Sunday, January 13, 2008

Cost Calculation

Before making a decision on which package type to introduce it is wise to analyse costs and benefits.

The packing costs will depend on:

- The type of the crate.

- The size of the crate.

- The design of the crate.

- The quantity of crates purchased.

- Transport and import costs and duties.

- The container assembling costs (carton boxes).

- The need for internal packaging materials (liners, pads, dividers).

Also factors such as acceptance by the customer, pilferage, possibility to repair, local manufacturing and availability should be taken into account when calculating the cost of a crate.

The importance of the characteristics of packaging will depend on the situation in which the packages are used. However, it may be difficult to estimate cost benefits from reduced losses, increased goodwill of consumers, increased marketing efficiency, better quality of the produce and reduced handling time.

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