Three Important Benefits of Short Run Packaging

These days, effectively managing cash flow is a critical business function for every size company. There are times when business demands the manufacturing of large quantities to meet a specific need, but if you are looking to achieve an overall reduction in per-unit pricing, you will also need to factor in the cost of shipping and inventory management. The rule of thumb is to never order more than you need, especially if you are launching a new, unproven product. This is where short run packaging comes into play and can help with costs, decision-making, and future planning.  Learn more about having a successful first packaging run here.

The beauty of short-run packaging is you produce only what you need – when you need it. Your per-unit price may be a bit higher, but your over-inventory supply risk is minimized and short run packaging allows you to manage your cash more efficiently.

Here’s a look at three important benefits. Short Run Packaging enables you to:

1. Starts small and saves on start-up costs, and allows for quick changes.

See what works with your customers before going all-out on an order. Feedback from customers may help you realize you need to tweak the messaging on the packaging to achieve greater sell-through rates. Or, you may need to produce an alternative design to address certain geographic or demographic needs you did not initially anticipate. Take your time and learn about your customers’ buying habits. “Baby steps” offer beneficial lessons for long term success.

2. Allows you to Grow your Business or Product Line Gradually

Try to time your packaging runs with your product manufacturing runs. Even though you think sales may rocket out of the gate, having too much product and accompanying packaging can become a risk and space drain. By keeping an even order pattern as you grow your product, you will see a healthier balance of product and cash flow management.

3. Avoids Vendor Pressure and its Influence on Decision-making

Do not be manipulated into buying more than you need. Just follow the rules above, and don’t be afraid to move away from any vendor pressures. There is more to custom packaging than just price. If you don’t have room to store mountains of unused packaging, you are just creating a new set of problems and taking away space from product storage. Most importantly, you may not have a vendor partner who is looking out for your best, long term interests when they are more focused on their own short term gains.

Short run packaging is a key business strategy to understand and utilize. While there are times when market demands require large quantities, following the simple steps above will help you make a more informed decision when short run becomes the more viable option.

Here are a few other business uses for short run packaging:

• • • Offering a limited series of a product
    • Trying out a new product or packaging design idea
    • Planning a product launch when unsure of quantity needs
    • Launching trial products

Once the design process is complete with a short run packaging project, the hard part is over. Reordering your packaging is quick and simple and the turnaround time will be less. So, if you find you didn’t order enough, replenishing your inventory won’t take as long as when you are just beginning the packaging design process. Your vendor should also be able to expedite the order for you if needed.

Are you ready to launch a new product? Talk to one of our packaging specialists today.

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