How to calculate the cost of wrapping a pallet?

In this simple experiment, we can estimate the baseline cost of wrapping a pallet.

First, we wrap a pallet by hand. Then, removing the wrap, we weigh it on a sensitive scale, which will give us a reading of between 250g and 500g. Using the stretch wrap price, we can then calculate the cost based on the amount of material used for the load. This process is called a ‘cut and weigh test’, and we find it’s the most accurate way to assess the cost per pallet wrapped.

You can do the same with the method you currently use to cover a pallet to calculate the cost of wrapping a pallet in your business.

I do this in 2 steps:

Step 1 [nett weight off roll] / [amount of stretchwrap used] = [pallets wrapped per roll]

Step 2: [Roll price ] / [Pallets wrapped per roll] = [Cost per Pallet wrapped]

EG:

Step 1 [14000grams]/[250grams] = 56

Step 2:" [$70]/[56] = $1.25

The method we employ for calculating wrapping costs and evaluating stretch film prices remains invaluable. As in today's market, many companies resort to various tactics to obfuscate pricing and enhance the appeal of their products. It's crucial to recognize that shrinkflation is prevalent in the packaging industry. Amidst these strategies, the cut and weigh test stands as a reliable approach to discerning the true cost per pallet wrapped.

This approach proves highly effective for comparing two different films and machine styles, such as friction brake and powered prestretch. Generally, powered prestretch machines tend to offer a lower cost per pallet wrapped. However, it's essential to note that these machines come with a higher initial investment. Understanding this distinction enables you to make an informed decision about whether opting for a powered prestretch machine justifies the additional upfront expense, or if sticking with a more basic unit is the better choice.