Packaging buyers are often measured on unit price. But the real cost of packaging includes much more than what appears on the invoice.
Freight and space
Heavier or bulkier packaging increases freight cost on every shipment.
Damage and returns
Packaging failures lead to product loss, returns and damaged relationships.
Handling and productivity
Packaging that is slow to fill, seal or open costs labour time every day.
Disposal and sustainability
Disposal costs and sustainability goals increasingly affect packaging decisions.
A simple total-cost formula
To compare packaging options fairly, calculate total cost per unit shipped: packaging price, plus freight attributable to packaging weight and space, plus average damage cost, plus handling time, plus disposal. Even rough estimates reveal which option truly costs less. Revisit the calculation when volumes, routes or prices change.
Practical checklist
- List all cost elements for each option
- Estimate freight share from weight and space
- Include average damage and returns
- Add handling and disposal costs
- Compare total cost per unit shipped
Key takeaways
- Include freight, damage, handling and disposal
- Compare cost per kilogram delivered
- Choose the lowest total cost, not the lowest price
Frequently asked questions
How do I calculate total packaging cost?
Add packaging price, freight share, damage costs, handling time and disposal per unit shipped.
Is cheaper packaging ever worth it?
Only if it performs reliably for your product and route.
How often should packaging costs be reviewed?
At least once a year, and whenever volumes, routes, products or prices change significantly.
Need help choosing?
OM Packaging has manufactured fibre drums and paper cores in Sonipat, Haryana since 1999. See square fiber drums, industrial packaging, or get a quote and our team will recommend the right specification.
