Maximize Value through Volume
At Stronex INT, the fundamental principle of our custom manufacturing is Economies of Scale: the higher your order quantity, the lower your cost per bag.
This guide outlines how increasing your volume saves you money and what factors to consider.
Why Larger Quantities Mean Lower Unit Costs
The price of a custom-manufactured bag is composed of two main types of costs:
- Fixed Costs (One-Time Setup): These costs must be paid regardless of order size. When you order more bags, this cost is spread out over more units.
- Examples: Pattern making, mold/die creation, machine setup time, pre-production sampling and approval, and digitizing your logo for printing.
- Variable Costs (Per-Unit Costs): These costs change based on the quantity. Even these costs drop in bulk.
- Examples: Raw materials (fabric, zippers, hardware), labor, and packaging. We receive discounts on materials when we buy in massive quantities for your large order, and we pass that savings to you.
| Order Size | Fixed Cost Impact | Material & Labor Efficiency | Unit Price Outcome |
| Small Batch | Fixed costs absorb a high percentage of the total. | Less efficient, more material waste. | Highest Cost Per Bag |
| Bulk Order | Fixed costs are spread thin across thousands of units. | Streamlined production, bulk material discounts. | Lowest Cost Per Bag |
5 Tips for Maximizing Your Bulk Order Savings
- Commit to a Higher Quantity: Review your demand and forecast as accurately as possible. The difference in price between two small orders placed six months apart versus one large order placed now is significant.
- Factor in Setup Costs: Since setup fees are the same for 500 bags or 5,000 bags, aim for a volume that makes the setup fee negligible. Your sales representative can illustrate this cost breakdown.
- Standardize Your Design: Avoid small design changes between production runs. Using the same material, size, and logo placement across multiple product lines or departments will allow you to combine the quantity for maximum discount.
- Balance Production & Shipping: While bulk orders always lower the unit production price, be mindful of the shipping cost difference between Air Freight (fast, but expensive for bulk) and Sea Freight (slower, but highly cost-effective for bulk). Plan your timeline to use Sea Freight whenever possible for high-volume orders.
- Long-Term Planning: Ordering a year’s supply in one go ensures you lock in today’s best price and protects you from future material or labor cost increases.
The Bottom Line: For the best return on investment for your custom bags, always order the largest quantity you can reasonably store and use. Consult with your Stronex sales representative to determine the optimal price break points for your specific product and volume.