July 22, 2020

How to Save Money When You Buy Packaging | Ep. 19


1) The first one that will help you save money is buying packaging directly from manufacturers.

What I mean is today most brands are buying through a reseller, sourcing agent, some type of middleman. You’re paying 15 - 25% for the customer service.

These resellers also have to source the packaging and find the cheapest factories that allow them to maintain their margins, meaning your packaging isn’t always being produced in the same factory.

The risk here is that even your reseller isn’t in control of their supply chain.

Save yourself the margin and go factory direct.

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Number 2:

Re-engineer your packaging to find the efficiencies in production.

Apple watch for instance comes packed in what feels like a rigid box but is actually a double walled folding sleeve that has a rigid drawer inside. BY not making this drawer box out of the same material for all components they are able to save money on the outer sleeve and apply those savings to the details inside.

Anytime you are able to find cost savings, reapply a portion of them back into to the packaging in a way that delights the consumer or makes your packaging more sustainable. These details will deliver an ROI 100% of the time.

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Numer 3:

Resize your packaging. Obviously making your packaging smaller will save money, but it’s not always the solution.

What I mean is that you take a look at your product mix and find common sizes that you can combine. A lot of brands out there just have packaging that’s become part of the brand because nobody looks at the system.

Take a look at the system and try to reduce your packaging SKU count.

Also try to resize your packaging so it works together to deliver efficiencies. There’s been so many brands I’ve worked with that their boxes are meant to be carried out in bags but the bag is 1/2 an inch too narrow so the store associate is forced to have the customer either carry out branded boxes by hand or they fit the boxes into a larger bag.

By putting the product in a larger bag, each client is walking out more packaging costs than you may have allotted

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Number 4:

Configure your pallet layout.

What? Yes how your master cartons are stacked and fit on a pallet make a huge difference.

1) make sure you evaluate the arrangement on a pallet to enhance cubic efficiency. Things like if your master cartons hang over the pallet will limit how many you can fit into a container. Instead of moving a single container you may require 1 1/2.

2) Calculate carton sizes based on how well they fit on a pallet not how many products fit into the case.

Many times brands leave how many items are packed in a carton to the supplier because it’s easiest for them. But by understanding how this impacts your container load you can sometimes save money by determining the best fit and product count inside.

Remember size matters.

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