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9 Strategies To Reduce Packaging Costs

October 18, 2024 Packaging Guide

9 Strategies To Reduce Packaging Costs With No Compromise On Quality

Packaging is not just a container to store goods but its first impression of the brand. Every brand wants to deliver its product efficiently without spending all the investment on packaging. According to the statistics, manufacturers spend more than USD 150 billion every year on packaging as it has a huge impact on the bottom line. An ideal budget plan should have 10% of the retail price dedicated to the packaging. 

Many factors contribute to the overall cost of packaging such as material, size, style, weight, warehouse, etc. so vigilant strategies are important in reducing the cost of product packaging which also leads to higher profits. If you are ready to dive into the psyche of streamed packaging costs then jump into the following strategies:

Optimize The Design Of The Packaging

Careful design is important not considering budget but presentation of the brand. The time has come to analyze if it is the unnecessary embellishments on your custom boxes that are ruining your budget. You can minimize the cost by shifting to a minimalist yet related design. Choose 1 or 2 colours that perfectly match the theme of your brand because more colour blending means more expense. Moreover, free design assistance is provided by CustomBoxesMarket where expert graphic designers will make attractive designs with the most advanced packaging design process for you that aligns with your budget. 

Luxury items like premium watches or cigars do need lavish packaging because if you sell these items in simple generic Kraft boxes they will lose their charm. But wasting a huge amount of investment on the packaging of ordinary products is not a wise choice. 

Choose Sustainable Materials

Switching to recyclable material not only has a positive impact on budget but also increases your brand sales as 71% of consumers actively choose sustainable product packaging. Green sense is becoming popular among people and collapsible material can overdeliver convenience as well as quality. Kraft, cardboard, and corrugated are all recyclable packaging materials yet cost-effective options. 

Materials for custom packaging boxes need to be durable too, because it is not a wise decision to compromise on the safety of the product by selecting an ordinary quality material. Nonetheless, by selecting kraft, cardboard, and corrugated materials, you can get a perfect balance of product and environmental protection. 

Right Size Packaging

Redundant dimensional weight can cost a fortune invisibly because it depends on the space of your packaging rather than its weight. If you are delivering small items like medicines or jewelry in large and wide boxes then you are missing a lot. Analyze the weight, height, and width of the product and then optimize packaging dimensions carefully. Some potential benefits of selecting the right dimensions for reducing packaging costs are as follows: 

  • Small packaging reduces material costs
  • Correct size increases efficiency by reducing labour and shipping costs.
  • Compact packaging improves the customer experience
  • Optimal packaging costs minimize waste

 Reduce Packaging Cost

Reduce Packaging Layers

Reducing packaging layers has a big impact on the overall budget because it can contribute to lower costs as well as quality packaging. Audit your packaging to identify which areas need reduction and then monitor accordingly. Just focus on that your packaging provides protection and creativity side by side. 

Implement An Efficient Packaging Process

Implementing a productive packaging process is necessary for continuous improvement. Companies should choose to train personnel and consistent quality control measures to improve their packaging process. Here are the best practices for an efficient packaging process:

  • Use the lean manufacturing principle
  • Implement just-in-time packaging
  • Conduct regular packaging audit
  • Collaborate with suppliers and manufacturers
  • Ensure equipment maintenance and calibration

Negotiate With Suppliers And Manufacturers

Explore different market rates and have clear communication with suppliers. Committing to one supplier is mindful because dealing with multiple can waste both money and time. So, if one supplier provides an all-in-one solution then you can reduce expense even on larger orders.

Consider Custom Packaging Solution

Custom packaging service not only enhances budget but also makes your brand most demandable among all. Don’t tell people what you are providing but ask them what they want. Put all your packaging options such as materials, styles, printing and coatings in front of them and let them customize their packaging. Do not put coatings or laminations unless your client submits a request. So giving maximum customization options not only reduces your budget but also gives a favorable reputation to your company.

Use Digital Packaging Alternatives

The world is going online so is the business. You can get the benefit of digital tools to reduce the cost of packaging. Conduct thorough industry research to search for the relevant technologies you can incorporate in packaging. It can also streamline the supply chain by reducing the production steps. So incorporating digital technologies can help you move toward smart financial decisions.

For instance, if you want an accurate packaging, then you certainly need a perfect dieline, because the role of a dieline in packaging is extremely important in the overall look of the packaging. So if you use digital media to create the perfect dieline with accurate dimensions. 

Monitor And Analyze Packaging Costs

Identify packaging cost categories and also collect and track packaging cost data. Your bottom line will thank you if you make the right cost designs of packaging at the right time. You should implement cost-saving initiatives and identify which areas can contribute to reduction. Some best practices to minor and analyze package costs are as follows:

  • Regularly review packaging cost
  • Use data-driven decision-making
  • Continuously improve packaging efficiency

Final Thoughts

Packaging is a versatile industry that requires strategic implementation. Whether you are running a fashion, medicine, food, or electronics business, each industry requires quality packaging to uplift its image and sales. But this does not mean that you spend all your savings in packaging and neglecting other significant elements. An example of a company connecting with customers to add value to its package redesign strategy is CustomBoxesMarket. We have years of history in food, cosmetics, jewelry, pharmaceutics, and skincare packaging.  So if you want to reduce maximum cost without compromising quality then make a deal with us!

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Let's make your story worth telling with our super trendy custom boxes. Custom Boxes Market is providing its sustainable packaging boxes with no limitations to creativity all over Canada. Contact us today and get free designing and delivery services because we deliver solutions.

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