Category Archives: Info for Buyers

Plastic Prices Rising

04 Thursday Mar 2021

Posted by in Info for Buyers, manufacturing, Plastic Packaging

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The plastics industry has continued to recover from the COVID pandemic as well as the recent unprecedented polar storm which paralyzed the Texas petrochemical industry.  Added pressure from the recent spike in fuel prices have caused an increase in freight costs.  Unfortunately, this perfect storm of long and short term disruption, has caused an increase in plastic prices and market volatility for the foreseeable future.  Let’s take a closer look at these factors in order to understand and hopefully neutralize some of this upward pressure.

The Polar Storm
On February 15th, 2021, The USA Today article reported “more than 150 million people were under a winter storm warning, winter weather advisory, or ice storm warning in 25 states.” These cold temperatures caused major energy problems, resulting in 3.5 million power outages in Texas alone. Texas is considered the petrochemical hub of America, with the majority of their facilities being shut down for several days and in some cases weeks, the plastics industry will be in recovery mode for several months to come.

Transportation
Transportation cost is a key factor in the manufacturing cost model. Since 2017 freight costs have been increasing, but in the last six months those costs have increased significantly. Powerful storms, such as the hurricanes this past fall and the ice storms this past winter create unforeseen obstacles and an additional demand on the industry to support recovery efforts. The most contributing factors for the rise in freight costs is a strong demand in freight, increased diesel fuel costs, and a low supply of carriers and drivers. This is an ongoing issue and carriers are predicting future increased rates as this is not a problem with a forthcoming solution.

Short-Term
The short-term outlook for plastic prices continues to be unstable. Most plastics have already seen drastic increases with reports that there are more to come. Resin prices have already increased 10% to 30% dependent upon the resin. Over the coming months, multiple price increases are expected with instability of the supply and the ability of the gulf coast chemical facilities to meet demand once again.

Long Term
There are no guarantees, but the increases we are seeing in plastic prices in the short term are expected to recover slightly in the summer months. The relatively short 2 week shut down of the gulf coast chemical plants from the polar storm will take a minimum of 3 months to recover. Transportation is still expected to be an issue, so increased shipping costs will still need to be factored in for future pricing.

Plan Ahead
There are several things to considered to help manage your bottom line. Below are a few to consider:

  • Understand your price breaks: Pricing is typically based on how many pounds of material are used to produce the quantities you requested. Request quantities that offer price breaks. Increasing your order quantity can be one way to keep your costs down.
  • Plan ahead: With price increases imminent, review your current inventory and ensure you have enough product on hand to get you through the high peak months ahead.
  • Contact your carriers: Renegotiation is key. Contact several carriers as well as third party logistic companies that can help manage shipping costs.
  • Contact Mercury Plastics: I agree that this point is a little self-serving, however, Mercury Plastics, Inc. has a competitive edge over most other thermoformers. Mercury extrudes various plastic sheet in house and has other unique capabilities that limit the need for other manufacturers. Extruding helps to reduce lead times and a better control over increased plastic prices. Mercury understands the price breaks, we have a robust future plan and negotiate with our carriers in order to reduce the upward pressure.  We are strategically positioned to be able to provide our customers with an insulating barrier to the coming storm.

The best way to work through unstable times is to ask questions to understand your options and to plan ahead. Start the process today by filling out the Request for Quote Form.

Like to know more about custom thermoforming and understand the costs for your product. Contact Brian Pankratz at Mercury Plastics, Inc. to learn more, bpankratz@mercuryplasticsinc.com.

PVC Clamshells Are Out!

03 Thursday Dec 2020

Posted by in Cost Savings, Info for Buyers, manufacturing, Packaging Design, Sustainability

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On Feb. 26, 2019, Walmart announced a new initiative for plastic packaging. One key area of focus is to, “eliminate the non-recyclable packaging material PVC in general merchandise packaging by 2020.” Walmart also introduced a new recycling playbook and recycled content goals. The sustainable initiatives by Walmart inspired other large retailers to adopt similar goals.

Walmart continues to target polyvinyl chloride (PVC) packaging, but the reality is, manufacturers should want to make the change regardless of what Walmart or any other large retailer mandate. Here is why:

Costs
PVC is more expensive to produce and convert than PET.  Although larger retailers are heralding the ecological benefits of PET, the bottom line is always the bottom line.  The bottom line is PVC IS MORE EXPENSIVE THAN PET.  This one fact alone should be motivation enough for manufacturers to switch to PET. Savings (and profitability) can be realized by switching to PET. To compare your current PVC packaging to PET, enter your info HERE.

