Packaging costs are a major consideration when it comes to the total cost per unit of your product . Rigid boxes sometimes called “set-up boxes” are often a desired choice for first time packaging buyers. This is because rigid boxes can often leave an impression on the consumers’ mind that the product is of higher quality than a product that uses folding carton packaging. This is not necessarily true, as folding cartons can be customized with many extras that will make them appear very fancy indeed.
People are proud of their products and often believe they should be shown off in the best quality boxes possible. Fair enough, but there are some things to consider first.
1. The Cost
Custom rigid boxes are expensive. They are more expensive than folding cartons to be sure. And the fancier you want to go, the higher the packaging costs. The start up costs will be anywhere from $3000-$5000 and even higher, whether you want 1 box or 100 boxes. Of course, the more you order, the cheaper it gets, to a point, once the volume is there. For example, Apple Inc. pays a relatively low price per unit for their nice iPhone boxes because they order millions of them.
2. The Cost (did I say that twice?)
Shipping these boxes, because they can’t ship flat like folding cartons, can also increase the cost. They are bulkier and require more space, it’s that simple.
Here Are Four Reasons to Justify Ordering Low Quantities of Rigid Box Packaging For Your Product:
1.
Your product sells for a lot of money with a huge profit margin. For example, a diamond engagement ring would absolutely require an elegant and luxurious (and expensive) rigid box for its packaging.
2.
You are not concerned with making a profit (and are even prepared to lose money) on a small trial launch, with the anticipation of ordering large quantities of rigid box packaging in the future.
3.
If you are exhibiting at a trade show and are showing off your product to some important buyers and executives, you may want to use a fancy rigid box to capture their attention.
4.
Your competitors all use rigid boxes so you are under pressure to conform even though you must order a low volume.
Rigid boxes can be gorgeous and can offer the allure of luxury and exclusivity, but can be cost prohibitive as a consequence. But as stated above, folding cartons can be fancied up to offer a similar sense of luxury, at a fraction of the cost.
Of course I am discussing custom rigid boxes here. If you absolutely need/want a rigid box and price is a limiting factor for you, then consider using stock size boxes with a custom label that you adhere yourself.
This has been a part of my tutorial series called How to Buy Packaging 101. So click the link below to head back if you haven’t finished reading it yet. 🙂
3 Responses
Hi Sara,
First of all a big THANK YOU for all these articles concerning the overwhelming world of packaging, this has really helped me to get a grip on the available options and all the other things that need to be considered.
I’m currently facing the challenge of arranging high-end rigid boxes for our first product (as a start-up) and I’m having a hard time keeping the costs to a minimum. This article warns me about the costs of storing and transporting these rigid boxes. I was wondering of you have some thoughts/tips on having these produced locally versus having them produced abroad cheaply and then transported to us? We’re located in Europe (The Netherlands). Thanks again!
– Jurian
Hello Jurian,
I do believe its better to have the first initial run of rigid boxes produced locally at the minimum volume you can get away with. Its worth the cost for many reasons:
1) communication and language barrier
2) time between communications and logistics
3) more control on overall quality and availability of materials
As a first launch this is important and will set the standard going forward and before going overseas. Then when you get the quality look and feel of your rigid box, then take that example overseas so they can copy it as exact as possible. Each country will have its own resources of materials, and may look slightly different, so it may be a compromise if an overseas company can not completely match but are significantly less expensive – that will be a call you’ll need to make at that time.
Secondly, you can guess-estimate how much room the boxes will take up and see if you have room in your home or garage and/or if you’ll need to rent storage or ask your family for some garage space:
Measure your countries standard pallet dimensions – it could be 48Lx40Wx5.25″H
A pallet height with product on it can go as high as 53″ standard (more is acceptable if your storage can handle it)
Then, measure your finished box measurements LxWxH or Depth however you like to call it, and see how many you can fit on a standard pallet -the manufacturer can do this for you as well.
This will tell you how many total pallets you’ll receive and can plan accordingly. Likely you’ll need a freight truck for delivery and a forklift or you’ll be hand unloading the pallets!
Hi Sara,
Thanks so much for your comment. I’ve also read your article on “Where to buy custom packaging” which was very insightful about dealing with companies in e.g. China and the differences in source materials. I’ll certainly take all those pointers with me as well. We’re currently indeed using a garage as storage space (we need to make due with what we have!) but hopefully soon move on to a more convenient supply chain solution such as a ‘just-in-time’ delivery which I’m sure also poses risks that can be mitigated by keeping things local. In any case thanks for the quick reply and have a lovely weekend!
All the best,
– Jurian