Question 1

What is a packaging cost audit?

Accepted Answer

A packaging cost audit is a systematic review of your entire packaging supply chain to identify hidden costs and margin leakage. It examines four key areas: supplier pricing drift (10-15% savings potential), MOQ inefficiencies (5-9%), freight structure gaps (8-14%), and payment terms optimization (2-4%). Most D2C brands doing $2M-$20M in revenue find $50K-$150K in recoverable savings through a professional packaging audit.

Question 2

How much does a packaging audit cost?

Accepted Answer

Margin Lab offers a packaging margin audit for $3,500 as a one-time diagnostic fee. Alternatively, the Performance plan charges 25% of verified savings — meaning you only pay from actual results. There's also a $2,500/month retainer option for ongoing optimization. The free Margin Leak Scanner at truepackglobal.com/scanner provides an instant estimate at no cost.

Question 3

How much can D2C brands save on packaging?

Accepted Answer

D2C brands typically save 15-30% of their total packaging spend through a comprehensive audit. The average Margin Lab client saves $84K per year, with first verified savings appearing within 37 days. Across 40+ engagements, Margin Lab has recovered over $2.3M in total packaging margin for D2C brands in beauty, supplements, home goods, and food & beverage.

Question 4

What is packaging margin leakage?

Accepted Answer

Packaging margin leakage refers to hidden, unnecessary costs in your packaging supply chain that silently erode gross profit. It occurs across four categories: supplier pricing drift (when your rates drift above market benchmarks), inefficient MOQs (minimum order quantities that tie up cash), freight structure gaps (overpaying on shipping due to suboptimal incoterms), and payment terms leakage (financing costs from unfavorable payment schedules). Most D2C brands lose 15-30% of their packaging budget to leakage.

Question 5

How to reduce packaging costs without changing suppliers?

Accepted Answer

You can reduce packaging costs by 15-30% without switching suppliers through: spec optimization (most boxes are 20-40% thicker than needed), MOQ renegotiation, freight restructuring with better incoterms, and payment terms optimization. A packaging cost audit identifies exactly where you're overpaying. Margin Lab's approach focuses on renegotiating with your existing suppliers rather than replacing them.

Question 6

What are the biggest hidden costs in D2C packaging?

Accepted Answer

The 7 biggest hidden packaging costs for D2C brands are: over-engineered box specifications (15-25% per unit), freight markups bundled in supplier invoices (8-14%), MOQ penalties tying up working capital (5-9%), tooling amortization charges, unnecessary packaging components, suboptimal incoterms, and unfavorable payment terms. Most brands lose $50K-$150K per year to these costs without realizing it.

Question 7

What is MOQ optimization in packaging?

Accepted Answer

MOQ (Minimum Order Quantity) optimization in packaging means restructuring your order quantities and schedules to minimize cash tied up in inventory while maintaining favorable per-unit pricing. Many D2C brands accept supplier-dictated MOQs that are higher than necessary, creating 5-9% in hidden costs through excess inventory carrying charges, warehousing fees, and opportunity cost of locked capital.

Question 8

How long does a packaging audit take?

Accepted Answer

A Margin Lab packaging audit delivers full pricing analysis within 14 days of receiving your supplier invoices. Most clients see their first verified savings within 2-5 days of implementation. The average time from engagement start to first savings is 37 days. The initial data collection takes most brands under 10 minutes — just your packaging invoices from the last 12 months and current incoterms.

Question 9

What if you don't find any savings?

Accepted Answer

In 40+ engagements we've found meaningful leakage every time. But if your supply chain is already optimised, we'll say so in the scoping call — before the audit starts. No fee.

Question 10

What data do I need to share?

Accepted Answer

Just your packaging supplier invoices from the last 12 months and your current incoterms. No P&L access, no internal systems. Most brands pull this in under 10 minutes.

Question 11

How is '25% of savings' verified?

Accepted Answer

We compare pre- and post-negotiation invoices line by line for 12 months. You receive monthly savings reports and can audit our numbers at any time. No black box.

Question 12

Do you work with brands outside the US?

Accepted Answer

Yes. We work with D2C brands sourcing from Asia, Europe, and domestically. Our supplier networks and freight relationships are global.

Question 13

Is the $3,500 audit fee refundable?

Accepted Answer

If we can't identify at least $15K in recoverable leakage, we tell you in the scoping call and don't proceed. The audit fee applies once we start — but our average client recovers it in the first week of savings.

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