The right amount of protective packaging is something that companies need to consider for their shipments so they’ll arrive in one piece. The packaging needs for each company and product will vary. The general “rule of thumb” is to spend around 2% of the product’s value on their protective packaging.

This 2% figure number can fluctuate depending upon the company’s needs, or how much damages are currently costing them. There may not to be a need for a significant increase, but it’s important to talk to a Simpak packaging expert to determine the best products and shipping process to reduce damage costs for the smallest possible increase in costs.

What is the value of the product?

To start with, the value of the product is used as the starting point to determine the costs of the packaging. If a product’s value is $100, the average protective packaging costs based on the 2% rule will be $2.

What is the price range you want to spend in packaging?

Although companies generally stay close to 2% of the product’s value, depending upon annual damage costs in the past they may need to consider something better and more substantial. If your annual damage cost has been large, it may be necessary to spend more to lower that cost.

How much does your damage cost to you on an annual basis?

A company that has $100,000 in annual damage costs can reduce this cost by investing in protective packaging like Simpads, which could eliminate this damage. An increase in packing costs can often result in a bigger savings in reduced damage costs. While it may be difficult to determine just how much the packaging-to-savings ratio will be based on a dollar amount, Simpak’s packaging experts can help you determine how to measure the savings and determine the best possible products to use.

Drop test shows Simpad will work

Simpak can also perform drop tests in-house to test packaging performance. In addition, Simpak has a good standing relationship with both FedEx and UPS in order to get pack designs tested and approved for insurance purposes. This will ensure that Simpads will work for many companies with many different packing needs.