Monthly Archives: October 2018

Best Practices to Keep Packaging Costs Low 

Keeping your costs nice and low is a huge part of any plans for businesses. Through the reduction of product costs, you’ll be able to use the right materials. It doesn’t mean you have to cheap out on your [product or cut corners either. 

A few changes do need to happen for you to get cheaper packaging.  Obviously there is buying in bulk, but there are other ways to optimize packaging to lower the costs of delivery. Properly doing your homework and choosing materials that are lighter and more durable can improve the dividends. 

Even the most luxurious packaging is affordable if you use common sense for these guidelines. It streamlines the ordering process, and bolsters sales as well. 

Get High Volume Orders Together 

Design does represent a considerable amount of the total packaging costs. 

Printers have a bunch of “fixed costs” to work with such as color, glue and the like. All of this is built into your final price.  These items that ultimately cost thousands of dollars are hard to make up. 

Through spreading the fixed costs over a ton of different volumes into high volume orders, this cost per time does plummet.  While you may have to pay more initially, over time you’re saving thousands, and bulk ordering also prevents reordering various materials for packaging. 

Use the Right Materials 

The size and the weight of the package all play a part in the ultimate costs. 

For example, the rigid luxury boxes won’t be folded when they are delivered, so the costs will be much larger. 

Some packaging along with printing companies may also attempt to upcharge for the multi-colored inks that are there, a matte finish, decals that are custom, and UV protection on your items.  These add-ons can be a bit, so you have to make the decision on whether this is needed for a product. 

Even just reducing your packaging costs by a few cents will add up. avoid the upcharges that aren’t necessary, saving on materials and your labor. 

Another way to cut this is to also outsource the packaging to people outside of the country.  It can be cheaper, and if you work well together, you’ll have a good packaging partner. 

Outsource if you Can 

You should consider outsourcing outside of the US if you’re trying to do more international options for shipping. Due to the discrepancies in the prices of labor, there is a chance that you can get the same product for a lot less. 

This is something as well that can be a bit of a challenge, especially if you want to communicate with them in the right time zones.  Most of them do have someone in the US, however, that can talk to the manufacturers overseas on your behalf. Always look at the overall logistics when working with someone overseas, since the pandemic has costs freight costs to skyrocket. 

Optimize with Speed to Market 

With the freight costs skyrocketing, one way to stay ahead of others is to look at the different packaging that you need prior to the holiday season. These days will prevent the packaging from arriving in due time. 

If you don’t want to pay for expensive shipping, always plan the packaging and merchandising months in advance.  Don’t try to do the “just in time” types of deliveries, as this will cause the packaging to falter. 

If you follow these steps, you can save money. It might not be a ton right away, but the little things add up. through this, you’ll be able to improve your profit margins too.