Ways to Reduce Packaging Costs

September 24, 2024 Box Customization

Custom packaging is a necessary element in product presentation and protection but it is the same reason that leads to an increase in the cost of the product. It is advised that the cost of the packaging must not exceed 2 to 10 % of the actual cost of the product, this seems a little difficult when a brand wants durable and attractive packaging.

Nonetheless, identifying ways to reduce packaging costs can help you to a major extent. Several factors hinder a brand’s efforts to reduce the cost of the packaging. Nonetheless, by contacting a professional and experienced box manufacturing company you can significantly reduce the budget of your packaging department.

Moreover, by selecting the right material, manufacturing facility, dimensions, and styles of boxes, you can get the best and most affordable packaging. So let’s read the blog and get a basic understanding of the ways to reduce the cost of the packaging.

Reasons For High Packaging Cost

Today packaging isn’t just a box, it serves more than just protecting the product. From getting the attention of the customers to creating uniqueness of your product and promoting your brand everything can be done with the help of packaging. However, due to an unwise selection of box specifications, manufacturing companies, etc, you may have to break the bank to get high-quality boxes. Some common reasons that one can attribute to the increase in the cost of packaging are:

Unpropductve manufacturing processes
Poor quality and unsustainable materials
High designing cost
Frequent placement of small orders
Poor supply chain management
Inappropriate dimensions

Automated Packaging

Adopting new technologies and efficient manufacturing processes is a key to getting an economical box. For a manufacturing company, the initial expenditure may be a little high, nonetheless, this is a long-term investment as it will not only reduce the time to produce the boxes, but it will also reduce the amount of labor required to complete a task.

For instance, in automated packaging, we can take the example of die cutting, in which if one is using manual processes then he will certainly have to spend a lot of time to cut the box into the desired die line, and still the chances of accuracy will be quite low. On the other hand, if a company uses automated die-cutting machines then it will take only a few minutes to cut the bulk of the material which will certainly reduce the cost and the time of box production.

Wisely Select The Material

Packaging materials always play a significant role in the reduction of the cost of the end product. You must know what kind of material will be the best for your product. For instance, you can never use rigid material to manufacture custom burger boxes right? Because in this case we have to discard the box with just one use, so it is better to neither invest in high-quality material nor invest in too much designing of the boxes. Just a standardized packaging material that companies commonly use in box manufacturing will be enough such as cardboard, kraft, etc.

Additional Packaging Materials

Additional packaging materials are required when the dimensions of the box are not appropriate. This is because when the size of the box is too large then the placement of a small product inside it may cause damage to the product due to jolting. In this case, most of the brands go for fillers inside the box such as bubble wrap, inserts, etc. So to eliminate void fill you must select an accurate dimension of the box.

Green Packaging

Green packaging material is an ideal option to reduce the cost of the boxes and to increase the chances of your product selection. This is because green material is sustainable so gets the attention of the customers. Moreover, such materials are available abundantly in nature such as in the form of cardboard, corrugated, and kraft. Due to high availability, these materials are low in cost and ultimately give the affordable boxes.

Minimise Packing Times

You must know how to minimize packing times because this will reduce fuel consumption and labor costs. By adopting advanced and efficient manufacturing facilities you can reduce the turnout time of your custom boxes which will significantly reduce the packaging time.

Packaging Consolidation

If you are running a retail store then one of the best ways for you to reduce the cost is packaging consolidation. In this way, you can send your customers multiple small items in one single box. This will reduce waste generation, time required to pack the items, and hence the cost of the boxes. Apart from this, if you are selling small items such as lip balms, then you do not need to use custom lip balm boxes for individual sticks, you can simply get a packaging consolidation and display the product in the same box.

Reduce The Package Size

To ensure that your products remain in an upright condition and that you do not need to invest in fillers, then it is better to reduce the package size. It does not mean that you have to eliminate the essential components of the packaging, you can simply remove the unnecessary parts if your packaging budget is low then you can select,

minimalist packaging designs, single colors, and no add-ons.

It is better to use smaller boxes when you are selling small or miniature items. Do not go with generic packaging size because, for the short term, it may seem useful as you do not have to invest time and resources in designing the different sizes of the packaging, but the cost of material and the need for fillers will definitely make your packaging costly.

Maximize Packing Space

Like the selection of the appropriate box dimensions, the efficient use of boxes is also necessary. Here the question is not to select an appropriate box size but also to carefully use the available space. This is most useful for logistic companies who have to ship a large number of products at one time. These companies must learn how to efficiently pack the products to maximize packing space.

Train Your Staff

Staff training is a crucial factor in becoming a notch brand, specifically, if you are a box manufacturing company then you must know how much the skills of your staff can help you in the long learn. By efficient training of the staff, you can maximize their expertise and hence get the best outcomes. To train your staff you can organize workshops, teach them how to run new machinery, and how to work in collaboration with the other team members.

