Should I Buy a Labeler?

Are you considering buying your first automatic or semi-automatic labeling machine? Here are some things to consider and hopefully help with your decision. To start with the basics, there are three reasons to use a machine to apply your labels:

1. To get consistency of appearance of your labels on the store shelf.
2. To reduce the cost of applying labels.
3. Your volume is so high that you have little choice in the matter.

First: appearance. A labeler is nothing else if not consistent. Assuming the labeler is set up properly, every product will come out the same. Your operator may be tired, distracted, even taking a break, and the machine will keep churning consistently labeled products. If your products sit on store shelves, or if you want a professional, high-end appearance, consistent label placement is essential; you need a machine.

Second: cost. How much are you paying now to apply labels? If you have three people applying labels eight hours a day, at a fully-burdened pay rate of $20/hour that’s $125,000 dollars a year applying labels. (It is important to use the fully burdened rate because the alternative is not having these employees at all—no insurance, no taxes, etc. I will discuss this more thoroughly in a future post.) If you buy a semi-automatic labeler for $7000 that requires one operator, you will save $83,000 every year in labor. Your investment pays for itself in just one month. If you buy a fully automatic labeler for $20,000, and still keep one operator, your labeler pays for itself in three months. Rule of thumb: if you can pay for your labeler with two years or less of cost savings, you should buy it.

Third: volume. You might also think of this as speed or throughput. If you need to get a 100,000-piece order out in a hurry, your choices are to throw people at it (see last paragraph) or use a machine. One person with a semi-automatic labeler can get this done in a month. A fully automatic labeler can fill this order in three days.

Another volume/throughput issue is keeping up with the rest of your process. If you are automatically filling bottles at 60 bpm, why would you not label in line at the same rate? Handle your product once and be done with it. Taking this even further, could you run your filler faster if your labeler could keep up? What is this costing you? Free up one day a week by filling (and labeling) faster, and either run four-day weeks or take on more jobs. Either way, you come out money ahead.

If you are outsourcing your labeling, all these same considerations still come into play. Are you getting good quality from you vendor? How much are you paying for this service—could you pay for a labeler within two years by bringing this operation in house? Can your vendor keep up with your order schedule? Any of these reasons may justify buying your own labeler and bringing this operation in house.

If you have any questions about your specific situation, feel free to email me at jdawson@su-solutions.com or call me at 800-331-7140.