Not all of us realise that when we launch a product, we incur costs not only for its production, but also for its packaging. Packaging seems to us to be just a small element of a product, but it usually plays a key role in consumers’ purchasing decisions. What exactly makes up the cost of packaging and how can we reduce it? – Find out in our article.
What makes up the price of a package?
With today’s volatile market engulfed by rising inflation, we are starting to pay more and more attention to changing prices. We all want to know what goes into the cost of a particular product or service and influences the price. It is no different in the packaging market, so here is what makes up the price of packaging:
- packaging design (we wrote more about the price of design in the article: “How much does packaging design cost at Burgopak Poland?“),
- raw material,
- printing and refinement,
- transport and storage,
- energy costs,
- staff costs,
- production and assembly,
- type of packaging, shape and size,
- number of packages.
What influences the price?
All the points that make up a package have a very large impact on its price, plus, of course, there are all the costs that companies spend on maintenance, bills, employee payments, taxes, computer programmes, machinery and equipment, etc. The price of packaging is mainly influenced by rising inflation and the increase in the price of energy, which is needed both for the production of raw materials, printing, as well as transport and storage. Costs also vary depending on the complexity of the design, the complexity of the construction and graphics, the quality of the packaging, the selected raw materials and refinement, including additional elements (ribbons, magnets) and the cost of folding or gluing the packaging.
How can we optimise costs?
We can optimise costs in a number of ways, depending on what we can afford to save money on and what matters to us. Here are some ways to save money in the packaging industry:
- Choose raw materials that are economical but still durable and attractive.
You might consider using environmentally friendly materials, which are usually more cost-effective.
- Use standard sizes and simple shapes. If possible, avoid over-complicated packaging, which can increase production costs, e.g. through additional gluing points or a larger printing area.
- Order quantity – try to order sample packages in larger quantities to take advantage of potential volume discounts. However, be sure not to order them in excess either, which could lead to overstocking and waste.
- Avoid over-complicated designs and additional features that can increase production costs. Simplicity of design can not only reduce costs, but also make packaging more practical for customers.
- Conduct thorough market research to understand customer expectations and industry trends. In this way, you will be able to adapt your packaging to the current needs of consumers. You can read more about this in the article: What risks does marketing research minimise?
- If sustainable packaging is important to you, choose options that are not only eco-friendly but also economical. A sustainable approach can even help to attract customers and increase sales, with many consumers now paying attention to companies’ approach to environmental protection.
- Ensure proper quality control to avoid unnecessary costs associated with defective packaging. Correct quality control will contribute to minimising losses and complaints and, consequently, to ensuring the reputation of our brand.
- An additional element that can very simply optimise our costs is to work with a company that offers a range of in-house services from design to transport of finished and packaged products.
Cost optimisation requires a balanced approach, taking into account the various aspects of packaging production. Before making a decision, it is always advisable to carefully analyse all aspects and consider what changes might bring benefits in terms of both cost and product quality.
Summary
To sum up, the final price of packaging is influenced by many factors and hidden costs – from material prices to energy costs to costs associated with rising inflation. As many factors make up the price of packaging, there are also as many ideas for optimising it, you just have to do it in a long-term and well-considered way so that it does not have the opposite effect to the one you intended.
At Purells Innovative / Burgopak Poland we design and produce sample packaging for some of the most well-known companies in Poland and around the world. Get in touch with us, and we will create a unique design for you too.
Sources:
https://blog.kartony24.eu/jak-zmniejszyc-koszt-pakowania-i-koszty-logistyczne/
https://biotechnologia.pl/kosmetologia/czy-wiesz-za-co-placisz-kupujac-swoj-ulubiony-kosmetyk,20646
https://zapakuj.to/koszty-opakowania/
https://foodfakty.pl/branza-opakowan-pod-presja-rosnacych-cen-surowcow
