Balancing Cost, Flexibility, and Growth in Packaging Orders

All packaging decisions are based on trade-offs. Cost, Flexibility and Scalability. There isn’t a way to maximize all three simultaneously. With regard to custom mylar bags, quantity ordered is where those trade-offs start to become actualized.

When you order in larger quantities it increases the more your cost per unit goes down; however, the larger quantity of bags also creates reduced flexibility since once the bags are printed, they are locked into the same design and size that carry the same version of your brand when printed. If your branding ever changes, you are going to have to work around your packaging instead of having your packaging working with you.

The opposite of this is ordering in smaller quantities allow for a more flexible approach. A brand is able to adjust the bags with their design, enhance their branding or change the product they are selling without being burdened by holding excessive inventory. Conversely, the greater cost per bag can cut into your margins if you’re not careful.

Another issue for a growing brand is that as a brand scales up, the need for consistency in the brand and their packaging becomes greater and greater. Running out of packaging materials can not only be inconvenient, but can also cause a break in the operations of the business. Therefore, as your brand continues to experience growth, increasing the quantity of your packaging orders will make more sense.

There is also an emotional component to holding large amounts of inventory. It can provide a sense of security because you feel like you are ready for any situation that may arise. However, it also puts pressure on you to sell through all of that inventory as quickly as possible, even if you need to change your strategy going forward. Conversely, ordering in smaller, more controllable quantities will provide more clarity in the decision-making process.

If you are trying to find the right balance between cost efficiency and remaining flexible, it is helpful to understand where minimums are as it relates to your specific brand and why they exist. The following breakdown will give you a good starting point however: What Are the Minimum Order Quantity Requirements for Custom Mylar Bags.

When looking for the right balance, there will never be a perfect number that applies to all brands. It’s a matter of finding the point where your costs are reasonable, your brand’s flexibility remains the same and your brand’s growth does not exceed your packaging needs. Get close to that point and everything else should be able to sort itself out, even if it does not work out perfectly.