Guide / Ordering & production / Chapter 6.5
Cost per unit vs order size.
Order more and each box costs less, up to a point. Here's why the price per unit falls, where it levels out, and how to choose an order size that saves money without filling your storeroom.
The short answer
Custom packaging has two kinds of cost: set-up costs, which are the same whatever the quantity, and running costs, which apply to every unit. In a small run, the set-up is shared across only a few units, so each one costs more. As the quantity rises, the set-up is spread thinner and the cost per unit falls quickly at first, then levels out. The best order size is usually the one that captures most of that drop without buying more than you'll use.
Fixed costs and per-unit costs
Set-up costs
Before a custom run starts, the job is prepared: artwork set-up, proofing, machine set-up and, for some print methods, plates, screens or cutting tools made for your design. These costs are much the same for 250 units as for 2,500.
Per-unit costs
Board, ink, finishing and packing apply to every unit. More units means more of these costs, but the cost of each unit stays roughly the same.
Putting them together
Cost per unit is the set-up cost divided by the quantity, plus the per-unit cost. Double the quantity and the set-up share per unit halves, while the per-unit cost doesn't change. That's why the saving is big at first and gets smaller as quantities grow.
How cost per unit typically falls
Reading the curve
In the example, going from 25 to 100 units cuts the cost per unit by more than half. Going from 1,000 to 2,500 barely changes it. Real jobs vary: price breaks, material yield, repeat tooling, print method, size and board all change the shape of the curve, but the pattern is almost always the same: big savings early, small savings later.
The print method matters too. Digital printing has very little set-up, so it's good value in small runs from 25 units. Screen, flexo and offset printing have more set-up, which is why they start from 250 units, but they become better value per unit as the quantity rises. They aren't interchangeable for the same box, though: screen suits die-cut boxes, flexo suits shipping cartons and offset suits paperboard, so the product decides which methods you can compare.
Choosing an order size
| Question | Why it matters |
|---|---|
| How many will you use in the next few months? | Packaging you don't use isn't a saving. |
| Where does the cost per unit level out? | Ordering beyond that point adds stock but saves little. |
| Do you have space to store it? | Flat-packed boxes still take up room and need to stay dry. |
| Is your artwork or product likely to change? | A redesign can leave you with packaging you can't use. |
| How long is the lead time? | Longer lead times mean you need more on hand between orders. |
What it means for you
The same question, answered for where your business is today.
Choose your stage at the top of the page to open the advice for you.
Start-up · under 100 units
Small runs cost more per unit, but they keep cash free while you learn what sells. Digital printing from 25 units is designed for this stage.
Don't chase the lowest unit price with an order you won't use for a year.
Growing · 100 to 2,499 units
This is where order size starts to really matter. For your most-used boxes, ask for quotes at two or three quantities and see where the price levels out.
Try this: compare the extra cost of a bigger run with the saving per unit, multiplied by what you'll realistically use.
Enterprise · 2,500 units and more
At volume you're usually on the flat part of the curve, so savings come more from size, board and print coverage than from quantity alone.
Balance run size against storage, cash and lead times in your purchasing plan.
Common mistakes
- 1Ordering for the price break alone. A lower unit price only saves money if you use the packaging.
- 2Comparing different print methods at one quantity. Digital may win at 100 units and lose at 1,000. Compare at the quantities you'd actually order, on the same product.
- 3Forgetting storage. Large runs take space, and damp or crushed stock is wasted stock.
- 4Ignoring change. New branding, sizes or products can make old stock obsolete.
Cost per unit questions
Why does custom packaging get cheaper per unit in larger quantities?
Is it always worth ordering more?
Which print method is best value for small runs?
When do screen, flexo or offset printing make sense?
Can I get prices at different quantities?
Keep reading
Custom printed packaging
Compare quantities before you order
Include two or three quantities in your quote request to see how the price changes. Our Melbourne team usually replies within 1 business day.