PACKAGING MANUFACTURERS
Pricing Packaging Jobs: Where a Converter's Margin Goes
A customer asks for a repeat run of cartons at the old rate. Board prices have moved twice since, the printing plates need remaking and your best operator is on leave. You say yes because refusing feels risky, and discover the loss at month end.
Our focus is the business of converting. Each job costed with setup and wastage, machine time planned, reel and board stock watched, and large buyers handled with clear terms. Your managers are coached to use the formats. Material specifications and food-contact rules sit with your technical team and the regulator.
Discuss your priorities ↗COMMON CHALLENGES
The pressures
we often see.
- 01Setup time and wastage are higher on short runs, but the quote often assumes the same cost per piece as a long run, so small orders quietly lose money.
- 02Paper, board and film prices change often, and quotes valid for a month are honoured long after the input cost has moved.
- 03A few large brands account for most of the turnover, and they also set payment terms, ask for price cuts and can move volume to another vendor.
- 04Machines are scheduled by the loudest customer, and changeovers between colours and sizes eat hours that no one counts.
- 05Stock of reels, board and inks is held to protect against price rises, but locks up cash and sometimes ends up as dead stock when a customer changes a design.
OUR FOCUS AREAS
Where the work
usually starts.
- 01A job cost sheet with board or film, ink, plate or tooling, setup hours, run speed, wastage percentage and finishing
- 02Quote validity rules tied to the date of the latest material price
- 03Machine changeover time logged per job, so short runs can be priced fairly
- 04Customer concentration: share of turnover and margin by customer, reviewed every quarter
- 05Reel, board and ink stock by age and by customer-specific artwork
- 06Plate and tooling ownership: who paid, who stores and when it is written off
- 07Rejection and returns by customer and reason
- 08Credit days given against actual days taken, by customer
START THIS WEEK
Things you can do
before you call anyone.
- Pick your three most recent short runs and cost them properly, including setup hours and the first sheets lost to adjustment. Compare the result with what you charged. If you lost money, you have a pricing rule to write.
- Hypothetical example: a run of 2,000 cartons needs two hours of setup at ₹1,800 an hour and sheet wastage worth ₹1,400. Spread over 2,000 pieces, that is ₹2.50 per carton that a long run would not carry.
- List your top five customers with how many days each actually takes to pay. Compare with the terms you agreed. Call the slowest and ask what would help them pay on time.
A PRACTICAL ENGAGEMENT
Start with the priorities
that matter most.
We begin by understanding how your business runs today, find the gaps, and agree the scope in writing. Recommendations are shaped around your team, your resources and your goals.
- A job costing template that separates setup from run cost and shows margin before the quote is sent
- A minimum order and short-run pricing rule your sales team can apply without calling the owner
- A customer review page showing turnover, margin, payment days and rejections for each major buyer
- A weekly machine plan and stock review format
Not the right fit when: Not yet, if the issue is a quality failure traced to material or a food-contact compliance question. Your technical team or a specialist should handle that.
Explore a business audit ↗LET’S MOVE YOUR BUSINESS FORWARD