Eco-friendly
PET is the most widely used and recyclable material used in packaging today. It can be easily recycled in most municipalities.  PVC is not considered a sustainable material and is considered an environmentally poor choice for packaging materials.

Versatility
PET materials excel in a wide variety of applications including, clamshells, trapped blisters and sealing to paperboard, however, PET really shines in food packaging solutions. There are also PET designs that can reduce or eliminate the need for sealing the clamshell.

The switch to PET is an easy and beneficial change that can help with profitability. Start the process today by filling out the Request for Quote Form.  

Like to know more about custom theromoforming and understand the costs for your product.  Contact Brian Pankratz at Mercury Plastics, Inc. to learn more, bpankratz@mercuryplasticsinc.com.

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CUSTOM THERMOFORMING IN REVIEW

29 Wednesday Jul 2020

Posted by in Consumer Satisfaction, Info for Buyers, manufacturing, Marketing, Packaging Design, Product Development

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The consumer packaged goods (CPG) market averages 30,000 new product releases each year. To put that into perspective, a typical big box store like Walmart, is comprised of approximately 120,000 items. With so many choices, custom packaging has the ability to help you stand out from the crowd. You may choose the path of least resistance and select an existing stock clamshell in order to keep your initial investment low. This decision can lead to serious consequences in lost sales and inability to get advantageous product placement as well as shipping costs for packaging that does not properly fit your product

Cost
The main reason people choose stock packaging, is the cost associated with tool investment. Oftentimes, the upfront costs of a custom tool seem prohibitive. While there is a cost for a custom tool, it is minimal over the life of a product and a cost that can and should be planned into the overall cost of the project. There are many factors with stock packaging that can lead to overspending and quality issues. Knowing what these factors are can help to reduce any unforeseen issues as your product volume increases.

Volume
Volume is one of the main factors that helps to determine whether it would be advantageous to choose custom packaging over stock packaging. Larger parts will quickly justify the initial investment of custom packaging. The way to determine where your cost benefits are, is to discuss your options with a custom thermoformer, such as Mercury Plastics, who understands the market and can guide you through the costs associated with custom packaging.

Design and Appearance
Packaging design matters to the consumer. We have all bought products merely based upon unique packaging.  Custom packaging helps your package stand out allowing you to sell more product, which lowers costs and increases revenue. We understand that your product is special, the packaging should reflect the care and attention to detail and countless hours that you have put into development. There are many details that can be added to a custom thermoformed package in order to get the consumers attention. Adding unique features into a custom thermoformed package can be done with little to no additional cost to the piece price.  Take the time to talk to someone that can help you with your design options.

Custom packaging allows for a better fit, can use less plastic creating a lower price point, and can also yield a higher sales volume. Know your options and how custom thermoforming can benefit your product.

Like to know more about custom theromoforming and understand the costs for your product.  Contact Brian Pankratz at Mercury Plastics, Inc. to learn more, bpankratz@mercuryplasticsinc.com.

Subscribe to this blog to stay up to date on industry trends and new developments by Mercury Plastics, Inc.

Questions to ask when designing packaging: Understand the product

21 Thursday Nov 2013

Posted by in Info for Buyers, Marketing, Packaging Design, Product Development

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Packaging DesignHow do you know what questions to ask when designing new packaging?  We all have an opportunity to see the finished product when it reaches the retailer, but what steps took place to launch the packaging the way it appears on the shelf?  Sometimes, important details are missed because the right questions were not asked.

Over the next several posts, I will offer important questions that assist in ensuring the right packaging is designed.  If packaging already exists, these same questions can be used for packaging that will be redesigned as well.

Understand the product:
The first step in designing packaging is to understand the product(s) you are packaging.  There are times when the product will limit some types of packaging designs.  Asking the right questions will help identify this early on and give a clear understanding on the available options.

