How much should a food packaging machine cost?

by | 1 Jul 2021 | Finance | 0 comments

If you’re reading this article and wondering how much a food packaging machine should cost to result in the highest return on investment, you’re in the right place. To best explain this we will look at a recent project with a client (which cannot be named for privacy reasons), we will call Company ABC. We will be looking at our 342 Vertical form fill and seal machine purchased in 2017. “Company ABC” purchased our system which costs approx. R650 000 as per their specifications which is as follows:

Product: Salt
1. Fully automatic inclined screw elevator
2. Flip flop volumetric Filler
3. Vertical form, fill and seal machine 342- Poly-material S/Steel
4. NPS pillow pack forming shoulder- 1KG and 2 KG
5. Incline discharge slat conveyor – S/Steel
6. Rotary table
7. Commissioning
8. Crating

Please take note that “Company ABC” required these specifications from National Packaging Systems in 2017. Therefore their total is approximately R650 000.

Payment process

Our payment/deposit process varies according to whether your company is local or international. “ABC company” is situated in Africa therefore they would require to pay a 50% deposit and then the other 50% on completion of production. Local companies would pay 50% deposit for production to commence, and then be required to pay 90% of their balance after production is complete and the other 10% after commissioning is finished.

Pricing considerations

Our management team has done extensive research regarding pricing, longevity and profit increase. We have discovered that, paying less for a machine may initially save the company some money, but in the long run it will not be beneficial to your company’s bottom line ie. paying even more than you initially expected to because the cheaper option did not use high end materials and workmanship. If you are looking for a long term investment then paying a little extra will actually benefit your profit margin which is the ultimate goal of NPS equipment.

Packaging machine footprint

Our Vertical form, fill and seal machine is sixteen square meters. Why would this be an important financial factor? Well, by ensuring our machines take up less of your floor space, there will be no need for you to incur any further costs to obtain extra floor space. We value your factory and our aim is to make sure we look at every possible way to save you money by providing an efficient and compact machine.

Packaging machine maintenance costs

We’ve been in the business for decades and our machines have proven reliability with their minimal breakdowns. We ensure that your packaging is cost effective by guaranteeing less stoppage time. When compared to other manufacturers we have high production speeds. Why is this important? Having a higher product output per day reduces the cost of production per pack. “ABC Company” bought their machines in 2017 since then they have spent +- R25 000 per annum in spares which has only cost them R100 000 in the four years that they have had their machines. In addition, they have their machines well kept by ensuring that they take care of their assets on a daily basis.

We manufacture in house

National Packaging Systems does all production of our machines in-house. We provide you with an end-to-end solution, as all our spares and parts are found under one roof. At NPS we have employed only the finest technicians in order to ensure our commissioning goes smoothly, and there is a seamless integration of our machines into your production system. Subsequent to assembling, all equipment goes through broad machine testing at our factory to guarantee that everything adjusts to determinations, our group of master mechanical, electrical and programming specialists will at that point commission the hardware at the customer’s premises.

Commissioning and Training process

Our commissioning is worked out using different variables eg. airflights, car hire, and labour for two technicians for five days for 8 hours a day. Also accommodation and meals will be for the clients account. Technicians charge an hourly rate which will be discussed at the time of the quote. We also offer for your technician /operator to work with our staff for the final week of assembly and trials in our factory. Ensuring that equipment is used optimally is due largely to effective operator and technician training. Our machines are designed to be user friendly and lend themselves to efficient operation.

Why are these points of value?

Well, by having all these advantages this will ensure an efficient packaging machine allowing you to recuperate your investments in a shorter time, therefore increasing your company’s profitability by using NPS equipment that has already been paid for. When our machines are created we do not think short term, instead we value the long term relationships that we develop with our clients. This is because our machines are created to give you longevity. A good example of this would be one of our machines that we sold in the eighties and it is still running today! That is approximately 36 years of excellent production. By giving you the very best in packaging machines we ensure you are taken care of in the long run, so you do not have to worry about replacing your machinery every few years, thus saving you from incurring costs and allowing you to save money which will further increase your company’s bottom line.

Why purchase a packaging machine from NPS?

National Packaging Systems was established in 1983 originally building vertical form, fill and seal machines for pillow packs as well as volumetric fillers, auger fillers, feeding systems and conveyors. We designed and developed multi-lane vertical four sided seal and stick pack machines, because of the demand 15 years ago with the option to change the sealing width sizes with size change parts. Our original range of hydraulically operated models was augmented in 1992 with our new pneumatic generation machines using a belt drive pull down system. Our machines are now pneumatic and are controlled via inverters/servos and a PLC. Our success has been proved by the continuing support of our existing clients. If you have questions, speak to one of our salesmen.

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