The British economy contracted by 0.3% during the final financial quarter of 2012, and this has left the nation hovering on the precipice of a triple dip recession. In the resulting panic, businesses are looking to find ways of minimising their costs without impacting on their potential to make profit, with those affiliated to marketing and operations most likely to be reduced. There are smaller factors that may offer additional savings, however, especially if you sell a product rather than a service to your consumers.
How to Save Money on Packing: Three Practical Steps
With this in mind, what practical steps can you take towards minimising your packaging costs without compromising the businesses distribution process? Consider the following options: –
Ÿ Make Sure the Packaging Fits the Product: While it is tempting to ensure that your fragile products are secure when despatched, you can overspend on protective packaging. There are more cost effective ways of protecting your stock, however, and by adopting a minimalist approach to packaging you can prevent any potential damage in transition. With this in mind, you should avoid using large or oversized boxes to transport products, and also strive to use individual packaging on each item. This can not only cut the amount of material used, but also minimise the risk of product returns.
Ÿ Embrace Sustainable Materials: Traditional packaging materials such as plastic are not only costly, but they also cause considerable damage to the well being of the environment. As a result, by choosing to embrace sustainable materials and the process of recycling, you save considerable amounts of money and also contribute towards greater ecological gains. It is even possible to invest in recycling in-house, as this creates the opportunity for even greater savings over a prolonged period of time. This process may even help you to win more business, as it is compatible with the general social attitude to environmental responsibility.
Ÿ Re-evaluate your Culture and Business Philosophy: As a small business owner, it is easy to become regimented in your thought and decision making processes. Creative thinking is key to success in a strained economy, however, and this is especially true when it comes to cutting costs without impacting on operational efficiency. By addressing your businesses attitude towards waste and overall culture, you can change the approach to packaging and the way in which goods are sold and transported.
The Last Word
If you own and operate a product orientated business, then the cost of packaging can undermine your profitability. It is possible to change this, however, simply by addressing your wider business philosophy and the way in which you sell, package and distribute goods. It is crucial that you cut these costs, especially when you consider the increased competition in a struggling economy and the fact that a number of firms now offer free shipping an as incentive to customers.