I. Cost Control
Raw Material Procurement
Bulk Purchasing: Establish long-term and stable cooperative relationships with raw material suppliers to obtain more favorable prices by purchasing raw materials in large quantities. For example, for materials such as paper, ink, and glue required for label production, when the purchase volume reaches a certain scale, suppliers usually offer certain discounts. For instance, when establishing a long-term cooperative relationship with raw material suppliers, they will provide you with a relatively cost-effective and inexpensive price.
Seeking Alternative Materials: Under the premise of ensuring the quality of labels, look for alternative materials with lower costs. For example, some labels for non-critical uses can be made of recycled paper, whose price is usually lower than that of virgin paper. Meanwhile, for ink, it is also possible to research new environmentally friendly ink formulations with reasonable prices to reduce costs. However, when using alternative materials, it is necessary to ensure that they meet the usage requirements of the product and relevant regulatory standards. Also, replacements can be made in the use of materials. For example, some innovative environmentally friendly materials can be used to replace expensive materials, thus being cheaper in price and saving economic costs.
Production Cost Management
Optimizing the Production Process: Through a detailed analysis of the production process, remove unnecessary production links or optimize production steps to improve production efficiency. For example, introduce automated equipment to replace manual operations for some highly repetitive processes, such as label cutting and drying after printing. Automated equipment can not only increase the production speed but also reduce errors and losses caused by manual operations, thereby reducing the unit production cost.
Reducing Energy Consumption: During the label production process, energy cost is also an important expense. Factories can take energy-saving measures, such as installing energy-efficient printing equipment and lighting systems. For example, using LED lighting equipment instead of traditional fluorescent lamps can reduce the lighting electricity cost in the workshop. Meanwhile, optimizing the running time of equipment to avoid idling can also effectively reduce energy waste.
Labor Cost Control
Rational Allocation of Human Resources: Arrange employees’ work positions and working hours reasonably according to the requirements of production tasks. For example, during the peak production season, meet the order demands through overtime work and flexible shift arrangements. During the off-season, employees can be arranged to receive training or carry out equipment maintenance work to improve their comprehensive qualities and the service life of equipment.
Improving Employee Efficiency: Strengthen employee training to enable employees to master production techniques and operation procedures proficiently, thereby improving work efficiency. For example, conduct regular skill training for label printing workers, including color management, operation techniques of printing equipment, etc., so that workers can complete printing tasks more quickly and accurately, reducing production time and the rejection rate.
II. Pricing Strategies
Cost-Plus Pricing Method
Accurately calculate the costs of label production, including all direct and indirect costs such as raw material costs, production costs, labor costs, transportation costs, and management costs. Then determine the price according to the expected profit margin.
Competition-Oriented Pricing Method
Closely monitor the prices of competitors in the market. If the prices of customized labels of competitors are lower, the factory can analyze their cost structures and product qualities to find its own advantages and gaps. If the factory can provide products at a price lower than that of competitors while ensuring the quality, it can attract more customers. For example, according to the fluctuations of market prices or the unified market price, offer a price lower than the market price to win the market.
Value Pricing Method
Price according to the value that customers obtain from customized labels. If the factory can provide unique values to customers, such as higher label quality, faster delivery speed, better design service, etc., it can appropriately increase the price. For example, a factory provides customized labels with special anti-counterfeiting functions for high-end cosmetics brands and can complete order delivery within a short time. In this case, even if the price is a little higher than that of ordinary labels, customers may be willing to accept it because of the added value brought by the labels. According to the quality of its own production and the use of high-end equipment, such as faster production efficiency and delivery speed, a higher price can be charged.
III. Service Value-Added and Differentiation
Providing One-Stop Service
Besides label production, also provide customers with one-stop services such as design and logistics distribution. For example, provide customers with free label design schemes, design attractive labels according by the characteristics of customers’ products and brand images. Meanwhile, be responsible for the packaging and transportation of labels to ensure that the labels can be delivered to customers on time and in good condition. This can increase customer satisfaction. Even if the price is a little higher, customers will choose this factory because of the convenient service. Regarding logistics distribution, try to provide faster speed and better quality service, so that customers’ satisfaction with the manufacturer will be improved, enhancing the stickiness between the two parties in cooperation.
Product Differentiation
Develop labels with special functions, such as waterproof labels, anti-counterfeiting labels, traceable labels, etc. These special-function labels can meet the specific needs of customers, enabling the factory to have a differentiated competitive advantage in the market. For example, for some high-end electronic products, the factory can provide labels with anti-counterfeiting chips. Consumers can verify the authenticity of the product by scanning the label with their mobile phones. This differentiated product enables the factory to have more say in pricing because customers are willing to pay extra fees for these special functions. Differentiated labels will enhance consumers’ memory of the product because only this product brand will have this logo or unique anti-counterfeiting logo.
