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Analyze the cost structure of paper packaging companies

April 16, 2021

[China Packaging Network News] Zhang costs more than 60% of the cost of paper packaging products. Therefore, in order to increase profits, most paper packaging companies are accustomed to working hard on paper prices, assuming that the lower the price of paper, the cost of the product The lower it is. In fact, paper prices and product costs are not proportional to each other. If you do not consider the actual needs of the product, but just blindly reduce the price of paper without a bottom line, the company's profits will continue to decline, or even lose money. This is because when the price of paper is lower than the bottom line that the product actually needs, the cost of the product will not only not drop but will increase. This paper discusses the relationship between paper prices and product costs, and hopes to instill a correct concept in the industry: rational use of paper can actually reduce costs.

1. Effect of paper performance on product cost

If the paper price is different, the surface treatment effect will be very different. For example, if the paper surface coating process is different, the surface smoothness of the paper will be different, resulting in the consumption of ink, light oil consumption, the amount of film coating, etc. Big impact. The surface smoothness of the paper is high, the ink permeability is small, the color of the ink layer is bright, and the amount of ink is small; on the contrary, the ink permeability is large, the color of the ink layer is dim, and the chroma is low, which must increase the amount of ink. At the same time, the surface smoothness of the paper is high, and the amount of varnish consumed and the amount of coating film on the surface are small; otherwise, more varnish is required for the paper to fill the pits on the surface of the paper, and the amount of glue on the film is also increased. Slightly smaller, the effect will become weak, so you must increase the amount of glue, and for every additional gram of glue, it is equivalent to a cost increase of 2 cents. It is not difficult to see that the consumption cost of these auxiliary materials is inversely proportional to the paper price.

2. Cost of sales

In addition to the costs of normal development and business transactions, the cost of sales also includes the cost of after-sales costs and business volume caused by product quality issues.

(1) After-sales costs. For paper packaging companies, after-sales costs are a tiger's mouth. Once the product quality problems, there will be a truck just sent the goods, the after-sales team will follow the aftermath. Products with small quality problems and close transportation distances can be solved in a matter of hundreds of dollars. If the product quality is large and the transportation distance is long, it will cost thousands of dollars. In the event of a return, the loss cannot be measured.

(2) Cost caused by reduction of business volume. If the business volume is reduced due to product quality problems, it will result in more relationship repair costs and personnel transaction costs.

3 waste of materials

Under normal circumstances, for some large customers, in order to deliver on time and ensure the ease of production, most paper packaging companies will adopt pre-stocking methods to carry out pre-production, and pre-production generally requires some preparation in the absence of orders. Targeted raw materials, and these raw materials, especially paper, cause customers to stop orders once they have quality problems, they will inevitably cause a large number of raw materials to be inaccessible for long-term inventory, or be used for printing other products, oversizing, and causing waste. These costs are Can't make up for it and get it back in time.

4. Processing costs

Processing costs are not only related to the physical properties of paper, but also related to the equipment efficiency of paper packaging companies. The better the physical properties of the paper, the higher the production efficiency; the poorer the physical properties of the paper, the lower the production efficiency. However, these are all realized under the premise of high equipment efficiency. Once the equipment is reduced in efficiency, it will increase labor costs and energy costs, and will directly affect the management costs and financial costs of paper packaging companies. Therefore, equipment efficiency is a crucial cost factor.

5. The cost caused by poor molding

The packaging is equivalent to the outerwear of the product. The key to the quality of the clothing is the material and the process. The factors affecting the quality of paper packaging products are much more complicated, because paper packaging, especially offset printing, is a combination of several layers of paper. Because the paper will shrink to a certain degree after damp, different grades of paper The difference in shrinkage, the poorer the texture of the paper, the greater the deformation, once the problem occurs in one layer of paper, then the entire corrugated cardboard will be deformed, at this time the production of paper packaging products will always appear varying degrees of deformation. As a result, the consequences can only be returned.

6. Costs caused by difficulty in use of terminal enterprises

With the increasing development of packaging equipment manufacturing technology, many large and medium-sized terminal companies are equipped with automated packaging production lines to increase efficiency and reduce costs. The basic requirement of the automated packaging production line is fluency. Once it is not smooth, it will have a certain impact on production capacity. Therefore, if the paper packaging companies provide packaging that does not meet the requirements of the automated packaging production line due to paper quality problems, it will cause frequent stoppages, affect the normal operation of the production line, and thus cause resistance to the terminal companies. As a result, not only was the product wasted, but it also affected the reputation of the company.

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