Contract Packing is a business to business service which enables a manufacturing company to hire another firm to pack its product in a way which is suitable for distribution to retailers and consumers.
This can be done for any kind of product, from solid objects, to liquids, powders, foods, cosmetics, drugs, chemicals… you name it, and someone can pack it for you. And when we say pack, this can take a multitude of forms too: boxed, bagged, bottled, bundled, put into pouches, squeezed into tubes, shrink-wrapped, vacuum packed… whichever is most suited to your requirements.
This may seem a bit of a niche service, but in fact it is a multi-million pound business. In the United States, the contract packing business has been estimated to be worth over $25 billion. Ok, this figure is supplied by the American Contract Packaging Association, and our cousins from across the pond are not renowned for understatement, but even so, it is clearly a major industry. In the United Kingdom, the business is equally important, with thousands of companies taking advantage of these services to package their goods and enable them to be sent direct to shops and stores.
Why should your Business use Contract Packing?
Use the Experts
- As a business, you know how to manufacture your product to maximise its quality, customer appeal and minimise costs. However, packaging it in a way which is eye-catching and attractive for consumers, yet also convenient and practical for retailers, is a specialised skill.
- A good contract packing company has the experience and know how to produce the best and most appropriate packaging for your product. Their knowledge and experience of different technologies and styles will enable your product to be merchandised in the most eye-catching, attractive and practical way both for your customers and the retailer too.
- In short, you do what you do best – devising, designing and manufacturing great products, while leaving the packaging to the experts who know how to package and merchandise your products in the best way for your customers.
It’s Cost Effective
Think of all the things you won’t have to pay for:
- You don’t have to employ an expensive marketing and graphic design team.
- You don’t have to invest in the capital cost of buying complex and space occupying packaging equipment, nor employ the people to maintain and operate it.
- You don’t need a massive warehouse, because you can just ship your product direct to your contract packing supplier for packaging and onward distribution.
- You can manufacture and ship in bulk. Your product is then packaged into unit sizes more suitable for the retail market later. This will save you time, storage space and logistic costs.
It can be far more efficient to just leave everything to the experts. You can then get on with what you do best, safe in the knowledge that your contract packing company will take care of the rest.
Marketing and Merchandising
- Your contract packer can design and supply the merchandising units and other retail aids which will really help your product to fly off the shelves. These can include purpose built display units, clip strips and other point of sale merchandising aids which will really help to make your product stand out in a retail environment.
- Your contract packer will do everything to present your product in as convenient a form for the retailer as possible. They can print bar codes, use by dates and sell by dates; provide marketing material; produce promotional packs and multi-packs… the list is endless.
Most of all, it’s practical. Your product will be expertly merchandised so it is in a format and pack size ideally suited for retail sale direct to the consumer. Please contact us and we will be happy to offer help and advice, using our experience and expertise to ensure that everything is packaged precisely to your requirements.