By: Nathan Dube on August 5th, 2021
Can't Afford To Buy New Packaging Machinery? Top 4 Solutions
Man, sometimes the universe seems to have it out for you, huh? I mean, here you are, all excited about launching a new product and getting it to market, but you can't afford the packaging machinery required to do the job!
Or, maybe, your packaging equipment is getting so old that it is time to put it out to pasture and let it cross the rainbow bridge. And, for whatever reason, you cannot currently afford to replace it.
You have been racking your brain, trying to figure out a way to finagle this bagel, but no matter where you turn, you keep hitting brick walls.
It's enough to make you think about dropping the whole project altogether. But, before you hang your head in defeat and walk off into the sunset, you will want to read this article!
After multiple generations in the packaging industry, Industrial Packaging has helped so many businesses out of this pickle; we can't even count them anymore!
We know of some solutions you may not have thought of, and they may just be the thing to get your product packaging dreams back on track.
This article will review the top 4 solutions if you can't afford new packaging machinery. With the information in this article, you will figure out if you can save your packaging project or not.
What Are Your Options If You Cannot Afford To Buy New Packaging Machinery?
It's a tough place to be in, but it happens to many companies. Big or small, various businesses will at times find themselves, for whatever reason, incapable of buying the new packaging equipment they need to get their products to market.
It can be both frustrating and disheartening, but this situation may have a solution! Below, we will look at a few different ways to approach this problem and potentially flip the script.
Solution 1: Lease Your New Packaging Machinery
One of the first and best options you have when you cannot afford to buy new packaging machinery is to finance the equipment through a lease.
A lease is similar to a rental. Essentially, it allows you to pay much smaller monthly payments over the course of several years (typically 3-5 years). At the end of the lease, you generally have two options.
On the one hand, you can trade the equipment in and upgrade to a new lease.
On the other hand, you can finance the remainder of the total cost of the machinery through continued monthly payments until you own the device.
If you are new to leasing vs. buying, it may feel a bit uncomfortable at first if you have never done it. But, depending on your situation, it may be your best way to acquire the packaging machinery that you need to complete your project.
Interested in outsourcing your packaging instead of doing it in-house?
Solution 2: Buy Or Lease Refurbished Packaging Machinery
Your next option in your quest to obtain packaging machinery is to buy or lease refurbished packaging equipment. Many companies can expertly refurbish older packaging machinery and offer a much more affordable solution.
You may be wondering, what does refurbished mean?
To refurbish a piece of packaging machinery means renovating the equipment, replacing old parts with new parts, and performing a tune-up and maintenance on the machinery.
The result is a used machine that, when refurbished well, runs like new but costs a fraction of the price of brand new equipment.
With refurbished packaging machinery, you may be able to purchase the machinery outright. And, if not, you will have a notably lower cost for your monthly lease payments if you choose to go that route.
While this option does not provide you with brand new equipment, it gives you the next best thing at a significantly lower expense.
Solution 3: Refurbish Your Current Packaging Machinery
Depending on the age of your packaging equipment and the availability of parts, you may be able to have your older packaging machinery refurbished.
This will require a technician to come out to your location. Upon arrival, they will begin the process of renovating your older machines.
This process will include removing old parts and replacing them with new parts and the other elements associated with refurbishment mentioned above.
While this may only give you a temporary solution to your problem, it may be one of the least expensive options for your current predicament.
Solution 4: Outsourcing Your Packaging With Contract Packaging
Finally, if all else fails and you cannot afford the tens or hundreds of thousands of dollars it may take to purchase all the proper packaging machinery to package your products, you have another option.
That option is called contract packaging. So, what is contract packaging?
Contract packaging (also known as co-packing) is outsourcing all dynamics of a company's packaging line. These dynamics may include primary and secondary packaging, third-party logistics, point-of-purchase display builds and kitting & re-work.
With contract packaging, you pay a contract packaging company (also known as a co-packer) to take all of your packaging needs off your plate so you can focus on your business's core capabilities.
Furthermore, when you use contract packaging, you do not need to buy your own warehouse, labor force, packaging materials, or packaging machinery.
Depending on the volume of packages you wish to package and send to market, contract packaging may cost you much less than buying your packaging machinery and managing your own packaging line.
Exploring The Benefits Of Contract Packaging
If you are unable to use any of the first three solutions, your best bet is to research contract packaging. Would you like to learn about the benefits that contract packaging can offer your company?
Suppose you would like to understand better how contract packaging can help your business with its packaging needs. In that case, you might want to read this follow-up article, Benefits Of Contract Packaging: Top 5 Reasons To Outsource Your Supply Chain.
With the information in this article, you will be able to decide if contract packaging is a worthwhile consideration for your company's packaging requirements.
About Nathan Dube
As the Digital Marketing Specialist at Industrial Packaging, I am honored to create content for such a phenomenal company and work with one of the greatest teams in the Packaging Industry. Whether creating a video, writing blog posts or generating other pieces of content and multimedia, I am always excited to help educate and inspire our prospects and clients to reach their highest potential in regards to their packaging processes and needs.