From receiving a highly-anticipated online order to transporting a purchase from a store to their home to receiving a gift from a loved one, retail packaging is the vehicle in which your products are delivered to consumers. It is important that it reflects your brand accurately, and is absolutely critical to a good consumer experience.
Every detail, design element, and component of your retail packaging has a cost, and after examining your business expenses, you may find that you invest a fair amount into retail packaging.
While custom retail packaging is an essential part of your brand experience, it does not have to cost a lot of money to effectively support your branding efforts. In fact, there are plenty of things you can do to lower packaging costs — without sacrificing quality or style.
While budgeting is a critical part of your business’s success, and cutting costs may be necessary, you want to make sure you do not sacrifice quality or style. Here is what we recommend.
With values-based consumerism on the rise and the increasing awareness and concern with industry’s impact on the environment, sustainability as both business practice and process have become a popular consumer desire.
Because of its affordability, plastic is one of the most prevalent packaging materials. However, this packaging material is also highly disliked by consumers. Switch from plastic to paper products or other sustainable alternatives such as cork, cotton, or wood. If you absolutely need to include plastic in your packaging, you can still make strides toward sustainability — keep it minimal, source it from recycled materials, and ensure it is recyclable or biodegradable and label it accordingly.
While some eco-friendly packaging alternatives may cost more upfront, it is important to note that sustainable packaging is a unique, highly appealing selling point that is a key purchasing motivator for many consumers. In addition, consumers are actually willing to spend more if it means their purchase positively impacts the environment, making it a great way to increase margins.
When you work with multiple vendors, each will likely require different setup costs and you may also get fees from each factory — working with one vendor eliminates this issue. You will even be able to get better rates on shipping, since all of your packaging components will be in one shipment instead of multiple. You may also be able to get a discounted rate or lower overall cost per component when you place high-volume orders, which is easy to accomplish sourcing from one provider.
In addition, working with one vendor can make it much more convenient when it comes to packaging design and creation. For example, inconsistencies in your brand presentation can cost you hard-earned brand loyalty and drive away new business. Working with one vendor will help you ensure that every part of your packaging is consistent in terms of quality and design.
Another highly effective way to lower packaging costs is to include only what is necessary in your packaging solution. Minimize the number of packaging components, simplify your packaging design, or opt for an understated, basic packaging structure.
It is important to keep in mind that some finishing touches really do make all of the difference. Before you cut all the “frills,” ask yourself these questions:
Another benefit to keeping it simple? Minimalism is a hot packaging trend that is not going anywhere anytime soon.
There are many moving parts in your supply chain, and partnering with a service provider that already utilizes an efficient supply chain can help simplify the process. Choose a vendor that is in a location that will not require extreme shipping costs or tariffs. Avoid rush orders as they usually incur extra unnecessary charges and leave little room for shipping times and unforeseen issues. Set up the proper channels in your supply chain in advance to help with the distribution efficiency, which is especially important considering time is money.
You can also cut costs on shipping and transportation by using correctly sized components. For example, choosing a box that is way larger than the product takes up more space during shipment, resulting in fewer products being able to fit in a single shipment. Not only are you paying for that empty space but this also creates a compound effect, where you end up requiring more shipments in the long run.
Instead, opt for smaller packaging solutions, where your products fit snugly into them. This will enable you to fit more items in each shipment, helping you cut costs while also lowering your carbon footprint. It is a win-win.
Rather than thinking of retail packaging as a cost, think of it as a powerful tool. Custom retail packaging can help you drive your business forward. More important than cutting costs is making sure you are investing in the right packaging solution.
The best way to make sure you are investing your money wisely? Partnering with the right packaging service provider. An experienced, well-established vendor will work with you to create a solution that works for your unique brand and budget. They can help you NAVIGATE through industry trends, know where you should splurge and cut costs, and help you create a packaging solution that supports your business.
Edge2Edge is an end-to-end packaging service provider that specializes in custom retail packaging solutions. Whether you need guidance on packaging design or help cutting costs, our dedicated team will help you to create a packaging solution that works for your needs and budget.
Contact us today to create a high-quality, cost-effective packaging solution.