These are turbulent times in the packaging industry on almost every type of product, but especially for everything made out of paper. Boxes, shippers, envelopes, tubes and internal packaging have already experienced two price increases within the last six months, and there is strong indication there will be a third increase this fall.
This type of market creates great chaos, and unrest and usually motivates buyers to seek competitive quotes to confirm any price increase is truly industry and nationwide.
Packaging Price Shopping.
As a packaging industry veteran of a few decades, I will admit there are suppliers who “tack on a few points” to an increase and see a price increase as an opportunity to enhance their own margin. Most sincere, legitimate companies like ours do not increase the increase so to speak, to avoid making a bad situation even worse for our customers. Keeping your supplier honest is never a mistake. However, we always caution buyers not to make a drastic change for a few percentage points. Rarely does that strategy produce long-term benefits. If the new supplier elects to low ball a price to secure a new customer, they are also likely to make it up, down the road. You are better off having an honest conversation with your vendor and negotiating a mutually beneficial cost structure. However, for dramatic, more substantial savings, you may consider several different approaches.
Double Digit Cost Reductions.
Here are just a handful of ways we have helped packaging buyers achieve decreases of 10% or more.
- Right sizing – most of the boxes we review are oversized and a waste of corrugated board. One of our expert designers can help you reduce the size to what it should be. If it is an RSC style box, no cutting die costs would apply.
- RSC style boxes – use less corrugated board compared to die cut boxes. Does your product really require a die cut box for repeat customers? One of our customers saves almost 20%, whenever they can use an RSC.
RSC Style Boxes for Cost Savings
- Mailer envelope options – Why have Amazon, Target, Walmart and others switched to paper or plastic envelopes on many orders they ship? The potential savings can far exceed our 20% savings goal.
- Corrugated board specs – differ greatly and there are many more options than most people realize. When you first created your boxes, how much discussion was there on specs. Probably not much at all.
- Ordering Patterns and Quantities – increasing your order size and frequency can produce great savings per box. A substantial freight cost savings may also result helping to offset any industry price increases.
Shrinkflation, Inflation, Uncontrolled Market Pricing, etc.
The fact is that we are all under great pressure and it comes to us in many different ways from different places. There are some we can manage and some that are totally out of our control.
We have always produced the most attractive and cost-effective packaging possible. That has served us and our customers well, especially in unprecedented, volatile markets like the current one we face. Contact us through this link or call us at 630-551-1700 to speak with one of our experienced, non-commission, packaging advisors. They will be glad to help you consider your options and show you the savings that can result from a new review of your packaging usage.
Related posts:
https://www.salazarpackaging.com/four-ways-to-beat-the-newest-corrugated-price-increase/
https://www.salazarpackaging.com/6-things-to-look-for-in-a-new-packaging-supplier/
https://www.salazarpackaging.com/4-ways-to-know-you-need-a-new-packaging-supplier/
https://www.salazarpackaging.com/sustainable-custom-mailer-envelopes-affordable-and-fast/