When you buy packaging, asking the right questions can save you time and money – not only your time and money, but that of the packaging company as well.
But what are the right questions to ask?
I have compiled a list of what I believe are the most important questions to ask a potential packaging vendor.
Proceed to the following questions once the answer is “yes” to the following obvious one:
1a) Can you provide me with…?
(insert type of packaging)
If the answer is “No” proceed to question 6.
1b) What is Your Minimum?
What this means:
Many packaging companies have a minimum amount that you must order. This is because there is a volume threshold where the company won’t make any money on orders smaller than their set minimum. Often, the larger the company, the larger the minimum. Medium to large sized company’s minimums can be anywhere from 5,000 units to 50,000 units and higher.
There are smaller shops that specialize in “short runs” (small quantities of packaging) where the minimums can range anywhere from 1-100 units.
What this means to you:
If you require a low quantity, you may have difficulty finding a company that will be able to service you. In general, packaging companies prefer large volumes (up to a point) because it generally means more money.
Also, low volumes means higher cost per unit for you, but ultimately the overall cost is much lower because you would only be ordering a small amount.
So ask the packaging company what their minimums are, and if too high, ask if they can refer you to a company that will do short runs.
And if you feel you are still getting nowhere, seek out a reputable packaging broker. They have existing relationships with many sizes and types of packaging companies.
2) What Are Your Typical Start-Up Fees, Regardless of Quantity?
What this means:
For most packaging companies to even begin the process of manufacturing (setting up their equipment, having their skilled workers on hand, purchasing the raw materials for production, etc.) for whatever packaging they are making, (boxes, stand-up pouches, containers etc.) there is a cost. This is directly connected to their profit threshold and their set minimum.
What this means to you:
You, as the customer, are going to have to pay for their start-up costs. It’s like a plumber that requires a minimum payment for just showing up at your house, even if all they do takes 30 seconds.
A packaging company might be able to do your packaging for “x” amount per unit which may sound pretty good to you. But be careful, as high start-up fees can ultimately make that “low per unit cost” a lot higher.
3) What Do You Outsource, If Anything?
What this means:
If you just need a simple folding carton for example, many manufacturer’s can easily handle that. But, let’s say you need a foam insert for your box, or a plastic hang tab for example. These would likely need to be outsourced from another company.
What this means to you:
It could save you money if you work with an outsourced company directly yourself. This could also be a headache if you aren’t sure what you are doing?
If multiple components are required for your packaging, consider using a broker. They have a lot of expertise and a lot of connections in the packaging industry.
4) Where Do You Manufacture?
What this means:
Some manufacturers have sales offices in different locations to where they actually do the manufacturing. This can be different states, countries or continents.
What this means to you:
Manufacturing in different countries can suggest longer lead times (see below), difficulty in getting questions answered, possible problems at the ports (I’m thinking of all the worker strikes at the ports in California, for example).
Also, the farther away the manufacturer, the more you’ll pay for shipping. Now that still might be OK if the start-up fees and cost per unit are low enough, but that is something you’ll have to determine.
5) What Are Your Typical Lead Times?
What this means:
Lead times refer to the amount of time it takes for the manufacturer to make the packaging and have it either arrive at your doorstep or ready for pickup depending on whether they include delivery or not.
What this means to you:
Time. If you need your packaging by a certain date, lead times can be a deal breaker.
6) (If the answer is “No” to question 1a)
Can You Refer Me Someone Who Can Help Me?
Some people will bother (or be able) to help you and some will not. That’s just how it is.
When you buy packaging, knowing the right questions to ask can not only help you find what you need more quickly, but can also make you sound more knowledgable and (hopefully) less likely to be “blown-off” by packaging companies.
However, if you find yourself feeling discouraged, consider working with a packaging broker. A good one an be worth their weight in gold.
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. 🙂