Why Small Businesses Need Custom Packaging

The word custom can sound expensive. It immediately brings dollar signs to mind. Custom tailoring, custom cabinets- these are things you pay extra for- something more costly than its generic counterpart.

So it only makes sense that custom packaging would feel out of reach for a small business. Why pay for something that will just be thrown away? In reality, custom packaging is more complex than that. The good news is; it’s not as expensive as people think. It is also the first touch point, the very first tactile interaction a customer has with a brand. And how about this mind blowing concept- it can actually save costs on shipping.

Mom Was Right.

You know the old saying your parents taught you “you only get one chance to make a good first impression.” How true it is. First impressions form within 100 milliseconds, and often remain intact even when contradicted by factual information.

What do you want the first impression of your brand to be?

UPS delivers 16.9 million packages every day, and all those packages are more exposed to the world then ever, thanks in part to the trend of unboxing. Since 2010, the number of YouTube videos with “unboxing” in their title has grown by 871%.

How Can It Save You Money?

Prior to 2015, shipping charges were based on how much a package weighed. But now, FedEx and UPS use a pricing technique using dimensional weight (DIM).

(L x H x W)/DIM

This was a move aimed at leading shippers towards packaging that is closer to the exact size necessary for safe delivery. Previously, most consumers chose boxes much larger than necessary, causing vehicles to fill up before reaching their physical weight capacity. In easy terms: you are now charged by how much space your package takes up in a truck or on a plane.

Think about it this way; let’s say you want to ship an ultra-light box of cigars in a 12″ x 12″ x 12″ box. Between the cigars, box and packing filler, the total actual weight of the package is 5 pounds.

But with DIM pricing, that doesn’t mean your parcel will actually be billed at 5 pounds. If the DIM is 166:

(12 x 12 x 12) / 166 = 10 pounds

So this lightweight box will now be charged based on that new 10 pound number. To save money on shipping, you really need to re-evaluate your box sizes and packaging methods to help you fit more product in smaller boxes, which could bring down your DIM price.

Custom Does Not Just Mean Branded.

Sure, branding your packaging is important. It brings your customer a positive first impression and heightens expectations for the product itself (which when met, leads to a better customer experience). But changing to a custom size can lead to serious cost savings for your business. And that, my friends is what we call a win-win.