Can Your Business Benefit from Using a Packaging Company?

If you manufacture or plan to manufacture a product, one aspect of the distribution cycle you have to think seriously about is the packaging for whatever you manufacture. This is especially important if your distribution cycle is to include brick-and-mortar stores since the packaging also does quite a bit of marketing for you. So, the question will definitely come up, will a dedicated packaging company work better for your business than doing your own?

Control vs. Cost

It doesn’t matter if you’re manufacturing software CDs, homemade cookies or distributing herbs and spices, packaging is going to be a major concern. Not only do you have to decide what the packaging is going to look like, but you have to take into consideration what it takes to package your product. Two main factors will definitely come into play: cost and control.

The first factor, cost, essentially weighs out like this: How much will packaging supplies cost, how much does the equipment cost to package your product and how much will the labor cost to package your product? If you plan to package the product yourself, your company will bear the total cost of all of these aspects. You’ll have to buy whatever equipment it takes, you’ll have to buy all of the supplies and supply all of the labor. Depending on what your product is, the equipment alone can be prohibitively expensive, let alone the labor costs.

However, if you use a dedicated packaging company, they probably already have the equipment on hand to package your product properly. While you still have to purchase the supplies to package your product, since they’re in the packaging business, your cost per package for supplies is probably going to be significantly cheaper since they’ll be getting discounts on bulk purchases. Also, labor costs will be lessened as well since they can split labor costs across multiple jobs. This means you don’t have to purchase equipment and the other costs are essentially discounted to you because of the volume of work the packaging company does.

The second factor, control, can be a challenge either way you go. If you do your own packaging, you keep complete control over the packaging design, graphics, etc. However, most packaging companies are more than willing to work with a company to achieve the packaging design they want. This means that, even though you don’t have total control over the packaging designs, you do have major input. The control the packaging company keeps usually is only affected by the packaging process limitations.

Easy Decision

Unless you own a huge company that manufactures millions of products a year and having your own packaging department only makes fiscal sense, you should seriously consider taking advantage of the benefits a dedicated packaging company can provide. Not only can you save money, but you can save time, hassles and headaches as well.

2 replies
  1. Roland -
    Roland - says:

    Yeah. Packaging can be identity of certain business. Customer can judge one company only based on how the company deal with packaging. In recent years, companies have started to consider packaging as a critical issue, and the need to improve this area to achieve better packaging quality and minimize the cost.

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