Aggregate Your Packaging Requirements

Aggregating your packaging requirements means consolidating your needs across different product lines or departments. This way, you can benefit from economies of scale and negotiate better terms with the supplier. You can also identify the right amount of packaging and packaging material and hence reduce waste generation and additional costs. Apart from this, you need to evaluate the total packaging needs of your company and place your order in one place to streamline the order, cut down the access cost, and get the benefit of ordering bulk amount.

Be Proactive, Not Reactive

This means that it is better to conduct a comprehensive analysis to plan a strategy so that you can assess your retail packaging needs. This process can avoid placing orders at the eleventh hour, which may cost you a lot. You need to develop a long-term strategy that aligns with your business goal. For this, you can anticipate future needs based on launches, market trends, seasonal demands, etc. Proactive planning prevents the placement of rush orders that are certainly expensive and reduces the negotiation time with the dealer.

Buy In Bulk

Buy in bulk and see how much you can reduce the cost of your packaging. Placing orders in large quantities leads to substantial savings. This is because when a brand purchases in large quantities then it can get discounts and lower-per unit cost of the packaging. One thing that is pertinent to mention here is that, before placing a bulk

order, do an analysis of your storage capacity and inventory management, and ensure that you have enough amount of space to store custom boxes and that you can use those boxes before they become obsolete or deteriorate.

Conduct Regular Packaging Audits

Conduct regular packaging audits to identify the areas where you can cut costs and improve the overall efficiency of packaging. While performing an audit, you need to evaluate the effectiveness of current packaging, its material, and suppliers. In this way, you can know the areas where you can reduce the cost of the packaging and where you can optimize its use. Besides this, the regular conducting of audits helps you stay at the top of the industry, keep pace with new trends, and make informed decisions about the current customers and product demands related to the packaging.

Diversify Your Packaging

Diversify your packaging to find a cost-effective solution that suits your product and helps you keep up with the market trends. For this, you can experiment with new designs, styles, and materials, for instance, instead of using corrugated material for your custom burger boxes, use cardboard or kraft material or select custom food wraps. This will help you to get an idea about what suits your product the best and give you a functional solution.

Explore Alternative Packaging Options

Another thing that you can do to cut down your packaging budget is to explore alternative packaging options that are most cost-effective and sustainable. Look into innovative material options such as kraft, cardboard, or corrugation and get eco-friendly boxes. These materials are not only a good option to reduce the generation of waste but are also an idea to keep the packed items secure. Additionally, you can also opt for alternative packaging designs such as minimalist designs, multi-use containers, etc.

Maintain Your Machinery

Properly maintain your machinery to make sure that it is operating efficiently and there are no chances of it breaking down. Out-of-order machinery leads to delayed production of packaging because of the time required to repair it and hence can potentially increase the production cost.

Minimize Printing Costs

Printing, though one of the most crucial components of the packaging, can lead to exorbitant prices for the boxes. Moreover, if a brand is constantly or after short intervals changing the design of the boxes then that brand may have to increase its packaging budget. To combat this increase in the cost of the boxes, the best thing is to select an appropriate printing method. Say if you are placing a bulk order selecting offset printing is a good option and if you need a small order then you can go with digital printing as for small orders the cost per unit is low here. You can also frequently remain in contact with your vendor to know what advanced techniques have been introduced in the market that are giving efficient results without compromising the quality of boxes.

Reduce Your Number of Suppliers

Reducing your number of suppliers and getting all the services from one place. That will lead to a reduction in the cost and also a reduction in hassle. A single vendor knows the unique demands of your company and as the product remains on one hand the labor cost also reduces and ultimately the cost of your packaging. By consolidating your order from a few suppliers you can do better negotiating, avail better pricing, and even get a loyalty discount. Apart from this by working with a smaller number of suppliers you can get consistent quality, design, and reliability for your brand.

Remove Inserts

Remove inserts such as promotional cards, protective cushioning, and manuals. It does not mean that you have to stop promoting your brand and that now you can sell your delicate products without reliable protection. By opting for an appropriate box style and size you can get befitting packaging that will reduce the product jolting and hence eliminate the end of inserts. In case, when you think that the use of inserts is necessary then you must opt for sustainable and economical alternatives. You can print promotional content on your packaging and still get the best promotional tool for your brand.

Conclusion

Reduction in the costs of packaging is not an arduous task, you just need to analyze several factors to make sure that not only your packaging is attractive and sturdy but it is also economical. By reducing the design complexity, unnecessary inserts, and too many printing colors, conducting a regular audit, aggregating your packaging, and keeping the same vendor you can easily reduce the cost of your custom packaging. To avail of all these things in one place you can contact CustomBoxesMarket which provides unlimited options regarding packaging at wholesale rates and uses innovative manufacturing facilities to give its customers the best packaging at the best rates without compromising quality.