With the legalization of cannabis in more and more states, the cannabis industry is booming. But with this growth comes increased competition and the need for businesses to find ways to reduce costs. One area where businesses can save money is on cannabis packaging.
Cannabis packaging has to meet a number of requirements, including child resistance, tamper evidence, and labeling requirements. This can make it expensive to develop and produce. However, there are a number of ways that businesses can save money on cannabis packaging without sacrificing quality or compliance.
In this article, we will discuss five easy ways to save money on cannabis packaging. These tips can help businesses of all sizes to reduce their costs and improve their profitability.
1. Design Efficient Packaging and Reduce Shipping Fees
Repackaging cannabis products can save money on shipping and reduce waste. Also, effective designs can minimize packaging, regardless of whether recycled materials are used.
Removing exterior wraps and neck closures, using recyclable labels, and lightweighting boxes can substantially reduce shipping costs.
The challenge is to minimize waste without compromising the package’s structural integrity and quality. It is possible to find a balance between using the minimum packaging possible and reducing the risk of damage in shipping.
Contact your packing service for more information. They can help you coordinate with testing centers to save money on production costs and packaging materials.
2. Use Fewer Raw Materials
Reducing the amount of raw materials used for primary packaging is a sustainable and effective way to save money on cannabis packaging. Primary packaging is the packaging that customers interact with directly, such as the bag or jar that holds the cannabis product.
With careful planning, you can reduce your material costs without sacrificing sales or harming the environment. One way to do this is to use recycled and recyclable plastics. For example, both PET and HDPE plastics are recyclable and have a recyclability rate of about 30%.
Another way to reduce material costs is to reduce the depth of your packaging. This can be done while keeping the height and breadth the same. This will save you material and increase productivity when packing cannabis into master cases.
Here are some additional tips for using fewer raw materials in cannabis packaging:
- Use thinner packaging materials, such as paper or plastic film.
- Use less packaging overall by designing your packaging to be more efficient.
- Use recycled and recyclable materials whenever possible.
By following these tips, you can reduce your material costs, improve your sustainability, and appeal to environmentally conscious consumers.
3. Better Packing Designs Lowers Labor Cost
As your cannabis business expands, so does the amount of manual labor required to package your products. This can lead to higher labor costs. However, you can save money by designing simple, minimalist, and sustainable packaging.
Here are a few tips for smart packing design:
- Add tamper-evident adhesives to boxes during the wrapping process. This eliminates the need to manually apply tamper-evident seals.
- Use packaging that already has inserts present. This can save time and money on packaging assembly.
- Design your packaging to be easy to handle. This will reduce the amount of time that workers need to spend on each package.
- Use standardized packaging sizes and shapes. This will make it easier to stack and pack boxes, which can save time and labor.
- Use automated packaging equipment, such as conveyor belts and case packers. This can further reduce labor costs and improve efficiency.
- Train your employees on proper packaging procedures. This will help to ensure that packages are packed correctly and efficiently
By following these tips, you can significantly reduce your labor costs and improve the efficiency of your cannabis packaging process.
4. Find Better Suppliers
Your strategy for sourcing may also affect your material prices and total budget. The origin of components used by your cannabis packaging service significantly impacts the final price.
Therefore, partnering with a seasoned packaging service provider with a dedicated sourcing group, solid partnerships with suppliers, and international access to quality materials is important.
You can also shift to sourcing sustainable packaging, but sadly, non-recyclable supplies are far less expensive than packaging made of recyclable or biodegradable materials.
Sustainable packaging supplies might be nearly 10% more than the standard packaging, depending on the order’s volume.
However, many companies in the cannabis business are beginning to think that green packaging is an investment since customers are prioritizing it. The high demand for recyclable cannabis packaging will cover the initial expense.
5. Be Smart About Your Order Quantity
When trying to save money on orders, many people immediately think about buying in bulk. However, bulk purchases are not always the best option. There are legitimate concerns, such as cash flow and market demand, that may prevent you from making a bulk purchase.
Only consider making a bulk purchase if your product is selling well in the market. If this is the case, talk to your packaging service provider about working out some payment terms.
Here are some additional tips for being strategic about your order quantity:
- Forecast your demand accurately. This will help you to avoid overstocking or understocking inventory.
- Consider your cash flow. If you don’t have the cash on hand to make a bulk purchase, you may want to consider other options, such as buying in smaller quantities or negotiating payment terms with your supplier.
- Monitor your inventory levels closely. This will help you to identify any potential stockouts or overstocking situations early on.
- Be prepared to adjust your order quantity as needed. If your demand changes unexpectedly, you may need to increase or decrease your order quantity accordingly.
These tips can help you be strategic about your order quantity and save money on your packaging costs.
A Legitimate Cannabis Packaging: Key to Success.
Building a long-term relationship with your packaging supplier will go a long way for your cannabis business. Nurture an ongoing relationship with your supplier, and ensure they know your expectations and requirements.
Focus on what you’re conveying through your packaging. After all, your item’s packaging is the first thing people see when they use it.
A good cannabis packaging supplier will understand that doing business involves more than just exchanging money. If you are dealing on a cash-only basis, you might need to learn about how cannabis risk management strategies can help you to prevent any scams or fraud.
Protecting your cannabis company can seem confusing; however, we’re a full-service insurance brokerage working with carriers worldwide to offer you the best coverage possible. We’re here to help! Please reach out to us today by emailing [email protected] or calling 646-854-1093 for a customized letter of commitment or learning more about your cannabis insurance options.