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SIDEBAR: Another option: 'Middle of-the-road'equipment

Besides buying new or renting, contract packagers have a third option for obtaining machinery: “middle-of-the-road” equipment.

This approach suggests that buying a machine capable of packaging at a rate of 60 units per minute, versus a rate of 100 packages per minute, can be much more cost-effective for the contract packager.

The 60-package machine will cost one-third less than the 100-package machine. This option also enables product manufacturers to test their products more affordably. If a product fails to be reordered after its initial shelf run, the purchase of both machines still needs to be paid. However, the slower machine still has the option to run more hours to produce the same quantity of product, thus eliminating the risk of owing debt service on an unusable machine.

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