Blog cover image titled "The Rental Revival" by Packserv, featuring equipment rentals as a cost-effective solution for businesses.

The Rental Revival

THE COST OF PACKAGING PRODUCTS CAN BE DAUNTING, BUT NOW YOU CAN RENT THE EQUIPMENT AND DO-IT-YOURSELF.

WORDS BY KAREN SAAD

One thing that all beauty product manufacturers have in common is the process of packaging their products. While this process may be unglamorous, it is undeniably a major operational issue that impacts the cost of manufacturing and budgets for all businesses, large and small.

Today’s market is fiercely competitive, and consumers place a lot of emphasis on the external appeal of product packaging. Creativity in design and beautifully crafted packaging is undoubtedly an important factor in an industry that focuses on aesthetics. Consumers are often blissfully unaware of the issues concerning manufacturing costs and the challenges associated with producing these products.

These costs are unavoidable. Packaging equipment is the largest expense in the packaging process and represents an enormous investment. The capital outlay for production lines, together with premises and operations staff, can be unaffordable, especially for start-up businesses. One of the most popular solutions in the marketplace today is outsourcing packaging requirements to contract packers.

Contract packers are usually part of a larger manufacturing facility that has appropriate regulated premises—commonly referred to as plants—comprising packaging equipment, specialized staff, and engineering facilities. Every step or part of the development and manufacturing process that is outsourced to contractors will eat into profit margins. Overuse of external services can affect business longevity, but many businesses still engage contract packers as an alternative to purchasing the equipment, employing staff, and maintaining premises.

A cost-effective solution that many businesses have not been exposed to is renting the equipment—a service that has been largely unavailable to the beauty industry until now. Budding entrepreneurs entering the marketplace or manufacturing businesses dealing with production overflow issues can rent expensive machinery at minimal costs for short or long periods of time.

Renting machinery provides budget-conscious businesses with the ability to package products in-house, eliminating the need to outsource packaging or purchase equipment. This service benefits smaller businesses seeking to achieve higher profits by reducing manufacturing costs, as well as larger manufacturers who prefer to upgrade their equipment as needed, while avoiding maintenance, repair, and downtime costs.

The beauty of a rental solution like this is that it eliminates the pressure most small businesses face when producing enormous quantities of product at one time. Having the freedom to package quantities directly related to orders can be a significant advantage when scheduling production and delivery timelines.

Packaging equipment can be hired based on the needs of the business. Production lines consisting of multiple head fillers with conveyors, auto-cap tighteners, rotary sorting, and unscrambling tables can process at least 100,000 units per week and are suitable for plants. A bench-top model setup (semi-automatic) will process up to 50,000 units per week and is ideal for in-house operations or smaller businesses. The bench-top model setup is so compact that it could literally be set up in a lounge room, and the operator does not need any specialized training or previous handling experience. The equipment is easy to operate, functional, and doesn’t pose harm or risk to the operator.

Nathan Wardell, founder and managing director of Packserv, a rental packaging equipment company, explains that most businesses are pleasantly surprised to learn that a rental solution exists.

“The most common feedback I receive is that production costs are halved by hiring the equipment and packing in-house. You don’t necessarily need to use all divisions of a manufacturing plant. They can manufacture your product, and you can package it,” Wardell says.

Wardell believes that reviving the rental industry helps support operations that don’t have enormous amounts of money to invest in assets.

“The advantages of renting are that it eliminates the expense of purchasing equipment and the responsibility of service, maintenance, and repairs, while also providing the business owner with quality control and full technical support,” he adds.

Rental packaging equipment offers a valuable resource for businesses, large or small, packing their own products, or for contractors packing beauty industry products. But the machinery is expensive, and many businesses cannot afford to invest in the equipment and associated infrastructure. Renting equipment can ease the financial burden on budget-conscious beauty product manufacturers by providing a perfect solution.

For more information, visit the Bella Professional article.

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