Jun 03, 2019· The IRS says "Containers and packages that are an integral part of the product manufactured are a part of your cost of goods sold.If they are not an integral part of the manufactured product, their costs are shipping or selling expenses.". So if you have a product that you are selling and the packaging for it is what would be included if you were displaying on a store shelf, then it's part of .
This is why it is important to be able to analyse the cost make-up of your packaging. If you do not know the key factors that are determining the price of your packaging, and therefore your overall packaging spend, then it is that much harder to identify areas where you can drive cost savings.
Oct 08, 2013· In many of these scenarios, the cost of packaging is likely greater than the cost of the product it contains. When I was first involved with packaging, selling cups and paper/plastics packaging to restaurants, it was the general consensus that 7-9% of the cost of packaging to the sell price would be considered the high end.
All of these various types of packaging involve costs and need to be taken into account when working out the total marketing cost. ˝The cost of the packaging as a percentage of total selling price varies significantly. Although this cost ranges from 1.4 per cent to 40 per cent, the average cost of packaging is $1 for every $11 spent.