A cardboard box business makes and sells different types of cardboard boxes. Although due to economies of scale and business model usually stick to a certain category of boxes.
Boxes are used for various purposes for packaging, shipping, storage, moving etc.
Types of boxes
There are various types of boxes including:
Corrugated boxes used for general packaging
Boxes used to package food like cake and pizza and other takeaways
Storage and file boxes
Specialist boxes like to store poison
How are boxes made
We looked at the die-cutting business earlier which is one way to cut and fold the raw material into a box. There is some specialised box making machines on the market. But to make a basic box is not complicated.
Business model/target market
The common corrugated box business is a competitive low-margin commodity business that benefits from economies of scale. If you do not have the capabilities to compete then it’s best to look at higher margin, more specialised boxes such as gift boxes. But that’s just common sense you have to look at your capabilities if you can only make a few hundred boxes a day then you cannot have a low margin business, you would need to operate a higher margin business.
The secondhand box business
Boxes are not cheap, yet to the layman, it is just a disposable waste product once it has been used once and many good boxes often end up at the recycler where it is sold by the kilo when it could have been resold and reused. There is a secondhand cardboard box industry that resells good condition boxes that have been used before, I have bought from some of these suppliers before and they not that cheap but cheaper than new ones. I would think that this business would work better in an industrial area.