Tag Archives: packaging and containers

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.

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: Determining how to package

20 Thursday Mar 2014

Posted by in Marketing, Packaging Design

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Question markI answer my cell phone and on the other line is my customer. They have a new product and need some ideas on how to package it. How do I know I am offering the best packaging options to fit their needs? The answer…by asking the right questions.

In the first post of this series we reviewed some questions to ask about the product. Now that we have the information needed about the product, we can move on to determining the best method or style to package the product. Although this method is usually driven by cost, it is important to ask the questions so that the right packaging is developed.

There are many questions to ask in this step, the list is long and detailed, but here are a few worth mentioning…

1. What type of protection does the product need? One of the main responsibilities of packaging is to deliver the product to the customer without damage. Certain packaging types are needed to be able to protect the product better. It is important to understand how the product needs to be protected and design styles of packaging around those features. Packaging a screwdriver will be much different than packaging a light bulb.

2. Is there a certain style of packaging desired? Carton, clamshell, blister, trapped blister, envelope, etc. Even though a lot of questions are asked to determine the right style of packaging, it is always a good idea to get the manufacturers thoughts on how they would like to see their product displayed.

3. What materials are desired? Which types of materials should be avoided? Available material options include certified boards, recycled plastics, microwavable, dishwasher safe, etc. It is also good to find out if certain materials should be avoided. Some retailers do not like certain materials and it is important to know where the product is being sold so the right materials can be selected.

4. Who is doing the assembly? Depending who is doing the assembly and what type of equipment they have will dictate or eliminate some types of designs if purchasing capital equipment isn’t an option.

5. What type of visibility does the product need? Some products have multiple components to them and some need to be visible while some do not. Understand the visibility requirements. It is typically always better to show at least some of the product when possible. This helps to ensure the customer is buying the right product. Try to show the product when possible.

6. Does the packaging have a use after it’s purchased? In some cases the packaging will be used to hold a product for multiple uses by the consumer. Examples are: screws, eggs, cereal, etc. The product will most likely not be used in one use, so the packaging has to be designed for multiple uses. In this case, open and close features become very important.

The full list of questions to ask when designing packaging is significantly longer than listed here and continues to grow as technology and processes evolve. The goal is to ask questions that are relevant to the product you are packaging so that greater success is achieved.

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 http://www.brianpankratz.com and subscribe to this blog if you are interested in receiving the full version.

For questions or if you would like help with designing your products packaging, contact Brian Pankratz

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.

Reasons Why Packaging Designs Fail – Marketing

30 Tuesday Jul 2013

Posted by in Marketing, Packaging Design

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Nike Zoom Soldier II

This is the final post in this three-part series on, “Reasons Why Packaging Designs Fail.”  Sign-up today to get the next blog post/series delivered directly to you inbox!  You can subscribe at www.brianpankratz.com.

Decisions…decisions…
How a product is packaged is one of the most important decisions manufacturers make.  Good packaging can provide increased sales and consumer popularity, while bad packaging can send a product spiraling with a one-way ticket to the clearance rack.  There are many reasons why packaging designs fail.  We covered how design and structure can both contribute, in this post we will review failures in marketing.

Marketing with Packaging:
As the saying goes…“People don’t remember what you say, they remember how you made them feel,” is also true for packaging.  Every single element of how you package your product, whether consciously or subconsciously invites an emotional response. This goes for product comparisons as well, meaning, the products you compare your product to can speak to the overall quality of your product.

Have you ever wondered why Nike finds room in their budget to hire superstar athletes to be in their commercials?  You guessed it…They want to send a message that winners wear their product.  Their product helps you to be great, confident, and will bring you one step closer to victory.  I you want to be great, then you should buy their product.  You will not find them creating adds without an emotional connection.  The same rules should apply for packaging, look for ways in your packaging to create an emotional connection with the consumer.

Here are some ways that Marketing failures occur in packaging:

1.  Missing Your Target Audience:  Before beginning the packaging design process, one must define who the likely consumer is.  This information will help determine graphics, colors, fonts, etc. for your product’s packaging.

2.  No Benefits Listed:  People buy solutions, has your packaging defined how your product solves their problem?  Let’s take it a step further…not only how it solves their problem, but how it solves their problem better than the competition.  Do you know the benefits of your competition?  Don’t clutter the packaging with a long list of benefits, but highlight the most important features and find unique ways to communicate them within the packaging.

