Monday, September 13, 2021

Cost Estimation for Commonly-used Packaging Materials

① Paper cost: 

Calculated based on the number of products packaged per sheet of paper. For example, the size of copy paper is generally of 105cm * 75cm. If the unit price of such paper is RMB 0.12/sheet and a piece of such paper can pack 5 products, then the packaging cost of paper each product is RMB 0.024. (All cost hereinafter are in China's currency RMB)

② Bubble wrap cost: 

Generally calculated by weight, that is, the weight of the bubble wrap needed to package each product  times market price.

③ Polyfoam cost:  

A. The calculation method for manually making the required shape or size: length (m) * width (m) * height (m) * 350 ~ 450. The coefficient differs with regions, for example, 350 in Quanzhou, Fujian, but 450 in Huangyan, Zhejiang  province. 

B. The calculation method of the mold set-up: mold fee + grammage of the polyfoam * 0.017/gram, (0.017/gram is the price coefficient, and there will be a certain rise or fall with the change of market prices)

④ Sponge cost: 

Generally, the price of a sponge with a thickness of 1cm is 3.5/m2. The material cost is calculated according to the thickness and square of the sponge required for packaging products. The price of sponges with other thicknesses is calculated proportionally. For example, the price of a sponge with a thickness of 2cm is about 3.5 * 2 =7.0/m2. ⑤ Plastic bags, OPP bags: price = length (m) * width (m) * 2S * market price of the plastic bag, where S is the thickness of the plastic bag, for example, the size of a 4-wire plastic bag is 30 * 25 cm , At the time the market material price was 10800/ton, the price of plastic bags was 0.3 * 0.25 * 2 * 0.00004 * 10800 = 0.065.

⑥ Packaging boxes: 

Ordinary brown inner box price = (length + width + 7 )/100 * (width + height + 4 )/100 * unit price, where the unit of length, width, and height is cm. The white box calculation method is similar to this. Simple calculation method for color box: Expanded area of ​​color box (m2) * coefficient (3.8 ~ 4 ), if laminated, the coefficient is 4.8. Calculation method of unfolding area: [(length + width) * 2 + 3 ]/100 * 〔( width * 2 + height) + 2 ]/100, among them, the length, width and height are cm. For example, the size of an uncoated color box is 7 * 6 * 16 cm, then the unfolded area is 〔( 7 + 6) * 2 + 3 〕/100 * 〔( 6 * 2 + 16) + 2 〕/100 = 0.087 m2. The approximate price of the color box is 0.087 * 4 = 0.35. 

Note: This estimation method can only be used for smaller color boxes.

The basic cost of a general corrugated color box mainly includes: paper cost, corrugated cost, printing cost, glazing, calendering, laminating cost, pasting salary and taxes, etc. There are generally two paper specifications: standard 78.7 * 109 cm and large standard 89 * 119 cm.

The calculation method of the price of the color-printed gift boxes is to calculate the number of boxes that can be made according to the actual unfolded size of the color box, and calculate the number of boxes that can be made according to the standard (or large) size, thereby obtaining the cost of paper for a single box, plus corrugation, printing, Expenses for glazing, calendering, laminating and taxes. General pricing standard is:  RMB 0.10/color for CMYK offset printing, 0.30/m2 for coating, is 0.60/m2 for calendering, RMB 0.60 ~ 0.80/ mfor laminating and corrugated is RMB 1.50 ~ 2.00/m2.

Generally, the cost evaluation of gift boxes requires additional plate-making and die-cutting fee. The normal-size plate-making fee is RMB 300~600, and the die-cutting fee is 150. The calculation method of color card is similar to this. 

⑦ PVC box or PVC tube cost:

 the cost is calculated by weight, currently it is generally calculated at 0.025/g. For example, if a PVC box weighs 20 grams, the cost is about RMB 0.50.

⑧ Shrink film: 

The cost is about length (m) * width (m) * thickness (m) * 15000/ton (subject to change over time). 

The cost estimation methods introduced above are not static and subject to change with market. Be sure to jointly consider the region difference, time, labor price, and material fluctuations, etc. 

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