What is pack size and how can it help my business grow?

How does pack size relate to the average consumer?  Visiting family in upstate New York, I came across a product that I thought was just amazing.  Grandma Brown’s Baked Beans.  Upon my return to Chicago, I was not able to find that product.  After many weeks of traveling from grocery store to grocery store, I realized that Grandma Brown’s Baked Beans are a regional product that I was never going to find at my local grocery chain in Chicago.

Off to the internet I went to find a shopping site that I could purchase the product.  I was able to find the product, but the cost of a single can was 3Xs what a can in store was.  And the minimum order size was a pack size of 12.  The product was delicious but not enough to pay 3Xs the shelf price or order in a heavy pack size of 12.  I am not alone.  Pack size matters to consumers that are looking for a product.  Being forced to pay 3Xs the shelf price or order in large quantities does not sit well.

LongTail, Inc. has perfected the “right sizing” method of pack size.  We offer a variety of creative and innovation solutions to repackage large quantities into smaller sizes while staying within your budget.  You send us your product in your manufacturer or co-packer’s case size and break them down into kits of smaller sizes.

  • Method One:
    We use poly bags to package the product. We have a variety of sizes and can custom order additional sizes at your request. The cost range of a poly bag without labor to assemble the new package size is approximately $.15 – $.75.*
    poly bag 2pk
  • Method Two:
    We use plain brown boxes, or branded boxes provided by you, to assemble the new package size. The cost range of a box without labor to assemble the new package size is approximately $.35 – $1.25.*
    2 pack in box
  • Method Three:
    Shrink wrap can be used to bundle items of similar sizes together. This is beneficial for products that are more uniform such as a deck of cards or tubes of chips.  The cost range to use shrink wrap varies based on the size of the product we are bundling, the thickness of shrink wrap required and the number of bundles we are creating.  We are happy to discuss this option and provide you with an in depth quote.
    shrink wrapped multi packs

After the newly created kits are completed, we can affix a variety of labels to your product.  We can also create and add new brand labels with a unique UPC for the multi-pack, or we can affix Amazon specific labels to prepare your product for shipments to Amazon.

How will this help you grow your business?

Creating products with different pack size as a variation will consolidate the product offerings onto one product display page.  This gives consumers options for purchasing in multiple quantities, at different price points, without having to search and click on different product display pages.  An easy comparison can be made making the purchasing decision process easier.

Consumers are looking for a perceived value when shopping online.  Marketplaces such as Amazon often charge a per unit fee for items that are sent in to their fulfillment centers. These per unit fees are associated to an item whether it is a single item or a multi-pack.  In order to create a perceived value to a consumer, lowering the per unit cost of an item is the goal.

What does that look like?  Here’s an example:

  • A $10 box of gourmet crackers has a $3.50 pick & pack fee associated to it on Amazon.
  • The product cost to the consumer is $13.50 plus shipping if applicable.
  • The unit cost for this box of gourmet crackers is $13.50.

If you were to package four boxes of gourmet crackers together, that $3.50 pick & pack fee is now distributed to all four bottles.

  • The cost to the consumer is now $43.50
  • The product now has a per unit cost of $10.87.
  • A perceived savings of $2.63 per box.

                                                    

$10 product cost                                                                                                              $40 product cost

$3.50 pick & pack fee                                                                                                     $3.50 pick & pack fee

$13.50 cost to consumer                                                                                              $43.50 cost to consumer

$13.50 per unit cost                                                                                                        $10.87 per unit cost

Interested in learning more?  Contact us through our website.  One of our business analysts will respond to you promptly.

By |2018-10-24T21:16:13+00:00November 5th, 2018|Categories: Industry News|Comments Off on What is pack size and how can it help my business grow?