PRODUCTION of packaging and containers: situation, equipment, technologies

It is always better to accompany a discussion of the attractiveness of a business idea with real examples. I asked my friend to comment on the common opinion that packaging manufacturing is a profitable business at all times.

The owner of a packaging materials company who started his business in 2008 told the truth about how he managed to build and maintain his business.

Is it possible to make money by making packaging?

We start by answering the question of whether it is possible to make money by producing packaging materials.

Without a long description of all the nuances of doing business in the Russian economy, we will answer: YES, packaging production brings stable and high profits.

But there are conditions under which it will be profitable:

• if there is a stable demand for products, regardless of the season;
• if the enterprise is profitable and the monthly net profit is at least 10%.

These two factors are fundamental; they guarantee the sustainability of the new project.

There are other important nuances:

1. The production of packaging materials is a costly project that requires significant initial investment . The payback period is from 20 to 40 months, subject to stable demand and profitability. If there are no future sales prospects, at best the entrepreneur will recoup the investment. In the worst-case scenario, he faces major losses.
2. When choosing exclusive packaging as the main product, you need to have firm sales guarantees . In an unstable economic situation, premium brands and non-essential goods are the first to suffer. People will save on gift wrapping, and this will immediately affect the company's income.
3. Having given preference to simple packages, which are constantly in demand in trade and industry, you must be prepared for fierce competition . Marketing and financial plans must contain activities (and costs for them) to promote products in a “busy” region.

To summarize: you can make money by manufacturing packaging, but the amount of profit will depend on many parameters, including the economic situation.

Packaging equipment

A special type of transport packaging are pallets and containers, called packaging equipment. This includes box pallets in which goods are delivered from manufacturing plants and warehouses directly to the sales floors of self-service retail stores. The use of packaging equipment creates great convenience both when transporting products and when selling them.

In the sales area, such a box pallet plays the role of commercial equipment and replaces racks, counters, and sales shelves. This allows us to eliminate a very labor-intensive link in the distribution chain - the selection of goods in the warehouse according to orders from retail stores; this work is shifted in this case to the buyers themselves. A number of other operations are also eliminated: laying out goods on shelves and counters, putting prices on them, which leads to faster delivery of goods, lower distribution costs, reduced losses from damage to goods and, ultimately, to increased profits in trade.

The use of pallets is very convenient in the trade of vegetables, fruits, meat, fish, therefore they are used in the food industries of the agro-industrial complex, as well as in the textile, chemical, and perfume industries. The pallets are easily stacked both in working and folded form, are characterized by low dead weight and high durability, and are easily sterilized with hot water and steam.

What kind of packaging can be produced

Choosing a direction is a fundamental stage in developing a business idea. The size of investments, marketing activities, sales policy, etc. depend on the decision made.

The packaging materials market attracts with its diversity: the range of products will satisfy both retail consumers and corporate clients. Which option should I choose? Which consumer group should you target? Each entrepreneur makes this decision independently.

Let's consider the types of packaging.

Cardboard

Making containers from multilayer corrugated cardboard is a popular idea among small businesses. Cardboard boxes are in constant demand: they are light, moderately durable, and suitable for storing and transporting goods.

In addition, corrugated cardboard is recycled, which significantly reduces production costs. Investments for opening a new business from $50,000.

Corrugated packaging

Plastic

Polyethylene film and bags are the most popular packaging. The bags are made from film, the raw material for which is polyethylene granules.

By selling both film and bags, an entrepreneur has every chance to quickly recoup his investment: a full-cycle plant provides high profitability. The mini-format for producing bags from finished film requires a modest budget, but the profit will be small.

Depending on the format and volume of the enterprise, investments will be:

• from $5,000 for a mini-workshop;
• from $60,000 for a full cycle workshop.

Plastic bags

Blister

Food containers are the first association for blister packaging. Cookeries, supermarkets, workshops for the production of semi-finished and ready-made food are the main consumers of blister packaging.

Manufacturers of industrial goods also use blisters for packaging and storage. Examples: hardware, razor sets, manicure and household scissors, etc. Containers and other forms are made from rigid thermoformable film.

Investments for opening a blister packaging workshop from $25,000.

Blister containers

Paper

Paper bags are in demand in trade, the food industry, and public catering. Their advantage over plastic containers is the creation of a special microclimate, which is important for storing certain goods (coffee, spices, baked goods, flour, charcoal, etc.).

