The Pricing Puzzle: Why Quoting in Corrugated Manufacturing Needs to Change

In the corrugated packaging industry, pricing and quoting are daily battles.

As a high-volume commodity business, margins are tight, and competition is fierce. Winning an order often comes down to price, but setting the right price is anything but straightforward.

For many manufacturers, the process is a blend of experience, gut feel, and manual calculations. A single misstep - an overlooked cost, an underestimated production time, or a pricing misalignment - can lead to lost margins or business.

For an industry that operates on razor-thin profits, these inefficiencies are more than just frustrations; they directly impact competitiveness and long-term sustainability.

The Challenges of Quoting in Corrugated Manufacturing

1. A Reliance on Individual Expertise

Many pricing decisions depend on a handful of people with years of experience. They know the market, the machines, and the materials inside out. But what happens when they’re unavailable, or the company grows beyond its capacity to handle every quote? Institutional knowledge, while invaluable, isn’t scalable.

2. Fluctuating Material Costs

Paper prices, ink, adhesives, and energy costs shift constantly. Yet many quoting systems don’t reflect real-time changes, meaning a price that made sense last month might be completely unviable today. The result? Either uncompetitive pricing or eroded profitability.

3. Speed vs. Accuracy

Customers expect fast responses. If they request a quote from multiple suppliers, the first to respond with a reasonable price often wins the order. But speed shouldn’t come at the cost of accuracy. Rushed quotes that don’t factor in all variables can lead to costly mistakes, while slow quotes can cost valuable business.

4. The Spreadsheet Problem

Many manufacturers still rely on spreadsheets and manual processes for pricing. While familiar, these tools weren’t built for dynamic, multi-variable calculations that change daily. A single mistyped formula can be the difference between profit and loss.

5. Approvals and Bottlenecks

Delays are common in companies where senior managers must approve pricing. While approval structures exist for good reason, rigid processes can slow responses, leaving customers waiting and looking elsewhere.

Rethinking the Quoting Process

The reality is that how pricing has been handled for decades no longer aligns with today’s market demands. As competition increases and customer expectations rise, corrugated manufacturers need a pricing approach that is:

• Accurate: Factoring in real-time material costs, machine capabilities, and production constraints.
• Consistent: Reducing dependence on individual expertise and ensuring pricing aligns across teams.
• Fast: Enabling quick responses without sacrificing accuracy or profitability.
• Scalable: Supporting business growth without overburdening internal teams.

The Role of Technology

Technology isn’t about replacing experience - it’s about enhancing it. Intelligent pricing systems can bring structure to the quoting process, reducing reliance on manual calculations and ensuring consistency. By automating key elements - such as real-time cost updates, predefined pricing rules, and approval workflows - manufacturers can eliminate bottlenecks and reduce errors.

More importantly, a streamlined quoting process allows sales teams to focus on what they do best: building relationships and securing business. Instead of spending hours recalculating costs or chasing approvals, they can confidently present competitive pricing, knowing it’s accurate and profitable.

The corrugated industry has always been about balancing efficiency and quality. Now, it’s time to bring that same thinking to the quoting process. Because in a market where speed, precision, and reliability matter, the manufacturers that get pricing right will be the ones that stay ahead.

Has this got you thinking?

Read our interview with Andrew Bennett, on Navigating the Complexities of Pricing and Quoting.