How to Cut the Cost

One of the most common questions I come across is how do I cut the cost, or where is the break in pricing. And if it was as simple as one component then I wouldn’t even tell the customers we would just do it and everyone would be happier. Unfortunately when it comes to your price per thousand, the quoting is quite tedious and includes a number of components. But, as someone that has done or looked over more quotes than I would care to have, I do have some simple recommendations for our customers on how to minimize unnecessary costs.

1) If it is a generic label don’t be too rigid about the size.

We all hate die costs. They are ridiculously expensive, especially with the increasing steel tariffs. But, nothing is free. If you do not see a die charge with another vendor yet it is a very unique label size, you will more than likely pay for that die in your price per thousand every time you order it. And that is not fair. This is why American Labels charges up front for dies.

But, at the end of the day why even buy a die when we have one that is really close in dimension. If your customer is not screaming about a precise size, then just let us know the dimensions to fit close to and we will see what die we have on the shelf that will be closest. At American Labels we have thousands of dies already on the shelf and would rather utilize our in-house dies than incur more unnecessary costs for our customers.

2) Are they hand applied? If so, get butt cut.

This may sound crazy. We are all so used to seeing labels with the .125” round corners and a .125” gap. This is industry standard. But why be standard when you can be economical?

Typically, end users that have auto appliers need a gap between labels for the machine’s sensor to read and a clean peal for the application. But, if your customer is hand applying them why waste money on trash? In a sense, the gap between the labels just becomes trash and in the end, you are paying to throw it away.

So, a butt cut label will have a full horizontal slit across the face in order to separate each individual label. This will minimize the amount of stock needed for manufacturing and maximize the end-product received to money paid.

3) Know the application of the label.

So often we come across requests for a poly or some will even request a vinyl. The most helpful aspect of this is that it tells us to make sure it is a film and not a paper material. But, we need to know the use of the label to make sure the correct material is quoted and ran.

If there is too much generalities then a polyester may be used when a more economical polypropylene was actually needed. Or an even more expensive mistake, a polypropylene was used and the label isn’t enduring as needed because a vinyl was needed and now the same job is ran and paid for twice.

Simply knowing the application and requirements of the end user and then relaying that to us at American Labels will dramatically reduce any possibility of mistakes such as these happening which will result in the minimizing of a loss of profit.

4) Know your vendor.

At American Labels we have years of experience that we are ready to share with you. Coming across a label that is unique, or you are told is unique, can seem daunting and even threatening of costing more money than you may make on the project. The best route is to reach out to us at American Labels. With a matter of a few simple questions, together, we can move towards finding the solution your customer will need.

Our goal at American Labels is to develop relationships with our distributors in order to grow together. We are a company built on a culture of integrity, compassion, relationships, innovation, and production. Calling the company that is distant and makes your lead time even more distant is discouraging and difficult. So instead, call American Labels, a company focused and invested in producing the custom affordable labels you need.

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