A major step in keeping production costs low is reducing the costs of product packaging. Packaging makes shipping easier and can even improve product sales. However, it can greatly increase your cost-per-unit if you don’t take the proper steps to lower the overhead costs.
Packaging Design
The first thing you should do is look at the design of your package and ensure it is high quality. A good, durable design will save you money over time because you’ll have fewer mistakes and accidents during production. Additionally, a simple design is a lot easier to work with and can save you money in the long run.
Utilize Automation
You lose money to labor costs every time someone needs to interact with a product in the assembly process. Limiting how much people need to do by utilizing automation lowers labor costs, and a good automatic system can speed up production. Both of these will save you money on every unit you produce and package.
Use Co-Packaging Companies
While you can do a lot to reduce the cost of packaging, it’s difficult to compete with companies that leverage contract packaging, or co-packaging, services to complete the job. You save by using a co-packaging company because they have the best technology and training. Making the switch to these companies is a huge step to growing your business as you can meet bigger demands.
Minimize Waste
One of the best methods to lower product packing costs is to have a package that produces as little waste as possible while providing the necessary protection. Every extra bit of material that doesn’t serve a purpose is money you waste on the design, and it’ll increase the cost of production. Do what you can to minimize waste in both your product and the packaging it’s in to save money.
These are some of the best methods that every company can use to better their product packaging. Investing in these methods can help you grow your company and improve your capacity, which is why so many businesses make the change themselves.