Presentation vs. Pricing
Packaging – is it worth the price
Was helping a start-up client put together the copy for the packaging of a new product of theirs. They sent me pictures of the packaging, as well as their first draft.
It was beautiful packaging, a full four colors, glossy, that folded out (like a book) so when opened, the product was stareing the buyer right in the face, beautiful.
I had to ask them how much the packaging was costing compared to the product (percentage). I had to ask, because throughout my career, as well as your own I’m sure, you have to constantly measure your cost of goods vs. your margin vs. product retail price. How much more money could you make if you can continuously lower your cost of goods (like packaging), thus increasing your margin, and thus making the retail price acceptable to the world.
The beautiful packaging would certainly impress the retail buyer. I am no so sure about the end consumer, since they won’t fully see it’s “beauty” until after they buy it (and packaging is one of the first AND last lines in purchase intent).
I’m sure that they are going to go ahead and use the impressive heavy beautiful packaging (as they are a start-up and this is how start-ups think). But, I bet, within a year, they will either have an alternative or outright different package – one that is simple and cheap.
Apple computer is the only one who can afford to have expensive packaging and that’s because the consumer pays for it.
