Packaging Company
Author
Discussion

thisislife

Original Poster:

344 posts

214 months

Wednesday 25th February 2009
quotequote all
Hi all,
Myself and business partner are currently looking at possibly setting up a packaging company. When i say packaging i mean jiffy bags, mailing sacks etc.

We are actually considering buying a padded envelope making machine and producing our own padded envelopes in order for us to be price competitive with the hundreds of packaging companies out there who are simply reselling jiffy's from the supplier. If we owned a manufacturing machine, we could produce envelopes to order meaning we wouldn’t require much storage and wouldn’t have a problem of stock sitting on the warehouse floor waiting to be sold.

My question is, does anyone have half an idea on how much one of these machines would cost or where we could possibly acquire one. I have had a quick look on Google and the search wasn’t very fruitful.

Does anyone else know of any other company that actually produces padded envelopes?

Thanks,
Richard





thisislife

Original Poster:

344 posts

214 months

Monday 2nd March 2009
quotequote all
bump...guessing no one has a clue on this one?

Regards

anonymous-user

85 months

Monday 2nd March 2009
quotequote all
Can't see there been much money to make-we buy boxes of 100 for £10!

thisislife

Original Poster:

344 posts

214 months

Monday 2nd March 2009
quotequote all
We buy a box of 100 for £6 so there's 4quid to be made there lol

anonymous-user

85 months

Monday 2nd March 2009
quotequote all
thisislife said:
We buy a box of 100 for £6 so there's 4quid to be made there lol
What size? Obviously the larger ones are more expensive than say, the small wallet sized ones! £10 is the average beween tiny and huge!

rich1231

17,340 posts

291 months

Monday 2nd March 2009
quotequote all
thisislife said:
We buy a box of 100 for £6 so there's 4quid to be made there lol
Where from?


Chris_w666

22,655 posts

230 months

Monday 2nd March 2009
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What size and where from?

I currently am paying £16 per 100 for size D (DVD sized envelopes).

CR0X

1,863 posts

230 months

Tuesday 3rd March 2009
quotequote all
we have a sister company acting as a reseller for a lot of packaging, and the key is volume, as the margins aren't there. If you can overly compete on price, then maybe, just maybe, it could make a bit, but we don't see it getting to even 20% of the £10m of the parent company's turnover.

jamoor

14,506 posts

246 months

Wednesday 4th March 2009
quotequote all
2 thoughts on this

The big boys are making millions of bags a week, and they are benefitting from economies of scale.

The big boys have potentially big overheads and you will be able to undercut them because of this.

JustinP1

13,364 posts

261 months

Wednesday 4th March 2009
quotequote all
This just will not work on a small scale.


Don't want to be negative, but to undercut the competition and maybe make £1 profit on a box of 100, if you imagine the machine costs:

£10,000 you are going to need to sell a million envelopes to cover the cost

£20,000 you are going to need to sell 2 million enveloped to cover the cost...


You see where I am going?

You'd make more money stuffing things in envelopes with your bare hands for someone else than try this yourself...

thisislife

Original Poster:

344 posts

214 months

Wednesday 4th March 2009
quotequote all
hmm really need to know the cost of the machine. Overheads would pretty much be the cost of someone taking the orders we have our own warehouse and storage etc.

Marcellus

7,210 posts

250 months

Wednesday 4th March 2009
quotequote all
a further thought...be prepared for any major customers to be given at least a 10% every 2nd year of trading with them.......

anonymous-user

85 months

Wednesday 4th March 2009
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How hard did you look?

First search on Google came up with this :-

http://www.allproducts.com/machine/mingjilee/Produ...

ipwn

2,920 posts

222 months

Wednesday 4th March 2009
quotequote all
jamoor said:
2 thoughts on this

The big boys are making millions of bags a week, and they are benefitting from economies of scale.

The big boys have potentially big overheads and you will be able to undercut them because of this.
They can't undercut and cover their expenses in this case.

They could if they already have their customers lined up and they will be selling thousands of envelopes from day 1.

Big boys already have a customer base, chances are already have a reliable service, chances are they own all of their assets like machinery etc.

So yeah, I just don't really see this idea taking off tbh. I assume it's merely an idea at this stage due to the lack of research so far.

ipwn

2,920 posts

222 months

Wednesday 4th March 2009
quotequote all
Another idea, havn't put that much thought into yet.

Whats stopping you from drop shipping this sort of stuff.

If you can genuinely find a proper repliable supplier from China to make you the packaging stuff in huge amounts ( EOS ), and then send it over.

Am I being stupid here?

This is ofcourse assuming the price is cheaper and you can find a reliable supplier.