In addition, bags and paper bags are used for image advertising, as packaging for business souvenirs, etc.

Investments will start from $45,000.

Sugar in bags

Most people open sugar sticks by tearing one of the ends. This is not entirely convenient, and there is no need to do this at all. The oblong bags were designed specifically so that they could be torn in the middle. In this case, all the sugar will be in the cup, the table will be clean, and you will not get your hands dirty.

How to start a packaging business - a step-by-step guide

If a decision has already been made, the type of packaging and format have been chosen, you need to check the business plan again.

Don’t waste time on preliminary calculations, calculate a realistic and negative scenario. After identifying possible risks, plan measures to neutralize them and financial reserves.

Step 1. Preparation of documents and business registration

At this stage, the form of the enterprise is registered. Whether it will be an individual entrepreneur or an LLC depends on the choice of the owner and the format of the enterprise.

For example, to install one bag production line on the territory of a former farm in Villa-Khutorovo, the owner only needs to register an individual entrepreneur.

If several partners plan to build a large-scale full-cycle project, an LLC will be needed. And in the constituent documents it is necessary to determine the share of each participant and his role in management.

When registering a business, do not forget to notify the tax authorities about the chosen accounting system: basic (OSNO, with payment of VAT) or simplified (USNO). By law, you are allowed to change the system once a year.

Step 2. Selecting a room

One of the most difficult stages is choosing a location. Desirable option: premises in close proximity to sources of raw materials and consumers. But only 1% of workshops meet these conditions, so entrepreneurs have to look for compromise options.

What to pay attention to when inspecting the premises:

1. Electrical networks . Operation of the automatic line will require the installation of 380V sockets and associated wiring. If the room has a household electrical network, refuse this option or get ready for additional costs for installing new wiring.
2. Ventilation . Ventilation is of particular importance when setting up the production of blister and plastic containers: this is a hazardous production, which is also associated with high temperatures.
3. Water, drains, heating . The quality of all engineering communications must meet the requirements of the work process and the specifics of production. For example, automatic lines operate smoothly at a constant temperature. In other words: in an unheated hangar with a metal roof, your equipment will fail in the first month of winter.
4. Total area and household premises . The workshop area must be sufficient to accommodate the line. Please note: some equipment (for example, for PET film and bags) is large and requires high ceilings. Think about where the warehouse for raw materials and finished products, staff rooms, and a mini-office will be located.
5. Infrastructure . Assess the proximity of your production to important facilities: transport interchanges, for example. If you are planning a large scale, choose a place with access roads, ramps for unloading containers with raw materials, etc.

Important: the premises must meet all fire and sanitary safety standards. Check the condition, eliminate minor defects and prepare for inspections by SES, firefighters, power engineers and environmentalists.

Step 3. Purchase of raw materials and equipment

Which equipment to choose – imported or domestic? The cost of foreign and our machines varies greatly, but not only the manufacturer is important, but also performance, service life, seller guarantees, and owner reviews.

The agreement with the supplier of raw materials is no less important: the quality and cost of the finished product depend on the source material. As a rule, the final price consists of a number of conditions: delivery volumes, frequency of purchases, transportation costs, method of payment.

Analyzing suppliers' offers, choose the optimal conditions for yourself that best suit your business plan.

Step 4. Recruitment

A simple process will not require highly qualified workers: three to four general workers are enough for a workshop. But at the same time, there must be a specialist on staff to maintain the line. This function can be taken on by a foreman or shift supervisor who has skills in working with automatic machines.

Depending on the scale of the business, other personnel will be required: driver, storekeeper, manager, accountant, etc.

Do not forget about compliance with the Labor Code of the Russian Federation - an agreement must be concluded with each employee.

Step 5. Starting a business and finding clients

At this stage, several actions are performed in parallel:

• commissioning of equipment, checking its performance;
• release of the first trial batch of products for certification;
• signing contracts with clients, actively searching for new buyers.

Equipment used

The use of modern foreign and universal equipment allows us to produce packaging of various shapes, colors and sizes at an affordable cost. This does not require the presence of several different machines. The equipment can be easily reconfigured and reconfigured. This saves time and money, allowing you to produce both large and small batches of goods of any kind.

