Packaging costs can prove expensive amid other operational costs. A business spends £100-£5000 just on packaging every month. It may include the cost of packaging materials, design, and plastic packaging tax. However, it may differ according to your circumstances.
The base of the packaging protects the item that the packaging covers. Investing in the right type of packaging helps you create brand reliability. It is the reason brands don’t hesitate to spend more than necessary on packaging. Thus, how can you balance the business without spending more on packaging? The blog lists the strategies that might help you.
How much does basic packaging cost?
There are different types of packaging that you may see in the UK. Knowing these will help you choose the best one for your products. It may vary according to the industry, product, and business budget. Here are some of the common costs to expect:
| Types of packaging | Cost ( in pounds) |
| Custom printed box | 0.86-1.50 per unit |
| Custom printed mailing box | 0.40-0.70 per unit |
| Branded stickers | 10-12 for a roll of 100 |
Branded stickers are one of the best ways to save money without making most branded boxes. Instead, you can keep it for your regular and loyal customers. It may prove a little costly if you have a good chain of customers.
How about surprising them with a unique personalised sticker packaging? It may require you to fill out the inventory and invest in the best marketing program. Calculate the costs and check the availability. If the count is not even near, don’t lose hope. You may use the available business assets to your advantage.
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5 Step-wise ways to reduce Packaging Cost Hassle-Free
While you cannot skip packaging altogether, you can surely save money. Analyse the following tips to save cost on packaging:
- Step 1- Analyse the current packaging process
Audit the current material that you use for packaging. How much does it cost in the market now? Are there any other cheaper and good-quality materials? Does changing the material impact sustainability or the environment? Yes, you must analyse your packaging material’s strength, durability, appeal, weight, and, of course, cost.
It will help you move to the next comparison: that’s the shipping cost. Yes, every material type has unique shipping expenses. Identify this alongside the returns you get just due to the poor packaging. It will help you choose the right packaging material.
2) Step 2- Analyse the improvement scope
After analysing the existing packaging system, identify the scope of improvement. Identify which areas need improvement. You can go through the personal website forums and online reviews and host a webinar to learn about customer concerns.
It may help you understand what your customer wants from you. For example, if a customer complains of receiving a torn package, identify the reason. The surface should be rough and tough to handle the mismanagement. Otherwise, the items may break. Identify and invest in the best material. However, check the best ways to optimise it for the cost. It will not be beneficial from a profit perspective.
Identify whether you can reduce the packaging size. Small size implies less packaging material and costs. It would also automatically reduce the shipping costs and the paper wastage. Test different packaging materials by determining the base points, like durability. Instead of costly stickers, you can use patterns and custom colours as a cheaper alternative.
- Step 3- Check material meets the target audience’s needs
Yes, the material must meet and align with the customer’s needs first. You must put customers first, then profit and cost. Ensure that the material that you choose aligns with the company’s morals and customer preferences. You can check for durable materials like cardboard and other paper-based solutions. It emphasises protection and sustainability.
Moreover, environment and animal-conscious brands must stay focused on the material they use for packaging. It matters as customers notice every brief detail about the brand they deal with. So, be true to your values and industry standards. Here is an example of the same:
| Insert type | Description | General customer experience |
| Foam inserts | Lightweight and durable. They are made up of foam materials | Lends a premium feel |
| Bubble wrap inserts | Flexible and air-filled plastic sheets | The cheap and functional solution to packaging |
| Corrugated dividers | Cardboard or corrugated sheets that separate items within the box | It helps the products reach the customer’s door intact. The packaging remains neat and clean. |
- Step 4- Test and refine the packaging material
The selected packaging material should align with the current needs of the market. It will help you identify the provision for improvement. You may conduct drop tests, compression, and other tests, like shipping scenarios.
You can use the durability tests and ease of handling. It is important to conduct tests at different stages of shipping the product. Identify how the product reaches the customer’s doorway. What does it involve? It will also help you understand how long you should store the product in the inventory. Accordingly, you can reduce the cost of shipping fewer products or hiring a smaller space for inventory.
- Step 5 – Utilise technology for optimisation
Invest in leading technologies to remain ahead in the league. It helps you optimise the process and ensure a smooth packaging transition. You can try software that allows you to test multiple designs in an environment. Identify and test the software before buying it.
If you need, you can hire a technician to maintain the software. This is because maintenance is important for using it correctly. What if the software encounters glitches? It may hamper the customer order packaging process.
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Bottom line
These are some strategies to optimise the packaging for efficiency. Identify your current business packaging products. Analyse how much do you spend monthly and check other better options. Next, analyse the comments for how you can improve the shipping and delivery. Invest in the right option by analysing the budget. Test the packaging material before implementing it on a large scale.