Here are some questions to ask when beginning the packaging process:

  • What makes the product unique and are there specific features that need to be addressed?   Glass, food, electronics, and fishing poles all have a different starting point.
  • What is the weight/size of the product?  This will help identify materials for protecting the product.
  • What testing requirements will the packaging go through?  Drop, ship tests, biological, etc.
  • Are there any desired price points for the packaging?  This is an important question.  If you are packaging products that will be sold in a dollar store, your packaging options may limit you since cost will be a key component.
  • What type of security will be needed for the packaging?  Does the product need to be secure or can it be opened for trial in the store?  In many cases, if the retailer allows opening packages, having the product accessible to the consumer will result in less damaged packages.
  • What are the goals of the packaging?  Sustainability, shelf appeal, lower costs, etc.  This is one of the most important questions!
  • Who is the target audience?  This can help determine additional options; such as, easy open features, how product is displayed, font type, etc.

There are many more questions that need to be asked in the initial stages.  Most of the questions asked will have a direct effect on how the product is packaged.  At the end of this series, I will be sending out a complete list of questions to all who are subscribed to my blog.  Visit www.brianpankratz.com and subscribe to this blog if you are interested in receiving the full version.

We also use this with our customers when launching new packaging.  These questions are an important step in the process to ensure the product is packaged correctly to help increase the sales of the product.

For more information on designing packaging for your product, please contact Brian Pankratz at Mercury Plastics, Inc. – bpankratz@mercuryplasticsinc.com.

**Series Finale** “Buyers Guide to Packaging” – Week 9: Are You Impressionable?

14 Sunday Oct 2012

Posted by in Info for Buyers, Packaging Design, Quality

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If you have been following the “Buyers Guide to Packaging” series from the beginning, I hope you have learned some valuable information that will help you be more successful.  I invite you to continue to follow along each week as I continue to uncover new subjects that help you to understand the packaging industry. Don’t forget to subscribe at www.brianpankratz, to have each week sent directly to your inbox.

One of My Favorites:
One of my favorite movies is “Good Will Hunting.”  There is a scene in this movie that’s absolutely awesome.  In a previous scene, Will Hunting (Matt Damon) talks bad about a painting that his psychiatrist, Sean Maguire (Robin Williams) painted.  Later in the movie, Robin Williams meets Matt Damon on a park bench and Robin Williams returns the favor speaking directly into the heart of Matt Damon.

Although Matt Damon is considered a genius on many levels, Robin Williams asks him if he has ever been inside the Sistine Chapel, or knows what it smells like when you walk in the door, or what it’s like to stand and look up at the magnificent painting with your own eyes.  He then continues to ask him if he knows what it’s like to wake up next to a woman and feel true happiness.

Although Matt Damon understands what he has read and been told, he lacks the first-hand knowledge that you can only get by actually being somewhere.  This specifically goes for your suppliers as well.  In order to get a true understanding of your supply base, you need to take the time and make the visit.

What Can You Learn?
Yes, we are all busy, however, by taking the time to visit your suppliers, you can learn a great deal about them.  If you are new to the industry, it is good to spend time with your suppliers to get an understanding of how each manufacturing process works.  If you have been in industry a while, then put your experience to work to determine if your supplier is operating to meet or exceed your expectations.

Tips for Your Visit
I want to equip you with some questions to answer during your visit.  The answers to these questions will help determine how effective the supplier is:

–  What capabilities does the supplier have?
It is good to use suppliers that can be utilized for many different disciplines.  Suppliers that have more capabilities can cut down on the number of suppliers needed.

–  Who else does the supplier currently work with? How long?
It is important to know who the supplier’s customer base is and how long they have been working together.  It is also important to know who the supplier worked with previously and why they are not working with them any more.  Good suppliers should have reputable sources that they work with.  My company creates packaging solutions for nine out of the top 20 companies on the Fortune 500 list.  We couldn’t do that if our organization was riddled with quality issues and a lack of ability to perform!

–  What Strengths and Weaknesses Are Visible?
Cleanliness, lighting, clutter, clear labels on materials, good work/product flow, etc., are all areas to look for.   One of my favorite questions to ask someone who is manufacturing product is…“how do you know you are making acceptable product?”  If the operator cannot answer this question…beware!

–  Ask Questions!
When I give tours of our facility, I don’t expect our customers to understand all the details of what we do.  I would rather them ask questions so they can gain a full understanding of our operation.  Don’t be afraid to ask a lot of questions.  It is the ability to understand the operation that will give you the knowledge to be a better buyer.

Yes, visiting suppliers takes time, energy, and money for travel.  Ensure that you are working with good suppliers, not by hearing about them, but by visiting them.  Walk the floor and create a learning experience to enhance your knowledge on how to better serve your company and your products.

