1,000 units or straight away 10,000? This question comes up with almost every order for packaging and print. The large run tempts with a low unit price. The small run spares your budget and storage space. Which is more economical? The answer depends on more than just the unit price.
Why the unit price falls as the run grows
Every job incurs fixed costs regardless of quantity: prepress, printing plates, press make-ready, cutting die and waste sheets. On top of that come variable costs per unit, mainly material and press time. The larger the run, the more the fixed costs are spread, and the unit price falls.
A simplified example calculation
The following figures are entirely fictitious and serve only as an illustration. They are not a price quote.
- Assumed fixed costs per job: €600
- Assumed variable costs: €0.40 per unit
- 500 units: (€600 + €200) ÷ 500 = €1.60 per unit
- 2,000 units: (€600 + €800) ÷ 2,000 = €0.70 per unit
- 10,000 units: (€600 + €4,000) ÷ 10,000 = €0.46 per unit
As you can see, the unit price falls sharply at first, but more and more slowly beyond a certain quantity. The total amount, on the other hand, rises with every additional unit.
The hidden costs of large runs
- Tied-up capital: paid-for packaging in storage ties up money that is missing elsewhere.
- Storage costs: pallets need space, even for folding cartons delivered flat.
- Risk of obsolescence: if the design, mandatory information, product size or legal requirements change, leftover stock becomes worthless.
- Quality risk from long storage: board reacts to moisture and light.
The hidden costs of small runs
- A higher unit price due to fixed costs
- More frequent orders, with internal effort for coordination and approval
- Risk of shortages if the reorder comes too late
- Possible colour variations between production runs, which colour management to ISO 12647 keeps to a minimum
How to find the economical run length
- Estimate demand realistically: how much packaging will you need in the next 6 to 12 months?
- Check how stable the design is: is a change foreseeable, such as a relaunch or new mandatory information?
- Consider storage capacity: how much space is available?
- Compare total costs: unit price plus storage, tied-up capital and risk.
- Ask for tiered prices: request quotes for several quantities to see where the unit price hardly falls any further.
The middle way: the right process
Small and medium runs can often be produced economically with digital printing, as no printing plates are needed. Large runs are cheapest in offset printing. More in our articles Digital printing for small and medium runs and Offset or digital printing.
Our tip
Launch new products with a moderate run. Increase the quantity once the design and sales have proven themselves. For reorders, tooling costs usually do not apply again, so the unit price falls.
We produce packaging from 500 units. We will be happy to calculate several quantity tiers for you so that you can choose the most economical run. You will receive a binding quote within 24 hours.
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