It is said don’t judge a book by its cover, but don’t we always judge a product by its packaging? Whenever you receive a product, what is the first thing that you see? Of Course, it is the outer cover and how it is packed.
The reason why the packaging industry is growing is mostly because of local shops. Shops like gift items, resin material items, handmade jewellery, handwritten cards, and many more are now in high demand and use personalized packaging to attract customers. Also, these are just the creative stuff that is taking shape. Apart from this, the regular items that are shipped and sold have different kinds of packaging available. So, be it creative art or regular household stuff, if you are ordering online or bring things from a shop, the materials need high-grade packaging.
Supplier4Buyer gives you a wide range of packaging products from verified packaging companies by distinguishing them into different industries. For example, the packaging is categorized into automobile accessories, automotive tools, bearings, bolts, brazing equipment, and clutch parts and access. If you explore more, you have an option for blister packaging which again contains multiple choices. You get all these on just one portal. No more pain of switching on to different websites. Let us see how different industries and small scale businesses decide the packaging cost.
How to calculate Packaging Cost?
Packaging cost puts many recently started business in a dilemma. However, you don’t have to worry a lot about it. Just follow these simple steps: packaging costs lie between 1-3% of the actual cost of your products. Divide your products into a suitable range. If the product requires lavish packaging then spend 3% else, go for 1% or 2%.
Why is packaging so costly?
Packaging comes under added value services. The factors that have made packaging costly involves the cost of paper and materials, cost of labour, shortage of labour, increment in minimum wages, the manufacturing process involved, logistics cost, reselling cost, and any general overhead rise. Even with all the factors aligned, you can minimize the cost of packaging with the 5 simple steps discussed below.
Reduce Your Packaging Cost
- Improved Storage:
Storage seems to be less connected with minimizing packaging cost but if you dive deeper, where do you think all the materials go after packing them? Yes! The answer is obviously warehouse.
Cardboard, Seal, Plastic Bags, Paper, and stuffing materials are used to secure the items and deliver them. These packaging items come in variants and the space they take should be taken care of. If you manage your storage well, you will be able to sort and pack stuff accordingly. Products that can be clubbed together can be stored in conjunction. This will help in reducing the packaging cost for the materials required. You may want to use a CAD system for dimensional calculations.
- Simplify your design:
Complex designs lead to complex packaging ending up in the usage of more packaging materials. Hence, you can work on the design of your products and use custom packaging boxes. It does not mean that you have to change the entire design and make it look bland, but simplifying the design is an art and you can learn that with experience. For example, a teacup or a coffee mug that has to be designed for professional use, you can make the simplest possible design instead of using additions of extruding parts. This goes with everything, from a small pen or to big furniture and even to clothing. Pricey labels, graphics, printing can also be cut if used only for aesthetics.
- Customized Packaging:
Industries may think that utilizing one size for every product reduces the time consumed in selecting different sizes of packaging but you are making a mistake. You need to understand your requirements and select different styles of packaging. Also, it is not necessary to pack everything in a box. Use customized packaging for varying shapes that will help in reducing the packaging cost. If you have a circular design, implement cylindrical-shaped maybe. Don’t you think this aids in storage management too?
- Reduce Packaging Time:
If you are noticing that the time required for packing is more, then you are most likely using more materials. This means that your packing cost is increasing. Use new technologies like 3D printing, robotics, smart packaging, advanced packaging sealing machine to lower down the cost. These innovations have been a game-changer. Using simpler packaging design or something which is automatic and requires less human labour can be implemented.
As packaging manufacturers, maintenance of the machinery is crucial for reducing time. Do not wait for your machines to stop functioning, instead provide them timely service. Also, every staff of the packaging department should know about every detail about the operation and functioning of each machinery. This assists you at the time of mishappenings or any technical issues.
- Green Packaging:
We have been studying about 3R’s for a sustainable future. Why not apply this in our business for packaging? Try to use biodegradable materials for encasing.
Reduce layering while packing your items. I reckon there won’t be a single consumer who might have not thought about layers of packaging for the smallest of products. Rescuing the containers meant for storage in the warehouses is an environment-friendly step. And recycling is the ultimate way to go green with packaging.
Supplier4Buyer has bridged the gap between suppliers and buyers. We have a huge supplier database from around 2 million firms and 400+ industry categories helping businesses to advertise and generate leads. They also have a referral program with exciting rewards. Contributing to the packaging market, Supplier4Buyer is a promising platform to meet all your business needs. Find smarter ways and products for packaging and reduce the cost with number of vendors onboarded in packaging industry by Supplier4Buyer.