How Much Should I Budget for Packaging?

Your business's product packaging is one of your most powerful marketing tools. It often creates a first and lasting impression of your brand, largely influencing whether a customer purchases your product or puts it back on the shelf. That's why an eye-catching packaging design is worth every penny. However, this begs a critical question — how much should you spend on packaging for your products?

As a standard rule of thumb, many businesses allocate 10% to 40% of a product's retail price to the packaging budget. That said, this isn't a hard-and-fast rule. Every business has different packaging needs, from unique design requests to order volume. To more accurately determine how much you should budget for packaging expenses, it helps to look at the different variables at play. 

We break down some factors affecting packaging costs, as well as how your small business can effectively plan for them.

What Factors Influence Packaging Design and Cost?

Several variables can impact how much your business spends on product packaging, including the following.

Material

Packaging costs can vary significantly depending on the type of material used. For instance, paper tends to be more expensive than other materials, as it's more resource- and energy-intensive to produce. However, compared to paper, glass often costs more per unit to transport due to its higher density and fragility.

Additionally, eco-friendly packaging options, such as compostable, biodegradable and recyclable materials, can be more expensive than traditional ones upfront. 

However, opting for more sustainable packaging can be more cost-effective for your business in the long run, as many customers are willing to pay more for products that come from eco-conscious brands.

Customization and Design Complexity

Custom-designed product packaging will incur higher costs than ready-made designs, as specialty packaging requires additional design and production time. 

Tailored shapes and colors — as well as the complexity and level of detail — can impact costs. However, unique packaging that stands out and resonates with your customers can be worth the added expense.

Quantity

Generally, the more packaging you require, the more you'll spend. However, many manufacturers, like DIYpack, offer discounts for bulk orders, helping lower the cost per unit.

Printing

Printed elements on your packaging — such as your company's logo, product information and other branding details — will contribute to the overall cost. The type of printing technology, the number of colors involved in the design and the packaging size all play a role.

Shipping

The cost to ship both the packaging materials and the finished product can influence overall costs. Various factors affect shipping fees, including the size and weight of the packaging, the shipping method used, and the distance between the customer and the manufacturer. 

Investing in durable yet lightweight solutions can help lower transportation and shipping expenses.

Regulatory Compliance

Certain products, including foods, beverages and cosmetics, require specific types of packaging to uphold safety or environmental regulations, which can increase overall costs.

4 Tips to Minimize Packaging Costs

A few simple strategies can help you keep your packaging costs down as much as possible, making the most of your available budget.

1. Opt for a Minimalist Design

In many cases, less is more when it comes to product packaging. Excess colors and design elements can create a cluttered look, which can both raise your costs and be a turnoff to prospective buyers.

Rather than relying on multiple graphic elements that distract shoppers from the central focus of the packaging, minimalist designs aim to stand out from similar products on the shelf by incorporating minimal yet cohesive elements. 

When designing your custom product packaging, try to create a simplistic yet standout design that captivates the viewer and encourages them to learn more about what's inside.

2. Choose Lightweight Materials and Smaller Packaging

Minimalism doesn't only have to apply to the design — you can also integrate it into the size and weight of the packaging. 

Reducing the overall size and weight can bring your costs down significantly. Consider using lighter or thinner materials. Additionally, you can design your packaging to be as compact as possible for your product.

3. Incorporate Custom Inserts

Custom inserts and void fillers are designed to fill empty spaces in your product packaging. This helps reduce the need for additional materials while providing extra product protection.

4. Work With a Reliable Packaging Design Partner

Finally, one of the best ways to minimize packaging costs is to choose a partner who understands your needs and budget, working with you to find the most cost-effective options for your business. 

At DIYpack, we help our customers save money and get the highest possible value from their custom-designed packaging. Here are some of the cost-saving advantages you'll experience when working with us:

• Price breaks for bulk orders: The more boxes you order, the more your price per box will decrease — provided you order the same box type, size and design in one order.
• No setup fees: Because we print all our boxes digitally, they don't require any plates or setups. The quoted price per box is exactly what you'll pay. Tax and shipping costs are the only additional fees, and these are factored in at checkout.
• Tax breaks for eligible businesses: If your business qualifies for tax-exempt status, you can fill out our application form and send it to cs@diypack.com. If you are approved, you will not be charged taxes at checkout.

If you have other questions about our pricing model and packaging products, feel free to browse our FAQ page or reach out to our team. We'll happily work with you to find the most cost-efficient packaging solutions for your budget and requirements.

Choose DIYpack for Your Custom Product Packaging Needs

Besides knowing how much to spend on packaging costs, working with a design partner who can help carry out your vision and exceed your expectations is equally important. At DIYpack, our seamless online platform allows you to design your own custom boxes, letting you create packaging that speaks to your customers and captures the essence of your brand. 

Our user-friendly platform integrates cutting-edge technology to facilitate your design experience. You can upload custom images and artwork or choose from our extensive library of adjustable design templates. With our real-time 3D rendering tool, you can easily preview and adjust your work.

Our steadfast commitment to quality, innovation, exceptional customer service and eco-friendly packaging solutions is reflected in every product we produce. Let us help you create custom boxes that align with your brand's unique needs and vision. Ready to design the perfect product packaging for your business? Get started on our site today.