margin to be made for a matchmaker for a middleman like yourself it's pretty inspiring well anyone anyone getting this in into this business uh the first thing will be get educated first that's the most important thing get educated so you know exactly what you're doing this is something that you literally get to decide what you want to make on a monthly basis every company or 99.9 percent of the company in the united states depend on this business nothing gets shipped out anywhere without pallets so it's almost like doing a gold rush we have to shovel you need a shovel without the shovel you're not digging any gold without pallet you're not shipping anything yeah it's really exciting to see what you've built i was going to ask if there were any deals that had gone bad or mistakes along the way you know if you had to start over what would you do differently that type of thing i had a player that had 8 000 pallets 8 thousand pallets that's about almost 80 90 grand and we had agreed that i would come into their warehouse they had over 350 square foot of space and 50 of that was occupied by pallets okay and and we agree that i will come in and i will clear out the entire space so that way they can have more room to put their product that was the agreement and i took three months with me and my guys to go in there you know hire my guys paint them and everything to bring the pallets outside of the outside of the uh the warehouse and organizing them real nice and neat and getting ready to start you know having my buyers bring their trucks and pick them up yeah the moment i do that their warehouse is now completely clear and then they come back and say hey you need to give us ten thousand dollars today or else you need to leave the property and i said excuse me he said yeah you need to give us ten thousand dollars boy you need to leave the properties if you want those pallets outside you need to pay for it i said but that wasn't an agreement agreement was for me to come in and clear the palace from the inside and you guys gave me a forklift and everything and i've been doing it for the last three months how come you guys never approached me or told me in the beginning yeah when the pack were inside so what ended up happening what happened it was um the religion i told them i wasn't you know i wasn't going to give them 10 grand and they said well you know you can't come on our property anymore uh and i don't think that was right i don't think it was fair at all um because at this point i'll spend almost eight nine thousand you know paying my guys just to clear the dollars due to the labor yeah it's just to labor alone the label cost so but it was another pallet company that came in and kind of finished their way in there and that's kind of your opener is do you mind me asking what do you do with those palettes that's my opener um but also what i do different too is i talk to because every company have uh what you call a a gatekeeper sure so i want to make i want to establish a relationship with the gatekeeper first because a lot of time people go into the actual managers and supervisors they look over the gatekeeper yeah and that's why the gatekeeper shoots them down and close the gate because they don't make the gatekeeper feel important enough you know but i did my time to get to know them and see how the day was going how long they've been with the company and you know it just asks non-invasive questions and they usually will be very open to talk so when i ask for the manager they will literally take me and walk me directly to the manager's office yeah okay that's a great tip thanks for sharing that yeah i'll just leverage the the name dropping because i don't really know the gatekeeper so the gatekeeper name was nick and the axe will make i mean and i want to ask for the manager so i'll talk to you first and i say what's your name nick oh nick nice to meet y'all today you know how are you enjoying the day how long have you been working okay great hey i cannot ask for the manager you said oh yeah bonnie come with me so when i get to the managers hey i was talking to nick out there he's a pretty cool guy yeah yeah so right now the manager is like okay well he might maybe you know nick which i don't know nick but i took a little bit of i took a few seconds to try to get to know me yeah yeah and because of that yeah usually managers would just um open up and say hey come let me take you you know take you on a tour of the warehouse and they would take me around and show me things and all of these you know give me some numbers and what they buy a palace for what kind of pallets they're looking for and how often they buy it and stuff and that's where the relationship starts yeah exactly starting those relationships and just spidering out building out from there i'm curious so it's been a couple years into it mv mvpalettesolutions.com where do you want to go this thing you're going nationwide what's going what's next for you my goal is to go to a million a month i want to net a million a month there you go and i'm on that yeah i'm on that journey right now um i know for a lot of people they'll be really scared that's a big number but i'm not gonna focus why because if anyone can make a dollar a month you can make a million a month because and when i started my goal was to make 100 bucks a month i mean 100 bucks a day i'm sorry yeah yeah and i did that in a few hours and i said well let me go to 200 bucks a day okay let me push it to 500 a day okay let me see if i can do a thousand a day but every goal was accomplished and i just kept going if i did 200 a day i said okay let me do five if i did five let me do a thousand a day was it easy to get to a thousand a day there was no way you know here and there are little challenges here and there but i still got there so yeah the goal is to do a million a month and that's where i'm heading and no one's going to stop me from doing that unless i die but other than that i'm not going to stop so i get it oh god hopefully hopefully you can keep kicking i would love to do a follow-up when you get there because i'm confident that you will given the path uh that you've been on so varney really appreciate you joining me mvpalettesolutions.com you can check them out over there let's wrap this thing up with your number one tip for side hustlation then have to be palette related just any type of entrepreneurial wisdom that you'd like to impart number one tip is consistency you can succeed in anything you want to succeed by just being consistent we are human beings of habits so if you can do something consistently it becomes a habit so whatever you pick that you want to do as long as you know that stuff is beneficial to you and it's especially in the form of business as an entrepreneur just hanging there to be consistent long enough until it turns into a habit and once you turn into a habit you got it you don't even feel like you're working anymore because it's a habit and if it's a good habit trust me you can go i mean space is not even the limit you can just accomplish anything you want to accomplish just by being consistent avari this has been awesome i really appreciate you sharing your journey for the last couple years i'll let you go and load up that truck but thanks so much for joining me and we'll catch up soon thank you very much you have a great day and i'll talk to you soon cheers

Channel: Side Hustle Nation

Views: 72,024

Keywords: how to resell used pallets, reselling pallets, flipping pallets for profit, flipping pallets, simplest biz, simplest biz review, pallet flipping, ways to make extra money, john wilker, simplest biz legit, how to flip pallets for profit, reselling used pallets, make extra money, side hustles, side hustle ideas, side hustle tips, best side hustles, flipping profits, buy low sell high, make money fast, john wilker pallets, simplest biz john wilker, pallet reselling business

Id: pXCK_mKx6II

Length: 17min 39sec (1059 seconds)

Published: Mon Jun 06 2022