The production process of plastic containers is under continuous control. When manufacturing products, current quality standards are observed. The raw materials we use are environmentally safe for health.

How to attract clients

Price wars as a strategy to attract customers have already lost their relevance. And although the price factor is important, it is considered holistically: consumers evaluate the overall service and benefits of cooperation with the packaging supplier.

At the stage of creating a marketing policy, assess the needs of your consumers. Most wholesalers will want a price-quality combination and special terms of cooperation: deferred payment, delivery, volumes, etc.

Manufacturers who have recently started a business and are developing a customer base have a difficult time: consumers dictate their terms to them. To get a profitable contract, it is not enough to offer a low price. It is important to provide a quality product, the best service and unique solutions.

Real example:

The owner of a corrugated packaging and paper bag business had been trying for months to secure a supply contract with a local biscuit factory.

He proposed a non-standard solution: along with standard boxes for cookies and waffles, his workshop will produce gift boxes for packaging premium types of baked goods and paper bags with the logo for the factory’s branded stores. The entrepreneur received a contract.

The economics of this decision were justified: income from the sale of standard boxes more than covered the costs of manufacturing expensive boxes and bags.

The benefits of cooperation with a large wholesaler are obvious: production received workload, a large circulation of standard products and guarantees of timely payment (which is important).

Experts agree: the main competitive advantage of the packaging business is speed and quick response to market conditions. Therefore, it is recommended to invest part of the profit in business development, in new developments, expansion of the range, etc.

Corrugated cardboard manufacturing technology

Before starting the production of corrugated cardboard, rolls of paper and cardboard intended for corrugation are placed in a room in which the air temperature should be more than 15 ° C. During the day, the process of conditioning should be carried out.

After this, the rolls are fixed on a rolling machine (unwinding machine) and then the prepared paper and cardboard are supplied to heating cylinders and intermediate rollers. This equipment heats and moistens the paper. Thanks to this operation, the glue penetrates better into the paper and ensures reliable adhesion to the cardboard.

Next, the production of corrugated cardboard is carried out on a corrugated press. On this equipment, the paper passes between corrugated rollers, the temperature of which is about 180 ° C. As a result of processing, a wavy layer of a certain profile is formed.

After this, the corrugated paper is placed in a glue-applying machine, where an adhesive film is applied to one side using a glue roller. The amount of glue can be adjusted using a dosing shaft. Next, the corrugated layer is combined with flat cardboard and processed by a pressure roller, resulting in a two-layer corrugated cardboard. This operation can complete the production of corrugated cardboard.

If three-layer corrugated cardboard is needed for the production of containers, then the two-layer corrugated cardboard is transported to a storage bridge, and then to a gluing machine. This equipment applies glue to the other side of the corrugated paper.

Finally, the corrugated cardboard is moved to a drying unit where it is glued and dried. The drying process can be carried out using electricity and steam or drying plates. During this operation, moisture is removed from the corrugated cardboard and the adhesive hardens.

After this operation, it is transported to the cooling part of the automated line. The cooling and drying process determines the characteristics of corrugated board .

Then the corrugated cardboard sheets are fed to the slitting department, where it is cut and cut using circular knives. The cutting operation is very often combined with compaction. As a result of these operations, scoring lines are formed, thanks to which the sheets are folded.

Finally, the corrugated cardboard is cut into sheets of specified parameters. The sheets are subsequently formed into corrugated cardboard packaging.

Income and expenses

Make a forecast of income and expenses at the planning stage. And although we understand that reality will make its own adjustments, a preliminary plan is needed. It will allow you to assess the need for resources and resilience to possible risks.

How profitable will the new workshop be?

The answer to this question depends on three parameters:

• circulation volume;
• cost of raw materials;
• production costs.

Using the example of an enterprise producing micro-corrugated cardboard boxes, let’s consider a simplified version of the monthly income statement:

Watch how the corrugated box manufacturing workshop works in video format:

Calculating the profits of a gift wrapping business

It is quite difficult to calculate the income of such a business. Profit depends on seasonality, the number of regular customers, and price levels. As practice shows, on average, a retail outlet can earn 20 thousand rubles at the start and 40-50 thousand rubles in the future. During the holiday rush, revenue can double or even triple. The turnover of the outlet during the pre-New Year period can reach 150 thousand rubles - it all depends on the entrepreneur.

