2 Reasons Why New Manufacturers Should Use The Services Of Co-Packing Companies

Industrial & Manufacturing Blog

Any new manufacturer whose products require packaging should consider using the services of a co-packing company. Here are some reasons why.

It could help them to cut down on their set-up costs

New manufacturers have to incur a lot of set-up costs. One of the largest ones is usually the cost of renting or purchasing their premises. This can be expensive, particularly if they're based in a popular area, where rents and property prices tend to be very high. However, if a new manufacturer engages the services of a co-packing company, they might be able to lower their rent or property purchase costs by opting for smaller premises.

The reason for this is that packaging materials and packaging machinery take up a lot of space. If a manufacturer outsources the packing to a company that has these materials and machinery, then they won't need to choose premises that are big enough to contain these items, as well as their other machinery. Depending on the rental costs or property prices in their area, this could save them a lot, even when the fee that they'll incur from the co-packing company is factored into this calculation.

It could also reduce other expenses related to setting up their business; for example, it would eliminate the need to buy the expensive aforementioned packaging machinery or the large shelving units that they'd need for storing their packaging materials.

They won't have to deal with the learning curve that comes with packaging products properly

When a new manufacturer begins producing a product they've never made before, they will, when packaging their products, make many errors before they get this part of the process right. They might, for example, initially use boxes for their delicate products that are too flimsy to protect them from breaking or they might choose packaging that doesn't keep their food products as fresh as they should. The mistakes they make when dealing with this learning curve could result in their first few customers switching to other manufacturers and might result in them having to issue a lot of refunds, due to their products arriving in damaged condition.

If, however, new manufacturers outsource this job to a co-packing company (that can not only advise them on what packaging to use but can do the actual packing for them, in a way that results in the products being delivered in perfect condition to customers), these manufacturers won't have to worry about disappointing their customers or having to issue a high number of refunds.  

For more information, reach out to a company such as Outsource Packaging.


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