5 steps to reduce product packaging costs
When it comes to product sales, performance is important. But it’s equally important to note that packaging also plays a significant role in creating a positive first impression on the customer. Most of the time, it’s not about your product’s brilliance—it’s about how customers perceive your product. So, if the packaging is subpar, the brand and the product may also be perceived as low quality. Plus, packaging helps businesses differentiate themselves from competitors.
Therefore, it’s in the best interest of every business or manufacturer to optimize their packaging so that it’s perceived as high value. However, it’s not always easy to find ways to reduce packaging costs because sometimes, cost-cutting measures may entail sacrificing vital aspects of packaging that could lead to more losses than gains. But that needn’t be the case.
That said, here are some steps to reduce product packaging costs:
1. Research your options
There are several factors to consider when choosing the right product packaging. But ultimately, the package you select should be commensurate with the product. There’s no one size fits all approach to product packaging—different products necessitate different types and forms of packaging. Thankfully, there are many packaging options to choose from these days. Therefore, the first step to reducing product packaging costs is exploring your options.
Product packaging is essential. When done right, it helps create a positive first impression. You certainly don’t want customers to associate your brand with poor unboxing experiences simply because you chose the wrong packaging option. Moreover, good product packaging ensures the product is kept safe and secure in storage and transit. Packages must be efficiently designed for durability and functionality, so the choice of your packaging supplies matters.
Make sure you research all the packaging options online and choose the most effective one based on your needs. That way, you may be able to find newer and more cost-efficient packaging technologies, trends, and solutions that you could use for your products.
Automating the packaging process allows you to do more in a shorter space of time. This is because machines are generally more efficient at doing repetitive tasks and usually result in increased productivity.
Thankfully, a business can invest in many automation solutions for product packaging, which will ultimately translate to cost savings in the long run. Although machines still need human supervision, they make fewer mistakes and reduce defective packaging repair and replacement costs.
3. Necessary vs. unnecessary costs
To reduce packaging costs, you may need to conduct a cost analysis to determine necessary and unnecessary expenses. You need to thoroughly analyze your current packaging cost structure and try to justify the cost allocated to each line item.
For example, you may ask yourself whether the cost attributed to aesthetics and design is justifiable. Also, does the aesthetic element add significant value to the customer? If not, you probably should consider reducing the cost attributed to packaging aesthetics and focus on more critical aspects of product packaging. Perhaps, factors like performance and material quality add more value to the packaging experience and are necessary costs. You should then focus more on those important aspects and dial back on the less critical elements to save costs.
This doesn’t mean you have to ignore aesthetics and design altogether. But you may have to settle for standard designs instead of premium or more expensive ones.
4. Prioritize safety
One of the purposes of packaging is to protect the product or its contents, but you must also handle products with care in storage and transit. Nevertheless, it’s important to use appropriate packaging materials to keep contents secure and prevent storage or transit damage. This will ensure that you reduce costs from product rework, returns, and replacements. So, it’s crucial that you choose the right packaging material, dimensions, and strength required.
5. Green packaging
Most people are aware of the well-documented climate change crisis the world is in. Understandably, some people are warier about the things they wear as well as what they eat and are increasingly demanding companies to adopt more sustainable ways of doing business for the sake of the environment.
Thankfully, there are several recyclable or sustainable packaging options to choose from. Most of these packaging options are relatively more affordable. But you still must conduct your research to find out whether green packaging is a suitable alternative for your business. Make sure you choose eco-friendly packaging materials for your packaging, if possible.
Packaging plays a significant role in terms of functionality and creating a positive brand image. Finding ways to reduce packaging costs may not be easy because it’s not always ideal to compromise on package quality, materials, insulation, etc. But it’s possible if you take a holistic view of the process and look for areas that add the least value to the packaging experience. Then, consider redesigning your packaging process to prioritize the aspects that add the most value.