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Are you looking to package your product after finalizing it? If yes, you may be looking for different ways to consider factors like costs, design, and branding for your product packaging. Unfortunately, most businesses overlook the packaging, but it is essential to consider the protection and presentation of your products to improve customer experience.

Packaging serves as the first interaction point between your business and potential customers. The visually appealing packaging options can engage customers and allow your brand to stay ahead of competitors.

So, how much should you spend on attractive and functional packaging? A high-quality packaging definitely costs more than just a simple packaging. However, you don’t need to worry because The Box Zilla is here to provide you with premium packaging without compromising the quality. You can yield higher results by understanding the packaging process and related costs.

Major Types of Packaging

There are various packaging types in the manufacturing industry. However, the main categories of packaging include primary, secondary, and tertiary packaging.

  • Primary packaging is the wrapping or container that has direct contact with the product, such as a box, can, or bottle.
  • Secondary packaging is an outer packaging featuring multiple primary packages like a shrink wrap or carton.
  • Tertiary packaging is an ideal packaging for transportation, such as shipping containers or pallets for storing and transporting products.

Influencing Factors for Cost of Product Packaging

Material Type

Various materials include various costs depending on different factors. For instance, plastic is a more cost-effective option than paper, and glass is a common material, but it is costly due to its delicate nature and weight. Moreover, eco-friendly packaging materials are more expensive than traditional materials for packaging and labeling through pricing breakdown.

Packaging Quantity

The volume of packaging plays a crucial role in its overall cost. Usually, the larger quantities require higher expenses so as result higher price rate in the industry. However, several manufacturers, like The Box Zilla, provide discounts on bulk orders, reducing the cost per unit.

Customization

A custom-designed packaging is usually more costly than pre-made packaging due to the specific requirements of production turnaround and additional design work. The complexity of the design also contributes to the cost of packaging design.

Printing

Printing product details or branding elements on branded packaging for small business​ also increases the overall packaging price. The factors boosting the cost include the printing type, packaging size, and colors.

Shipping

How much does it cost to send a package? The average cost to ship a package​ varies based on the size and weight, proximity between the manufacturer and the customer, and shipping method. The cost of sending packages​ of finished products and packaging materials affects the packaging expenses. Therefore, you must consider the cost of shipping a package.

Regulatory Compliance

Some products need the specific packaging type to align with the environmental and safety regulations, boosting the overall price of a packaging. For example, the packaging material for hazardous products is costly due to its characteristics for preventing spill or leakage during shipping.

Sustainability

Sustainability has become an influencing factor in a business’s packaging expenses. Sustainable materials like compostable or biodegradable materials are costly as compared to the traditional packaging materials. However, you must understand packaging meaning for saving money in different aspects such as sustainable packaging can lead to cost savings in other aspects, like minimal shipping expenses.

Fixed Costs of Packaging

Fixed costs are expenses that are not affected by the production volume. These constant expenses are unchangeable whether you need a large or small packaging quantity. The fixed package costs include:

  1. Machinery setup
  2. Mold
  3. Printing plate
  4. Employee salaries
  5. Essential facilities like water and electricity

Example: A packaging company buys a printing press for $150,000 that lasts 5 years. The annual fixed cost is $30,000.

The fixed cost of packaging decreases with the increase in the number of units.

Variable Costs of Packaging

Variable costs are expenses that are affected by the production volume. These costs increase with the production of more units. In a similar way, the variable costs are reduced with a decrease in production. The common variable expenses include:

  1. Packaging material
  2. Labor wages
  3. Lamination and ink
  4. Shipping

Example: A packaging company produces 2,000 units and bears $4,000 in variable expenses. If the company reduces the production to only 1,000 units, the variable will be only $2,000.

The variable cost of packaging increases with the increase in the number of units.

Fixed & variable cost graph

Strategies For Reducing Packaging Costs

The reduction in packaging expenses is a primary purpose of every business seeking to maintain environmental sustainability, minimize packaging waste, and boost overall profitability. Let’s take a look at the ideal techniques to reduce the packaging cost.

Minimize the Weight and Size of the Packaging

You can prefer lighter or thinner material to reduce the packaging while reconsidering the brand packaging design to reduce the overall packaging cost. A low-cost packing material saves money on storage and shipping.