3.  No Stance:  Not having a clear understanding of your product or brands message can send a confusing message to consumers.  Be consistent with what your product or brand stands for.  The reality is, not every product wins by being environmentally or nutritionally focused.  The consumer may just want to know if the packaging is recyclable.  Have a clear and consistent message with your packaging.

4. No or Poor Imagery Used:  A picture is worth a thousand emotions.  Beware of using the valuable space on your packaging with text.  Ensure to select the correct image.  Two people can look at the same image and emotionally perceive it differently.  Images work better than text when attempting to connect with the consumer, however, the wrong image can send negative emotions.

Example:  You need to select an image for the front of your packaging for a home security system.  What image would you choose; a) A photo of the product  b) A family safe and secure in their home   c) A picture of the security systems operator  d)  A burglar trying to break into a home  e) a single woman holding a child activating the security system?

Think through each example above and how the different images may invoke fear, safety, protection, happiness, worry, etc.  Some images may not connect with all consumers or may not relate well, so choose wisely!  Creating the wrong emotion may prevent a sale.

5.  Poor Packaging Consistency:  When packaging multiple products, it is important to package the different products so the consumer would be able to associate them as the same brand.  Using the same colors, style of graphics, shapes, etc. when possible, will help to establish your brand.  If you want to build brand loyalty, make it easy for the consumer to find your product.

Packaging is something that just about every product needs.  The decision on how to package each product can lead to a huge success or contribute to the extinction of a product.  Find ways to create unique designs that capture the attention of the consumer and convince them that your product is what they have come to the store to buy.

Have a new product you need packaged?  Contact Brian Pankratz at Mercury Plastics today for help.  bpankratz@mercuryplasticsinc.com

Reasons Why Packaging Designs Fail – Structure

25 Tuesday Jun 2013

Posted by in Marketing, Packaging Design, Product Development

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MaryBethApplePieThis is the second post in this 3 part series on why packaging designs fail.  Don’t forget to sign-up to have each post sent directly to your inbox.  You can subscribe at http://www.brianpankratz.com.

Let’s Review
In the last post we talked about three areas to consider when packaging designs fail; design, structure, and marketing.  Last week we focused on design, this week we are reviewing structure.  To read the first weeks post on design, click here.

Define Structure
We all need to be on the same page when talking about “Structure”.  Structure is defined as the materials, construction, and shape of the packaging used to package the product.

So, how can the structure contribute to packaging that fails?  The list below are some examples…

1. Damaged Packaging:  Nothing says, “Don’t buy me,” more than a damaged package.  I am not talking about the consumer inflicted damage by ripping open a package after purchasing it and then returning it to the store.  I’m talking about the packaging not being able to withstand the shipping and handling process involved with getting the product to the retailer.  Choosing the right materials when packaging a product is critical.  Whether it’s deciding the type or thickness of either plastic or paper board, the wrong materials can affect the sale of a product.    Choosing the wrong materials can result in damaged packaging or in some cases, damaged product.  Everyone wants to save on costs, but when packaging doesn’t maintain integrity, the sales of the product suffer.

2. Over Packaged Product: Not only is not protecting a product bad, but over packaging products are also costly.  I remember walking down the aisle in my local big box retailer, and seeing a product the size of my fist packaged in a sealed clamshell that was about twelves inches square in size.  The product was grossly over-packaged and not sustainable in the least bit.

Note:  How can the first two be resolved without issue?  Packaging testing!  Know the specifications needed for your packaging and do testing to ensure the product and packaging will arrive without issue.

3. Poor Security of the Packaging:  One of the main responsibilities of packaging is to protect the product from theft.  Failure to do this can result in huge losses for the retailer and result in higher theft rates of the product and may jeopardize the products ability to be sold at the retail level.  On the other hand, food containers that have tamper-resistant features provide added security.  I was working with a new client, and they informed me that before working with us, nine out of 10 of the products they sent to the retailer were stolen.  The retailer had a clear message for their product that sold for $25 ea., “Get new packaging, or I’ll get new product!”

4. Shelf Presence:  When designing packaging, one of the questions we ask is, “Does this package need to hang, stand, or both?”  It is amazing how many out there seem to skip that question.  Once we understand this question, we now need to find a way for the packaging that we design to POP.  Gaining the attention of the consumer can be done several ways; shapes, colors, graphics, etc.  Determine what would gain command on the shelf and then create something unique.