If you would like more information about Mercury Plastics new products or are someone looking for packaging solutions and want to learn more about the packaging industry, contact Brian – bpankratz@mercuryplasticsinc.com.

Don’t miss a week! Sign-up today at http://www.brianpankratz.com to get Next Week’s Topic:  “Don’t Waste a Holiday!  Holiday Packaging Ideas” sent directly to your email.

“Buyers Guide to Packaging” – Week 8: Biggest Mistakes Buyers Make

07 Sunday Oct 2012

Posted by in Info for Buyers, Packaging Design

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Have you ever made a mistake?  Wait…don’t answer…I’ll answer for you, the answer is undoubtedly, “Yes.”  Whether you want to admit it or not, we have all made mistakes.  Mistakes are an unavoidable occurrence in life, something we have all experienced regardless of our profession or position.  It’s hard at times to admit when we make mistakes, but the sooner we acknowledge them, the sooner we can learn and move on.  But what if we don’t even know that were making them, how then can we learn and move on?  I want to offer an outside perspective on, “What are the biggest mistakes that buyers make?”

Honesty First:
If there is one thing I have learned after spending nearly 20 years in manufacturing, it’s be honest with those around you.  I strongly believe that honesty is the key to fostering great relationships.  Share things you have learned and help others to be successful.  The information contained in this article is meant to do just that, help others.  Now let’s take a look at some areas of concern…

Big Mistakes:
Since buyers deal with money, the result when a buyer makes a mistake usually means a loss of money or profit.  You guessed it…the bigger the mistake, the bigger the financial loss.  Let’s take a look at some simple things to keep that from happening.

1. Lack of information:
How many times has a supplier asked questions after receiving a request for quotation?  Every answer to each question will determine if the price goes up or down.  When you aren’t sure…or don’t have the right information, the supplier may be safe and quote a higher price.  Also, ensure to tell the supplier about the intended use for the packaging so they can offer suggestions that can save money.

Personal example:  I recently had a customer ask me to quote a clamshell package for their electronics product.  After having a short conversation and asking the right questions, I was able to learn that there are 5 other clamshells that are very similar to this one.  We were able to create a tool that allowed for the change out of inserts in the mold and saved $25,000+ in tooling and also allowed him more flexibility for ordering his product.

2. Not being open or staying current to new ideas:
The manufacturing industry is quite similar to the computer industry.  New breakthroughs continue to emerge that can save companies money and help them to reduce costs.  When is the last time you invited a new supplier in to see what they can offer?

3. Price is important, but…
Buying based on price alone is one way to get in trouble.  Although price is usually the key driver in selecting a supplier, look at other areas as well.  Quality, product offerings, innovation, delivery costs, on-time delivery, etc. can become costly if ignored.  For example, you can get a great price on packaging components, but it will take 8-12 weeks to get them.  If  your customer demands you ship them in 4-6 weeks, you may need to pay a little more to get the quicker turn around for your product.

A buyer’s job is very demanding.  Getting the right people involved can make a huge difference.  Yes, mistakes are going to be made, but learn from them and seek advice when needed.

If you would like more information on new ideas or new products the packaging industry has to offer, don’t hesitate to contact Brian – bpankratz@mercuryplasticsinc.com.

Don’t miss a week! Sign-up today at http://www.brianpankratz.com to get week 9 of “Buyers Guide to Packaging” sent directly to your email.

“Buyers Guide to Packaging” – Week 7: The Glass Slipper!

29 Saturday Sep 2012

Posted by in Info for Buyers, Marketing, Packaging Design

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I was very blessed to have a daughter over nine years ago.  When she was born I immediately realized that one of my responsibilities as a father would be to sit through “girly” movies with her.  I remember taking her to the movie Cinderella, sitting next to her and watching her different facial expressions as she watched the movie.  She scowled as the mean step-sister tried to force a fit by stuffing her oversized foot in the glass slipper.  Later, as Cinderella slid her size three foot into the glass slipper creating a perfect fit, my daughter smiled with her head slightly tilted.

Find that Fit!
As a buyer, it is equally important to find the right fit with your suppliers.  Different packaging companies have different capabilities and strengths that can help their customers to be successful.  Certain packaging companies are great at coming up with new and innovative packaging solutions, while others are not.  The important thing is to do your research; suppliers should be able to tell you what their strengths are.

