6 factors that affect the average cost of packaging

Determining the cost of your packaging can often be more complex than it initially seems. While it may appear to be just a case of ordering specific box sizes, materials, and volumes, there are often hidden factors that contribute to our overall spend.

If you find yourself questioning why certain materials are used, why you purchase similar-sized boxes, or why some packaging items seem disproportionately expensive, you’re not alone.

This guide will outline six critical factors that can influence your packaging costs and highlights steps you can take to manage and reduce those expenses effectively.

Understanding what drives your packaging costs is crucial, especially when prices are rising across the industry. Failing to assess these factors may leave you absorbing unnecessary costs or passing them onto your customers.

By identifying the key contributors to your packaging costs, you can:

• Uncover cost-saving opportunities.
• Improve the efficiency of your packaging.
• Make informed decisions about design, materials, and ordering processes.

While some factors may be more relevant to your business than others, evaluating each one can reveal valuable cost-saving opportunities.

1. Fragility of Product
2. Order Volumes
3. Packaging Complexity
4. Secondary Packaging & Sundries
5. Marketing & Branding
6. Supply Chain Considerations
7. Summary

The more delicate your products, the more protection they will require. This often leads to increase material usage, contributing to higher costs.

Cosnider these options to manage fragility-related costs:

• Downsizing your packaging: Reducing box size may cut material use without compromising protection.
• Assess material specifications: Overly durable materials may be driving up costs unnecessarily.

Working with your packaging supplier to explore alternative materials can help balance protection with cost efficiency.

Your packaging must withstand the conditions and handling it experienced during distribution. For example:

• Packages delivered via courier services may face more rigorous handling than those delivered directly to customers.
• Longer distances and multiple handovers may require sturdier pacakging materials.

Optimising your packaging for its intended supply chain can reduce costs without compromising protection.

Overly complex designs can inflate your costs due to:

• Additional manufacturing steps.
• Increased material waste.
• Labour-intensive assembly processes.

Simplifying designs, reducing manual finishing steps, or combining similar-sized boxes can help manage costs effectively.

Large order volumes typically reduce the cost per unit due to economies of scale. Strategies to leverage volume savings include:

• Increasing order quantities if you have available storage space.
• Working with your supplier to implement a managed inventory system, allowing bulk orders with staged deliveries.
• Rationalising your box sizes to consolidate orders and simplify stock management.

Void fill, tape, and additional protective layers can significantly impact costs. Reviewing your packaging design may reveal ways to reduce or eliminate these extras.

Options include:

• Using custom-sized boxes to minimise void fill requirements.
• Switching to “crash lock” boxes that reduce tape usage and speed up assembly.
• Incorporating coatings such as VCI or anti-static treatments directly into your box design to eliminate the need for extra bags or sheets.

Packaging is a powerful tool, but branding costs can add up. Consider these adjustments:

• Switching from multi-colour prints to single-colour designs for significant savings.
• Exploring alternative printing methods like flexographic instead of lithographic for cost-effective, high-quality results.

Balancing your branding needs with cost-efficiency ensures your packaging maintains impact without overspending.

By carefully evaluating these six factors, you can gain valuable insights into your packaging spending and identify areas for improvement. Working closely with your packaging supplier can help streamline processes, reduce costs, and improve efficiency without compromising product protection or customer experience.