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Cutting CostsIt’s that time of year again…executives around the globe are finalizing departmental budgets and are in the process of communicating next year’s cost savings targets.  Over the next three weeks, I want to offer areas to help find these savings since many years of eliminating waste can make it difficult to find additional savings.

Please Remember!
The first thing to remember is, just because you reduce the cost of the packaging does not mean you sacrifice quality or create a less desirable package. Both cost reductions and better overall packaging can be achieved together.

Also, if you already haven’t, I want to invite you to subscribe to this blog to receive future updates in this series.  If you know others that need this information, pass it along. If you have questions or need more help, reach out to me for help.  Here we go…Week 1: New Designs That Save.

Week 1: New Designs That Save:
One of the best ways to reduce the cost of your packaging is through creating new designs. Many different objectives can be met by creating new packaging designs. The use of more cost effective materials, using less materials, creating designs that are easier to assemble, etc., are all areas to focus.

Why is design the best?
The reason I believe this to be the best method of reducing cost is because of the added benefits that will follow.  Do you think that reducing the cost of your packaging along with increased sales would benefit your company?  Of course, and that should be the main focus when you create new designs.

What else?
Other areas to review are your graphics.  Using spot colors adds cost, are they really needed?  Understand what is involved to assemble your packaging.  Look for ways to reduce labor costs in the assembly operation (number of total pcs.).  Look for ways to create added value with innovative or captivating features.  Understand the value that each change can offer whether it is reducing costs or adding more value!

Adding these all together can bring huge costs savings while also increasing additional sales.  Don’t just alter existing designs when a fresh new look is what your brand needs.

Need help?
The task of designing new packaging can be overwhelming, don’t do it without the proper consultation.  For more information on getting the most out of your packaging, don’t hesitate to get others involved.  I have been a part of this process in the past and records speak for themselves.  Winning the Ameristar Award 5 out of the last 6 years was not easy, but we are proud of the work we were able to do for our customers.

For questions or for more information on new packaging designs, contact Brian Pankratz at Mercury Plastics, Inc., bpankratz@mercuryplasticsinc.com.