The Dangers of Not Listening:
I respect and appreciate those in business who always lend an ear to listen to a new opportunity.  Good business people understand the need to constantly search for new ideas.  The danger lies with those who close themselves off from ever hearing from others on how to improve what they are currently doing.  I understand the busyness that our jobs bring, but also realize that there is an extremely competitive market out there, so, if you’re not moving forward, you’re going backwards.

You Can’t Force a Fit:
There are usually consequences when suppliers try to force a fit.  The consequences include: poor quality, not being able to deliver on time, increased costs, unmet expectations, etc.  Good Suppliers will make sure to tell you when the fit is not there and buyers need to respect that.  This is why it is also important for buyers to understand the supplier’s capabilities before projects come up so you know who to turn to.

To be highly successful, create a list of suppliers and their strengths, if you have a need that your current supply base can’t fulfill, seek out suppliers who can.  Don’t limit the success of your product by the limitations of your supply base.

For more information or to learn more on what capabilities I can offer, contact: Brian Pankratz.  bpankratz@mercuryplasticsinc.com

Don’t miss a week! Sign-up today at http://www.brianpankratz.com to get week 8 of “Buyers Guide to Packaging” sent directly to your email.

“Buyers Guide to Packaging” – Week 6: Consumers Have Expectations.

22 Saturday Sep 2012

Posted by in Consumer Satisfaction, Info for Buyers, Marketing, Packaging Design

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Have you ever tricked someone by wrapping a small gift in a rather large box?  Many people have done this to try to disguise their gift and alter the expectation on what is lurking under the shiny wrapping paper.  We all have expectations as we go about our day; you expect your alarm to go off when you set it, you expect the sun to come up in the morning, you expect a light to come on when you flip the switch.

How About Packaging?
The same goes for packaging, when consumers pace the aisle looking for a particular product, they have an expectation on how that product should be packaged.  The question is…did you meet their expectation?

Some Examples:
Think in your mind how you would expect these products to be packaged:
–  Cereal
–  Golf Balls
–  Printer Cartridges
–  Cell Phone Accessories

Minimum Expectations:
It’s easy to picture how each product should be packaged to meet our minimum expectations.  If we take the example of cereal, we know that cereal usually comes in a bag inside a box.  What would be your reaction if you opened up the box and found the cereal was in the box without being in a bag?  Would this meet your expectations?

If you were buying golf balls and one brand was in a nice fancy shiny carton and the other brand was in an unlabeled clear plastic bag, which one would you consider to be the better golf ball?  Which one would you choose if they were the same price?

If a printer cartridge was just in a bag and not a carton, would you consider it to be a better value?  Probably not!

Reality Check:
The reality is…consumers have certain minimum expectations when they purchase products.  When products don’t meet these expectations, the consumer calculates a lower perceived value of the product and may decide to choose another due to lack of confidence with the product.

As a buyer, it is important to understand the expectations on how your product should be packaged.  When packaging exceeds the expectation of the consumer, a product is perceived as a premium and may allow for a higher price point.  Don’t give the consumer a reason to doubt your product.  Understand ways to package your product that add value and build confidence with the consumer.

For more information or for questions on way to create a premium package, please contact: Brian Pankratz.  bpankratz@mercuryplasticsinc.com

Don’t miss a week! Sign-up today at http://www.brianpankratz.com to get week 7 of “Buyers Guide to Packaging” sent directly to your email.

“Buyers Guide to Packaging” – Week 5: Know Your Place

15 Saturday Sep 2012

Posted by in Info for Buyers, Marketing, Packaging Design, Product Development

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There are several factors that contribute to how product is packaged; size, shape, weight, how many components, etc.  One of the more important factors that manufacturers need to consider is to know where the product will be sold.

Let’s get right to the point…grocery stores like product on shelves, where hardware stores like to hang product on peg hooks.  The point is, retailers like products they sell to be packaged a certain way, if you fail to package your product to their specifications, you will be left with two choices…either spend time and money to redesign your packaging or search for stores that will accept your packaging as is.  The key is to know your retail environment and to design packaging around the retailers expectations.

How Big:
Knowing how big or small to create your packaging is important to the retail environment. You may have a desire to create a large package creating a billboard telling everyone about your product, but for retailers, oversized packaging decreases profits.  Big retailers, such as Wal-Mart, have every square inch of their store accounted for.  If they can’t get the profit they need because your packaging is too big or bulky, you won’t see the hook or the shelf!

