What Things Make Up the Cost of Your Packaging? Know the Real Influencing Factors!
While you may get confused or surprised knowing the overall cost of packaging of your products, do you really know what factors contributes to its resulting cost? Well, it is quite important for you to analyze what really makes up the cost of packaging especially if you see price increase across your packaging range.
If you know and understand key factors determining its price, you will be able to identify the areas where you can go for cost savings. So here, let us explore some of the important factors that drive the cost of your packaging.
Specification or fragility of the products
It is the most obvious factor since it has noticeable and direct impact on your packaging cost. The more delicate your products will be to pack, more the pricing of custom packaging! After all, you need to protect them, right?
Moreover, larger items will definitely cost more as compared to packaging smaller items. The amount and type of the material used should also be considered.
Your packaging plays a big role in your brand’s marketing. In case your packaging doesn’t contain your business’ logo on its exterior, then what is the point of going for custom packaging? It is in fact a missed advertising and branding opportunity.
You can either go for single monochromatic or multiple coloured logos for your packaging. However, consider its impact! You can even ascertain whether both the print methods and switching to any one of them can lead you to cost savings with just little noticeable impact or not.
Just like any other item that you buy, the volume has great impact on the price that you pay. While it may sound simple economics in terms of scale, the overall impact can turn out to be more pronounced when going for custom packaging.
Firstly, it will likely have the machine setup time. Secondly, you have manufacturing process along with other relevant manual tasks. After that, it is storage as well as shipping location. The more these processes takes time to complete, the bigger the impact can be on the overall cost.
The packaging company you choose can provide you with managed inventory service. It can allow you for ordering big volume up-front.
While there are large number of factors affecting the overall price you spend on packaging, focusing on crucial factors and analyzing and controlling them can be really helpful. So, value your business and choose a right packaging supplier for your products!