Why Does Custom Packaging Cost So Much? 10 Factors That Affect Price – Have you ever received a quotation for custom packaging and asked yourself, “Why is custom packaging so expensive?” While at first sight, it might look like just a box made out of paper, cardboard or other materials, there is more to it in case of custom packaging. The material choice, design, printing, finishing, tooling, the number of units, labor costs, and shipping can all impact your custom packaging price.
However, it is a good thing to know about these custom packaging cost factors since you will be able to make better choices regarding your packaging and save money where possible. Below are the top 10 factors influencing the cost of custom packaging boxes.
Top 10 Factors Affecting Cost
1. Packaging Material
Material selection is one of the main drivers of custom packaging costs. Depending on the material, you can have options such as Kraft paper, corrugated cardboard, paperboard, greyboard, specialty paper, and plastic.
For instance, a simple kraft box can be quite cheap; however, a rigid box that uses thick greyboard and expensive wrapping paper will need more materials and manufacturing processes.
2. Box Size and Dimensions
Box size has a great influence on material consumption. The bigger the box is, the more board or paper is needed to produce it. Strange dimensions can complicate the production process even further.
Well-designed dimensions may assist in decreasing the packaging cost per unit. You should understand that working together with a packaging manufacturer and optimizing the box structure according to your product can make a significant difference.
3. Box Structure and Design
Standard folding cartons, mailer boxes, and luxury rigid boxes have different production processes. Complicated structures may need some additional components, special equipment, and manual labor.
Special inserts, partitions, magnetic closures, windows, drawers, and complicated geometrical shapes may add even more costs to production. In other words, the more complicated the package design is, the more production resources are needed.
4. Printing Method
Various printing techniques, such as digital, offset, or flexographic printing, can be used for your customized printed packaging. The technique will depend on the material used, artwork complexity, order size, and print quality you desire.
Full-color printing, heavy coverage, multiple passes through the press, and color-matching may raise the price. One-color printing usually requires less effort than complex full-color printing.
5. Specialty Finishes
If you wish for your packaging to look luxurious, various finishing techniques such as foil stamping, embossing, debossing, spot UV, laminating, and other coating methods can be used to give it an additional look. However, such techniques imply adding additional production steps.
For premium packaging purposes, these finishes are useful tools to distinguish from competitors. However, companies that work within their budgets should think about whether they are necessary.
6. Order Size and MOQ
Minimum order quantity (MOQ) is yet another significant aspect of packaging cost. Custom packaging requires certain costs for preparation, such as die cutting, printing plate making, sampling, etc. And spreading these costs over a larger order means lowering the cost of the box.
For instance, buying 5,000 units could get you a lower per-unit cost as opposed to buying 500 units. On the contrary, ordering more than what you need leads to increased inventory costs; hence, quantity must always be realistic.
7. Customized Tooling and Set-up
Unlike standard packaging, custom packaging requires specially designed tooling such as dies, printing plates, embossing dies, among others.
This kind of cost is mostly a one-off or project cost and not a material cost. It is one of the factors that could make the cost per unit of a small order higher than expected.
8. Inserts and Add-ons
Are there any foam, cardboard partitions, molded pulp, trays, sleeves, ribbons, among other inserts required for your product packaging? An extra component raises the overall packaging cost.
On the other hand, add-ons are not just cost additions but could enhance product protection and presentation, especially for cosmetics, electronic goods, jewelry, gifts, and fragile products.
9. Labor and Production Complexity
Some packaging could be made mainly with the help of automation, while others, whose design is complicated, need more manual processing. Complex constructions, rigid boxes, glue joints, and finishing could raise labor needs. Complexity of production is a factor that determines the price of custom boxes and the lead time of production.
One of the case studies of Yiruixing Packaging, a China-based custom packaging manufacturer, shows the difference between machine‑based manufacturing and manual manufacturing. The difficulty in the order was the inner lining paper of the gift box. The customer wanted to fully wrap the inner part of the box, where the automated equipment can not reach it. But to achieve the customer’s desired result and to make it a premium-quality gift box, their staff did this task manually.
The case study shows their manufacturing capacity and their aim to deliver orders on time.
10. Shipping and Logistics
Cost does not necessarily end once the boxes leave the factory. It could be bulky, and freight will depend on the volume of shipment, destination, shipping means used, and weight of packaging.
Space-saving, lightweight packaging could help cut down the costs of logistics. For companies buying packaging from abroad, it is vital to take into account the landed cost of packaging rather than its price per box.
How Can You Reduce Custom Packaging Cost?
You do not necessarily have to trade off quality for cheaper custom packaging. You should first start with simplifying the box design, selecting suitable materials, optimizing dimensions, minimizing unnecessary finishing, and determining the order quantity.
It may also make sense to ask for a detailed quotation that breaks down the material, printing, finishing, tooling, sampling, and shipping costs. It is possible that comparing quotations on price per box may not make any sense when the specifications differ from one supplier to another.
In the end, what we are trying to do is not find the cheaper packaging but finding the right balance of price, product protection, brand presentation, durability, and user experience.
Conclusion
Knowing why custom packaging is expensive helps you manage your packaging budget effectively without hurting your brand image. Material used, box dimensions, printing, finishing, minimum order quantity, tooling, and shipping can all impact the final price.
When looking for a manufacturing partner for custom packaging boxes, corrugated packaging, gift boxes, rigid boxes, pouches, and other packaging solutions, Yiruixing Packaging will provide you with customized packaging solutions with more than 14 years of experience in packaging.
Want to have a packaging solution tailored to your product and budget? Contact Yiruixing Packaging for a customized packaging solution now and ask for a quotation.
FAQs
What makes a box unusual to be more expensive to package?
The use of a particular shape can demand the creation of new dies, prototypes, and the use of additional materials for packaging. In addition, the complexity of the structure may also increase assembly time and labor.
Is it possible that two boxes of the same size have different prices?
It is possible due to material quality, thickness, printing, finish, inserts, closures, etc., that make their manufacturing costs different.
Why are samples of packaging expensive?
Samples presuppose certain costs such as setup, material preparation, cutting, printing, and assembly costs. As only a small amount of packaging is created, these fixed costs cannot be distributed over a big order.
How does material waste affect the cost of packaging?
Due to poor optimization of the box dimensions, more material can remain unused as a result of the cutting process.
Why can a small logo detail be expensive?
The use of finishes such as foil stamping, embossing, and spot UV requires certain additional production steps.
