Tag Archives: contract packaging

Why Small Contract Packaging Costs more 

Did you know that small contract packaging is a lot mor expensive than the bigger contracts? This might seem odd, but it’s the case. You may wonder why it is the case, since it seems like it would be much more expensive if you get a bigger older.  It may be a bit surprising, but there are some variables that go along with this, and it’s important to understand the differences that come with these projects and packaging as well. 

Why it does 

When you look at contract packaging, there are some different factors to look at. The total costs is important, and how long the project will run, along with parts and items that are moving, and as well, the relationship with a copacker that you might have. 

However, the cost per package is something as well. It might seem strange, but if you look at the elements that generate how much your cost per package is will show how the higher costs come to be. 

Variety impacts efficiency 

Yes, it does, and it doesn’t matter what size you are. If you’re changing it up a lot, it’s going to cost more.

If you’re doing small contract packaging, it will cause you to start and stop multiple projects, and you have to do a lot of other variants in a smaller time period. With contract packaging, you also need to look at the downtime going from larger to smaller projects. These different factors also include the changeover of laborers, setting up the equipment for you business, and also the lines along with other kinds of actions that are based on the needs of the packaging project or company. 

This will also cost you more money in a few instances, and it’s why the projects do result in larger price points for each package. 

Every time contract packaging company has to stop, shut down and then switch over, it stops the greener generation, which doesn’t look good for anyone. They need to put together new machinery, tweak and alter as needed, and of course, they need to quality check it to ensure that everything’s running effectively. 

This does take more time, which then causes more costs to pile up, since copackers will need to ensure that a portion of this in place to ensure that contract packaging projects that are smaller are profitable for the packaging company while also reducing the downtime that’s needed to finish these projects. 

It’s like riding a bike 

It’s important to understand too that smaller projects are kind of like riding a bike, since it may not be perfect the first go of this. You may fall, or fail, and then get back up, and then, tweak a few parts of this. 

This goes for anything, including packaging. You fail, hit the right speed, and you’re better at this. This is something that might not be ideal, and for smaller projects, this is something that does play a part in it.  The copacker that you have will need to change it for bigger projects, and they will need to alter. It may not be perfect the first go. They may change metrics, and also small logistics. 

This is something that’s not gotten right immediately, and it can play a big part in getting the rhythm down. For smaller contracting jobs, it takes a little bit of time to hit the rhythm, and you will need to pay up more to ensure that you get the results that are better with time, and if they have to shut it down, it affects you.