5. Poor Usability:  Usability refers to packaging that facilitates the use of the product.  Whether it is the perforations of a chip board carton to allow easy dispensing of the product or locking features on a clamshell, it all provides either a positive or negative experience for the consumer.  The key is to create functional packaging that properly assist the consumer with the use of the product.  Creating a positive experience for the consumer shouldn’t end after the purchase is made.

When packaging is designed with the proper structure, it can attract consumers, properly protect, and even prolong the shelf life of the product.  The idea is to create packaging designs that do all of the above.  Create an experience for the consumer that makes them appreciate you for how you have decided to package your product.

To get more information on creating packaging that sells without failing, contact Brian Pankratz at Mercury Plastics, Inc., bpankratz@mercuryplasticsinc.com.

Reasons Why Packaging Designs Fail – Design

05 Wednesday Jun 2013

Posted by in Marketing, Packaging Design, Product Development

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Blue printThe next three posts are going to be dedicated to defining the elements on why certain packaging designs fail. If you want to get the next post sent directly to your inbox, subscribe at http://www.brianpankratz.com.

Ego Check
Before we get started talking about why some packaging designs fail, we all have to come to the realization that somewhere just under our ego is opportunity for improvement.  It’s pretty tough to admit failure, but it becomes even tougher when we don’t admit it and learn from it.  Another thing to understand is that there is a level of opinion that goes into what makes a design a failure or success.

Areas to consider
When we talk about packaging design, there are three different areas to consider; design, structure, and marketing.  We are going to talk about the design aspect in this post, and then cover structure and marketing in following posts.

Define Design
It’s important to understand what we mean when we talk about design.  The word design could have several different meanings, one could argue that the whole make-up of a products packaging could be its design.  I would like to define design as simply, how you have decided to package your product (stock clamshell, carton, blister pack, etc.)

So, let’s start with design, what factors of the overall packaging design can contribute to failure?

1. Packaging costs – Start with an understanding of what the cost of your packaging should be.  Understand what equipment is necessary to assemble each style.  There are many factors that affect the overall cost of packaging your product.  Make sure to review all of them.  Not doing this could result in higher costs and make you uncompetitive in the market.

2. Poor Protection – Packaging has multiple functions.  It needs to help sell the product, but it also has to successfully transport the product to the consumer without being damaged.  Nothing screams, “Don’t buy me,” more than damaged or worn packaging.

3. Where’s the product – Very few products should be kept out of view from the consumer.  When possible, you need to show the product.  The more creative way you can show the product, the more attention it will gain.  Hiding your product in the packaging will make it harder to locate on the shelf.

4. Easy Access/Easy Open – Know your target audience and how they use your product.  Some consumers will avoid certain products due to hard-to-open packaging.  Understand the security aspects that are required and build in easy open features when you can.

5. Lack of Creativity – There are many options for creating attention in the simplest of packaging designs.  Plain packaging designs may be overlooked and run the risk of never being found.  Understand the different design options that are available at no extra cost that can and will draw attention to achieve added sales.  There are several companies out there (including Mercury Plastics) that offer free packaging design evaluation.  Do your homework and ask questions!  Be creative!

The Goal
The goal of every packaging design is to match the needs of the consumer with the abilities of your product.  Good packaging should attract attention and then explain what makes your product unique and better than your competitors.  Not doing so can result in a level of packaging design failure that could have been avoided.

For more information on how you can creating winning packaging designs that create attention and resist failure, contact Brian Pankratz, bpankratz@mercuryplasticsinc.com.

The 4 steps to every consumer purchase – Week 4

19 Friday Apr 2013

Posted by in Consumer Satisfaction, Marketing, Packaging Design, Product Development

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Week 4This week we are wrapping up our series with The 4 Steps To Every Consumer Purchase.  If you missed any of the previous weeks, you can find them here…Week 1 – Scanning, Week 2 – Price, Week 3 – Comparison.

Step 4: The Final Step
Making a purchase is an emotional process.  Manufacturers need to offer products that help the consumer confirm that they are making the right decision.  The last and final step is the Confirmation step.

The Confirmation Step
In this step the product is in the hands of the consumer.  They have reviewed the benefits, features, and price point.  We now have to win the emotional connection with the consumer.  Most consumers have had problems with products they purchased in the past and want to ensure this doesn’t happen again.  They are asking the following questions:

  • Will I have to return this product later?
  • Will this product be easy to use?
  • How long will the product last?
  • Most importantly…do I “feel good” about this purchase?

