The Complete Guide to Reduce Packaging Costs + 10 Tips for Reduce Packaging Cost

Babak Heydari

Babak Heydari

March 28, 2022

How Much Does Packaging Cost

The type of paper, print amount, box size, coating, and whether or not you require a hard copy proof are all factors affecting the packaging cost for your business. Let us look at how these essential aspects influence packing costs and see how much packaging costs you.

Paper in Packaging Pricing

Different paper types have different qualities. For example, the paper has a minor impact on the packaging pricing and expenses, but it is worth considering.

The more packages you print, the price per item decreases. Double your print quantity will not double the packaging cost for you; instead, it will be less than twice as much.

Unique Box Dimensions

The more paper used to build your box, the larger it will be. As a result, as the size of your unique box grows, so does the packaging cost and expenses.

Coating and Packaging Design Costs

You can coat boxes and packages with various coatings. These coating options have different effects on the final product, and they all cost differently. Some coating options are more expensive than others are, so choose the one that best matches your packing and budget appropriately. The same goes for the packaging design costs that affect the final packaging pricing and cost.

Hard Copy Proof

It is suggested to make a prototype before printing your packaging for a specific product for the first time. The unique box must exactly suit the product, which you can check by getting a hard copy proof. You can order the hard copy proof blank if you want to save money or if it does not apply to your design.

10 Tips on How to Reduce Packaging Costs

Now that you know how much does packaging cost and what factors affect packaging costs for you, let us check the most effective ways to reduce packaging costs and increase the return on investment.


Be Proactive to Reduce Packaging Costs

The best time to reduce packaging costs is when everything is in place. That is because you risk misidentifying the problem if you react in an emergency rather than being proactive. You risk making mistakes and causing more trouble than you currently have by decreasing packing costs under time constraints. Rather than studying the cost of your packaging during ordinary times, being proactive allows you to take a step back and better understand what can be optimized and profitable for your company.

Look at the Big Picture of Packaging Cost

Evaluating and reducing packaging costs is not just about the packaging box of products. It is better to consider what the packages include, such as the cost of storage space, packaging tools, accessories, the printing method of the packages, etc. Imagine you opted to use inserts better to present your products within the box at some point. However, you later decide to remove them because the customer benefit is low and the costs are too high. One day, a consumer called to tell them that his merchandise was damaged in transit and he would like a refund. Then there goes another one. Imagine the negative feedback about your products on social media! Packaging is an expense, but it is also a valuable marketing tool that we sometimes overlook. So, when trying to reduce packaging costs in your business, go back as far as possible, and ask yourself: - What are the charges directly related to the packaging? - What is the demonstrable return on investment? Even if your ROI is excellent, you still have a budget to stick to. So it is up to you to weigh the options utilizing the resources provided and those that come after.

Use Custom-size Packages

Standard size packaging or the standard sizes that your supplier brings to you is often the best solution to the increasing requirement for package supply. He may offer you a cardboard box measuring 40x20x10 cm and another measuring 70x50x30 cm. It has the benefit of being quickly available and at a low cost. It may help in the short term, but standard size packaging is an extra cost. However, the given packaging is too large for your product. There are also some financial issues. First, you pay more for storage and shipping space because the boxes occupy the excess space. You pay to keep it and transport a half-empty container that is far heavier than it needs. Second, you pay for packaging material you do not use since you have so much extra space. Meanwhile, customers are becoming increasingly sensitive to environmental issues. As a result, the extra packaging stuff irritates them. Third, you may have added padding or stuffing to keep your products from shifting and being damaged because your container is excessively bulky. This padding costs you more money, but it also takes your packing crew longer to pack. It is another packaging cost that you can avoid. If your product is not too fragile, your packing should match its shape. If that is the case, you need a somewhat larger box to accommodate inserts or wood curling, which are environmentally friendly options. Another option to reduce packaging costs is to buy things that already have the package, such as textiles.

Remove All Unnecessities to Reduce Packaging Costs

Adding a handwritten Thank-You note to your sales can considerably affect your customer satisfaction. However, it can have a significant impact on your packing expenditure too. It is always important to track the return on investment of these brochures and the glossy finish of packages. - Has the number of unpacking posts on social media increased since you put the Thank-You notes in the box? - Have you noticed a boost in your sale? - How much does it cost for you? If you have trouble deciding, persuade yourself that you can keep doing what you were doing but do it differently to save money on packing. If you were going to put a tiny plain note in each box, you could have it printed with your brand's logo inside the box instead. The customer experience regarding satisfaction and loyalty will be the same, and you will save a considerable amount of money. Taking away what is not required can also imply removing padding and filling. You might use it merely because your packing is big.

