While packaging industry increases can be dreaded and unwanted, they can also be a good excuse to become a savvy, well-informed buyer. We’ve written numerous posts about ways to reduce packaging costs (box right-sizing, reducing board, etc.), but equally important is to be made aware of the way some suppliers might be taking advantage of you. Sadly, some suppliers may use industry increases as a way of padding their margins. Or they may offset some of these increases by passing them off to you in less obvious ways. Knowing about these hidden packaging costs can save you potentially thousands if you know how to spot them and push back when you see them.
Large Upcharges For Interior Printing
While it used to be true that adding custom printing to the inside of a die cut mailer box would result in at least 30-40% higher cost per unit. This was due to old equipment and outdated technology that largely does not apply today. With new machines capable of printing multiple colors inside/outside in a single pass, adding printing to the inside of a die cut mailer should be a minimal increase to cover ink costs if anything. There will be one-time print plate costs that will apply, but if a supplier is charging you significantly more on a per unit basis, you need to be asking questions and pushing back.
The same can also be said of adding a 1 color print to an existing unprinted box. There should only be a minimal increase to add a single color, as again, the process is essentially the same. If we have to cut board, we can print it in the same pass, so the price should be relatively similar.
Upcharging Print Plates and Cutting Dies
We’ve always proudly stated that we do not look to profit from print plates and cutting dies. It doesn’t make sense to do so, as these one time expenses can be a big burden on a startup/new company that is looking to purchase custom packaging. We never want to lose a potential long-term customer and relationship over an expensive up front charge. In some cases we may even help to cover some of the tooling costs in cases where a customer may be ordering multiple sizes. This is all a case by case basis, of course, but we do see some suppliers trying to profit from tooling and plates. This is their prerogative, but it’s not something we believe in.
Rolling Tooling and Plate Charges into the Box Cost
Similar to the above, but much harder to notice, a lot of suppliers will roll the upfront charges into the per unit cost without telling the customer. This is problematic because to a first time packaging buyer, they may compare two quotes and see that they are saving money on this order by choosing the company with no up front charges. However, as they grow as a company and need to reorder, they are likely paying AT LEAST 25% higher per unit every time, meaning they saved in the short term in order to pay a premium in the long term. Many suppliers do this to entice buyers and then keep them on the hook for higher pricing for years. It’s not necessarily wrong or immoral, but if that isn’t conveyed to you the buyer, it can be a costly mistake.
High Fees For Samples, Proofs, Structural Design Work
It’s not our place to say that a company should never charge for structural design work. There are times when we will set up a contract with a potential customer if the design work needed is significant in scope, extremely challenging and time consuming. In these cases we may charge an hourly rate for design work. But we almost always will offer to credit most or all of that design fee back if it results in an order. Similarly for sample requests, we will only charge if the customer is asking us to expedite a shipment, or if they are requesting numerous samples to numerous locations. We may ask them to cover the shipping costs, but rarely if ever charge for the samples themselves. Beware of companies who are trying to get money out of you before you have established a relationship with them, especially if they are non-refundable, non-negotiable fees.
Please Contact Us Today
Now is the perfect time to review your current supplier and question if you are getting the transparent pricing you deserve. Please reach out to us for a no cost, no obligation packaging consultation. As always, if you have any questions, one of our branded packaging advisors is standing by to assist, with decades of experience behind them. Please call us at 630-551-1700 or contact us via email at www.SalazarPackaging.com.
Related Posts:
https://www.salazarpackaging.com/4-ways-to-know-you-need-a-new-packaging-supplier/
https://www.salazarpackaging.com/avoid-unexpected-hidden-packaging-costs/
https://www.salazarpackaging.com/are-you-searching-for-a-new-packaging-supplier/
https://www.salazarpackaging.com/four-ways-to-beat-the-newest-corrugated-price-increase/