In addition, manufacturers and distributors of beverages economize on the purchase of bulk aluminum cans. Mainly, this emanates from the lower price per unit that a buyer gets when ordering large volumes. For example, aluminum cans sell at between $0.10 and $0.20 each for small volumes while orders for bulk reduce the prices by some 15% to 30%. With that kind of reduction, a company which orders 50,000 cans could save in the area of $5,000 to $15,000, thus freeing up more budget in other areas for production and marketing.
Further, bulk buying means a reduced cost of shipment, which may be quite high for orders of small quantities. Most vendors give lucrative shipping quotes for bulk purchases, and the transportation cost can go as low as 30% per can for a higher volume. The efficiency not only reduces the overall cost but also leads to good cash flow management for the companies as bigger shipments would imply fewer orders.
Economies of scale must therefore not be downplayed in looking at the net advantages financially that bulk aluminum cans yield. Because manufacturers produce more at high volume, it achieves lower production costs since operations are already streamlined and waste materials minimized. The Aluminum Association said that recycling an aluminum can saves up to 95% of the energy needed to produce new aluminum. Furthermore, it shows the economic advantage of efficient methods of production. Eventually, this allows the companies taking advantage of this efficiency to pass those savings on to their customers.
Secondly, the bulk purchase of aluminum cans allows the brand to capitalize on seasonal promotional activity or an advertising campaign without having to face the problem of a shortage of packaging material. It is this kind of preparedness that may lead to a surge in sales during peak seasons; studies have shown that well-timed promotions can increase sales by up to 30%. Sufficiently having enough cans in stock will better position them to address market needs the very instant and thereby improve profitability in the overall sense.
Designing custom bulk aluminum cans can also have other added benefits with regards to savings in marketing efforts. An impressive, creative can of top design helps a product stand out from the competitive crowd of products that flood markets every other day, hence increasing the overall sales volume. According to Packaging Strategies, some studies show that attractive packaging can impact buying decisions of as many as 70% of consumers. They argue that investing in good design pays off.
Bulk aluminum cans are ideal for any kind of enterprise that wishes to cut costs and smoothen operation lines. This assures a constant supply of good quality packaging at considerably lower costs. The advantages lie in the fact that the per-unit cost is lower, shipping fees are reduced, and higher marketing potential is possible. Therefore, this avenue should be highly inviting to beverage producers so as to better their bottom line.