How to Reduce the Cost of Packaging

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Packaging serves a functional role and a promotional one. It not only keeps the product safe from damage but is a valuable tool for advertising. To increase business profitability it’s desirable to expand productivity and lower costs. So, to shrink packaging costs, clever product design changes will help to reduce material costs. Here are some ways to reduce packaging costs.

Determine what is important to you
Increasing the cost of packaging may not always improve the value. In terms of packaging there are key factors that need to be considered. Packaging should be efficiently designed, yet strong enough to survive its several journeys. Identify what exactly you are looking for and then narrow down the type of packaging you want.

Choose recycled paperboard
Recycled paperboard is less expensive than the standard white board. 100% recycled paperboard is cheaper as it’s not necessary to state its recycled materials. Paperboard is a good cost reducing choice. Using standard sizes and thicknesses are cost effective and are usually available and requires less customisation and special ordering from the manufacturer. The box manufacturer purchases standard paperboards in bulk from the paper mill at a cheaper price. Since the manufacturer is more likely to have these standard paperboards in stock, your packaging lead times are much shorter.

Reduce damage
It’s worth reviewing your current packaging for your products and for freight robustness. This will avoid product damage. Determine the main cause of goods damaged by performing an audit and change accordingly. If there are problems, it would be best to discuss them with a packaging professional to determine the correct solution to implement.

Pick standard sizes
Choose packaging based on the type of products used and consider the conditions of transport and handling. Your products could be, assembled or positioned differently in the box. Choosing standard sizes is a cheaper option. Most times the manufacturing supplier will have materials on hand. Using standard stock sizes is beneficial for storing and space saving.

Enhance customer satisfaction
80% of people will not buy from companies with negative reviews. Customer dissatisfaction equals lost revenue opportunities from current and future customers. To keep your customers happy make sure the products you ship to customers arrive undamaged. Using water activated tape for your carton sealing reduces material costs as there will be little carton incursion, protects your products and boosts customer satisfaction.

Choose eco-friendly materials
Recycled paper, cardboard, and biodegradable plastics which are environmentally friendly, lightweight and cost-effective. Choosing these materials in your packaging will help you make great savings. Consumers are becoming more passionate about sustainability and are often more willing to support eco-friendly companies. So, design packaging that is easy for consumers to collapse or disassemble for recycling.

It is a great time to review your packaging as prices are on the rise. Want to identify more ways to reduce the cost of packaging, book an appointment with one of our packaging experts at JTDIXON Packaging & Industrial Specialist via email at info@jtdixon.com.au or via phone at 03 5278 6644.

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