Many owners are usually surprised when they begin the packaging process as they prepare their products for the marketplace. This is because packaging can end up being costlier than expected, but this is going to form the first impression the consumer has about the product. Packaging is important because it is the gateway to the consumer. You have to first acknowledge that the packaging is an important part of the process. The second is to know your target market.
You have to be creative, but there are ways of designing a great package and not spend a lot of money. A good way of reducing costs is by using plastic tubes instead of glass jars or bulky boxes because it is going to reduce space and freight costs. Are printed labels the better options over custom-printed packages? Are there short-term or long-term benefits to automating your packaging line?
Knowing Your Target
There are many packaging concepts out there that catch the eye of the customer, but you need to have something that is going to stand out from the rest. It should be able to speak to your target customer. If you have a small budget, don’t be discouraged because you can still have it. this is where you have to employ creativity.
Is the minimalist package design you are considering going to appeal to your target consumer?
To know this, it is a must to first know your target audience.
Are you going to directly sell to consumers instead of selling on the shelf? Extravagant packaging might not be the best option because it is wasteful. You should choose easy to open and discard packaging that the customer is going to be delighted with as they open it. The unboxing experience is becoming a big deal for many people. Make sure you understand the needs of your customers and what they like, and what is going to drive repeat purchases and word of mouth recognition. If you don’t have a designer to help you with your packaging, consider talking to a quality supply because they can point you in the right direction. Some suppliers have an in-house packaging designer.
Knowing your competition
Before production starts, it is important to understand the competition and how they are packaging and marketing their products. How is your product going to be different from theirs and still catch the attention of the customer? Look at the marketing strategies they are using. Look at the materials and designs they are using for their packaging, and even the labeling and colors. You will understand the target market better. The research is going to help when you are designing the package and marketing your products.
MOQ
Packaging manufacturers usually have a Minimum Order Quantity (MOQ) requirement on the packaging, and this can be hard for new business owners. If you plan on starting at a small scale, then you should understand the limitations you have to deal with. Are you ready to meet the minimum order requirement by the packaging manufacturer? Does the business have the credit or cash flow to afford those quantities? You have to know the need for justification to be profitable, which is why MOQ’s are there. The manufacturer of the packages is not free, and the company has to cover the expenses and other costs that come with it.
There is another thing you need to know about MOQ’s. When you receive the word from the supplier, they might not be the one setting that minimum. The supplier usually works with many packaging manufacturers so they can provide their clients with a quality selection. This results in a reduced amount of touchpoints needed by the business to manage the production and manufacturing operations.
Buying in Bulk
Order quantities play a big role in determining the price. Let’s say a pouch manufacturer has set the price at £1.68 for each of them but you have to make a minimum order of 5,000. If you double the amount, the price becomes £0.92 per package. This is going to save you a lot of money. You will pay more for smaller quantity orders, always keep this in mind. This is the case across the boards and will include the shipping materials. Look for ways of managing inventory and buying in bulk because it is going to help in reducing overhead costs. There are risks that come with ordering in bulk. If things don’t go as planned, then you might be left with a big loss because of the useless inventory.
