Small and medium enterprises are wandering in the town; a large number of challenges are being faced by them. From product creation to the marketing, each and every step require attention, care and cost analysis. So, the worth of cost analysis cannot be overlooked anymore, eventually this save money and efforts too. The retail packaging cost could be minimized when you are dealing with large quantity and products. By saving one dollar on a box, at the end of the day you will have at least $100 savings. So, by reducing cost at every single step the small business can get significant cost reduction in the overall process. No doubt, the packaging cost is always higher than that of other miscellaneous stuff in the process.
Packaging cost is the biggest challenge faced by the marketers
When dealing with retail products the cost analysis is paramount and mandatory. All the large and small brands first made a cost analysis of the product packaging and at last, they finalize the process. This whole process is the biggest challenge for the marketers, this is because it includes the market analysis, competitor’s packaging analysis and cost analysis of the product. For instance, marketers always try to launch products and fairly low prices in the market, in order to get a competitive edge in the market they are required to set lower costs and here packaging is proved to be a challenge to minimize the retail packaging cost.
How to conduct a cost analysis of your product packaging?
Cost analysis requires accounting analytical skills, cost accounting is formed to measure and calculate the exact cost of a box. Moreover, a simple analysis could be done easily by using this simple formula. Divide the number of boxes by the cost (the total cost that mainly includes shipping, transportation and other recurring costs) and the price of one box could be obtained. By calculating this cost the original cost could be measure easily. So, conduction of cost analysis is essential for any kind of business, without acting upon this strategy the price of the box could not be set easily.
What factors can affect the overall cost?
The packaging cost of a retail product could be affected by several factors that directly imparts in it. The material selection, implemented effects, number of layers in corrugation, customization, small orders, high color combinations, shipping cost from China vendors and etc.
Few methods to reduce the cost of the packaging
Bulk Purchasing
In order to reduce the cost, just go for one-time bulk production, the China suppliers have lower-cost solutions for bulk production. In this way, the manufacturer of the retail product packaging charges the wholesale rates and additional discount packages. This also reduces the cost of the manufacturer ultimately.
Apply High Engineering
The high engineering and the use of technical efforts not only save the time but also the invested money. High engineering is done by heavy, latest and updated machinery. The proper road map on implementation reduces the cost of the whole process and ultimately the direct buyer enjoys the results. This is the major reason that here in the USA, high engineering works have to save the cost of production.
Recycled boxes
Recyclable boxes could be recycling and the cost of new production is saved. This is also better for the environment and protects the surroundings. The motto of scientists is to reuse, reuse and reuse. So, this factor is beneficial for the large scale business to collect their boxes when they used and recycle them.
Test before you order – the right sampling method should be adopted
Sampling is mandatory, once you finalize the order the cost of printing is charged to you, the production of retail boxes could not be reverting back. So, before the bulk order, the sampling helps you to audit the size and shape of the box. So, make sure to perform properly standardized sampling procedures before ordering.
One fit for all
Try to order one fit for all packaging, in this way the average cost for the cartons could be minimized and surely, this will reduce the overall price.
Replace ink to labels
Few packaging materials are ink absorbers; they are costly due to their distinct behavior. For instance, the corrugation layers require higher amount of the ink, ultimately the price of the box get increased. SO, to minimize the cost switch to the label option, these are cost efficient and easily available.
Material prices variation and sustainability
In addition to the all above factors, the material variants are another way to reduce the price of the carton. Few materials are easily available and lower in prices. Cardboard is one of the best example, the simple sheets of cardboard or paper are cheaper in price but efficient in final products display. So, opt for the minimal price material’s.
Reduce the size of the packaging
In most cases the large brands have reduces the extra and empty space in the box. This also save money, by reducing one inch per box size, they would be a total save of 100,000 inches for 100k boxes. This is the huge cost that small enterprises are bearing, this could be reducing just by reshaping their existing design and shape.
Minimal effect with simple layout
Simplicity is the mother of attraction, be simple and behave normally. This strategy allows small business to save few more dollars and pounds. Simple one color boxes are also demanded and up to the mark in display. So, in retail they are liked much more than that of any other 4 color standardized solutions. Similarly, the lower number of effects on a box shows they have paid lower price for them.
Reuse your packaging
Reusing your packaging, this strategy is only implemented in transportation and shipping. There are several steps where the packaging could be use again and again for multiple transportation and this reduces the cost.
Save the cost of the shipping
Find online packaging supplier that do not charge for shipping, even for the minimum quantity. By researching and finding such supplier the overall cost of your business could be minimize.
Utilize the latest software’s and technology
By using the latest technology, machinery and software’s the cost of time, wastage and designing could be minimize. SO, the small retailers should use latest and updated technology for reducing the cost of the process.
Automate machinery has multiplied the process
Automation of the process, this reduces the human labor cost and ultimately, the overall cost could be minimizing. So, automation is another opportunity and way to earn more.
Lighter, smaller and smart packaging always a cost efficient solution
Always go for the lighter, simpler, small size and smart box solution, they are manufactured at low price and convenient for the customers in carrying.
Prefer standard sizes
Standard size boxes are easily available and no extra efforts, and process cost is required for them. So, opting for the standard sizes is another way to increase the profit.
Coating cost
UV coating and extra layering could be avoided in order to minimize the cost. So, this is another alternative of simplicity and ultimately leads to the profit.
Avoid die-cutting charges
Standard size and up to the mark boxes do not require the extra additional cost for the die cutting, so go for such solutions and reduce the cost of the retail packaging.
Get quote from different suppliers
Reaching out the multiple supplier at wholesale market will allow you to opt for the most cost efficient one. Such quotes will allow you to obtain right retail cartons at minimum cost.
In the end, all above mentioned tips should be implemented and use buy the cost conscious business. These are necessary to follow, otherwise your money will be wasted, the supplier and manufacturer at both end could gain the benefit through such tips.
Emma James is a professional contributor as well as digital marketer. She has completed her degree in management from the University. Writing is her passion because she loves to spread information and share her thoughts.
