If you’re a manufacturer solely relying on your own product line, you could be missing out on lucrative opportunities.
Enter co-packing, also known as manufacturing for other brands. It might seem counterintuitive, but manufacturers have been doing it for decades.
Let’s dive into how pre-roll automation can open doors to co-packing services, boosting your revenue and maximizing the use of your equipment.
Diversified Income
First, let’s talk about revenue streams. Co-packing allows you to produce pre-rolls for other brands, leveraging your existing infrastructure to generate additional income.
This is a common practice across many industries and a strategic bonus that comes with investing in reliable manufacturing automation.
With co-packing, you suddenly have a multi-faceted production powerhouse at your disposal.
Forbidden Farms in Washington State is a great case study. After partnering with Hefestus as their pre-roll automation provider, Forbidden Farms began producing pre-rolls for other brands, diversifying their revenue and increasing their market position as the top pre-roll manufacturer in the state.
After purchasing a machine from Hefestus, Forbidden Farms now has the capacity to produce 600,000 high-quality pre-rolls per month, according to owner/operator Taylor Balduff.
The strategic angle is clear: by using your automation capabilities to serve other brands, you can diversify your income and reduce reliance on a single revenue source.
Maximized Equipment Use
Next, let’s consider equipment utilization. Pre-roll automation isn’t cheap, but it’s a valuable investment.
To maximize your ROI, it’s crucial to keep your machines running at full capacity. Co-packing ensures that your equipment is always in use, producing revenue-generating products.
Think about it: fully utilizing your automated machinery increases profitability. When you’re co-packing, you’re not only covering your own product demand but also meeting the needs of other brands.
This maximized equipment use translates to higher returns on your investment and steadier cash flow.
Getting Strategic
If you’re going to expand your manufacturing capability, you want to leverage that investment as much as possible.
Every hour those machines are idle—for whatever reason—is a hit to your profit margins.
Pre-roll automation isn’t just about enhancing your own product line; it’s about creating new business opportunities.
Offering co-packing services diversifies your income and maximizes the use of your equipment, leading to increased revenue and profitability.
