With 72% of US consumers admitting that product packaging design plays a determining role in their purchase decisions, businesses face a cost versus impression conundrum. Making choices in product packaging could mean losing sales or customers.
But what if there was a way to balance product packaging design with cost savings? In this article, we evaluate the factors determining the cost of product packaging and how businesses can save on packaging costs.
Factors to Consider When Calculating Product Packaging Costs
Everything from package material and design to shipping costs and lead time could drastically impact the total cost of your packaging.
There’s also the issue of hidden packaging costs, which could drastically impact the overall cost of packaging and yet go relatively unnoticed. Some of these costs include storing unused inventory, exceedingly long assembly times, and product damage during shipment.
How to Calculate Product Packaging Costs
When calculating the total cost of packaging for a potential product, you need to get individual quotes for each of the following items:
- Suitable materials and their costs
- How much do your suppliers charge to bring the materials?
- How much do your distributors charge for shipping the finished product?
- Other value-added services like shorter lead times, faster deliveries, and custom branding options
As a rule of thumb, you should always work with suppliers and distributors who offer the best rates and highest-quality products. While a more affordable option may sound financially appealing, it could work against you if the product packaging quality doesn’t meet customer expectations.
How to Save Money on Packaging
Cutting corners in product packaging design is never a good idea. That said, you can do a few things to lower overall packaging costs without impacting product quality. They include:
Order in Bulk
Ordering in bulk is always a sure way to save a few bucks on any purchase. Manufacturers and suppliers are always willing to offer a good deal to anyone who can get a ton of product off their hands at a go. Therefore, it is advisable to consult a few suppliers to see which one offers you the best deal on a bulk purchase.
Switch to Poly Bags
While heavier materials like cardboard might look more appealing, a well-designed poly bag could probably do the same job and save you money. That said, you should first consider the nature of the product you’re trying to sell, as some products, like electronics and toys, may not go well in a poly bag.
Embrace Automation
Using manual labor to pack your products might seem cheaper at face value, but it could cost more in the long run. An automated machine, despite requiring a higher initial cost, can do much more than a team of human employees in any given timeframe. Machines also don’t require regular salaries and other types of compensation, thus resulting in huge cost-saving benefits.
Cut Down Your Packaging Costs
Product packaging has become every manufacturer’s worst nightmare. In addition to the pressure to create an attractive packaging design, you also have to make it cheap enough to not compromise your profits.
However, by considering all the costs involved in the packaging process, you’ll be able to create alluring packaging designs at a fraction of the cost.
