Enterprise · Illustrative walkthrough
This is an illustrative example, not a customer.
The buyer, its volumes and what it pays today are assumptions, listed at the bottom of this page. Every market price is the public PFX for September 2026: Grade A and Grade B delivered 48x40 in each state. PFX is Indicative. Published by Chesapeake Pallets LLC, a pallet broker whose completed sales set the two PFX benchmarks.
Pallets a year
1,200,000
30% Grade A, 70% Grade B
Spent today
$7,764,070
$6.47 a pallet, delivered
Above PFX
$659,635
9.3% over the market, $0.55 a pallet
Likely savings
$447,015
$0.37 a pallet, every year
Illustrative example built from the September 2026 PFX. Not a customer case study.
Step 1
The buyer: one company, a market in every region
Each facility buys its own pallets from its own local suppliers, on its own contract. That's normal for a national network, and it means nobody sees the whole picture: is Texas paying more than Georgia because Texas costs more, or because nobody asked?
PFX answers that state by state. Pallet prices differ by state for real reasons (local wages, yard land, diesel and how far demand outruns local supply), and PFX prices each state from those costs. So a gap between what a facility pays and its state's PFX is a gap you can negotiate, not geography.
- PFX U.S. composite
- $6.77
- Grade A · Grade B, U.S.
- $7.95 · $5.00
Step 2
Map what you pay against the market, facility by facility
Pull last quarter's invoices for each facility, take the delivered price per pallet by grade, and set it beside that state's PFX. The tick is the market; the bar is what the buyer pays.
Texas +12%
Grade A$8.98 · PFX $8.02Grade B$5.66 · PFX $5.05California +18%
Grade A$9.86 · PFX $8.36Grade B$6.21 · PFX $5.26Illinois +7%
Grade A$8.66 · PFX $8.09Grade B$5.45 · PFX $5.09Georgia +4%
Grade A$8.39 · PFX $8.07Grade B$5.27 · PFX $5.07Ohio +3%
Grade A$7.71 · PFX $7.49Grade B$4.85 · PFX $4.71Pennsylvania +9%
Grade A$8.35 · PFX $7.66Grade B$5.24 · PFX $4.81Florida +8%
Grade A$9.14 · PFX $8.46Grade B$5.75 · PFX $5.32North Carolina +2%
Grade A$7.51 · PFX $7.36Grade B$4.72 · PFX $4.63New Jersey +15%
Grade A$9.72 · PFX $8.45Grade B$6.12 · PFX $5.32Tennessee +6%
Grade A$7.80 · PFX $7.36Grade B$4.91 · PFX $4.63Arizona +14%
Grade A$9.09 · PFX $7.97Grade B$5.71 · PFX $5.01Washington +11%
Grade A$9.27 · PFX $8.35Grade B$5.83 · PFX $5.25Michigan +5%
Grade A$8.72 · PFX $8.30Grade B$5.48 · PFX $5.22Missouri +10%
Grade A$8.68 · PFX $7.89Grade B$5.46 · PFX $4.96
Step 3
Find the gap, and where it sits
Multiply each facility's gap per pallet by its volume. The buyer pays $659,635 a year above PFX, and $594,595 of it comes from the 10 facilities more than 5% over the market, the line the quote check calls in line. California alone is $156,100.
- California$156,100 · 18% over
- Texas$107,250 · 12% over
- New Jersey$65,870 · 15% over
- Illinois$50,760 · 7% over
- Pennsylvania$45,720 · 9% over
- Arizona$45,430 · 14% over
- Florida$42,925 · 8% over
- Washington$34,100 · 11% over
- Georgia$25,960 · 4% over
- Missouri$23,480 · 10% over
- Tennessee$22,960 · 6% over
- Ohio$15,580 · 3% over
- Michigan$15,400 · 5% over
- North Carolina$8,100 · 2% over
Total above PFX: $659,635 a year · above the in-line band: $594,595
Illustrative example built from the September 2026 PFX. Not a customer case study.
Step 4
Negotiate with a market reference on the table
A supplier can argue with your opinion. It's harder to argue with the market price for the same pallet, in the same state, this month, from a published method. That's what PFX brings to the bid. Five plays, priced where public numbers allow it:
a.Bring every facility above +5% back to PFX +5%$335,275/yr
In the next bid, ask each of the 10 facilities' suppliers to meet PFX plus 5% for its state and grade. PFX is the reference; 5% leaves room for service and spec.
Illustrative example built from the September 2026 PFX. Not a customer case study.
b.Consolidate suppliers by region
A contract per facility becomes a handful of regional ones. Bigger lanes earn better prices and fewer, better-run deliveries. Not priced here: it depends on the suppliers in each region.
c.Move 10% of Grade A volume to Grade B where the spec allows$111,740/yr
Grade B carries repairs but works for floor storage and one-way shipping. Moving pallets that don't need Grade A saves the difference between the two grades in each state.
Illustrative example built from the September 2026 PFX. Not a customer case study.
d.Reprice every quarter against PFX, not once a year
A flat annual price locks in last year's market. A quarterly review against PFX passes declines through within a quarter and makes increases show their work. Not priced here: it depends on where prices go.
e.Heat treat only the export lanes
Heat treatment (ISPM 15) adds a cost to every pallet that gets it. Many networks order it everywhere out of habit. Not priced here: a free account shows heat-treated prices for its home state, and PFX Pro and Enterprise Data for every state.