Feeling Good – Emotional Connection
Yes, it’s true.  Consumers need to feel good as they make the walk to the register with your product in hand. Have you ever purchased a product and shortly after leaving the store felt regret about your purchase?  This is called “buyer’s remorse” and it is a very real emotional response in the buying process.  If, through your packaging you have answered the price (value) and comparison questions, then the potential for a negative emotional response is reduced greatly.  Packaging has the ability to generate excitement about the purchase as well as an eager expectation when the product is removed from the packaging. When all of these steps are in line, you have a successful package. The way your product is packaged matters. Consumers respond when products are packaged with them in mind. They receive the needed confirmation that the product is exactly what they are looking for, this is successful packaging.

When the consumer confirms that you have the best product and they have a sense of security with their purchase, loyalty is built.  Can you think of any products that have a loyal following?  If so, care was put into the way that product was packaged.  Packaging does matter, and those who take the time to understand how to package their product to communicate all 4 steps will have a better chance of building their customer base.

For more information on creating packaging that captures all 4 steps and helps to build customer loyalty, contact Brian Pankratz, bpankratz@mercuryplasticsinc.com.

Don’t miss a week! To get the next post in this series sent directly to your email, subscribe at, www.brianpankratz.com.

The 4 steps to every consumer purchase – Week 3

10 Wednesday Apr 2013

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Week 3Welcome to week 3!  Let’s recap…in week 1, we talked about the Scanning step, creating a package design that attracts the attention of the consumer.  In week 2, we talked about Price, making sure the consumer agrees with your price point.

Step 3:
This week we are going to talk about what happens after the consumer finds your product and then processes the price.  This step is called the Comparison step.

The Comparison Step
In the comparison step the consumer wants to make sure they have selected the best product for their money.  So, even after they find what they like and agree with your price point, the consumer will still compare their choice to make sure their selection is the right one.

It is important to know what role packaging plays in this step.  The way product is packaged can either bring additional value, or give the consumer hesitation in making a purchase.

Things To Think About…
Here are some things to think about when packaging your product:

  • Is your product the highest or lowest priced compared to your competition?
  • How does your competitor pack their product?  If in a bag, a blister pack or clamshell may offer your product a higher perceived value.
  • Does your packaging help the product stand out among the other products?
  • Is your packaging unique?
  • Are the specifications or benefits of your product clearly mentioned?

The Goal
There are many things to think about when creating packaging for products that will be compared to one another.  The goal is to design packaging for your product that has a loud but comforting voice to the consumer.

Each product is different and special consideration should be given to each product before assuming how it should be packaged.  The goal of the comparison step is to offer security to the consumer that your product is better.  Consumers aren’t afraid to spend more money if they know they are getting a better product.  How does your product compare?

For more information on creating packaging that can win the Comparison step, contact Brian Pankratz, bpankratz@mercuryplasticsinc.com.

Don’t miss a week! To get the next post in this series sent directly to your email, subscribe at, www.brianpankratz.com.

The 4 steps to every consumer purchase – Week 2

12 Tuesday Mar 2013

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Week 2Welcome to Week 2 of “The 4 steps to every consumer purchase”. If you missed week 1, you can find it here.

Recap
When consumers shop they follow four steps before they make their purchase. Understanding the pattern and focusing on how this relates to packaging can help to sell more product, while increasing profits. In week one we talked about the first step, scanning. Consumers start the purchasing cycle by letting their eyes scan the products until one specific product wins their attention.

Step 2:
The consumer has now found a product they like, what do they do next? They look at the price.  Seems pretty straight forward, right?  Well it is…but the important thing in this step is to understand what questions the consumer asks after they see the price.

The Questions:
After the consumer views the price of the product, they ask themselves the following questions:

  1. Is the price what I expected to pay for the product?
  2. Am I getting the best product for the money?

Before the consumer looks at the price, they have an idea of what the cost should be.  So, how does packaging play a role in this step?  Simple, more affordable packaging can reduce the overall cost of the product.  The cost of your packaging can help you to be more competitive and win more sales.

There are some simple ways to get cost of out your products packaging without sacrificing quality or overall design.  Reducing the product to package ratio and using alternative recycled materials are good places to start, but there are many other ways to reduce cost.  New designs that can attract more consumers should be considered as well.

