Pin holes are nothing more than little holes that are predrilled to carry a pin that you insert into the hole. You insert these pins in the vertical uprights of the structure carrying the shelves. Usually the pins are set in the front and back of the outside verticals at the same height. Now if you have a half inch pin, then you want to drill into the vertical only a quarter of an inch, thus leaving a quarter of an inch to carry the shelve. Another words once the pins are set into the verticals, you take the shelves, and lay them level on the protruding pins. A template is nothing more than a piece of material that is used to make more than one more of the same at the same location. For instance, in the case of these shelves, you could take a piece of wood or a peice of metal and pre-drill holes into it. then set the templeate flush to the bottom of the vertical and drill your holes. You do repete this to both front and back of your verticals, and if done precisely, the shelves will set true. Hope this was understanable.
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