Understand the cost components of packaging gift boxes

Knowing what to budget for gift boxes and the costs associated with packaging allows brands to make better decisions. The pricing of the packaging box is often given little attention, and while the box needs to be both aesthetically pleasing and functional, that doesn't mean it needs to cost a fortune. Most brands in the market set their packing box budget based on the selling price of the product. Generally, affordable brands will use 1%-10% of the product selling price as the packing box customization budget, while for mid-to-high-end brands The packaging box will have higher requirements, and 10%-20% of the product price will be used as the box customization budget. When customizing the packaging box, we also need to understand which factors can directly affect the quotation of the packaging box.

The components of the packaging box budget include material costs, labor costs, transportation costs, printing costs, start-up costs, mold opening costs, and so on. Some of these costs are also fixed, and some will change according to the number of customizations. So, which are fixed costs and which are variable costs?

The fixed cost is a fixed fee that you have to pay when producing the packaging box. It will not change due to the increase or decrease in the number of customized packaging boxes. These costs include the start-up fee for the production of the packaging box and the mold opening fee for the packaging lining. And plate-making fees for processes such as bronzing and so on.

We all know that the more customized packaging boxes, the cheaper the unit price. On the one hand, packaging box manufacturers make quotations with the mentality of small profits but quick turnover. On the other hand, it is because the unit price becomes lower when the fixed cost is allocated to each packaging box. For example, when producing a packaging box, the fixed cost is 3,000 yuan, which is equally divided into 1,000 packaging boxes. The fixed cost of each packaging box The cost unit price is 3 yuan. And if it is equally divided into 10,000 packaging boxes, then the unit price of the fixed cost of each packaging box is only 0.3 yuan.

Variable Costs Costs that vary based on the quantity of custom-wrapped gift boxes. A small order quantity means a small cost will be incurred, and the larger the order, the greater the total cost. For example: material costs, labor costs, transportation costs, etc. The larger the number of customized packaging boxes, the larger the size, which means more materials will be used and more transportation space will be occupied, which will affect the overall cost of the packaging box. For some packaging boxes with special-shaped structures, material costs and labor costs will be wasted more than ordinary structures, so it will also affect the overall cost. For example: the variable cost of producing 1,000 units is 10,000 yuan, then the variable cost of producing 2,000 units is 20,000 yuan.

Based on the above we have a good idea of ​​our packaging budget and the cost of different types of gift boxes. At the same time, it can also allow you to better understand the needs of your products and brands.

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