Reduce the Size of Packages | Packaging Cost

If your product is not fragile, an intermediate approach that saves you money is to employ inserts that require less material but still hold your goods in place. Furthermore, an insert fitted to the boxes is easier and faster to install than kraft paper and, hence, less expensive. With all of these packaging-related strategies, you can reduce packaging costs in your firm.


Reduce Packaging Time

Your picking operator uses tape to seal your shipment boxes. However, if you choose a shipping box with self-adhesive tape, you gain two benefits: - The price of packing could be reduced; - Time-spent packing could be minimized. So reducing packaging time leads to reduce packaging costs for your business.

Keep the Equipment in Working to Reduce Packaging Costs

Keeping the packaging tools and machinery in good working order is not the first thing that comes to mind when saving money on packing. However, poorly maintained, adapted, or replaced equipment will affect your budget. Consider the case when you do not tape your shipping cartons with a dispenser. You can run into two problems: - Cutting tape manually is longer than with a tape dispenser. You waste time and money. - When one of your picking operators cuts his hand, the packing process is slowed. Moreover, you do not want them to be wounded. It is worthwhile to invest in essential equipment and ensure adequately maintained, from forklifts and trucks to tape dispensers and safety shoes. You have to pay for the repair of your tools and machinery and the time wasted due to their unavailability or the casualty they cause if you do not maintain them properly because there comes a day when there is a technical issue.

Train the Employees about Packaging Cost

Your staff is the most precious resource for you and, at the same time, brings you the highest cost. Suppose your picking operator lacks the necessary abilities. In that case, it costs you money for a less-than-optimal output, or it may even cause issues, which costs you extra and raise the packaging cost and expenses. For three reasons, having a well-trained staff is essential for every company: - They can prepare orders and package products efficiently and quickly. They must be able to use the tools and machines available to them. - They are safe for their benefit and the smoothness of order preparation and packing process. - To abide by all regulations about employee health and safety. Specific protocols and safety precautions must be followed and documented.

Work with Fewer Vendors

It may seem counterintuitive to decrease your company's number of packaging vendors. Indeed, having multiple suppliers allows you to compete and select the most cost-effective option for each component of your packaging: boxes, inserts, shipping bags, and so on. However, a supplier who advertises itself as low-cost runs the danger of producing lower-quality packaging. In addition, you may end up paying more than you earn. Another significant benefit of minimizing packaging providers is improved flexibility to changes. For example, consider adjusting the size of the boxes to fit your products. - Change the size of other providers of inserts and shipping bags. - Examine and verify other providers' offers, which may be updated upwards on the new size because it is rarer or more difficult to manufacture. - I am waiting for all of your packaging components to arrive, which will not necessarily arrive together. - Checking and testing that the packaging elements are the correct size and are compatible with one another is more complicated if the products do not come from the same supplier.

You will have only one point of contact with one packaging provider, who will be able to quickly organize all of your packaging needs and ensure the quality and compatibility of your products. Finally, even though some aspects of your packing are more expensive with your single provide, keep in mind that you can take advantage of bulk packaging pricing because you order everything from a single supplier.


Control the Supplies to Reduce Packaging Costs

Like any other stock, your packaging stock should be closely monitored and operated on a just-in-time basis. When you have too much inventory stuff, you are wasting money and paying for extra storage space. When you have insufficient stock, you run the danger of your supply chain collapsing and your customers unable to deliver. That is why it is critical to keep track of your packing inventory. You must know how long your goods will last and place orders on time. In addition, all of this is calculated quantities to avoid overstocking. As a result, it is critical to understand your packaging supplier's lead time: how long does it take from when you place an order to when you receive it? The simplest method is to use software that will automatically trigger a fresh packaging order when a minimum threshold is reached if you have the funds. Alternatively, if your stock hits a critical level, you can get an alert and renew your purchase in a few clicks. It is an investment, but it will save you time and money in the long term by allowing you to check your stock more frequently.

Final Thoughts

There are numerous ways to reduce packaging costs if you look closely. However, cutting the packaging cost a lot is not always good. Do not forget to tie your budget to what your packaging can achieve for your business as a marketing tool. It is worthwhile if the packaging cost is high but increases your retention rate and makes your brand viral on social media. Start your 14-day free trial today and check out how we help your business improve delivery efficiency.

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