What a co-packer costs: every line on the quote, explained
Co-packer prices vary so much by product, process, and volume that any single number would mislead you. What you can learn up front is what you will be charged for. Use this list to read a quote, spot what is missing, and compare facilities fairly.
Two ways co-packers price
- Tolling, or a conversion fee. You supply ingredients and packaging. The co-packer charges for making and packing, usually per unit, per case, or per batch.
- Turnkey. The co-packer buys ingredients and packaging and quotes one price per finished unit. Simpler, but ask how ingredient price changes are handled.
Many facilities mix the two, for example buying ingredients while you supply printed packaging.
One-time costs
- Setup and line trials. Adjusting a line for your package and fill size.
- Pilot or test batch. A small run to prove the recipe works at scale before a full order.
- Scale-up or formulation help. Turning a kitchen recipe into a production formula, if you need it.
- Process review. Some shelf-stable foods, such as acidified or canned products, need a review by a process authority before production.
Costs on every run
- Ingredients. Including any markup when the co-packer buys them, and minimum purchase sizes for organic ingredients.
- Packaging. Containers, closures, labels, and cases. Printed packaging often has its own supplier minimums.
- Making and packing. The conversion fee itself, which drops as runs get longer.
- Changeover and cleaning. Especially for allergen control and keeping organic product separate.
- Quality checks and lab testing. Ask which tests are included and which are billed.
After production
- Storage. Often charged per pallet per month if finished goods stay at the facility.
- Shipping and handling. Pallet building, loading, and freight to your warehouse or distributor.
- Payment terms. Deposits before a first run are common. Ask when the balance is due.
Costs on your side
- Insurance. Many co-packers ask brands to carry product liability insurance and name the facility on it.
- Organic certification. Depending on what your business does, your brand may need its own certificate. See how to find an organic co-packer.
How to compare quotes fairly
- Send every facility the same brief, with the same run size and package. The RFQ template helps.
- Ask for a line-by-line breakdown, not only a price per unit.
- Turn each quote into one number: total cost of the first run, delivered to where you need it, divided by finished units.
- Check what is not included. A low per-unit price with large setup, testing, or storage charges can cost more overall.
Ways to lower your cost per unit
- Start with fewer SKUs so each run is longer.
- Use stock packaging for the first run.
- Ask whether the co-packer can buy ingredients at better prices than you can.
- Plan two or three runs ahead so the facility can schedule you efficiently.
Have a quote? Run it through the co-packer cost calculator to see your landed cost per unit.
Ready for real quotes? Send a free match request and we will point you to certified co-packers that fit.