Some of the more innovative changes in consumer products aren't only occurring with the products themselves, but their packaging as well. So is your product prime for a packaging overhaul? Here are three ways to tell if the investment will be worth it.
1. Does your costs for revenue damaged in transit demand a change?
According to the U.S. Unsaleables Benchmark Report (2006), the average cost of in-transit damage is 1.05% of total sales. Over the years, the ratio of ship to consumer vs. ship to store deliveries has significantly increased - thus exposing transit problems to the consumer. Damages years ago could be fixed or at least addressed in the store prior to consumers seeing the issues. Now that products are shipped directly to consumers, the condition of the product at the time of delivery is critical. Damaged returns at the cost of the manufacturer only increases revenue loss and hurts consumer opinions of the product.
2. Does your distribution channels demand a change?
One of the greatest shipping challenges facing online store giants Amazon.com and Walmart.com is the consumer push for simpler packaging. Consumer complaints are pouring in begging for changes to certain packaging components such as clamshells and twist-ties. Understanding that this issue is affecting the perception of their brand, Amazon is taking a pro-active approach by beginning to recommend packaging changes to suppliers. Take it from companies like electronics manufacturer Apple - being known for a simple well-designed unboxing experience can add to the overall perceived value and satisfaction of the product.
3. Does your competition demands a change?
If your packaging has remained the same for 3 years or more, it is probably time to consider a change. New packaging not only will offer your product a new look and feel without significant and costly design and production changes, but can also open you up to being found by new buyers, always hungry for the next "new" product.
At Precision Products Group, we have experience in helping businesses understand the impact of new packaging on their bottom line. Give one of our experienced representatives a call today and let us help you understand what is possible for your business.