The goal is to improve each step of the process.  Creating a new design that is more attractive along with reduced costs in packaging is a great combination that will help to win the sale.

Join us next week as we learn what happens when the consumer isn’t satisfied with the price point of your product.

Don’t miss a week! To get the next post in this series sent directly to your email, subscribe at, www.brianpankratz.com.

To learn more about creating packaging designs that save you money and increase profit, contact Brian Pankratz, bpankratz@mercuryplasticsinc.com.

The 4 steps to every consumer purchase – Week 1

16 Saturday Feb 2013

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Week 1So, how exactly do products get from the store shelf to the checkout?  Understanding the steps of what happens when a consumer enters the store until they reach the check out may help you to sell more product.

Over the next four weeks, I am going to break down the four steps that the average consumer takes before they make their purchase.  With every consumer there is a sequence of events that takes place before a purchase is made.  Understanding what they are and how to capitalize on them will be key if you want to sell more product.

To Clarify
There are three types of purchases: impulse, wants and needs, and predetermined.  I will be covering these later in future posts, but for now we are talking about purchases that may be impulse or wants and needs.

Week 1: Step 1 – Scanning:

The first thing consumers do when they look for product is scan.  They stand in front of the available products and their eyes scan across all of the choices they have.

During the scanning step, the consumer has an idea of what they are looking for.  The consumers eyes scan until the attention of the consumer is attracted to one product.  Unless you can get the attention of the consumer, you will most likely miss the sale.

To help get your product discovered, you must…

  • Design packaging in a way that demands the attention from the consumer and that can be easily spotted or recognized.
  • Create features in your packaging that are unique.
  • Add interactive features that draw the consumer to pick up the packaging to further inspect the product.
  • Have a clean and clear message that relates to the consumer.

The reality is, if the consumer doesn’t notice your product, they won’t be able to buy it.  Uniqueness and creativeness need to drive your packaging design.  When a consumer sees something that is new or different from what they expect to find, their attention is captured.

When consumers scan, the packaging design needs to be the connection to help them discover your product.  Creating a packaging design that helps the consumer to find your product is the first step in getting your product to the check out.  Stay tuned for Week 2: Pricing.

Don’t miss a week! To get the next post in this series sent directly to your email, subscribe at, www.brianpankratz.com.

To learn more on packaging your product so that it can be found, contact Brian Pankratz, bpankratz@mercuryplasticsinc.com.

About the SuperBowl Commercials…

04 Monday Feb 2013

Posted by in Consumer Satisfaction, Cost Savings, Marketing, Packaging Design, Product Development, Sustainability

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SuperBowl 2013Do you know anyone who watches the Superbowl for the commercials?

Did you find yourself waiting to be amused when a new commercial came on?

Ask yourself this question…if companies can produce commercials during the Superbowl that draw our attention and get us laughing and talking for days , then why aren’t commercials like that all year-long?  Have we been programmed to just settle the rest of the year and only expect greatness in advertising while watching the Superbowl?

Now about packaging
Since we’re talking about packaging, I’ll ask another question…why do some companies settle when packaging their products?  If packaging helps to sell the product, then why would anyone want to settle for packaging that doesn’t “WOW” the consumer?

It’s your call
The fact is…new packaging designs take time and resources.  I completely understand that our schedules make it tough to fit in additional projects.  But, what if I told you that I can evaluate your current packaging and offer honest feedback at no costs?  Offering designs that could leap-frog your product ahead of your competitors?  Would you be interested?  What do new packaging designs offer?

Here are a few benefits that earlier redesigns have resulted in:

1. Reduced cost for packaging resulting in increased profit.
2. Packaging design awards.
3. The use of more sustainable materials.
4. Smaller carbon footprint in manufacture process.
5. Reduction in packaging components used.
6. Increased satisfaction among retailers and consumers.

So now what?
If you have products that you are responsible for and want to find out if there are better ways to packaging them, contact me and let’s talk.  Step one is to have a quick discussion to decide if there is a fit for us to work together.  If there is a fit…we continue, if there isn’t a fit…we don’t.  Pretty simple and shouldn’t take more than 15 minutes.

Don’t let your packaging turn into every other design.  Make it unique and “WOW” the consumer with every product you have!

For more information on creating new packaging designs, contact Brian Pankratz.  bpankratz@mercuryplasticsinc.com.

