Packaging is often overlooked when a company decides to decrease their overall product costs. Factors like the material cost of the product design, dimension aspects etc are considered in detail. However, what the business owners tend to forget is that by considering the packaging of the products can save their company boatloads of money. In this piece, we will be giving you a comprehensive guide on how you can save money via cost-effective packaging practices. Refining a product’s packaging design can improve and optimize its production-delivery cycle and can provide better product protection and reduced carbon footprint. With such practices in place, a company can keep the product quality on par with the best. Studies indicate that the packaging cost of a product cumulates 3-10% of the product’s total cost. This is sometimes even more in certain cases where premium packaging is undertaken, notably marketing-related imprinting and designer packages. In order to reduce the cost of packaging in a business strategically, an owner needs to consider a number of factors that are directly or indirectly responsible for the tentative costing. Factors like materials cost, durability, aesthetics, transportation viability, handling, government regulations etc. are needed to be considered in detail. Let us delve in deeper into the realm of commercial packaging and understand how the pricing is established. Now, several industries cumulatively comply with the deep array of strategic consulting. We have compiled a brief list of all those aspects that will help you to manage your packaging cost in a better way: 1. Research: The solution to any problem is research. Conduct a detailed study of the various sub-verticals of your product’s packaging. With a detailed analysis of variables like cost of the packaging materials, tamper proofing, the durability of transport, ease of handling etc. you can determine essential points that will help you. 2. Necessary/Unnecessary Costs: Itemize costs in order to determine whether the current solution that you are using is the best one or not. Find out elements that can be improved or eradicated altogether. 3. Pack Small: In order to determine the cost-consuming sectors, find the aspects that can be modulated for better pricing. Can your product do with a cheaper option and is the current packaging option justifying its price. 4. Test continuously and Purchase only the essential: Continuously test newer packaging materials that align with your product’s need and requirements. Find how you can improve your packaging with no additional costs. Benchmark your business to find what your competitors and other players are operating with. Don’t buy extra that may result in an unused inventory. All the above-mentioned points cumulatively direct to a more sustainable packaging practice that is cost-efficient and scalable. Businesses can adapt these practices to ensure that they don’t overspend on their vertical. If you want someone to help your out in this then Benchmark Cost Solutions can be the ideal consultant for you. Their extensive array of benchmarking and packaging services will help you to determine what is best in the industry and inculcate the same into your business.
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January 2020
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