We are situated in a crucial time in history where we as humans are in the midst of changing hands of generations and thought process. As baby boomers slowly start to dwindle and the rise of future descendants is increasing; the perception outside the packaging profession is cross generational: Packaging is of non-value!
Is it because more people today are distracted by what they deem as important? Do humans have a solid understanding of packaging? Do firms care about what they are providing to their clients?
We will try to answer these questions as best we can and give our best perspectives on how people and business can change the cringing statement above.
In the modern world of fast paced purchases via the e-commerce industry, end users have high expectations for products they purchase. They want the product to arrive as quick as possible and be reasonably priced. Most of the general population do not comprehend how difficult it is to ship a product to any point in the world in a timely fashion without increasing the price of the product. For the most part, the customer is only aware a delivery service of some sort drops the package off at their location.
To actually achieve these results, companies may have the product shipped through multiple modes of transit along with numerous touch points to satisfy the customer. Obtaining product in a quick and efficient manner costs the brand/company money.
To offset these logistical costs, the finance teams are tasked with eliminating costs. The first source the team goes to eliminate costs is the packaging department. There are a myriad of reasons why packaging is the first to be examined under the microscope by financial types:
- packaging is thought as not necessary
- deemed not part of the product and will be easier to cut costs without drastic redesigns
- perceived as a commodity
- packaging utilized is impacting company when shipping products
The main issue with the bullet points above is the customer, finance department, amongst other entities do not understand why packaging is important and why it provides value.
Packaging protects the product from typical hazards that may or may not cause damage when being shipped and handled. Quite frankly, it’s exhausting to view multiple film clips on the Internet where customers are complaining the product they bought was broken when it can be clearly shown there was inadequate packaging utilized.
When the wrong type of packaging is used; the customer is unhappy because they had a bad experience. Certain companies do not care until they realize that one bad moment can cause loss of a customer, influencing potential long term profits for the firm (e.g. no repeat business).
For instance; when ordering multiple electronic devices from a reputable source, minimum packaging was used. When the package showed up the product was damaged. It caused a lot of grief to report a claim, work with customer “support” and receive a refund. The overall encounter with the company was so bad, the customer stopped doing business all together with the electronic device manufacturer and sought their competitors.
Value added packaging provides customer confidence the product will work when received. If a customer orders a high dollar item, it is expected to show up with higher quality packaging.
As a packaging professional it has been witnessed how the finance team will only give the packaging department a $1 per unit budget for all packaging. This includes for a heavy product with unique characteristics and requirements with a sale price upwards of $1,000. It is extremely difficult to fulfill these wants.
Packaging with additional value (actual or perceived) provides attention to product, company and brand. Potential or current customers gravitate to packaging that adds value to their specific needs and wants.
A great example was a customer in a retail environment. While making a transaction the customer noticed a product. It was a swing top beverage bottle with a metal clasp around it’s neck attached to a closure/stopper with a resealable seal. The customer identified the package because they were in search of a container for to serve water at family meals. This bottle appealed to them for their wants, not necessarily because of the technical aspects. Regardless, it shed light on the product, company, and brand that would have gone unnoticed if it was not in added value packaging.
Swing Top Bottle
It is believed customers and business do understand the principles of packaging. However; customers only acknowledge it when there is a negative connotation to their purchase. Business will recognize if it causes a severe impact to a company’s bottom line. The complications of a packaging professional.. C’est la vie!
If you or your business are in need of value added packaging assistance, feel free to reach out to Pack Protocols LLC.