If we are talking about an average income of 50 thousand rubles per month, then for this you will need to complete 8-10 orders per day. This is a lot, but it is quite realistic. Especially if, in addition to gift wrapping, you will sell related products. At this level of income, the initial investment, which amounts to 50 thousand rubles, will pay off within 3 months. And if you correctly take into account the start time, then in the first month you will be able to achieve a net profit.

Risk factors and business prospects

No matter how attractive a business plan may be, remember that these are just mathematical calculations based on assumptions and market analysis. Changes in the economy occur frequently and quickly, making adjustments to the activities of companies. A novice entrepreneur should think about possible risks and evaluate the prospects of his business.

It is impossible to foresee everything; we will focus on the main causes of force majeure situations:

1. A country's economy . The shocks of 2014-2015 did not pass without a trace, and despite the slow economic recovery, the purchasing power of the population is still very low. Consumers are choosing budget products, prioritizing price and reducing the share of premium products. For manufacturers of packaging materials, this means the need for strict savings on all costs, and the struggle for cheap resources to reduce production costs. In this situation, any increase in prices for raw materials or transport services can become critical for new production.
2. Dependence on loans. If a business is built on credit money, the risks increase. In an unstable market situation when demand for products falls, the enterprise will become unprofitable. Failure to repay debt to creditors will lead to bankruptcy and seizure of equipment (if it is pledged).
3. Errors in planning. Preliminary calculations may be incorrect due to simple errors. For example, when drawing up a cost plan, you will forget to take into account the costs of security and cleaning of the premises, the purchase of equipment, etc. This mistake will lead to another, and there will not be enough money by the appointed time. Gaps in cash flow are painful for any scale, and for small production they become fatal.

Your own business will develop only under the condition of constant monitoring of income and expenses, evaluation of results and analysis of deviations from the plan. The packaging materials market continues to lead the list of startups: despite the large investments and lengthy process, this production is considered highly profitable.

The demand for packaging materials is growing, only consumer preferences are changing, and timely response to these changes ensures business success!

Is it possible to remove the original packaging?

If you want to make the shipment as light as possible, you can ask to remove the manufacturer's packaging in the comments to the shipment. However, we do not recommend doing this unless absolutely necessary, because the manufacturer’s packaging protects the product from damage and securely fixes it. Without it, the product is much more likely to get damaged during shipping. In addition, a number of goods are not insured if there is no manufacturer's packaging, so if, for example, something happens to a laptop while in transit, you will not be able to get insurance for it.

We do not remove the original packaging of electronics, even if such a request is made in the comments to the shipment. If you ordered some used electronics that the seller sends without the original packaging, in most cases we will not remove the purchase from the postal packaging and will pack the parcel directly in it. We also do not recommend sending cosmetics and toys without original packaging.

If you still want to do this, your best bet is to make a special request to remove the packaging and prepack the fragile item for shipment.

Firstly, sometimes removing the manufacturer's packaging is a rather lengthy process for which packers simply do not have time, and secondly, these categories of goods have almost no chance of arriving intact if sent without their original packaging

Remember

1. The production of packaging products will bring serious profits with stable sales and economical cost management.
2. Investments for opening start from $5,000 for a mini-workshop, but the highest profitability is provided by full-cycle plants with investments starting from $60,000.
3. To attract and retain customers, you need to constantly improve your service, expand your range, and offer unique solutions.
4. The packaging materials business comes with risks. Forecasting force majeure situations will provide reserves for unforeseen cases.

Good start and high profits!

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Is it possible to leave the postal packaging?

Just as some tirelessly try to make the package as light as possible, others want to receive their American purchase in its original form, which is why we sometimes see requests not to remove the postal packaging.

If you leave such a request in the comments to the shipment, we will still open the postal packaging to make sure that there is nothing prohibited in the parcel, but after that we will not send the packaging for recycling, but will carefully put the item(s) back in the postal box and seal it with tape place of opening, in this form we will put it in our box and send it to you.

Vacuum packaging of products

Food is packaged in a vacuum using special equipment and various substances: paper, polyethylene, foil, aluminum, etc. At the moment the product is packaged, oxygen is completely pumped out of the container, which makes it possible to protect food from exposure to the external environment and significantly increase shelf life to three weeks.

The disadvantage of this technique is the significant loss of certain nutrients and taste of many food industry products, and the possibility of proliferation of anaerobic microflora inside the package.