Stand or be Hung:
Retailers appreciate products that arrive with options.  When the exact retailer is unknown, try to create packaging that fits both situations.  Several packaging designs offer both the ability to be hung from a peg hook or to stand alone.  Knowing these options will help your chances of a successful product launch and less issues at the retail level.

The key to designing packaging that retailers appreciate starts with providing the right information to your packaging provider.  More information is always better.  Specifications and guidelines will help ensure that the correct packaging is designed and success is achieved at all levels from concept to the customer experience.

Don’t miss a week! Sign-up today at http://www.brianpankratz.com to get week 6 of “Buyers Guide to Packaging” sent directly to your email.

For more information or for any questions, please contact: Brian Pankratz.  bpankratz@mercuryplasticsinc.com

“Buyers Guide to Packaging” – Week 4: Eliminate the Spaghetti Dinner – Order Single Source Solutions®

08 Saturday Sep 2012

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If you were to create a flow diagram of the tasks in a buyer’s work day, it would resemble a spaghetti dinner (see Figure 1).  A buyer’s day is filled with getting quotes from multiple suppliers, issuing purchase orders, handling design issues, traveling to multiple companies for meetings, setting up deliveries, and the list goes on.  For some buyers, this spaghetti dinner can be hard to digest.

Simplify for savings:
Thankfully, there’s more on the menu than spaghetti .  This past week, Packaging Digest released an article about the how using a packaging supplier who has the capability to be a single source solutions provider can result in major benefits, major benefits that save money and help to reduce the many steps of dealing with multiple suppliers.

There is a list of both benefits and cost reductions associated with working with a supplier who can provide single source packaging solutions.

Cost reductions include:
–  Reduced freight costs
–  Decreased administrative responsibilities, such as; PO’s, setting up delivery appointments, etc.
–  Engineering and design costs reduced

Benefits include:
–  Increased speed to market
–  More focus to products and profitability for manufacturer
–  Less on-hand inventory to manage

A new diagram
Working with a supplier that can provide single source solutions results in a new diagram (see Figure 2), allowing buyers the opportunity to reverse the pattern of having to do more with less, being effective and taking unneeded steps out of their day.

Single source solution suppliers can be the missing link to help manufacturers be successful and profitable in a growing and competitive market.  Utilize the resources of key suppliers and grow your brand and your profit margin.

Don’t miss a week! Sign-up today at http://www.brianpankratz.com to get week 5 of “Buyers Guide to Packaging” sent directly to your email.

For more information or for any questions, please contact: Brian Pankratz.  bpankratz@mercuryplasticsinc.com

“Buyers Guide to Packaging” – Week 3: Never Assume!!!

01 Saturday Sep 2012

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One word that I have really grown to dislike over the years is the word “Assume.”  When I started out in my career, I have to admit that I used the word occasionally.  Unfortunately for me, every time I used the word, I made the wrong “assumption”. According to dictionary.com, the definition of the word, “assume,” means: “to take for granted; accept without proof; suppose.”  Who wants to be known as someone who takes things for granted?  Certain professions work with “just the facts”, without proof, there is nothing to talk about.  However, when we quote packaging solutions, we may need to include assumptions for a number of different reasons.

What’s the Big Deal?
There are two issues that exist when something is assumed.  One issue comes from the customer when requesting a quote and the other comes from the supplier when quoting back to their customer.  First, let’s take the side of the customer.

Customer Assumptions
When requesting a quote, understand what information is needed to avoid getting a long list of assumptions.  Without the proper information, suppliers make assumptions that you may or may not agree with.  Understand the assumptions and how they affect the overall cost of your packaging.  Some assumptions will offer a lower price that will later be increased with additional information and other assumptions will drive costs up unnecessarily giving you numbers that are higher than what will be needed.  There are many variables, understand the key variables that affect cost.

Supplier Assumptions
Second, let’s take a look at the side of the supplier.  What do suppliers do when specifics are unknown?  That’s right…they assume.  Good suppliers will be back asking questions to get additional details to give more accurate pricing.  An example would be…Customer XYZ requests a red thermoformed blister.  In this case, “red” isn’t clear enough.  Knowing that two similar shades of red can have completely different costs due to the amount of certain pigments is important to understand before proceeding.  Helping define what reds are less expensive will help the customers overall cost.

It’s always better to provide the information up front and have costs that are reliable.  To do this, understand what the requirements are for pricing to be firm.  If the information isn’t provided, an assumption was made.  The question is…will it make the price go up or down when more information is provided?

