In today’s competitive business environment, every penny saved contributes to your bottom line. Most consumers now buy online, and manufacturers and businesses ship their products out daily.
We understand that your top priority is for your goods to reach their final destinations in mint condition. To accomplish this, you need to focus on quality packaging materials.
Poor packaging can cost you heaps of time and money. Discouraged customers who receive damaged products can hurt your company’s reputation and reduce your profits.
Depending on the item, a single product return can quickly add up to hundreds of dollars in new costs for you!
Nonetheless, some companies still seem to believe that cheap packaging saves money. Quite the contrary! In fact, “cheap” can turn out to be … well, cheap. And when it fails, it becomes expensive for you.
So, how does poor packaging cost your business money? We’ve gathered some information here to get you thinking:
Product Damage
Packaging is meant to protect your products. To do so, it’s essential that you use the right size of packaging for each job.
Too-big or too-small can lead to broken or compressed goods or leaks. What’s worse, they can wrack up your claim costs and frustrate your customers.
Sales Returns
When cheap packaging fails, you have to pay for damaged goods. Your claims costs – and your costs for shipping returns – will accumulate quickly. Even though most businesses have insurance to help address claims, you’ll face additional processing fees, lost time, and staff and customer inconvenience. Every one of these packs a separate financial punch.
Shipping Efficiency and Cost
Shipping has come a long way in recent years. Innovative packaging methods can save on space and protect your products from damage more effectively than ever.
Packaging peanuts and bubble wrap are no match for the packing materials we have now, including sustainable paper fill, air pillows, and foam-in-place packaging.
If you start using the latest and greatest materials for your packing needs, you’ll reduce shipping weights and product damage.
Brand Reputation
Packaging is an integral part of your sales and marketing strategy. Cheap packaging sends the wrong message to your customers by implying that you don’t care about quality.
Invest in well-designed packaging to keep your products safe and your customers happy. You’ll increase the likelihood of repeat customers, which means more sales.
High-quality packaging also reduces the likelihood of product damage, saving you money on returns and replacements. Spend a little cash on high-quality packaging to reduce or eliminate turnaround, processing fees, and labor.
Final Thoughts
Businesses thrive on selling their products, and customers are frustrated when they receive damaged goods, so investing in high-quality packaging is a smart business move.
Make the condition of your product when they reach your customers your No. 1 priority, because the short answer is yes, cheap packaging costs you money!
Consider the investment into modern packaging to boost your bottom line. Product damage and sales returns are preventable costs, even if other shipping realities may be out of your control!