Products that require special attention: jackets, bags, etc.

There are a number of products that require special attention when packaging. In particular, these are all jackets and bags. We always remove jackets and similar items from hangers and hangers, which can tear the fabric during shipping. At the same time, we pack jackets, like other clothes, as compactly as possible. If it's important to you that your jacket arrives as smooth and wrinkle-free as possible, this requires a larger box, which increases shipping costs. Therefore, if you have any suggestions for packing your jacket, do not forget to write them in the comments when submitting.

Bags usually come from the store filled with paper to prevent them from losing their shape or getting wrinkled during transportation. We do not remove paper from bags without your request. If you still want us to remove the filler, please do not forget to ask about it in the comments to the submission.

Please note that the insurance does not cover creases in bags if the user himself asked to remove the filling, as well as damage to the jacket fabric from broken hangers or hangers if the user asked to leave them.

What does our standard packaging consist of?

1. This is a box that is the right size for your items (or a mailing bag).
2. A sealed bag in which we place your items before placing them in the box.
3. Airbags are bags of air that fill the free space in a box, protecting things from damage.
4. Bubble film (additional paid option) is a film that protects the product from shock.
5. Security tape (additional paid option) is a tape that we use to seal the joints of the box so that it cannot be opened unnoticed without damaging the tape. If the tape is torn, the words “Void Open” appear on it, which allows you to understand that the parcel was opened on the way from the warehouse to you.

Also, suitable goods can be packed in a postal bag. You can find out what it is below.

Combined packaging

It is made from a combination of polymer, paper, cardboard and other materials. Products are stored in this container for a long time without losing their consumer qualities and maintaining their presentation.

This type includes food containers: flow and skin packaging, stretch film and shrink film.

Flow packaging is created by applying molten polyethylene to the goods that are being packaged. “Skin” is obtained through the use of heat-shrinkable oil films applied to the product. During winding, the material heats up, contracts and tightly fits the product.

This method is used to package meat, fish, vegetable and fruit products. The disadvantages of this method are that it is not compatible with all foods. Advantages: economical and easy to transport.

Films with a stretch effect are used more widely. Can be combined with a large number of products and does not require heating. Such a film does not provide a tight fit to food, like “skin”.

Vitello type containers are represented by a plastic cup made by thermoforming and placed in a cardboard body. This type of packaging is decorated with color printing and is used to preserve fermented milk products, marinades, and seasonings.

Blister packaging consists of a substrate and a plastic case that has a hemispherical shape or reproduces the shape of the object placed inside. This container is manufactured using thermoforming and attached to the frame using welding, gluing or scraping. Canned fish and meat, pates, etc. are stored in this type of packaging.

Modern discoveries of new quality of long-known materials, innovations in packaging techniques and packaging devices have made it possible for the existence of various types of food containers.

Is it possible to send a parcel in a postal bag?

By default, we pack parcels in boxes, but sometimes we can use a postal bag made of thick polyethylene if the item is suitable for shipping in a package, does not exceed the permissible dimensions and weight, and if the parcel is sent by Qwintry Air.

We usually bag individual items of clothing, such as jeans and similar unpretentious items.

Often users ask to pack other goods in a bag. If such a request comes from a user, we are ready to satisfy it. However, please note that in this case, damage insurance for shipment is not valid. Therefore, it is still better to trust the experience of our professional packers, who know from their own experience what can be packed in a bag and what is better to be sent in a box.

However, it is important to remember that we will not send electronics, cosmetics and leather items in a package, even if you really ask - this is extremely unsafe.

Collectible value of the packaging

As we wrote earlier, according to the standard, we remove the postal packaging, but leave the manufacturer's packaging. However, the parcels are different. This is especially true for any used goods. Quite often, sellers send such goods without original packaging. It happens that several goods are put into the original packaging at once, for example, a console and games for it. Or the factory box arrives in poor condition: it is shapeless and falls into pieces. We remove such packaging and repackage the parcel efficiently. If you need to receive the original packaging at any cost, please leave a note about this in the comments when submitting. And even if the packaging is no longer usable, we will still put it in the parcel.

The thing is that despite the fairly simple rules, sometimes the packer is faced with non-trivial situations in which he has to make decisions based on the circumstances. And if there is no clear comment on the shipment, the bad packaging may be thrown away.