Packaging incurs costs and reduces profit

Packaging is nearly always produced by subcontractors. Owing to the unique requirements of pharmaceuticals packaging, these are predominantly specialised companies. The packaging accounts for a not inconsiderable proportion of the total cost of a proprietary medicinal product. In the long term, the actual packaging costs generally exceed the capital investment in a packaging machine. Packaging is only cost efficient if it meets all the requirements made on it. All costs incurred by the specification (including specification checking), ordering and storage of packaging are also a significant factor. Printed packaging in particular is constantly changing. It is often ordered only once and then replaced by a follow-up product. In such cases the administrative expense and the one-off costs for the manufacturer generally exceed the total value of the goods.
Choosing a particular type of packaging solely on the basis of cost is nearly always a mistake, because the technical requirements are never the same. A wrong decision will often have far-reaching consequences which can greatly exceed the potential savings.


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