New World Packaging

5 Easy Ways to Save Money on Cannabis Packaging

As the cannabis industry evolves, it’s more important than ever to have amazing packaging that communicates your brand’s promise, catches consumers’ eyes, and motivates them to buy. But that doesn’t mean you need to invest in expensive packaging. In fact, it’s highly likely that you’re overpaying for packaging.

The truth is there are a number of easy ways to save money on cannabis packaging. Your packaging provider should be willing to talk to you about all of the cost-saving opportunities available to you, so you can optimize your entire packaging process as well as sales and profits. 

If your packaging provider isn’t willing or able to work with you to find these types of savings, then it’s time to find another provider!

To help you jumpstart these critical conversations, here are five easy ways to save money on cannabis packaging. 

1. Material Costs

One of the easiest and most significant changes you can make in terms of saving money on cannabis packaging is to reduce your overall raw material usage for your primary packaging. This is the packaging that consumers take off the shelf. With the right strategy, you can reduce your material costs without lowering your shelf presence. 

For example, you can lower material costs by doing something as simple as reducing the depth of your package while keeping the height and width of the package the same. This change can also result in more efficient packing into master cases and onto pallets, which leads to additional savings.

2. Sourcing Costs

Another thing to consider that can affect your materials costs and overall costs is sourcing. Where a packaging provider gets materials from can make a big difference in your costs. With that said, be sure to work with an experienced provider that has an in-house sourcing team, long-standing relationships with suppliers, and access to reliable sources overseas. 

These essential relationships mean there will be no gap in availability at any time for the materials you need for your packaging. Also, the packaging provider is likely to be able to leverage those relationships to secure better discounts for you. 

For example, someone who has been in the packaging industry for 30 years and has solid relationships built over time is far more likely to get better discounts and have access to more reliable delivery with many back-up options in place in case something unusual goes wrong.

3. Labor Costs

Every time an employee touches your packaging more expenses are added to your overall labor costs. To reduce these costs, you need to create fewer touchpoints. This can be achieved with smart packaging designs. 

Applying tamper evident adhesives to boxes during the gluing process is an example of smart packaging design. Another example is using primary packaging with inserts attached or already put in place – or even taking inserts out entirely! With a smart strategy for your package design, you can achieve incremental savings by reducing human touch points.

4. Freight Costs

How much could you save on freight costs if you changed your cannabis packaging? The trick is to save as much space as possible while keeping the integrity of the package. It’s highly achievable to find the right balance that maximizes the potential of a box or pallet without creating a higher risk of damage during transport. 

Your packaging provider should be able to help you with this. They should also help you work with testing facilities to run the calculations and find the perfect balance for your products and packaging to maximize savings. 

5. Order and Inventory Costs

The first thing most people think of when it comes to reducing order costs is to buy in bulk. However, we understand that buying in bulk isn’t always a doable option. Whether you’re concerned about having enough cash on hand or you’re uncertain about how a specific item is going to perform in the market, there are valid reasons why buying in bulk may not be the right choice for your business.

At New World Packaging, we recommend that you only consider buying in bulk if you have a strong performing product in the market. If that’s the case, negotiate with your packaging provider to see if you can develop payment terms that are agreeable to both of you. A packaging provider with strong financial history (meaning they’re not going to go under soon) will gladly do this for you.

In addition, if you buy in bulk, consider using Vendor Managed Inventory (VMI) rather than storing and shipping inventory from your own facility. Work with your packaging provider to develop a storage and fulfillment process that will not only save you money but also ensure orders reach their destinations on time every time.

Key Takeaways about Ways to Save Money on Cannabis Packaging

With the right packaging provider acting as your partner, you can find multiple opportunities to reduce packaging costs without sacrificing quality. In fact, with the right strategy, you may even be able to improve processes to boost accessibility, reliability, delivery, and more. 

If you’re ready to save money on cannabis packaging, contact us and we can talk about the five easy cost savings above as well as other opportunities to find solutions that work the best for your budget, your brand, and your business.

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