– Week 3: How Important is Profit? Plan-Plan-Plan!

09 Wednesday Jan 2013

Posted by in Cost Savings, Packaging Design, Product Development

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ProfitWelcome to week three of, “How to cut costs and maximize profit in the New Year.” Let’s start with a question:  How important is profit to your company?  The ability to keep the doors open depends on your ability to create profit.  Not only is being profitable important, it allows organizations options to produce additional growth.  Investing in new equipment and launching new products is dependent on the ability to create profit.

A quick look back…
To summarize where we have been in this series…in week one, we reviewed ways to design your packaging to increase profits.  In week two, we covered how being sustainable can increase profits.  This week we are going to focus on how planning can either increase or take away profit.

Plan-Plan-Plan
Regardless of what industry you are in, the same goes for all…poor planning will contribute to increased costs.  The better planner you are, the more you can eliminate added costs.  How orders are placed, how packaging is designed, and how much time is allowed to complete projects are all examples of areas planning is important.

Example:

In the year 2013, company ABC plans on launching five new products.  They are similar in size and shape, but do have features that make them different.  The method of packaging will be a clamshell with an insert card. 

Poor planning: Create five different clamshells to custom fit each product.

Good planning:  Create one clamshell that can hold all five different products.  (If needed, create a smaller insert tray to better hold the product in place.)

Result:  The “Good planning” example will have the same packaging for all five parts.  Since the packaging is similar for all five, the quantities will be more, which will allow for better pricing and will result in one part number being used over five parts.  The insert cards will be a common die line which will result in better pricing for printing.  Also, it will reduce the chance for obsolescence packaging costs.

There are several examples similar to the one above that can lead to increased costs due to poor planning.  The goal is to work with suppliers that can identify these areas and help reduce your costs resulting in increased profits.  Sometimes, identifying these areas can be difficult, so it is important to partner with those who have a track record of reducing costs while increasing the value of your packaging.  Create profit in 2013 and do it by being good planners!

For questions or for more information on how you can increase profits in the coming year, contact Brian Pankratz at Mercury Plastics, Inc.  bpankratz@mercuryplasticsinc.com.

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– Week 1 – How to cut costs and maximize profit in the new year!

17 Monday Dec 2012

Posted by in Cost Savings, Packaging Design, Product Development

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Cutting CostsIt’s that time of year again…executives around the globe are finalizing departmental budgets and are in the process of communicating next year’s cost savings targets.  Over the next three weeks, I want to offer areas to help find these savings since many years of eliminating waste can make it difficult to find additional savings.

Please Remember!
The first thing to remember is, just because you reduce the cost of the packaging does not mean you sacrifice quality or create a less desirable package. Both cost reductions and better overall packaging can be achieved together.

Also, if you already haven’t, I want to invite you to subscribe to this blog to receive future updates in this series.  If you know others that need this information, pass it along. If you have questions or need more help, reach out to me for help.  Here we go…Week 1: New Designs That Save.

Week 1: New Designs That Save:
One of the best ways to reduce the cost of your packaging is through creating new designs. Many different objectives can be met by creating new packaging designs. The use of more cost effective materials, using less materials, creating designs that are easier to assemble, etc., are all areas to focus.

Why is design the best?
The reason I believe this to be the best method of reducing cost is because of the added benefits that will follow.  Do you think that reducing the cost of your packaging along with increased sales would benefit your company?  Of course, and that should be the main focus when you create new designs.

What else?
Other areas to review are your graphics.  Using spot colors adds cost, are they really needed?  Understand what is involved to assemble your packaging.  Look for ways to reduce labor costs in the assembly operation (number of total pcs.).  Look for ways to create added value with innovative or captivating features.  Understand the value that each change can offer whether it is reducing costs or adding more value!

Adding these all together can bring huge costs savings while also increasing additional sales.  Don’t just alter existing designs when a fresh new look is what your brand needs.

Need help?
The task of designing new packaging can be overwhelming, don’t do it without the proper consultation.  For more information on getting the most out of your packaging, don’t hesitate to get others involved.  I have been a part of this process in the past and records speak for themselves.  Winning the Ameristar Award 5 out of the last 6 years was not easy, but we are proud of the work we were able to do for our customers.

For questions or for more information on new packaging designs, contact Brian Pankratz at Mercury Plastics, Inc., bpankratz@mercuryplasticsinc.com.

