The 5-Step Checklist I Use to Vet Packaging Suppliers (And Avoid Costly Surprises)

If you're responsible for sourcing packaging—glass bottles for a new beverage line, custom boxes for a subscription service, or even just reliable tote bags for an event—you know the quote you get is rarely the final price. Trust me on this one. I've managed our company's packaging procurement budget (about $180,000 annually across various projects) for six years. After tracking every invoice and comparing dozens of vendors, I built this checklist. It's saved us from more than a few budget overruns.

Use this when you're evaluating a new supplier like Berlin Packaging or comparing quotes from multiple vendors. It takes the focus off the unit price and puts it on the Total Cost of Ownership (TCO), which is what actually hits your P&L.

The 5-Step Packaging Supplier Vetting Checklist

This isn't theoretical. This is the exact process I run through for any order over $5,000, or when onboarding a new strategic vendor. It usually takes 2-3 weeks, but it's saved us tens of thousands.

Step 1: Decode the Initial Quote (The "Too Good to Be True" Test)

Everyone looks at the unit price first. I get it. But this is where most hidden costs live. Your job here is to turn that simple quote into a complete picture.

What to ask for, in writing:

• All Setup & Tooling Fees: Mold costs, plate charges, dieline creation. Get a line-item breakdown and ask if these are one-time or per-order.
• Minimum Order Quantities (MOQs): By material, by color, by SKU. A quote for 10,000 units might require 5,000 in one color and 5,000 in another, which changes everything.
• Sample Costs: Prototypes, pre-production samples, press proofs. Are they free, credited, or straight cost?

Here's my reality check: In 2023, I was comparing two vendors for a custom spray bottle. Vendor A quoted $1.10 per unit. Vendor B quoted $0.95. I almost went with B until I dug in. Vendor B had a $1,200 mold fee (non-recoverable), charged $350 for color matching, and had a $250 "order processing" fee. Vendor A's $1.10 included all of that. The "cheaper" option was 23% more expensive on the first order. That's the kind of fine-print math that blows budgets.

Step 2: Audit the "Soft Costs" & Logistics

This is the step most people skip. They think FOB means the cost is set. Not even close. This covers everything between the factory floor and your warehouse.

Your logistics checklist:

• Freight Terms & Realistic Costs: Is it FOB Origin (you pay freight from their dock) or FOB Destination? Get a freight estimate from their logistics partner or yours. A pallet of glass bottles is heavy—freight can add 15-20%.
• Packaging for Shipment: Are goods shipped in bulk boxes, on pallets, with corner boards? Is that included? I once got a "great deal" on glass jars, only to find they were packed in single-wall cartons. We had a 12% breakage rate. The savings vanished.
• Lead Time Buffer: What's their stated lead time vs. realistic in-house planning? Add 10-20% as a buffer. If they say 6 weeks, plan for 7. Rush fees are brutal—like, 30-50% brutal.

The most frustrating part? You often don't discover these costs until the first invoice arrives. Now you're stuck.

Step 3: Pressure-Test Their Communication & Problem-Solving

A vendor's response before you're a customer tells you everything about what happens after there's a problem. This step is about creating small, low-stakes tests.

How to test:

• Ask a "What If" Technical Question: Email them a change. "What if we needed to adjust this bottle finish from glossy to matte? What's the cost and timeline impact?" Gauge response time and clarity.
• Request a Reference Contact: Ask if they can connect you with a client who had a similar order volume or complexity. A good vendor will have happy clients willing to talk. A red flag vendor will hedge.
• Clarify a Point in Their Quote: Call out something ambiguous. "On line 4, 'artwork preparation'—does that include up to 3 rounds of revisions?" Their willingness to clarify in writing is huge.

After the third time a previous vendor ghosted me when a problem arose, I made this step mandatory. The quality of the packaging is one thing, but the quality of the partnership is what ensures consistency. There's something deeply satisfying about working with a rep who answers emails at 4 PM on a Friday because a truck is delayed. That's worth a slightly higher unit cost.

Step 4: Calculate the Real Total Cost of Ownership (TCO)

Now, take all the data from Steps 1-3 and build a simple TCO model. Don't overcomplicate it. I use a spreadsheet with the following formula for the first order:

TCO = (Unit Cost × Order Qty) + All Setup Fees + Freight Estimate + Payment Terms Adjustment

The payment terms adjustment is sneaky. If they offer Net 60 instead of Net 30, that's effectively a 1-2% discount on your cost of capital. Factor it in. Compare the TCO, not the unit price.

Then, project it out. If the setup fee is one-time, what does the TCO look like on Order #2? That's often where the true "value" vendor emerges. The vendor with a higher unit cost but no hidden fees often wins on the second order.

Step 5: Make a Decision with a Clear Off-Ramp

You've done the analysis. Now, structure the engagement to limit your risk. Never go all-in on the first order.

Your decision framework:

• Start with a Pilot Order: Order 25-30% of your annual forecast. It tests quality, logistics, and communication under real conditions.
• Define Success Metrics Upfront: Share them with the vendor. "Success for this pilot is: 98% yield, delivery within the 7-week window, and responsive communication." This aligns expectations.
• Schedule a Post-Mortem: Set a meeting for 2 weeks after the pilot order arrives. Review the metrics. This meeting determines if they get the rest of your business.

This process gives you a logical, non-emotional off-ramp. If the pilot fails, you're not locked into a year-long contract for 100,000 units.

Bottom Line: What to Watch Out For

This checklist works, but here are the pitfalls I've learned the hard way:

Don't confuse cheap with value. The budget option for critical packaging—like a bottle that represents your brand on a shelf—is a false economy. As the FTC guidelines on advertising remind us, your product's presentation makes a claim. Flimsy or misprinted packaging implicitly tells a customer you cut corners. The $0.05-per-unit savings isn't worth the brand damage. I learned this when we switched from a budget mailer box to a sturdier, branded one for a subscription service. Customer complaints about damaged goods dropped by over 80%.

Do prioritize transparency over perfection. A vendor who immediately admits, "I don't know, but I'll find out by tomorrow" is often better than one who gives a glib, wrong answer. The first is building a relationship; the second is just making a sale.

Remember, your output is your brand's handshake. The packaging is the first physical touchpoint a customer has with your company. That custom cardboard box or that uniquely shaped water bottle isn't just a container; it's a brand experience. Investing in a supplier who gets that right—even at a slightly higher TCO—is an investment in your brand's perceived quality. And in today's market, perception is everything.

So, take it from someone who's tracked every dollar: print this checklist out. Use it. It turns the chaotic, stressful process of vendor vetting into a manageable, step-by-step audit. And it keeps those nasty budget surprises where they belong—in someone else's P&L.