Packaging has become an integral part of product marketing. For a particular product, the packaging is just eye-catching. Here for others, it adds to the user experience. Commercial packaging has different functions, more of which are to retain content throughout the supply chain and attract customers. It is easy to overlook the cost of packing because of the importance attached to the main product itself. People may feel that the cost of packing is negligible. Sometimes, though, the cost far exceeds the price of the product itself. For example, for mooncake packaging in previous years, the packaging itself accounted for 70 or 80 percent of the total cost. Controlling this wasteful packaging is therefore important because it not only increases the overall price, but also creates an environmental burden through waste. Therefore, it is necessary to reduce the cost of packaging and factors affecting the final price.
The factors affecting the packaging cost are shown below
1. Product sensitivity and size specifications
This may be one of the main factors affecting the cost of packaging. The more sensitive a product is (such as a fragile item), the more money a box manufacturer will have to spend on packaging. Product vulnerability is directly related to the final packaging price. For example, fragile products must be wrapped in foam paper, filled with foam paper, and sealed in corrugated boxes. As a result, packaging costs will skyrocket. In addition, larger products will require more packaging materials, resulting in higher packaging costs.
2. Role in supply chain
In addition to the sensitivity of the product, the cost of packaging depends on its role in the supply chain. It is necessary to consider how the product is transported in the supply chain, what environment the product faces, and how the product experience is handled. For example, products shipped through the express delivery network are readily available many times and are shipped through many transportation centers, trucks, and trucks. Products may be subjected to different Settings and forces, including shock and vibration. If the product is delivered directly to the customer, you can save all the extra packaging, and the original packaging itself is enough.
3. Complexity of packaging shapes
In addition to the packaging materials used to protect items, several factors can complicate packaging. For example, a tin box may need to be moulded and may have different die-cuts inside, which requires complex stamping. Sometimes, such a fine packing requires a lot of work, which adds to the labor cost. While complex packaging has surprised consumers, it does add to the cost of packaging because it requires more manual work. Taking high-grade red wine iron box packaging as an example, simple red wine box production process is many, need to be completed by manual and machine itself, need manual operation, which increases the man-hour, but also will increase the cost.
4. The order quantity
The common wisdom now is that the cost of each item is greatly reduced with each bulk purchase. The same principle applies to packaging when ordering in large quantities. The cost reduction is due to a number of factors, such as reduced machine setup time, seamless manufacturing processes, reduced manual tasks, and simplified storage and shipping requirements.
5. Marketing expenses
Finally, companies need to consider the role of packaging in product marketing. For economical products, price may be the selling point, but for luxury products, careful packaging is required. For example, when you use multicolor printing in a package instead of monochrome black, the cost increases dramatically. In addition, there are additional costs associated with using scrubs on glossy sheets.