What Others Are Saying About Packaging

04 Tuesday Dec 2012

Posted by in Packaging Design, Product Development, Sustainability

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A recent article was sent out by State Farm Insurance.  It was titled, “11 Tips for an Eco-Friendly Holiday.”  It stated an amazing, yet alarming statistic from the Environmental Protection Agency that between Thanksgiving and New Year’s Day, the amount of U.S. household waste increases 25 percent (1 million tons).

What they said…
The article by State Farm covered a variety of areas to be more eco-friendly, from replanting your Christmas tree, to giving away your left-overs (my favorite).  The suggestion that got my attention was #6, “Pay Attention To Packaging- Try to purchase gifts with the least amount of packaging.”

Plain and simple
Is it just this simple?  The way to be more eco-friendly is to just buy smaller packaging?  Is this even good advice?  Although we know that there is much more than size that makes packaging eco-friendly, none of that was discussed.  Either way, it is good to note what the message was that was communicated.  We need to be aware of the messages that are being sent by those not in the industry that may influence the consumers purchasing decisions.

Capitalize
How do you get the attention of those who want to be more eco-friendly by what they purchase?  The answer is through communicating this with your packaging.  Although size of packaging is one area, consumers are looking for those companies who communicate through their look, verbiage, or graphics, etc. that they are concerned about the environment.

Going forward
This statistic is good for us to know and should push us to create more eco-friendly packaging designs. We need to be aware corporately and personally on what we are doing that contributes to the increased levels of waste, and make changes where it makes sense.

Need Help?
The environment is a serious issue.  My advice would be to make yourself aware of ways that you can improve your product’s packaging to be more sustainable.  If you need help, there are many manufacturers that stay current on new materials and process that can help.  Whether you contact me or someone else…doesn’t matter, just make the effort and do your part to help the environment.

Read State Farms full article here.

For more information on creating Eco-Friendly packaging designs, contact Brian Pankratz at Mercury Plastics, Inc., bpankratz@mercuryplasticsinc.com.

What’s Your Problem?

18 Sunday Nov 2012

Posted by in Marketing, Packaging Design, Product Development

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As product “XYZ” sits on the shelf collecting dust, the marketing and design team for the unpopular product go to work creating new packaging designs to replace their recent failed attempt.  Excitement flares with each new design that gets passed around, but wait…did anyone ask, “What’s the problem?”  Is there a reason product lingers on the shelf and attracts zero attention?

Identification
Before any new design is produced, research needs to be conducted on why the current packaging is not performing.  Many factors contribute to the success or demise of a product; including: cost, shelf visibility, quality of raw materials, graphics, colors, etc.  Before a new design is created, research should be conducted to determine what the problem is.

Example
A lot can be learned from visiting your product in the retail environment.  If you walked up to your product on the shelf to find all of your packaging slightly damaged or dented, you may have just found some answers on why your product isn’t selling.  Maybe the right materials were not specified creating packaging that is deteriorating prior to purchase.  Knowing this information would certainly be helpful when creating new designs.

Know Your Variables
There are different variables that need to be acknowledged when creating new packaging.  Variables such as visibility of product, “try me” features, benefits included, etc.  Know what type of information the consumer is looking for and then provide those features or options.

Packaging design should never detract from the product, it should always add value.  Prior to creating a new design, know why your current packaging is not performing.  Always start with identifying the issues of your current packaging so that those same issues can be avoided in future designs and you know what your problem is!

Need help with your designs?  Don’t hesitate to contact Brian Pankratz – bpankratz@mercuryplasticsinc.com.

Packaging Study Results Are A Must See!

11 Sunday Nov 2012

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Do you know the best way to package your product?  Does your product compete on the shelf with other products? If so, you may want to review a recent study that was conducted by Klockner Pentaplast (KP), a manufacturer of plastic films.

Summary
Klockner conducted a study to determine how consumers shop for product.  The same product was packaged in both a clamshell and a paper board carton.  The behaviors of shoppers were studied and the results were shared.

Here is what they found:
1.  Product packaged in clamshell type packaging sold on average 400 percent more.
2.  The consumer was able to find their product on average 40 percent quicker when they were able to see the product.
3.  Clamshell packaging maintained attention longer by 343 percent.
4.  Clamshell packages received 675 percent more fixations than cartons.
5.  Clamshell packages were purchased over 400 percent more than the standard paper board carton.

