Every business needs to look for ways to reduce cost of overall production and distribution of their products. Most often they focus on product re-design in a way that the overall material cost will be lesser. But packaging cost can be another important contributor in the overall cost of a product. So, if you are looking to cut some cost of your product, here are 5 useful ways you should consider:
1. Prioritize Research And Development
Large business organizations need to have research and development division to determine or find the best packaging for their products. Yes, a box is a box but not all packaging made in the same process. Your research team should continuously come up with multiple product packaging designs and test each on a small scale to know exactly which one brings the desired result. Getting rid of unnecessary layering from the product packaging is one of the easiest ways to lessen the cost of packaging. Your research department can this continuously work on product redesign. This might not be a perfect option for small businesses though. So, small businesses can simply imitate market leaders.
2. Buy Packaging Materials In Bulk
Your goal should be to get the economies of scale when you buy various packaging materials. Most suppliers will offer you significant price discount when you buy in bulk. So, contact with various suppliers, check the quality of their products first and then ask for their best offers for bulk purchases. No matter how large or small your business is, you should look to have the advantage of economies of scale.
3. Cut Wastage In Every Way Possible
Wastage in packaging might be one of the reasons your company have high packaging cost. So, know the exact level of packaging waste in your business and look for ways to cut those wastages to have lesser packaging cost.
4. Adopt Flexible Packaging
Flexible packaging has brought about a revolutionary change in the packaging industry. If your product is a perfect fit for adopting flexible packaging and you are yet to adopt that, consider adopting it ASAP you can. Plastic porch packaging is the most popular flexible packaging option as it requires less packaging material per product, takes less space in storage and transportation and most importantly reduces the cost of packaging. Marketing and promotion to get much easier. If you are in a legal cannabis business, you can adopt flexible cannabis packaging.
5. Outsource Packaging
Small businesses should not invest in large packaging machinery. So, in order to reduce the cost of packaging, they can simply look for various packaging companies around and make a good deal of monthly and yearly packaging needs.
These are some common ways you can reduce the cost of packaging in your business. Apply the ones you feel perfect for your business and competitive advantage over your competitors.