Kitting and Assembly — What Your Co-Packing Quote Doesn't Cover

One of the most consistent budget surprises for first-time brands is finding out that their co-packing quote covers exactly one thing: the production of individual pouches. Getting those pouches into a retail box, a variety pack, a subscription kit, a display unit, or any other assembled configuration is a separate service with a separate cost. This is called kitting or assembly, and almost nobody budgets for it until they get the invoice.

What kitting actually is

Kitting is the process of taking finished units and assembling them into a packaged configuration for sale. A 10-count sachet box requires someone to count 10 sachets, put them in a box, close the box, apply any additional labels, and place the finished unit into a shipping case. A variety 10-pack with two of each of five flavors requires all of the above plus sorting — someone has to pick the right quantities of each flavor and assemble them in the correct ratio.

The more complex the kit, the higher the per-unit kitting cost. A single-flavor 10-pack is straightforward. A mixed-flavor variety pack with specific ratios is more labor-intensive. A subscription box with multiple product types, inserts, and custom packaging is more intensive still.

Co-packer vs. 3PL for kitting

Kitting can be done at your co-packing facility or at your fulfillment center (3PL). There's a meaningful cost difference, and it almost always favors doing it at the co-packer.

Co-packers are set up for this kind of work — it's similar to production assembly, it uses the same labor pool, and it doesn't require shipping inventory to a second location before it's assembled. Fulfillment centers charge for kitting because it's a side service for them, not their core business. The result is that co-packer kitting rates are typically 20–60% lower than 3PL kitting rates for equivalent work.

The operational advantage is also significant: kitting at the co-packer means finished kits ship directly to your 3PL or customer, rather than individual units shipping to a 3PL that then needs to assemble them before fulfilling orders. One fewer handling step, one fewer freight move, one fewer location where something can go wrong.

Get kitting quoted separately and upfront

Kitting is not automatically included in any co-packing quote. Ask for it specifically, get the per-unit rate in writing, and factor it into your total cost before you finalize your production plan. Don't assume it will be included. Don't wait until your inventory is at the fulfillment center to figure out what kitting will cost you.

Also ask whether the co-packer can do kitting at the same time as production or whether it needs to be scheduled as a separate operation. Same-day kitting (assembling finished units into retail boxes immediately after production) is often cheaper and faster than scheduling a separate kitting run.

Sample programs — the kitting cost nobody budgets

Every brand wants to send samples. Samples are a real marketing tool — influencers, buyers, gym partnerships, direct-to-consumer sampling. They're also a real cost that almost nobody puts in their production budget.

Here's what a sample actually costs when you add it up: product COGS (same as your retail unit) + kitting labor to put it in a sample packet or envelope + fulfillment pick-and-pack + shipping materials. At roughly $6–7 per sample all-in before postage, 500 samples is $3,000–$3,500 in real cost. Budget for your sample program before you launch, and count those units against your initial run — they're inventory you're consuming without revenue.

Aim small on variety packs

This follows the same logic as keeping your initial production run small: build fewer variety packs upfront. If your formula changes, your flavor lineup shifts, or a retail buyer needs a different configuration, the fewer pre-built kits you have in inventory, the less rework or write-off you're looking at. Kit to order where possible. Build ahead only when you have a specific order that justifies it.