Don’t miss a week! Sign-up today at http://www.brianpankratz.com to get week 4 of “Buyers Guide to Packaging” sent directly to your email.

For more information or for any questions, please contact: Brian Pankratz.  bpankratz@mercuryplasticsinc.com

“Buyers Guide to Packaging” – Week 2: The Almighty Dollar!

25 Saturday Aug 2012

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As a buyer, it’s important to get the best price for your packaging.  Price is by far the biggest factor buyers consider when choosing packaging for their product.  The mistake some buyers make is they use price as their only factor in determining who to buy from.  They assume that just because two parts look alike, they are the same.  This couldn’t be further from the truth.  Veteran buyers have seen this first hand and can tell you that you need to do more that focus on price.  Here are some things to consider…

Don’t Sacrifice Quality for Price
Have you ever bought something that was inexpensive, got it home, used it once, and then it broke?  Your good deal didn’t seem like a good deal anymore, did it?  In all industries, you need to pay attention to the quality level your suppliers can perform to.  Does the supplier’s packaging meet the expectations of your brand, or are you sacrificing the look of your brand because you are getting a good deal on packaging?  The thing to understand is…consumers know quality when they see it.  If a products packaging is damaged on the shelf, red sirens and flashers signal to the consumer, “beware of this product.”

Understand the Consumer’s Expectations For Your Product
As consumers shop, they have an expectation of how something should be packaged.  For instance, do you think it makes sense to put a pair of blue jeans in a clamshell?  Consumers have an expectation that blue jeans will be folded neatly and accessible so they can be easily tried on.  Toys will be packaged so kids can try them out, and electronics will be packaged so they don’t get damaged or stolen.  My point?  Know your product so you can meet or exceed the consumer’s expectations!

Know the Part Specifications
When comparing similar packaging, ask for specific material specifications along with the price of the components.  Don’t fall victim to down gauging for price reductions when the material quoted will not meet the requirements or keep the integrity of your product while on the store shelf.

The bottom line is to know what you are paying for.  Don’t sacrifice quality for cost.  Good packaging suppliers will be able to tell you what materials you  need to keep the integrity of your product’s packaging.  Quality packaging equals quality product!
For more information or for any questions, please contact: Brian Pankratz.  bpankratz@mercuryplasticsinc.com

“Buyers Guide to Packaging” – Week 1: Don’t Ask – Don’t Tell

18 Saturday Aug 2012

Posted by in Info for Buyers, Packaging Design, Product Development

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This week launches us into a new weekly series titled, “Buyers Guide to Packaging.”  The information I will be offering in this series will make it a “must read” for every buyer in the packaging industry.  If you are a buyer, then you understand fully the continued pressure to drive out waste and cut cost.

Not knowing how to do this could be frustrating at all levels.  My goal in this series is to inform buyers and give them the tools needed to maximize their buy while driving cost out of their operation without sacrificing the integrity of the brand.

Always Ask
This week I am going to give you a simple question that you can ask your packaging suppliers.  The simplicity of this question should not be confused with the results it can yield.  Your suppliers know what materials run better than others, what sizes layout better on their equipment, and ways to optimize design features for smooth manufacturing.  The problem is, some buyers never ask…and some suppliers never tell.

Why Don’t Suppliers Say Anything?
So, why is it if suppliers know how to save their customer money, they don’t say anything?  There are a few reasons why this may happen…some customers aren’t open for change, some suppliers think designs are set in stone and can’t be changed, the other reason is…buyers don’t ask.

Set Yourself Up For Success
As a buyer, it helps to know what materials are more cost effective, how certain designs dictate costs (specifically what features add cost), and the specifications of your suppliers equipment.  For example, if your supplier has an offset printer that can print up to 6 colors on the front side and 1 color on the back and you send over artwork consisting of 4 color process with 3 spot colors on the front, you just bought yourself 2 passes.  There are many examples like this, I think you see what I am talking about.

Remember that every detail matters!  Working together with your suppliers in the initial stages of projects is the best time to have these types of discussions.  Let your supplier help find ways where costs can be cut and profits can increase.  If you don’t ask the simple question, you may never get the simple answer.

Don’t miss a week, sign-up today at http://www.brianpankratz.com and get week 2 of “Buyers Guide To Packaging” sent directly to your email.

For questions or comments, please contact Brian Pankratz, bpankratz@mercuryplasticsinc.com.