When sourcing packaging for your products, it’s critical to really understand the many details listed in packaging quotes to make the most informed decision for your business. Quotes for packaging can be laden with industry jargon and include several factors with the potential to significantly impact your bottom line. A thorough comprehension of what each line item represents can help you choose the best vendor for your needs and avoid unexpected costs. As you start to collect and review quotes from packaging manufacturers, be on the lookout for these items.
Price Per Quantity
Price per quantity is one of the first numbers customers look for on a packaging quotation form. This line item directly reflects the cost of your order and often varies depending on whether you need stock or custom packaging. Custom packaging will incur higher costs than stock options, though elevated stock packaging that features even minimal design will also impact price per quantity. Ordering larger quantities may lower the price per unit, so it’s always worth asking a vendor if price breaks are available for bulk orders.
Materials
The material you choose to create your packaging will play a role in how successful your product is, so it’s important you pay attention to this piece of a packaging quote. Good price quotes specify the exact material type and characteristics, like thickness, grade, and special coatings or finishes. Take paperboard folding cartons for example. There are several types of paperboard, but each substrate varies; some options are considered more premium than others. When comparing quotes, evaluate what material is listed and at what price. Sometimes a lower price is quoted because it’s based on a cheaper material. While some cheaper materials could work for your product, others might not hold up during shipping or display.
Tooling and Set-Up
Tooling costs generally cover the initial setup required to create custom shapes and designs. This can include die cutting, offset printing, foil stamping, or other design techniques needed to execute your packaging. These costs are often listed as a one-time fee. If you don’t see a tooling or setup fee listed on your packaging quote, ask the manufacturer if these costs are included in the per-unit price or billed separately.
Quote Date
The date listed on a quote might not seem important initially, but it is vital to check. Quotes are usually only valid for a specific period of time. (Thirty days is usually the standard.) This is for multiple reasons, including fluctuations in raw material costs. If you delay placing an order, it’s possible you could encounter price increases. Similarly, when reordering, material cost changes could raise or lower the final price compared to previous orders. Some vendors may offer options to lock a price in place for an extended period or suggest bulk ordering to stabilize costs over time.
Shipping Terms
Shipping terms, often seen on price quotes as FOB (“free on board” or “freight on board), indicate whether shipping costs are included in your packaging quotation or not. If your quote shows something like FOB with “your city destination,” shipping should already be factored into unit costs. If your quotation includes a line item like FOB “factory city location,” expect to cover shipping expenses separately. Knowing these terms is key to avoiding unforeseen freight charges.
Overs and Unders
Overs and unders refer to the industry practice of producing slightly more or fewer units than ordered to account for manufacturing variances. Many manufacturers include a margin of error of roughly 10% in quotes; this could reach as high as 30% depending on how complex the packaging requirements are. You are free to request an exact quantity, but an over cost will be included anyway. If you opt for unders instead, there’s a chance you could receive fewer units but you won’t be expected to pay for missing units; you will only pay for the units actually delivered to you. Deciding whether you’re comfortable with overs or unders upfront can help you manage costs and inventory more effectively.
Lead Time
Lead time represents the production time needed to complete an order once all proofs are approved. This doesn’t include time for sampling, proofing, or shipping. Standard lead times can vary widely, ranging from a few weeks to several months depending on where the manufacturer is located and how complex your order is. Be sure to confirm the timeline with your vendor, especially if you have a hard deadline for product launch or distribution.
Get a Quote From MOD-PAC
If you’re looking for paperboard folding cartons, reach out to MOD-PAC today for a quote or to learn more from one of our packaging experts. We are proud to produce packaging domestically in the US and have client testimonials or samples we’d be happy to share with you.