Label Cost Saving Tips
Price Increases Got You Down? These Tips Could Save You Tons on Future Label Purchases:
We get it, no one likes price increases or when costs for things we buy every day go up. However, from food prices, to gasoline, to other everyday essentials, we are seeing it more and more as demand exceeds supply. Regarding your label and ribbon purchases, what are some methods that would reduce cost and offset some of these increases? These are some key areas to pay attention to.
- Reduce the number of label skus: Take inventory of how many different size labels you are using. Do you need that many different sizes? Can they be consolidated at all? Often, we will work with a client and they will be running a 4 x 2 label, a 3.5 x 1.75 label and a 3 x 2 for example. Could you get away with using one size for all of them? While the size and material might increase, the combined volume could help bring the total unit price down. In addition, it would be easier to manager one sku vs multiple sizes.
- Reduce base material cost: What substrates and adhesives are you using? Is the application possibly over-engineered? Are you using a cold temperature adhesive where possibly a permanent adhesive could work? The service range for a standard permanent adhesive can take you into subzero temperatures if applied at room temperature. Could you be using a custom label construction where a stocked product might work just as well. This would require some testing but might be well worth your time and effort!
- Review packaging alternatives: Look at how you are having your labels packaged. Can we put more labels on a roll, or more rolls in a box? Larger rolls mean less roll changes on your end and reduced boxes saves on packaging and shipping costs.
- Review Economic Order Quantity: How often are you ordering? If you are ordering the same quantity every 4 to 6 weeks, would running a 3-month supply at a time make more sense? The more labels you produce at one time, the more the fixed setup costs get spread out, thus reducing the unit cost. This must be balanced against the cost of holding and storing additional inventory.
- Review Direct Thermal vs Thermal Transfer: Direct thermal label stock is now available for a wide variety of applications where the quality and durability of the image was not previously acceptable. Direct thermal does not utilize a ribbon, so you save the cost of purchasing and managing the ribbon stock.
- Review Ribbon Stock Utilized: Running thermal transfer labels? Let us look at what ribbon you are using. There are so many formulas on the market now that you might be able to make a simple switch and reduce your costs.
These are a few ideas that you should be considering regarding your label management program. We would be happy to assist you in this review and brainstorm even better ideas or techniques. We are here to help and support you! Give us a call today!