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Good product packaging is essential. It’s what the customers see first before they get to the product. That’s why businesses can spend a fortune on the designs and creation of packages that boost brand identity and awareness. Packaging can, therefore, take up a significant share of the profits. Fortunately, the packaging doesn’t have to be too expensive to fulfill its purpose. There are ways you can reduce the costs of packaging, while still maintaining the brand integrity and identity of your products.
A notable portion of packaging costs is long processes that increase the time and labor spent making the packages. By creating the right strategies that reduce time and money spent on the packaging process, these costs can go down. Look at these five ways to reduce packaging costs:
- Do Your Research On Everything Packaging
Before you decide on anything about product packaging, do your research first. Different products require different packaging materials. For instance, the flexible packaging material is considered best for food packaging. You may find that you’ve been using inappropriate material, which may be costing you more. This will help you create the best strategy for your product and lead you towards what you want to achieve with your packaging. There are many factors you need to consider when doing research and in creating a packaging strategy.
Besides, there are plenty of packaging options available. So, you need to conduct proper research to know the latest technology, material, and designs available. Some other things you need to consider in your research are:
- Most suitable materials for your type of products
- Cost of different packaging materials
- Your storage area/warehouse
- Material durability for storage and transport
- Material resistance to pests and how eco-friendly it is
- Aesthetic nature
- Packaging standards and regulations
- Improve Storage And Packaging Lines
Carefully consider your warehouse space and ensure it’s organized in a way that helps to speed up the packaging process. If you see the need to improve the existing operating systems, audit the current inventory, identify similar packages, and store them together. Let the materials that are rarely used also stay together. This arrangement eases access to items, speeding up the process, reducing man-hours, and cutting labor costs.
If you have several packaging lines, consider reducing them into fewer with improved processes. Reducing the storage space used reduces the costs related to it, such as guarding, supervision, lighting, and heating.
- Automate Processes To Reduce Packing Time
Automating processes can boost productivity and cut down packing time notably. You may find that your employees spend too much time assembling cartons, sealing and taping, stuffing protective material, or inserting dividers. Sometimes, manual processes, such as taping and sealing, can slow down workflow since people get tired and reduce their output. At times, you may have several workers missing work for one reason or the other.
Try and find out how you can automate some of the manual processes in your packaging line. Automated processes can reduce packaging costs by reducing incidents of workplace injuries and increasing output. Automation generally speeds up the packaging process and reduces the number of people required to handle a task.
- Have The Products Properly Packaged
Damaged products can harm a business in a big way. Each time a customer returns a product due to damage, this means losing the entire cost of producing the product. You’ll also hurt your relationship with your customer, and a ruined reputation is detrimental to your brand identity. The leading causes of damaged products are poor packaging and damage of products in transit.
It’s vital to ensure that the packaging is done correctly by testing your packaging from time to time. There’s the likelihood that your products are going to be shipped far and wide. The package will go through different conditions. Ensure you have a testing policy and procedures in place to ensure that products are protected while on transit. Test the packaging in various levels of atmosphere, impact, compression, and vibration.
Establish a relationship with reputable carriers to ensure that your products reach the desired destination in good condition. While you can’t avoid all damages for products in transit, you can prevent others.
- Do Away With Unnecessary Costs
There are times when the cost of the packaging is increased by its design and style, not the process. You need to itemize the expenses of the package and determine which part is for performance, and which one is for appeal. Try and see what you can eliminate, without compromising on the quality of the packaging. Instead of using add-on labels, check if it would be cheaper to print labels directly on the package. Be both practical and realistic.
Final Thoughts
When you’re in the business of selling products, the packaging is inevitable. However, it doesn’t have to cost your business an arm and a leg, lowering your profit margin. Also, reducing packaging costs doesn’t mean compromise or unappealing packaging. You can reduce the amount of money you spend on packaging by changing your approach to the entire process and eliminating redundant processes. One package may not show a lot of change in your profit margins, but, cumulatively, over time, you’ll undoubtedly reap the fruits.
