How outsourcing product labeling can lead to cost savings

Product labels help customers identify your product and understand its contents, as well as help ensure that they use the product properly and safely. This is why it’s essential to label products correctly and according to all applicable standards and regulations. However, the product labeling process can be resource-intensive and financially draining for businesses. In-house labeling requires a significant investment in equipment, labor, and time. This is why in many cases, it’s more cost-effective to outsource product labeling to a reputable contract labeling services provider.

Read also: Contract labeling services: Benefits of outsourcing product labeling 

In this article, we’ll explore the many ways outsourcing product labeling to a labeling services provider can lead to significant cost savings for your business.

Access to top-notch labeling equipment

Labeling services providers have their own state-of-the-art labeling equipment, eliminating the need for your business to invest in expensive labeling machinery, maintenance, and upgrades. By relying on the labeling services provider’s infrastructure, you can save a significant amount of capital that would otherwise be tied up in equipment acquisition and maintenance costs. Not only that, but you can also be sure that your labels will be produced to the highest standards, which can help boost sales.

Access to labeling expertise

When you outsource product labeling, you get to tap into the expertise of labeling specialists. These professionals are equipped with the technical know-how and experience required to efficiently handle labeling tasks. This translates to increased accuracy and faster turnaround times, which results in huge cost savings. 

Moreover, labeling services providers can help you to determine the most cost-effective label size and material and printing method for your product. They can also advise you on the ideal quantity for label orders or blanket orders, helping you save money.

Improved accuracy and compliance

Labeling services providers have the experience and expertise to ensure that your labels are accurate and compliant with all applicable regulations. They have the processes in place to reduce labeling errors, and they know how to format your labels in a way that meets the specific requirements of your industry. This reduces the likelihood of costly mistakes, such as labeling rework, labeling production delays, product recalls, fines from regulatory agencies, and other legal complications. 

Read also: 4 Benefits of outsourcing labeling rework fulfillment

Reduced labor costs

Employing an in-house labeling team can be costly. The average annual salary of a labeling specialist in New Jersey is $66,756, and this amount does not include benefits. Moreover, the process of hiring, training, and retaining labeling staff can be expensive and time-consuming. 

To recruit labeling staff, you may need to post job openings, screen resumes, conduct interviews, and make hiring decisions. This can take weeks or even months, and it can be difficult to find qualified candidates who are available to work for your company. 

Once you have hired labeling staff, you need to dedicate time and resources to training them according to your company’s specific labeling requirements. Finally, retaining in-house labeling staff can also be challenging. Labeling staff may be tempted to leave your company for higher-paying jobs or work opportunities with larger companies. This can lead to high turnover rates, which results in higher recruitment and training costs for more new employees.

When you outsource product labeling, you don’t have to worry about any of the costs related to having an in-house labeling team. You can simply leverage the expertise of the labeling services provider and redirect your financial resources and time to other tasks that are more important to your core business. 

Streamlined administrative processes

Managing an in-house labeling process involves a slew of administrative tasks, including scheduling time for designing, printing, and applying labels, managing inventories for labeling operations, and inspecting labels for quality. Outsourcing these responsibilities to a labeling services provider frees up your financial resources and time, allowing you to focus on core business activities that directly impact your bottom line.


Working with a labeling services provider enables you to scale your labeling operations up or down as needed. This is especially beneficial if your company experiences seasonal fluctuations in demand. For example, if you sell Christmas ornaments, you need to produce a large volume of labels when you’re preparing for the holiday season. Handling product labeling in house may require you to hire additional staff and purchase more equipment, resulting in a significant financial investment. By outsourcing product labeling, you can easily scale up label production without making any major investments, saving you money and helping you avoid production delays.

Conversely, during the off-season, you may not need to produce as many labels. If you handle product labeling in house, you may still need to pay for the salaries and benefits of your labeling staff, even if they were not working full time. But if you outsource product labeling instead, you can simply scale down your label production without having to lay anyone off. This can save you money and help you to avoid unnecessary labor costs.

Economies of scale

Labeling services providers typically work with multiple clients, allowing them to spread out their fixed costs, such as equipment and labor, over multiple projects. This is known as economies of scale, which lowers the cost per label and enables providers to offer competitive pricing for their services. 

Outsourcing your product labeling needs can be a game-changing strategy to reduce costs and enhance operational efficiency. However, you can only enjoy these benefits if you work with a reputable labeling services provider with a proven track record. 
Pro-Motion Industries is a leading contract labeling services provider with over 20 years of experience. By partnering with us, you’re not only saving on costs but also benefiting from our commitment to operational excellence, accuracy, and compliance. Get in touch with us at 856-809-0040 to get started.

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