You’ve heard the old maxim about selling the sizzle rather than the steak. In a way, that’s what packaging is all about. It provides a product with context. It creates a sense of mystery. It increases perceived value. Unfortunately, not enough distributors stop to consider packaging – and many who do just rely on the supplier’s stock array of boxes, sleeves and bags rather than doing something really creative and memorable. Differentiating your firm from the competition is what it’s all about these days, and value-added is where it’s at. So do yourself a favor. On each and every call – whether it’s a product or program sale – always offer packaging to the client as an added option.

You’ve seen them at shows. You know they’re out there. Companies that offer creative packaging in the form of plastic bottles, mailing tubes, custom die-cut boxes, blister-pack mailers and padded envelopes, among other things (see page 132 & 133 for more ideas). For some suppliers, it’s their only business. Did you ever stop and check out their wares? You should.

Most products come from the supplier in some kind of packaging – a cardboard box, plastic bag or maybe wrapped in bubble wrap. This type of packaging is mostly to protect the product from being broken, scratched or otherwise damaged during shipment. It isn’t, for the most part, meant to be aesthetically pleasing. However, most suppliers can place products in more decorative boxes or other types of packaging if you ask. “It’s important when you’re selling a product to look in the catalog and see what kind of packaging is standard,” says Terry Wilt, president of Bells Advertising (asi/136400), adding that if the packaging is unsuitable, it can bring down the perceived value of the item.

Think Small

And it’s not just a matter of selecting a fancy box or envelope – the real profit potential lies in decorating the package. Tubes, for instance, can have colored paper on the outside with a step-and-repeat design of the company’s logo or a corpoprate message or theme related to the promotion. And don’t forget about custom, die-cut boxes. I once had a dozen special boxes made for a self-promotion. Including imprinted product, packaging and delivery, the total cost came to $240. Sound like a lot for 12 boxes and a dozen monogrammed pizza-cutters? Well, I got 12 appointments and $27,000 in new business from that investment, most of which was tied up in the packaging and delivery, not the product. And that’s my point: Sometimes it’s the sizzle, not the steak, that creates the impression you want in the mind of your target audience. Another example: By placing a package of gourmet coffee inside a ceramic mug and packaging the whole thing in a gold gift box, Wilt says he’s been able to “take a $1.95 coffee mug and turn it into a $5 or more package.” Can you imagine the margin on something like that – and it’s so simple!

With the alliances you’ve hopefully developed in the industry, you can do what a lot of packaging manufacturers can’t. For instance, it’s virtually impossible for a corrugated box manufacturer to print a 65-line halftone on only 45 pieces and do it cost-effectively. But with the right assistance (and the right relationship), your local screenprinter has the ability to run small jobs like this – a `la my 12 custom boxes. Another benefit of packaging is that it can often carry a message that the product itself can’t due to space constraints. By pointing out to clients that they can utilize more copy and graphics on the packaging, you’re showing them a viable way to make their promotional message more memorable and effective.

Padding The Package

Along with creative packaging, you also have the opportunity to add value through fulfillment. You can present the client with the notion of creating a custom box, mailing tube or polybagging, but don’t stop there. Tout your ability to handle (for a nominal fee, of course) the insertion, kit-collating, stickering and other piecework for a particular project – anything you can do to lighten their load and increase your profit margin.

Several years ago, a client ordered 3,500 T-shirts, which we produced for him. How did we add value to a straightforward sale like that? After further discussion, we offered to create a mailing tube, roll up the T-shirts along with a cover letter and insert them into the tubes. When we delivered the packages to the client, all he had to do was put the label on and ship them out – clean, simple and very profitable.

The main thing to remember is to ask the right questions – things that take you beyond product and price:

• What’s the nature or purpose of the product/program?
• How do you plan to get this to end-users?
• Are you open to creative ideas that would increase the product’s perceived value?
• Have you ever considered special packaging or add-ons?

Lurking within these questions are a multitude of sales opportunities – but you have to ask! Here’s just one suggestion: The next time you sell a mid- to high-end rainjacket, take the jacket in to the client – not folded up in a box or over your arm, but on a wooden hanger that’s laser-engraved with the same logo that’s on the jacket. You can add even more perceived value if you take the time to have the person’s signature engraved on the hanger as well. Ask some industry vendors about their capabilities to do this kind of sample work – with the understanding that if the client goes for it, they’ll get the order. Many will be happy to comply.

Or take the time to get ahold of an inexpensive garment bag and have the logo printed or sewn on, presenting it as a complete package. I’ve gone in to see clients and had them say, “The product looks great! ... Say, are all my jackets going to come in garment bags like that? And my response is, “Could be ...”

Regardless of whether the client wants the product delivered this way, the important thing is that it shows a level of commitment and creativity your competition usually doesn’t have. The idea is to raise the bar of professionalism so far above your competitors that it’s almost impossible for them to touch you.

Pricing Packaging

While wearables is the largest single product category in the industry, creative packaging needn’t be limited to apparel. Think back to the last time you sold a clock, coffee mug, keytag or business card holder. Did you ever ask the client about packaging? Many times, suppliers have special packaging available – savvy vendors make it part of their regular presentation. Others make you search through the catalog, which means it’s incumbent upon you to do the proper research to see what various suppliers have to offer. And if you’re not sure, call the supplier. Even if they don’t have items or terms listed in their catalog, they may have the resources to get the job done anyway. If you choose – and if time permits – you can coordinate all the packaging and fulfillment in-house. Sure, it’s a bit of a hassle. You have to take possession of the goods instead of having them drop-shipped to the client. But it’s more than worth it if you can add value and increase your margins accordingly. Many distributors I know will tap local high school students, disabled groups or other organizations to do collating and packaging at a reasonable rate.

Many distributors wonder how to charge for packaging. It really depends on you – what makes sense for you to turn a profit. Various factors include materials, time, shipping costs, hired help, even a creative charge. Remember that packaging and fulfillment are value-added services, and you should look at them that way. They add value, thus they become premiums.

You’ll have to determine – based on your own sense of what your time is worth – how much to charge clients for these services. Distributor Paul Kiewiet says ad agencies bill “creative” at roughly three times the standard hourly rate, so if your time is normally worth $20/hour, you may want to set a $60/hour rate for packaging/fulfillment to cover all your related costs. Just keep in mind that the service you’re providing has value – there’s no need to give it away. But if you do, make sure your client knows the dollar value down to the last cent.

Mike Patton, president, Sacs & Boxes II (asi/84430), sums it up this way: “If you have a very upscale item, why put it in a plain brown wrapper? Why not make the outside as nice as the inside?” I couldn’t agree more.