Whether your company is big or small, packaging your goods is likely a major expense. There is the packaging itself, labeling, design, ink and the inner materials to secure the products itself. Like most other aspects of business operation, there are always ways to reduce costs if you make the commitment to going over your current way of doing things and actually implementing the changes. Here are some tips to reduce packaging costs.
By carefully studying the packaging requirements of your products as well as the packaging, you may find that you can make some cost-saving changes. Maybe you do not need as high a grade of plastic or that you can use a less heavy duty box. Corrugated boxes for example, have numerous ratings; you want to make sure you are using a box that has the proper board strength for transporting your items, but you may be able to use a lower –grade box than you are using now that is still appropriate for your product needs. Are you using labels or layering that is unnecessary?
For ideal protection, there should be about two inches of space around products. If you have more than this, consider switching to a smaller box to save money. Since most packaging companies have at least 100 different box sizes, you will likely be able to find a new box that meets your needs.
Boxes where you open them at the smallest dimension and have the largest dimension as the deepest part tend to be cheaper. Boxes designed in this fashion require the least amount of material to produce, which means they cost less to buy.
A major factor in the cost of your business items is what it is costing your suppliers to manufacture them. By staying in the loop of the prices for paper and paperboard, you gain an advantage in negotiating prices with your supplier. When costs of these goods are lower, ask about getting a reduced rate. Suppliers usually do not raise prices overnight, so if you see the costs have gone up, ask your supplier about whether they will be raising prices soon; if so, inquire about pre-buying boxes that lock in the current rate.
If you use foam, bubble wrap or other materials to secure your goods for shipping, take the time to size them to the actual products you are using them for. This will reduce wasted material, which further reduces wasted money spent on buying more when you could have used it more efficiently.
Buying larger quantities of boxes can save you a significant amount of money. By buying them with a blanket purchase order for a set period, you can lock in that lower rate while having the supplier send you the boxes as needed. Since you typically only pay for the boxes as they come in, it can help with your cash flow.
Kelli Cooper is a freelance writer who specializes in helping people run their personal and professional lives more successfully. Check out StockPKG if you are in the market for wholesale plastic bags or other bags for your business needs.
Photo Credit: http://www.flickr.com/photos/sanofi-pasteur/