4 Factors That Determine The Cost Of Package

When we think of creating or presenting a new product, we necessarily have to talk about the costs that this entails. The value of each of the processes involved must be considered, starting with the conception of the form, going through manufacturing and implementation, and ending with the distribution.

It is vitally important that the company team in charge of making decisions regarding the Wholesale packaging supplies for a certain product analyzes and decides on its form and presentation; It is possible that the product is very good, but due to its visual presentation it is not recognized and accepted by the final consumer.

Added to the product (content), one of the important factors is the packaging, not only for protection, transport and presentation function -whose attribution tends to be increasingly imposing in the market-, but it must be striking and designed according to its content, thus reinforcing the characteristics of the product, allowing its attributes to be seen and marking the difference between all the products that compete in the sector.

Setting the cost of packaging a product is not easy because there are many factors that determine it. All the implicit details of the product to be packed must be considered and known from its conception. In this way, as important aspects, we relate some of the most outstanding:

1. Shape and/or design
These aspects of the packaging are decisive in the cost since it allows us to define its main characteristics such as materials, type of decoration and even what could be the most efficient manufacturing process. Sometimes, the design of a package is unique, exclusive and specific for each client, which can increase its cost taking into account the human and technological resources, added to the tests that must be carried out to arrive at the ideal package in all its aspects. . The simpler the shape and design, the more economical the packaging will be, thanks to the fact that specialized technologies for its manufacture and additional processes are not required. It should not be overlooked that the packaging is ideal and perfectly matches the product.

2. Material and weight
These are the factors that determine the highest percentage of the cost of a package. The cost is directly linked to the price of raw materials, which is why packaging designers and engineers seek to have a product whose weight is as light as possible, without affecting the quality and final purpose of the packaging.

3. Transportation and packaging
Clearly, everything that has to do with the transport and distribution chain of the products plays an important role in the cost of a package. It is necessary to add all the supplies involved in this process, such as corrugated cardboard, bags (bellows or tubular), bubble wrap, shrink wrap, labels, sealing materials, pallets, etc., which on several occasions are imperceptible, but They are of great importance when it comes to traveling long distances. Some companies in the sector have a department exclusively to determine these aspects: design, calculate the optimal way to pack and distribute their products, either to the manufacturer of the packaging and/or to the client for final distribution.

4. Inventories and storage
Inventories can be a hidden cost. It must be taken into account that each company has its own way of planning, which generates different needs to offer and dispatch packages in the short, medium or long term. When the raw material is at a low value, it is used to produce at a lower cost, having inventories that make shipments more flexible. For this, we must have a large storage space, enclosed and free of contamination that allows us to keep the products in optimal conditions; For cases in which the packaging will be intended for contact with food, the storage conditions are more demanding, thus increasing operating costs.