- a. Above-band facilities to PFX +5%$335,275 a year
- c. 10% of Grade A to Grade B$111,740 a year
Illustrative example built from the September 2026 PFX. Not a customer case study.
PFX in the room, not in the contract (yet)
Today PFX is the market reference you bring to a negotiation. Index-linked contract clauses, where a price moves with PFX automatically, come with the Benchmark License once PFX meets the Benchmark test on the methodology page: independent sources and six months of releases.
Step 5
Budget the next twelve months
After the bids, the buyer spends about $7,317,056 a year on pallets. At that size every 1% move in pallet prices is about $73,171, so which way the market goes matters as much as the bid.
- −3%−$219,512
- −2%−$146,341
- −1%−$73,171
- +1%+$73,171
- +2%+$146,341
- +3%+$219,512
Up
The outlook in dollars, by state: PFX Pro
Enterprise Data adds the 12-month forecast in dollars with its 80% range, for every grade and state, so each facility gets its own budget range.
See PFX ProStep 6
The savings, scenario by scenario
Three ways the bids could go. Each line shows its formula, run over all 14 facilities with each state's PFX and the buyer's prices above. Grade moves are priced at the renegotiated prices, so nothing is counted twice.
| Line and formula | A year | |
|---|---|---|
| ConservativeFacilities above the in-line band close half the gap to PFX +5%. No grade changes. | ||
| ConservativeFacilities above the in-line band close half the gap to PFX +5%. No grade changes. | Renegotiate 10 facilities: pallets × (today's price − new price), new price = today's − 50% × (today's − PFX × 1.05) | $165,425 |
| No grade changes | $0 | |
| Total, and per pallet (1,200,000 pallets) | $165,425$0.14 a pallet | |
| LikelyFacilities above the in-line band come back to PFX +5%. One Grade A pallet in ten moves to Grade B. | ||
| LikelyFacilities above the in-line band come back to PFX +5%. One Grade A pallet in ten moves to Grade B. | Renegotiate 10 facilities: pallets × (today's price − new price), new price = today's − 100% × (today's − PFX × 1.05) | $335,275 |
| Move 10% of Grade A pallets to Grade B: 10% × Grade A pallets × (new Grade A − new Grade B) | $111,740 | |
| Total, and per pallet (1,200,000 pallets) | $447,015$0.37 a pallet | |
| AggressiveEvery facility above PFX +2% comes back to it. One Grade A pallet in five moves to Grade B. | ||
| AggressiveEvery facility above PFX +2% comes back to it. One Grade A pallet in five moves to Grade B. | Renegotiate 13 facilities: pallets × (today's price − new price), new price = today's − 100% × (today's − PFX × 1.02) | $517,105 |
| Move 20% of Grade A pallets to Grade B: 20% × Grade A pallets × (new Grade A − new Grade B) | $217,953 | |
| Total, and per pallet (1,200,000 pallets) | $735,058$0.61 a pallet | |
Illustrative example built from the September 2026 PFX. Not a customer case study.
- Conservative$165,425 a year $0.14 a pallet
- Likely$447,015 a year $0.37 a pallet
- Aggressive$735,058 a year $0.61 a pallet
From $165,425 if suppliers meet the buyer halfway to $735,058 if the whole network comes within 2% of PFX. Enterprise Data is $6,000 a year for up to 25 people across the network.
Illustrative example built from the September 2026 PFX. Not a customer case study.
Run this on your own network
Every state, every grade, every month
Enterprise Data gives your team every PFX price by state, grade and size, the forecast in dollars and the PFX history since 2007 (the BLS wood pallet index rescaled to PFX before September 2026), as files and through the API, for up to 25 people. $6,000 a year.
Start smaller: check one quote against your state's PFX with a free account.
The assumptions
The buyer is made up. Its volumes, its 30% Grade A and 70% Grade B mix and what each facility pays over PFX are fixed assumptions, chosen to look like a national network: a few facilities buy well, most pay somewhat more. Market prices are the public September 2026 PFX for Grade A and Grade B delivered 48x40 by the truckload in each state, and they update with every release.
| Facility | Pallets a year | Grade A · Grade B | Pays over PFX |
|---|---|---|---|
| Texas | 150,000 | 45,000 · 105,000 | +12% |
| California | 140,000 | 42,000 · 98,000 | +18% |
| Illinois | 120,000 | 36,000 · 84,000 | +7% |
| Georgia | 110,000 | 33,000 · 77,000 | +4% |
| Ohio | 95,000 | 28,500 · 66,500 | +3% |
| Pennsylvania | 90,000 | 27,000 · 63,000 | +9% |
| Florida | 85,000 | 25,500 · 59,500 | +8% |
| North Carolina | 75,000 | 22,500 · 52,500 | +2% |
| New Jersey | 70,000 | 21,000 · 49,000 | +15% |
| Tennessee | 70,000 | 21,000 · 49,000 | +6% |
| Arizona | 55,000 | 16,500 · 38,500 | +14% |
| Washington | 50,000 | 15,000 · 35,000 | +11% |
| Michigan | 50,000 | 15,000 · 35,000 | +5% |
| Missouri | 40,000 | 12,000 · 28,000 | +10% |
Prices paid are PFX for the state and grade times one plus the facility's premium, to the cent. Savings assume suppliers accept the bids described; real results depend on suppliers, specs and volumes. Published by Chesapeake Pallets LLC, a pallet broker whose completed sales set the two PFX benchmarks.