RePallet Co.Denver · Circular by design
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Inside pallet grades

Grade A vs Grade B, decided properly

The most common over-spend in pallet buying is Grade A for a job that Grade B does perfectly. The second most common is Grade B on a rack beam.

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Grade A (#1) pallets have original stringers and at most two replaced deck boards; Grade B (#2) pallets may carry companion stringers, plugs and up to four replaced boards. Both are structurally sound — the difference is repair history, consistency and appearance.

Specify Grade A for racking, automation and customer-facing loads. Specify Grade B for floor stacking, internal movement and one-way shipping. The price gap is typically $3 to $4.50 per unit.

The comparison

RePallet Co. grade standard for 48" x 40" GMA stringer pallets.
Grade A (#1)Grade B (#2)
StringersAll original, uncrackedCompanion stringers and plugs permitted
Replaced deck boardsMaximum 2Maximum 4
Missing boardsNoneNone
Top deck7 boards, complete5 – 7 boards, complete
AppearanceClean, dry, minimal stainingWeathered and stained permitted
Dimensional consistencyHighModerate; companion stringers add thickness
RackingYes, within quoted ratingNot recommended
Conveyors and automationYesNo
Typical price$8.50 – $13.50$5.50 – $9.00
Typical remaining lives3 – 51 – 3

How to choose in thirty seconds

Three questions settle almost every case.

  1. Does it go on a rack beam? If yes, Grade A. This is a safety decision, not an economic one, and it is the one place we will not flex.
  2. Does it touch automation? Conveyors, AS/RS, wrapping machines and robotic palletisers all care about thickness consistency. Companion stringers catch. Grade A.
  3. Does a customer see it? If the pallet arrives in a retail back room or a showroom, appearance is part of your brand. Grade A.

If the answer to all three is no — internal floor movement, one-way shipping, storage in your own yard — Grade B does the job and saves you meaningful money at volume. On 2,000 pallets a year the difference is roughly $7,000.

The grey areas

Two situations come up repeatedly and neither has a clean answer.

Mixed loads

Some operations run Grade A outbound and Grade B internally, and end up with both in the same stack. If that is you, mark them. A painted stringer end or a stencil costs almost nothing and prevents a Grade B pallet reaching a rack beam by accident.

"Premium" and "A+"

Some yards sell a grade above A — no repairs at all, matched species, uniform colour. We do stock it occasionally and will quote it when asked, but be clear about why you want it. If the answer is appearance, it is worth the premium. If the answer is strength, it is not: a Grade A pallet with two replaced boards is not weaker than one with none.

A grade is only as good as the standard behind it. Ask any supplier to send you their written grade definition before you order. If they cannot, the grade is a marketing word.

A worked comparison on real volume

The abstract argument is easy. This is what it does to an actual budget.

An operation using 6,000 pallets a year across three destinations.
DestinationUnitsCorrect gradeIf all Grade AIf right-sized
Rack storage1,400A$15,050$15,050
Automated line800A$8,600$8,600
Customer-facing outbound600A$6,450$6,450
Internal floor movement1,900B$20,425$13,775
One-way outbound1,000B$10,750$7,250
Yard and dunnage300Core$3,225$1,140
Total6,000$64,500$52,265

Twelve thousand dollars a year, from an afternoon spent listing where pallets actually go. No negotiation, no supplier change, no operational compromise — the rack and automation lines still get Grade A, because that is a safety decision rather than an economic one.

Where the line genuinely blurs

Three cases where the answer is not obvious and where we have changed our own advice over time.

Semi-automated wrapping

A turntable wrapper is far more tolerant than a conveyor. Grade B usually works, until the day somebody replaces the turntable with an inline system and nobody revisits the pallet specification. If a wrapper upgrade is on any roadmap, specify Grade A now.

Pallets that get racked occasionally

Every warehouse has this: stock nominally for floor storage that gets racked when the floor is full. The honest answer is that a grade rule enforced by hope is not a rule. Either mark the grades visibly or buy Grade A for everything in that area.

Long outbound transits

A Grade B pallet is fine for a one-way trip across town. On a five-day transit with three handling points it is less fine, because each handling event is a chance for a companion stringer to catch. Above about two days in transit we would specify Grade A even for one-way freight.

The pattern in all three: the grade decision was correct when it was made and something changed. Review the specification annually — it takes twenty minutes and it is the most common source of both over-spend and near-misses.

Questions people actually ask

Is Grade B unsafe?
No. Grade B is structurally sound — that is what separates it from a core. It is simply less consistent, which matters for racking and automation and does not matter at all on a warehouse floor.
Can Grade B be upgraded to Grade A?
Sometimes, if the only issue is deck boards. A pallet with a companion stringer cannot become Grade A, because the standard is about original structure, not just strength.
What is a #1 and #2 pallet?
The same thing as Grade A and Grade B. The numeric convention is more common in the eastern US; the letter convention is more common in the west. We use both and always define them in writing.
Do you sell Grade C?
Yes, as cores. They are serviceable lumber rather than serviceable pallets, and we label them that way so nobody puts one under a load.
Can I buy a mixed load of A and B?
Yes, banded and labelled separately so your receiving team is not sorting on the dock. There is no surcharge and it is how most multi-destination operations should buy.
Is Grade B ever the safer choice?
Not safer, but sometimes the more sensible one: for dunnage, load stabilising and anything where the pallet is barely loaded, paying for Grade A buys nothing at all.
Do you ever refuse to sell Grade B?
When a customer tells us it is going on a rack beam, yes, and we have lost orders over it. It is the one specification we will not flex on.
How much does grade affect remaining life?
Substantially. Grade A typically has three to five lives left; Grade B one to three. In a closed loop that changes the cost per trip enough to reverse the apparent saving.
What if my supplier's Grade B is better than another's Grade A?
Entirely possible, which is exactly why you should compare written standards rather than letters. Ask both for their definitions and put them side by side.

Let's keep your pallets in the loop

Whether you have 40 broken cores behind the dock or need 4,000 Grade A pallets a month, the conversation starts the same way.