FEATURED

Bad packaging is costing you $

By Derryl Kostynuik CGD, President and proud AFPA member
Pencilworks Studios Ltd

 

 

You have a great product, but you wonder if the packaging of your product is clearly telling your customer how good it is. Is your package really doing the job at selling what’s inside? The job of the package is to sell your product – period.

 

If your package is not your best sales person, it’s costing you money and your competition is stealing your business. You expect a great return on your investment and I agree. I want to make sure you get the very best package designed, so you get the very best results, and your packaging investment gets you the maximum return. And equally as important, your customer picks up your package before they see your competitors package.

 

So what’s the cost NOT to have a best-selling package? Consider this example. Let’s say that one of your products sells for $3 in a chain of 50 stores. One lost sale per store per day adds up to $150 (50 x $3) per day. Multiply that daily loss over the year and you have lost $54,750! The investment for a best-selling package design would have been a fraction of the lost cost sales figure. In fact, imagine the impact of a best-selling package would have been by increasing your sales by one more sale per day per store. Your increase would be $54,750, a swing of $109,500. So, your return on investment can be quite attractive. By this example your cost NOT to have a best-selling package design is far more expensive.

 

Let’s face it, competition is fierce, especially on the store shelf. The average grocery store has over 45,000 products. Your package has only 2.1 seconds to ‘get the attention’ of the consumer. If your package blends in, your product disappears on the self AND you lose the sale whereas, your dedicated customer notices your package and the other packages blend in and disappear on the shelf.

 

The appearance of your package is key to branding your product, connecting the consumer to you AND maximizing your sales. Outstanding packaging must include key ingredients that calls attention to your product, while emphasizing your product’s quality and use. Your package must also include these key ingredients that drive an emotional point of difference in addition to a sensible one.

 

A ‘best-selling’ package will offer you a competitive position and carve out a point of difference that can protect you against competition. But more importantly, a strong package design, positioned properly, can provide you the key to unlocking more business, more sales AND more revenue.

 

To learn more about how Pencilworks Studios can help you, contact Derryl Kostynuik papercut@pencilworks.com