Author: Mark Miller
You’re just starting up your company or things are taking off, and you’re looking at keeping costs reasonable. A common mistake business owners and entrepreneurs make is ask, “Can I get this for cheaper”. When the real question you should be asking is “What value does this provide”. This question extends past your own purchases as a business and into your business sales! If you can’t say your product is worth X Dollars, then you’ll always be selling it for less. Customers will come to you with quotes from competitors who sell lower quality products and say, “Can you match this price”. The answer is no! Because it’s not about if you can match your competitors price, it’s about the fact that you can beat the competitors value. That your product costs 40% more, but provides 100% more value.Your product may cost more, but it’s the better deal!
In the custom packaging world, we’re often asked “why should I customize my packaging when I can get generic packaging for one-fourth to half the price”. The answer is this:
The majority of your customers determine the value of your product by it’s packaging. You need to sell your value proposition to your customers, just as you ask us to sell ours to you. The math is simple. Let’s say you run a subscription box company. Every month, you send your customers a variety of products following a theme and they pay you $30. Now you need a box to send them the products in. You can buy a custom mailer box for $2.00 or a generic one for $0.50.
Is having your own design/logo on a box worth $1.50? The answer is simply yes. 7 in 10 shoppers will look at the quality of your packaging and by extension, your branding and place a value on your product accordingly. Those shoppers are more likely to buy your product if you have custom packaging than generic packaging. These same shoppers will consider your product more valuable than one that has generic packaging! So for $1.50, you end up with more customers, and customers that consider your brand valuable, which allows you to sell your product at a higher price point. Increased sales and profit per sale? I’d pay $1.50 for that.