Consider Eco-Friendly Materials

The consideration of sustainable options such as plant-based material, biodegradable plastic, or recyclable paper offers cost-effective packaging solutions for a longer time.

Optimize Handling and Shipping Processes

Efficient handling and shipping also minimize packaging expenses after considering the cheapest packing material. Therefore, you need to consider standard packaging, automation of packaging and shipping, and using the optimal shipping routes.

Minimal Design And Printing Costs

You can consider simplified, economical packaging design or pre-designed templates to reduce the packaging expense. Moreover, you can also consider in-house printing for cost reduction for your business.

Partner With a Reliable Packaging Supplier

It is important to work with box makers like The Box Zilla to get discounts on bulk orders while having access to wholesale rates for rapid printing and packing & shipping. We understand the different types of boxes in terms of costs and offer boxes at a reasonable price without compromising quality.

Boost the Value of Product Packaging

Improve Customer Experience

Package manufacturing can improve the customer experience, leading to enhanced brand recognition and customer loyalty. You can consider branding or custom messages to reflect brand identity and drive more sales by considering branding package costs.

Make Product Benefits and Features Visible

You can consider product details, high-quality visuals, and designs to highlight products’ benefits and features. By designing packaging that emphasizes a product’s unique qualities and benefits, businesses can attract more customers and enhance sales.

Ensure Product Safety and Protection

You must prefer custom packaging made of durable and sustainable material to enhance product protection. Using tamper-proof seals, protective inserts, or sealed packaging such as vacuum seal bags to preserve the integrity and freshness of food

Support Sustainability Goals

You can convey your brand commitment to environmental sustainability by using biodegradable materials and minimizing waste of a cardboard box. Sustainable packaging on products enables you to engage eco-conscious customers.

Analyze Packaging Performance

You must examine product packaging on a regular basis by considering the sales data and customer feedback to improve strategies by combining retail and packaging.

Cost Comparison for Different Printing Methods

The major purpose of comparing packaging costs is to check the printing capability of product packaging for branding purposes.

Digital Printing

It is a cost-effective printing option to apply the design directly to the box for smaller orders. This time-efficient printing offers unlimited design options for small to medium businesses looking for cost-effective printing solutions.

Comparing printing cost

Offset Printing

It utilizes a rubber cylinder and printing plate to transform the design onto the packaging. This high-resolution printing technique offers a sleek finish but at a higher price. The premium quality justifies the higher cost of offset printing. However, you can save on the high costs of offset printing by printing larger volumes.

Flexographic Printing

Designs are applied directly to the packaging box (similar to digital printing) with the help of a printing plate. Each plate adds up cost while this printing can use only a single color, making it ideal for larger orders.

Which is the Recommended Printing Method?

It is recommended to utilize an offset for high-quality orders due to the lower cost of printing per unit. Digital printing can reflect badly on the brand, lowering the design quality of product packaging. Therefore, high-quality printing techniques such as offset printing are essential for the optimization of packaging quality. However, digital printing is still an ideal choice for less, intricate designs.

The Cost of Shipping and Logistics

Shipping & logistic

It is essential to consider the logistics and shipping in your budget as part of the custom box cost. The structural design of packaging depends on the shipping method because dimensions and weight have major roles in shipping expenses. You can estimate the costs of shipping packaging using different transportation methods.

It is a good idea to outsource the services to streamline the logistics for your product launch. You can also get quotes from packaging manufacturers like The Box Zilla, allowing you to manage your finances easily. However, you must remember that the final packaging price can vary depending on your requirements.

Packaging That Offers Better ROI

Product packaging costs are beyond the packaging production and materials. Businesses need to consider the overhead costs such as transportation and storage. You can ensure a fabulous packaging strategy by boosting brand value and saving on overall costs.

At The Box Zilla, we can help you boost your brand value by using the optimal packaging to attract potential customers while contributing to the environment. This is how to get packaging for a product. Moreover, you can also achieve cost-effectiveness through packaging optimization while improving customer experience.

Let’s get in touch with our packaging professionals to design, create, and use custom packaging boxes!