Packaging is a critical part of how your product is presented, protected, and perceived—but are you spending the right amount on it? Many companies unintentionally over-budget for packaging, especially when trying to create visual impact or keep up with competitors. While quality packaging is essential, there’s a difference between investing smartly and overspending without return. In this blog, we’ll walk through how to evaluate your current packaging spend, what packaging should cost based on your product category, and how to make your packaging budget work harder without sacrificing performance. Packaging Cost Should Match Product Positioning Whether you’re selling online, in stores, or through distributors, your packaging should reflect your brand’s value and customer expectations. A luxury product may justify a premium box with high-end finishes—but a value-priced or high-volume item should aim for efficiency and simplicity. If your packaging is costing more than it’s contributing to brand perception, sales performance, or product protection, it may be time to rebalance. A Smart Packaging Budget by Product Tier There’s no one-size-fits-all pricing, but here’s a general guide to help align your packaging budget with your product type, keep in mind that product dimensions and quantity requirements may have an important effect on pricing: Everyday or Value-Priced Products These are products focused on accessibility, mass appeal, and cost efficiency—such as snacks, household goods, basic apparel, or affordable personal care. Recommended spend:3% to 6% of the product’s retail price Example: $10 product → packaging should cost around $0.30 to $0.60 Packaging priorities: Durability for shipping Simple branding Minimalist printing or stock packaging with labels Mid-Tier or Lifestyle Products These are products positioned for retail shelf appeal or direct-to-consumer sales with moderate branding expectations—like wellness items, electronics accessories, and skincare. Recommended spend:6% to 10% of the product’s retail price Example: $25 product → packaging should cost around $1.50 to $2.50 Packaging priorities: Custom structure or folding carton Clean, printed branding Cost-efficient enhancements (e.g., spot UV, soft-touch) Premium or Luxury Products High-end or giftable products where presentation plays a major role in perceived value—such as cosmetics, spirits, tech kits, or curated subscription boxes. Recommended spend:10% to 15% (or more) of the product’s retail price Example: $80 product → packaging can justify $8 to $12, especially if rigid box or detailed kit Packaging priorities: Magnetic closures, foil stamping, embossing Custom inserts and multi-component structures Premium unboxing experience When Overspending Sneaks In You might be overspending if: Packaging costs more than 10–15% of the product’s price and isn’t tied to perceived value You’re using premium finishes that the customer doesn’t see or value You’re designing for complexity, not efficiency You haven’t reviewed specs or sourcing in over a year These are easy traps to fall into—especially when your product team is focused on presentation, or when design decisions from years ago carry forward into current budgets. It’s Not About Spending Less—It’s About Spending Right Your goal isn’t to cut corners—it’s to make sure your packaging spend matches your sales goals, brand perception, and market environment. In many cases, a simple structural or material tweak can reduce costs without affecting how the package performs or looks. Small changes might include: Switching from rigid box to folding carton Simplifying closures or removing magnetic flaps Moving from offset to digital print for short runs Using standard dielines instead of custom shapes Final Thoughts You might not be overspending on packaging in a way that’s obvious—but if your costs don’t align with your product strategy, you could be missing opportunities to improve margins, speed, and efficiency. It’s worth taking a fresh look. Not sure if your packaging budget is where it should be?We can help you evaluate your current setup and explore smarter options tailored to your product and market. (714)300-0650 request@brownpackaging.com Most Recent Posts: Categories: Corrugated Ecommerce ESD Design Display Flexible Packaging Foam Folding Carton Packaging Plastic Packaging Pouch Printing Protection Retail Rigid Box Thermoform Sustainability Subscribe To Our Newsletter By submitting your information, you agree to our terms and conditions and privacy policy. Custom Packaging Facebook Twitter LinkedIn Pinterest Relevant Posts

Cost pressure is real—but downgrading your packaging isn’t the answer. Smart brands know that the real savings come from strategy, not shortcuts. The key is to identify areas where you’re overspending or overdesigning, and then apply targeted fixes that maintain product protection, streamline operations, and preserve your brand’s appearance. Here are six proven ways to lower packaging costs without compromising what matters. Rethink Your Materials, Not Your Message You don’t need premium substrates or specialty coatings for every box. Often, a switch in material spec delivers the same structural integrity at a better price. How to do it: Downgrade from double-wall to single-wall corrugated (if damage rates are low) Replace foam inserts with chipboard or corrugated partitions Use kraft instead of white board for internal packaging where branding isn’t visible Swap soft-touch coatings or laminates for matte aqueous or simpler finishes This preserves your customer experience while reducing waste and cost at the source. Right-Size Every SKU Oversized packaging isn’t just wasteful—it costs more in materials, freight, and void fill. Right-sizing your packaging is one of the fastest ways to cut cost across the board. How to do it: Audit your most frequently shipped SKUs and measure internal void space Consolidate sizes where possible to simplify inventory Switch to smaller mailers or die-cut cartons for low-weight products Use inserts or dividers to stabilize smaller products within tighter boxes This reduces dimensional weight and improves pallet or parcel density. Simplify Your Print Approach You can still brand your packaging without maxing out your budget. Print costs add up when you increase colors, coverage, or setup complexity. How to do it: Use 1-color or 2-color flexographic printing for basic branding Minimize print to one or two sides of the box Print inside the box instead of full exterior coverage for an affordable “wow” moment Skip unnecessary coatings, varnishes, or plate changes Simple, clean branding often looks more professional and is far more cost-effective. Reduce Labor Through Smarter Structures Packaging costs aren’t just in the materials—they’re in the assembly. If your packaging slows down fulfillment, you’re paying for it in time and wages. How to do it: Switch to auto bottom boxes, also called auto-lock, or pre-glued cartons Avoid tray-lid combinations that require excessive folding or taping Use adhesive peel-and-seal mailers to eliminate the need for tape Consider shelf-ready packaging that doubles as display This speeds up your operations and makes training packers easier—especially at scale. Increase Order Efficiency Ordering smarter often reduces cost more than ordering cheaper. How to do it: Increase volume to hit price breaks (especially on custom runs) Bundle packaging components (e.g., boxes + inserts + tape) Set up a stock-and-release program with your supplier Avoid rush jobs by forecasting further ahead A stable order flow lets suppliers optimize production—saving you money on every run. Redesign for Function First Many packaging programs are inherited, not designed. Revisiting your structure with fresh eyes can eliminate unnecessary features and uncover major savings. How to do it: Ask your packaging partner for a design review Remove features that add cost but don’t serve the product Test shipping protection levels—don’t overbuild Design for stackability, shelf fit, or automation to reduce damage and downtime Final Thoughts Lowering packaging costs doesn’t mean watering down your brand or risking product safety. It means being more intentional—about materials, size, structure, and operations. By refining your packaging setup, you can cut cost and improve performance at the same time. Need help lowering your packaging spend?We’ll help you identify where you’re overspending—and design a more efficient, better-performing solution that doesn’t cut corners. (714)300-0650 request@brownpackaging.com Most Recent Posts: Categories: Corrugated Ecommerce ESD Design Display Flexible Packaging Foam Folding Carton Packaging Plastic Packaging Pouch Printing Protection Retail Rigid Box Thermoform Sustainability Subscribe To Our Newsletter By submitting your information, you agree to our terms and conditions and privacy policy. Custom Packaging Facebook Twitter LinkedIn Pinterest Relevant Posts