After they shopped
After the participants shopped, they were asked to fill out a general questionnaire about their shopping experience.  Over 88 percent stated that it was important to see the product they purchased.  They also agreed the plastic packaging was higher quality and more tamper-resistant.

My thoughts
I want to take the time to look at this study, not from a plastic film manufacturers point of view, but from someone who designs and manufacturers both clamshell and paper board carton packaging on a daily basis.

What are the main take-aways?
It is clear that when the consumer can see the product, it allows them to get a comfort of what the product is and what they are buying.  The main point of the study is clamshell vs. paper board carton.  One could argue that other types of packaging, such as windowed cartons, sealed or trapped blister packs, etc., may have a different outcome in the study.  Debating this would only get you unanswered questions, just don’t forget the main take-away, show your product!

Even bigger
We all know that packaging is considerably more complex than deciding clamshell vs. paper board carton.  If you have a clear understanding of how consumers shop, you also know that it isn’t only about clamshell vs. paper board carton.  Colors, images, brand recognition, sustainability concerns, etc. play an enormous role on how packaging is designed.

When developing packaging for your product, ensure to explore all your options.  Your packaging designs are only limited by the person designing them.  Engage innovation, creativity, and be different to draw attention to your product and gain the attention of the consumer.

Read Klockner’s full study here.

If you would like more information about ways to create new packaging designs that sell, contact Brian – bpankratz@mercuryplasticsinc.com.

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Your Packaging Thinks You’re a “!@#$%^!”

03 Saturday Nov 2012

Posted by in Marketing, Packaging Design, Product Development

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If your packaging could talk…what would it say?  What would it say about both you and your company?  Some of us are thinking to ourselves that we’re very happy our packaging can’t actually talk.  A smaller percentage of us wonder what would actually be said.  Regardless of the side that you take with wanting your packaging to talk, there is a sobering truth that lingers.

The Truth
The truth is…packaging does talk.  How we package our products tells a lot about us.  This is consistent with many things in our lives…how we dress, the car we drive, the words we use, etc., all tell a little bit about who we are.  This goes the same for how you package your product.

Write the Script
Determine what you want your package to say.  Certain colors, textures, fonts, and shapes all communicate different messages.  Being unique and creative is essential and will help your packaging to speak loud and clear.

Details
Great manufacturers understand that every detail matters.  If you want to be regarded as a top innovator, your packaging should be as innovative as the product inside.  Doing this gains confidence with the consumer that attention has been given to every detail, even the packaging.  Do consumers notice this?  Absolutely!

Your packaging is talking…did you tell it what to say or is it telling everyone that you are a !@#$%^!

If you would like more information about ways to create packaging that speaks a clear message, contact Brian – bpankratz@mercuryplasticsinc.com.

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** Don’t Waste a Holiday! Holiday Packaging Ideas **

28 Sunday Oct 2012

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As the 2012 holiday season approaches, shoppers prepare to rush the stores in search of gifts for family and friends.  A survey conducted by BIGinsight reported that the average holiday consumer will spend approximately $750/person on gifts, décor, greeting cards and more this holiday season.  According to the National Retail Federation, holiday sales are projected to increase this year 4.1 percent to $586.1 billion.

Do Not Waste!
With such a huge market for products to thrive in, manufacturers cannot afford to waste a holiday!  Each manufacturer needs to understand how they can package their products to reach the holiday consumer.  I understand that some products do not lend themselves to a holiday market, but for those who do, capitalize on the opportunity.

My Surprise
I was recently discussing packaging ideas with an established candy manufacturer for one of their everyday items.  When I asked what they do for the holiday season, they answered, “nothing.”  To my surprise, I couldn’t figure out why they would let the holidays go by without some sort of offering.  They have so many different great products, a holiday variety package including some of their best sellers could be a huge hit.  Unfortunately, no thought was given to creating a product offering for their faithful following.

Time for Ideas
Start planning now for ways your product can capitalize on the 2013 holiday consumer market. Be creative…there are many different segments of the holiday market that need good gift solutions for those “hard to buy for” people!

Whether your product can be packaged for corporate gifts or stocking stuffers, find the packaging that offers a great gift idea.  Generate cost effective ways that you can help others make shopping this holiday season easier.

If you would like more information about ways to create holiday packaging ideas, contact Brian – bpankratz@mercuryplasticsinc.com.

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**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.

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“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

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